How to successfully invest in real estate in Mexico?


In the fast-paced world of real estate investment, location used to be considered the main key to the success of a transaction. But how to discern what is the right location? The answer is not simple, as various factors such as capital gain, which is a crucial indicator in decision making, intervene. However, the current market dynamics teach us that there are more factors to consider and thus guarantee a successful operation.

“From capital gain to construction trends and financial considerations, each element plays a crucial role in making smart decisions in this sector,” commented Alejandro Blé, Marketing Manager of Coldwell Banker Mexico.

When interviewed by Real Estate Market & Lifestyle, he talked about the main keys to success in the contemporary real estate market, as well as the most relevant trends that are shaping the current landscape.

Identify reliable real estate projects

Importance of location and capital gain

Location remains a vital factor when evaluating a property, but today it is understood that capital gain is equally crucial. Capital gain refers to the increase in the value of a property due to various factors, such as market demand and quality of life in the area.

Although there are many elements that contribute to capital gain, such as infrastructure and public services, it is important to highlight that the development trend and the increase in demand are key indicators. That is, “a location with sustained growth in the demand for housing and services tends to experience a higher capital gain over time,” Blé stressed.

Also, it is essential to consider the convenience of the location in relation to daily activities. “Many people choose to live in popular and high-value areas, such as Roma, Condesa or Polanco, without considering the distance to their workplace, family and basic services.”

The most common mistakes when acquiring a property

For the interviewee, when acquiring a property, it is essential to avoid common mistakes that could negatively affect the operation. One of the most frequent mistakes is to look for a property only for its popularity or trend in the market. This can lead to the purchase of a property that does not fit the individual needs or that is above the available budget.

Another common mistake is not to properly assess the borrowing capacity before starting the search for properties. It is crucial to take into account not only the amount that the bank is willing to lend, but also the resource that can be comfortably paid each month. Otherwise, the investor may find himself in a difficult financial situation or even at risk of losing the property.

A fundamental part of investing is to consider the location and capital gain, as well as the individual and future needs: Do you plan to start a family? Do you need extra space? These questions should guide the search for the perfect property, thus avoiding common mistakes such as choosing a property only for its popularity or not calculating the bank loan available correctly.

Every investor knows these 5 basic concepts

Trends and outlook of the real estate market in Mexico

Nowadays, in the real estate market, construction trends are evolving towards more vertical and smaller projects. Although this can offer more residential units in a compact space, it also poses challenges in terms of quality of life and living space. For Blé, it is important to carefully evaluate the amenities offered in these developments such as roof garden, gym and pool, to ensure that they meet the needs of residents and buyers.

Blé concluded that success in the real estate market requires a deep understanding of the factors that influence the value of a property, as well as a careful evaluation of market trends and individual needs. By avoiding common mistakes and staying informed about the latest trends, investors can maximize their opportunities for success in this dynamic and constantly evolving sector.

Source: Real Estate Market