Introduction to the Growth Plan
In Puebla City and its surrounding areas, a growth plan for new commercial plazas has been announced for the next eight years. This development is driven by the expansion of residential zones and the demand for improved services for families, according to Andrés De La Luz Espinoza, director of the Association of Commercial Centers of Puebla (Acecop).
Rationale Behind the Growth Plan
De La Luz Espinoza highlighted that families prefer smaller, nearby commercial plazas over traveling across the city. This preference presents opportunities for businesses seeking locations with a steady flow of potential customers, rather than competing in the historic center with informal vendors.
Lessons from Past Mistakes
The Acecop director mentioned that the rapid, unregulated growth of the commercial plaza sector a decade ago led to the construction of small, poorly-planned complexes without proper market research. However, developers have since revised their business models to ensure that new plazas cater to genuine market needs.
Investment and Development Context
De La Luz Espinoza explained that builders sell commercial space in advance, similar to residential properties, ensuring occupancy and monthly rent. This strategy has become a lucrative “way of life” for some investors, as their investment value does not depreciate.
Attractive Market for Investors
Local and national businesses see the commercial sector as viable opportunities for further development, making Puebla an attractive market for investment. The city’s periphery, near the Ecologic Peripheral Road that crosses five municipalities—Puebla City, San Pedro Cholula, San Andrés Cholula, Amozoc, Cuautlancingo, and Coronango—offers ample land for new commercial complexes.
Investment Details
He elaborated that each commercial space requires an investment of between 7 and 10 million pesos, excluding the cost of land, which ranges from 2 to 3.5 million pesos.
Prime Investment Zones
Representing 74 complexes with 5,000 commercial spaces, De La Luz Espinoza identified Puebla City, San Andrés Cholula, and Cuautlancingo as the areas with the best investment opportunities due to their urban growth.
Addressing Land Cost Concerns
Although the cost per square meter has risen by 40-50% over the past six years, De La Luz Espinoza denied any land shortage for the commercial plaza sector. Builders are willing to pay the increased prices, confident in a return on investment within seven years or more.
Tourism’s Impact on Commercial Plaza Development
The influx of tourists also contributes to the growth of commercial plazas, as travelers often stop to rest and dine during their visits.
Key Questions and Answers
- What is the growth plan for commercial plazas in Puebla? The plan aims to develop new commercial plazas over the next eight years, focusing on residential zone expansion and improved services for families.
- Why is this growth plan necessary? Families prefer smaller, nearby commercial plazas, creating opportunities for businesses and addressing the need to offer better services.
- What lessons have developers learned from past mistakes? Developers have revised their business models to ensure new plazas meet genuine market needs, avoiding the unregulated growth of a decade ago.
- What are the investment details for commercial plaza development? Each space requires an investment of 7-10 million pesos, excluding land costs ranging from 2-3.5 million pesos.
- Which areas are considered prime for commercial plaza investment? Puebla City, San Andrés Cholula, and Cuautlancingo are identified as having the best investment opportunities due to urban growth.
- How have rising land costs affected the commercial plaza sector? Despite a 40-50% increase in land costs over six years, builders remain confident in a return on investment within seven years.
- How does tourism influence commercial plaza development? Tourists contribute to the growth of commercial plazas by stopping for rest and dining during their visits.
