#InfraestructureForEducation Educational sector in Mexico

Overview.

Educational System Structure

FIBRA EDUCA target market

Pre-Primary Education

Primary Education

Lower Secondary Education

Master’s Degree Programs / Specialization Programs
Doctoral Degree Programs

Bachelor’s Programs

Technical Professional Education

Upper Secondary Education

Mexico’s dual education landscape: public vs private sector comparison

Public Education

Funding and Governance: Government-funded, free tuition; overseen by the Ministry of Public Education (SEP)
Curriculum: Standardized national set of courses for consistency
Challenges: Faces limited resources, inadequate facilities, and teacher shortages, especially in rural areas
Access and Equity: Compulsory for ages 3 to 15; quality varies between urban and rural areas

Private Education

Funding and Autonomy: Tuition-based, allowing flexibility in set of courses and resources. Largely funded through out-of-pocket contributions from families
Curriculum: Offers diverse and specialized programs, including bilingual and international options
Growth and Accessibility: Significant growth in urban areas; tuition fees limit access, but some scholarships are available
Regulatory Oversight: Requires program validity recognition (REVOEs) from authorities to ensure standards

Distribution of educational institutions in Mexico

Key highlights

Mexico’s largest age group (20 – 24 years old) will sustain a strong higher-education market through 2030

Socioeconomic segments A/B, C, and C- are growing fastest, driving increased demand for private education

Nearshoring and economic growth are boosting demand for degrees and specialized skills

Undergrad degree holders earn ~34% more than those with only high school, reinforcing the value of higher education

~86% of higher education students pursue undergraduate degrees, with 70% focused on social sciences, education, health, and law

The higher education market remains highly fragmented, with consolidation potential across geographies and socioeconomic tiers

Evolution of higher private education market size in Mexico

(Revenue - US$bn)

Penetration forecast for higher education in Mexico

(Population between 25 – 64 years old)

	2023E	2024E	2025E	2026E	2027E	2028E	2029E	2030E
Market size (US$bn)	$8.9	$9.1	$9.2	$9.4	$9.5	$9.7	$9.8	$10.0
Total target population (mm)	64.6	65.7	66.7	68	68.9	70.1	71.1	72.1
Population with High Education (mm)	14.1	14.8	15.5	16.3	17.1	17.8	18.6	19.4
Penetration (%)	21.8%	22.5%	23.3%	24.0%	24.7%	25.4%	26.1%	26.6%

Higher Education in Mexico.

In Mexico, it takes between 6 months and 2 years to certify a program with RVOE, yet it is not obligatory for institutions

Recognition of official validity of studies (RVOE) for
private institutions

The Recognition of Official Validity of Studies (RVOE) in Mexico is the formal endorsement by authorities to integrate programs offered by a private institution into the national education framewor
Obtaining the RVOE for private institutions is optional, however, if they don’t have it they must clearly state their unincorporated status

RVOE application process

Submission of application: submit educational program in line with all federal and state requirements – (e.g., faculty qualifications, facilities/digital architecture, etc.)

Compliance review: institution’s evaluation of legal requirements

Program review: ensure all standards are met – assess enrollment & graduation requisites, social service modalities, courses, etc.

Issuance of RVOE: if all requirements are met by the institution

Timing and constraints

Reviews are stated to last around 6 months, but times vary based on 4 main types of program applications:

Common program in existing campus / digital infrastructure:
~6 months
Common program in new campus / digital infrastructure:
~1 year
New program in common campus / digital infrastructure:
~1 year
New program in new campus / digital infrastructure:
~2 years

Mexico's national coverage and enrolled students continues to increase on a yearly basis driven in part by a +4% higher absorption

Evolution of total higher education enrollment in Mexico

College absorption in Mexico

Access & Growth.

Mexico has a strong potential to increase higher education gross enrollment rates nationwide...

Gross higher education enrollment rate by state

% of coverage

20-30

30-40

40-50

>50

The gross enrollment rate is the total number of students enrolled in an educational level at the start of the school year, per hundred people in the age group meant for that level

States with the highest enrollment rates typically have large cities that attract students from other areas

Mexico’s national average education penetration is 43.5%, highlighting the need to reduce educational gaps by investing in accessible, quality education across the country

Significant regional disparities exist, with states like Mexico City exceeding 70% enrollment, while southern states such as Chiapas remain below 20%

Top 10 states with the highest number of students in Mexico

...as well as a potential expansion of the private education segment

Nationwide, private
enrollment has been
increasing its share, with
potential expansion
opportunities evident in the
northern states

Mexico’s evolution of total private and public higher education enrollment

(millions of students)

~52% of new private higher
education institutions have
emerged in seven states,
leading to increased
saturation in the central
and southwestern regions

	17-18	22-23	Delta
Institutions	3,223	3,733	+510
Total Schools/Campus	5,645	6,530	+885

