How is capital gain classified in Mexico City? As we mentioned before, real estate investment is a smart investment and one of the most important concepts when making a decision is capital gains.
In a technical definition, we can define capital gain as the value of a property that increases over time. This phenomenon is a consequence of external variables such as:
- Access roads.
- Location.
- Services and infrastructure.
- The architectural urban value.
- Supply and demand.
- Future plans.
3 factors that influence the appreciation of a property’s value
1. Access routes
Urban mobility is of utmost importanceFor this reason, it is essential to have streets and avenues that connect with the main access roads, as well as public and private transportation systems (Uber, Didi, Beat, among others) to reduce travel times and to provide a better service. a high quality of life is generated. This is why, for example, that Polanco is drawn with a significant growth in terms of future capital gains, given its connectivity.
2. Urban projection
Each zone in Mexico City has urban plans, which allows developers to plan their constructions and ideas. As an investor, you should study and analyze the different commercial, social and housing centers that are being built in the area in order to be able to estimate their future growth.
One example is the increase in sustainable developments, at
Nolab
We call it Zone 1, and it covers the Roma, Condesa, Hipódromo, Cuauhtémoc, Juárez and Escandón neighborhoods in Mexico City.
And although these issues do not depend directly on the investor, there is a fundamental variable that will keep your investment in constant growth: the maintenance of your real estate.
3. Future investment
Real estate, unlike other investments, requires constant maintenance. Not only of the common areas or external infrastructure, but also of its internal structure such as walls, floors, pipes and other systems. This ranges from daily cleaning activities, to periodic preservation such as waterproofing or specific treatments on staves and mosaics.
An apartment in good condition not only visually impacts future buyers, but also promotes good future valuations.
We recommend that you always verify what is included in the maintenance fees included in your purchase-sale contract, since this type of care guarantees, in part, your investment.
But how is the capital gains in Mexico City behaving? According to Justino Moreno, Chief Data Officer at Tinsa Mexico, overall growth has been 8.9% annually since 2016.
Now, in order to calculate the appreciation of a home, you must analyze each of the factors mentioned above, as well as the original value of the home, its age and the condition in which it is currently located.
And if you require more precise information, we recommend that you contact one of our real estate experts for advice.
