Financial business model for horizontal housing development

Housing construction is a strong indicator of Mexico's economy representing 85% of GDP. Sonora ranks 16th in private housing construction activity nationwide accounting for 2.9% of the country's GDP. Under this framework the urban growth in Hermosillo (the capital of the state of Sonora) is remarkable with a marked expansion inclination towards the horizontal housing construction scheme. According to Mascareñas 2007 Corporate finance focuses on generating value and maintaining it through the efficient use of financial resources. Hence the importance and necessity of this publication which aims to create a Financial Model for the construction industry through the collection and analysis of information from real horizontal real estate projects executed in the city of Hermosillo Sonora Mexico with the purpose of defining representative and reliable financial indicators that enhance profitability and simulate future scenarios for investment decision making.