2. Developing the Homex Community Concept

As a company constantly mindful of change and improvement, during the year we continued to expand our Homex Community concept, which we first envisioned in 2008. The Homex Community is the result of our awareness and proactive decision to improve the urban planning of our communities to offer our customers integrated communities that complement the new dynamics of a younger population that often prefers to live closer to the city, yet in an environment where their families can enjoy a living experience that promotes social interaction and is advantaged by economic development. The Homex Community is a concept for constructing cities which apply modern urban development models, as well as innovative techniques for social development, primarily focused on improving the quality of life and enhancing home and project appraisal. Homex’ communities include commercial areas, special and general services and recreational spaces that facilitate social interaction. In addition, Homex’ communities integrate the concepts promoted by the Mexican Housing Commission (CONAVI) and INFONAVIT initiatives to promote the implementation of green attributes in homes, as well as orderly urban planning through increased project density through the integration of vertical prototypes. As of year-end 2010, vertical prototypes represented approximately 30 percent of total Homex homes under construction. We are proud as pioneers and promoters in many Mexican cities in introducing this new concept, which has helped us drive sales and generate economies of scale. In a very clear way, we return much of these savings to our customers, through improved, tailored product offerings that through our close and constant conversation with clients and acquired knowledge we had been able to have a home that serves our customers’ needs and preferences.