10 / 08 / 21
Guidelines for the reconversion of offices to residential real estate in Mexico City
On August 4, 2021, the guidelines for the reconversion of offices into residential real estate in Mexico City (the “Guidelines”) were published in the Official Gazette of Mexico City.
The purpose of this agreement is to establish the guidelines to request the reconversion of real estate that is currently used for offices into residential use (the “Reconversion”). The above based on the effects of the pandemic caused by COVID-19 in the real estate market, motivating remote work and resulting in a potential excess of existing office space.
The Guidelines correspond only to real estate located in residential areas of: Azcapotzalco, Benito Juárez, Coyoacán, Cuauhtémoc, Gustavo. A. Madero, Iztacalco, Miguel Hidalgo and Venustiano Carranza, provides such locations include residential or mix use.
The application will be carried out in 2 phases:
Phase 1: Registration and Inscription: the information established in the Guidelines shall be submitted to SEDUVI for analysis.
Fase 2: Revisión y Aprobación del proyecto: En un plazo máximo de 20 días hábiles, una vez analizada la información, y si la SEDUVI aprueba el proyecto, se emitirá un dictamen de aprobación, con el cual el Phase 2: Review and Approval of the project: Within a maximum period of 20 business days once the information has been analyzed, and if SEDUVI approves the project, there upon the Promoter of the Reconversion project may file the Construction Permits.
The Reconversion will grant certain benefits consisting in the exemption from certain government fees proceeds in the Mexico City Tax Code.
Other obligations applicable to the Guidelines are:
1. In the event that the residential real estate to be reconverted is rented, it may not be rented for temporary use (vacation).
2. The application of the Guidelines does not exempt from the fulfillment of the requirements for relevant construction permits.
3. Reconvention projects may not increase the construction space with the exception of constructions need to structure enable spaces with special facilities or, as the case may be, for structural fixes.
These Guidelines will be in effect from August 5, 2021 through December 31, 2024.
If you have any questions regarding these Guidelines, please contact:
María Teresa Paillés
tpailles@smps.com.mx
+ 52 (55) 2919 9065
Nadiezhda Vázquez
nvazquez@smps.com.mx
+ 52 (55) 2919 9063