Mexico’s number of institutions for private and public higher education

(number of institutions)

Higher education in Mexico has a low concentration given its large number of regional players, implying potential to consolidate

Evolution of the total number of institutions in Mexico

(% of total institutions)

Herfindahl-Hirschman Index (HHI)

Year	14-15	15-16	16-17	17-18	18-19	19-20	20-21	21-22	22-23
HHI Total	0.92%	0.90%	0.90%	0.85%	0.84%	0.82%	0.87%	0.88%	0.87%
HHI Public	1.79%	1.77%	1.77%	1.70%	1.72%	1.71%	1.79%	1.83%	1.82%
HHI Private	1.04%	0.99%	1.02%	1.07%	.98%	0.93%	0.95%	0.96%	1.04%

The Herfindahl–Hirschman Index (HHI) is a widely used measure of market concentration. It is calculated by summing the squares of the market shares of each firm competing in the market. The total is then divided by 100 to express it as a percentage.

Index	Interpretation
0 – 15%	Low concentration
15 – 25%	Moderate concentration
25 – 100%	High concentration

Industry concentration has remained low due to: i) low barriers to entry, with a constant influx of new players; ii) the geographic landscape, characterized by regional country divisions; and iii) fierce competition.

Education & Market Forces.

Private Education Groups in Mexico

~450,000

students

between

NG and Lottus

~$20 - $100

$400 - $600

$144 - $650

~$20 - $100

$300 - $600

$85 - $150

A Snapshot of How Mexico’s Education System Compares to Other Regions


Real Estate Model	University campuses operated by private education groups.	Urban campuses operated by private groups; demand-side PPPs via government programs.	Focus on student housing; academic infrastructure mostly public-owned.	Campuses owned by public universities; private capital focused on student housing.
Infrastructure Funding	Private-sector led due to insufficient public investment.	Mixed public-private model; expansion driven by student subsidy-backed demand.	Mix of public and private funding.	Campuses publicly funded; private sector active in housing.
Government Involvement	Minimal in private education; regulatory oversight only.	Voucher programs (FIES, ProUni) enable private sector access.	Deep involvement via federal loans, grants, and infrastructure.	High public funding.
Education Financing	Tuition-based, no public financing in private sector.	Government subsidizes access to private universities.	Students rely on federal loans/grants.	Student loans and public subsidies fund most costs.
Online vs. In-Person	In-person dominant in low to lower-middle segment due to tech access gaps.	Online education growing, especially in secondary cities.	Widespread online and hybrid learning.	Hybrid model growing; strong on-campus culture persists.
% of low-income students with access to computer / internet	~40–45%	~55%	~95%	~98%

Driven by a private sector-led model and growing enrollment needs, Mexico’s education sector relies heavily on physical campuses, creating a unique real estate opportunity

Mexico’s Most Relevant Macroeconomic Factor:
Nearshoring will Impact the Higher Education Market in the Near Future

Trend description

Potential impact

Higher economic growth

It is estimated that nearshoring could boost in 3% Mexico’s GDP in the next 5 years

Exports could increase from ~US$50.6bn in 2024 to more than US$1.1bn in 2030

Higher disposable income for individuals and families, which is expected to boost consumption, including expenditure in education

Increased Foreign Direct Investment

Foreign Direct Investment in Mexico has surged, with manufacturing rising by an average 20% annually since 2019

Influx of investment is driven by companies seeking to diversify their supply chains and capitalize on competitive advantages

Increased demand of highly skilled workforce, boosting the need for higher education investments

Investments for private education are expected to fill the gap needed to suffice the workforce demand

Manufacturing as Key Enabler

Manufacturing currently represents more than 50% of FDI and this trend is expected to increase

Manufacturing could become more than 80% of the country’s total exports

Higher demand for technical labor and engineering; particularly states that have a high focus on manufacturing (i.e., Nuevo Leon, San Luis Potosi, Coahuila, etc.)

Opportunity for Science, Research and Innovation

New challenges will arise in terms of optimization, supply chain and mathematical models to satisfy nearshoring demands (e.g., diver allocations, network optimizations, etc.)

Greater demand for data scientists and engineers who can help companies solve complex supply chain and identify patterns to satisfy needs

Education Sector Demonstrates Anticyclical Behavior Throughout Economic Enviroments

(YoY variation change an mm of students)

Private Sector Solving Lagging Public Investment in Mexican Education Infrastructure

Mexico has historically allocated a low percentage of its GDP to education, particularly in infrastructure

Public Spending - GDP

Reduced public spending on education has increased demand for private education

Public Spending
as % of GDP

UNESCO (2015) recommend that the ideal education spending be 4-6% of GDP

Investment Spending

Public spending has focused more on salaries than on improving infrastructure

Public Investment as % of the Total Educational Spending

Budget Benchmark

Spending per student in Mexico is approximately USD 3,200, placing it among the lowest levels in the OECD