The purchase of real estate in Mexico has become one of the most highly profitable investments in Mexico in recent years. This turns out to be an ideal business for Mexicans and foreigners seeking to shelter their assets while obtaining attractive returns thanks to the passage of time. Discover below everything you need to know about the best areas to invest in real estate in Mexico.
What is real estate investment?
Real estate investment is a financial transaction involving the purchase of a property with the purpose of obtaining returns over a certain period of time. This purchase can be made in cash or through financing.
Investing in real estate is a practice that involves financing, buying, renting, selling or advising properties with the objective of obtaining a return in a given period of time.
Given the nature of the assets in this investment scheme, there are multiple factors that are important to understand in order to be successful in the medium and long term.
Keys to start investing in real estate in Mexico
1. Allocate a maximum budget
According to the type of property you choose, investing in real estate means allocating a specific budget with which you can start buying properties. For example, in the Polanco area of CDMX, new apartments start at prices of 12 million pesos. That is why, according to your budget, you can start looking for projects in specific areas.
2. Define the type of project in which you are going to invest.
Traditional real estate investment comprises the purchase, sale and remodeling of residential real estate, i.e., houses or apartments for personal use. However, there is also real estate investment in commercial projects for rent, as well as industrial real estate. About the latter model, we have previously talked about it. Take a look at this information and learn everything you need to know about trusts.
3. Seek guidance from industry experts
To start earning profits in the real estate world, it is important to have experience and general knowledge in the areas that are of your main interest.
That is why, if you have little or no experience to value a property, as well as to calculate its capital gain in a certain number of years, or simply to have all the legal aspects in order, it is important to count on experts who can advise you and protect your investment .
4. Knows the value of the place
Previously we shared with you some key factors that directly influence the appreciation of a place. In principle, you should know that in order to calculate the capital gain of a property, the construction itself is not taken into account, but the cadastral value of the land. In addition, urban mobility, health and commercial projects occurring in a nearby radius also have an influence. Take a look at the post we previously dedicated to this topic.
3 zones with high capital gains in Mexico that you should know about
Polanco
Located in the northwest of Mexico City, in the Miguel Hidalgo district, the Polanco neighborhood is home to some of the most attractive residential projects in all of Mexico.
The neo-colonial architectural style that stands out among its oldest houses, while at the same time minimalist and modern projects are being built, where the functionality of spaces and maximum use of natural light are promoted, make this area one of the most desirable places to live and to invest in real estate.
In Polanco we are seeing increases in capital gains of between 15% and 20% in pre-sale projects. Due to the nature of the area, there are areas where prices vary, for example, in Sections I and V we see lower priced properties compared to Sections II and III, whose streets stand out as some of the most expensive to buy or rent in all of Mexico.
There is no doubt that streets such as Campos Elíseos, Rubén Darío and Tres Picos are some of the most sought after for acquiring a property and obtaining impressive returns.
Discover the best properties for sale and pre-sale in Polanco, CDMX
Valle de Bravo
Valle de Bravo, a new investment and capital gain destination for Mexicans and foreigners from all over the world, is located 145 km from Mexico City.
In Valle de Bravo the pace of life is completely different from any other place in Mexico, as it fuses the best of a magical town with incredible real estate developments ideal for weekends, weeks or year-round living.
The area of Valle de Bravo is rich in culture, entertainment, gastronomy and unspoiled nature thanks to the lake that fills the entire municipality with life. Here you will find a warm climate all year round, being more temperate at night, this makes the properties located here a destination of total relaxation and harmony.
The capital gain in Valle de Bravo varies depending on the area and the access roads that are located here. We see examples of the increase in capital gains on properties ranging from 15% to 30% in some projects. This is not to mention other investment modalities such as fractional ownership, which can undoubtedly bring attractive rents week by week.
Discover the best properties for sale and pre-sale in Valle de Bravo
Tulum
The Tulum area is currently experiencing one of its best moments in terms of economic development thanks to tourism and real estate investment. Considered by many as “The Jewel of the Mexican Caribbean”, Tulum is a paradisiacal destination for those seeking the goodness of coastal living with all the comforts of a 24/7 resort lifestyle.
The large influx of national and international tourism to this area has made the federal government aware of the importance of having a own airportlocated 10 km from the center of the city and 10 km from the city center. which represents a new level of mobility for locals and tourists alike.. The volume of passengers using the new terminal is estimated at 4 million per year. This airport will improve the distribution of tourism throughout the state of Quintana Roo, which will also directly benefit the entire economy of the area .
In which areas of Quintana Roo should you start investing?
According to data collected over the last couple of years, Tulum’s land value appreciation averages approximately 10% per year. The number of real estate transactions that take place between the areas of Cancun, Tulum and Playa del Carmen (approximately 10,000), position the Mexican Caribbean among the top ten fastest growing real estate markets worldwide.
Like Valle de Bravo, in Tulum you can buy complete or fractional properties, which is ideal for those who are looking for a safe and highly profitable investment. Whether through the lease of your available weeks per year, or the direct sale of your fraction, the security of your patrimony and the obtaining of yields is an almost guaranteed event.
Investing in real estate is one of the best investments you can make today! At Nolab hope that this information will be of great value to you and that you will make the best investment decision. If you need further advice on this matter, contact us at one of our advisors is available to provide you with all the details you need.
