It is logical that as an investor if you buy a house in the Yucatan after long research on its growth and development potential, you hope not only to recover your initial investment but to obtain a return or profit.
In the end, the joke of choosing real estate as an investment instrument is its ability to put your money to work overtime and without so much extra effort or expense.
If we agree so far, now let’s talk about the important thing, how much could you earn if you buy a house today in Yucatan? In this article, we will analyze how the increase in capital gains could benefit your investment.
History of capital gains in Yucatán
From 2001 to 2020 we went from 800 thousand to 1.2 million inhabitants in Yucatan mainly due to three reasons:
- Increase in Migration.
- Quality of life in the city as an international attraction.
- The tendency of people who come to live on the beaches.
This has triggered an increase in demand for housing in the state, thus initiating the “Real Estate Boom.” Yucatán then became one of the best places to live and invest in real estate nationwide (townhouses, houses, residential land, investment land, apartments, among others).
As of 2019 with the sounded news that Mérida was recognized worldwide as one of the safest cities to live in, many more people and investors turned to see the state for the quality of life it promised, the natural wealth, the growing economy, and above all the accessible cost of land.
This is how more and more real estate developments began to appear with very affordable prices that allowed people to buy a property for half of what it would cost them in cities like Mexico and that also allowed them to finish paying for it in a shorter period of time. of time.
Then there are the foreign investors who saw potential in the state to start their companies, warehouses, maquiladoras, hotels, etc.
In the first quarter of the current year, houses have increased by 12% of their value in just one year and this growth rate is forecast to continue despite the economic crisis due to the pandemic.
Hypothetical case: How much will the house you buy today in Yucatan be worth in 5 years?
Under the panorama of accelerated growth in capital gains, if you buy a property in a strategic location where growth is headed, in Merida and the Yucatan coast, in 5 years that house or land could increase its value.
Let’s look at an example of a 5-year term:
Is it a good time to invest in Yucatan?
This is a question that many are asking today and the answer is, of course, yes! Growth in Merida and the coast is on the rise and is expected to continue at this rate. In such a way that the house would have a much higher value in a few years, especially with the installation of new international companies and the construction of new projects such as the Mayan train and New international airport.
Yucatán is strategically located and has great potential for industry and tourism, so there is no doubt that it will continue to grow in the coming years, without forgetting that the infrastructure and quality of life continue to be one of the most valued.
The advantage of investing in Yucatán is that it is in an ideal point to allocate capital strategically with accessible costs, so it is your time to take advantage of the low cost of the square meter.
But what makes Yucatan a suitable territory for investment?
- Strategic location in the southeast of Mexico.
- Fiscal and economic incentives.
- Job stability and skilled workforce.
- Port connection (Port of Progress) for import and export.
- Air connection.
- Quality of life.
- Natural resources and competitive costs.
- Land availability.
- It is considered one of safest state in the country.
Connectivity with the rest of the world
Its location on the Yucatan peninsula allows this city to be a connection point between the rest of the states of the Republic and the world, as it is the fastest and most direct access point to Europe, the United States, Central America, and the main Caribbean Islands.
This connectivity is possible thanks to the fact that it has an airport with direct flights to cities such as Mexico City and Guadalajara, and to important cities abroad such as Houston and Miami.
It also has its own import and export port located in Progreso, Yucatán, which facilitates the trade of a wide variety of products, as well as the arrival of tourist cruises.
Yucatán has undoubtedly the best real estate investment opportunities, even for those who are going to invest for the first time. Until today, the price per square meter remains low compared to the rest of the country, while capital gains are growing.
The state has become a paradigm for investors and newcomers to the entity thanks to the rapid growth of its main cities. In the last 25 years, the urban area of Mérida has grown from 8,000 to 25,000 hectares, increasing its population density by almost 50%.
Population growth in recent years has contributed both to economic growth, generating greater job opportunities, and to social development reflected in the high quality of life in the state.
Acquiring land in Yucatán as your first investment represents an invaluable opportunity to access great returns, especially in the Northeast of Mérida, with the investments that are on the doorstep.
Companies such as Grupo Modelo, Grupo Leoni, Grupo Uchiyama have decided to invest millions of pesos in Yucatán, which makes it an ideal time to start your role as an investor with growth opportunities.
Why choose Mérida to start your business?
Choosing a city to invest in is not the same as flipping a coin. A decision must be made based on facts and projections that can provide a clear idea of the future that our business may have in the region.
One detail that stands out is that Mérida is a city with a high rate of foreigners living in it, thanks to factors such as quality of life and security levels, which are indicators of reliability for investments.
In Mérida, the economy and investment levels in the state have grown more than that of Querétaro or Quintana Roo in recent months, a rate comparable to that of Nuevo León. The level of growth in the state is expected to be between 2% and 6% by 2021.
Among the most relevant investments in this city is real estate investment, which has had significant growth in recent years; It is also one of the safest investments you can make and that offers the highest return on investment.
Unlike equity investments that have higher risk levels and that depend on the Mexican stock market, real estate investments remain stable and are a good option to invest at any age.
Now, there are many reasons to invest in real estate, especially in a city like Mérida, among the main ones are:
- Strategic location
- Connectivity with the rest of the world
- Quality of life
- Job stability and workmanship
- High investment rates
- Land availability
1. Strategic location
Mérida is located on the Yucatán Peninsula in southeastern Mexico and, like Quintana Roo, it is an attractive destination that attracts many tourists throughout the year, providing the opportunity to invest in real estate projects that satisfy the demand, both for housing and commercial premises.
But this is not all, since due to its proximity to Campeche and Quintana Roo it has become an important business center in other sectors such as: technology, medical services and educational services.
One factor that affects real estate investments is the climate of Mérida because its stability and warmth throughout the year allow businesses to perform in any season.
Not only Mérida is an excellent option, in general, investing in Yucatán in any of its cities or communities can be profitable, therefore many industries choose to install their plants in towns such as Ticul, Valladolid, and Tizimín.
What is the best business to invest in Mérida?
To the question of what is the best business to invest in Mérida, Yucatán, we can answer it by suggesting that when investing capital, the most important thing is to plan your investment, design a strategy as well as determine your financial profile. With this, we refer to the ability to save and the level of risk that you are willing to face since, as is well known, every investment involves a risk and we must be informed to define our financial possibilities and the level of exposure that we are able to cope. There are no magic models to instruct us on how to invest money for profit, all investments carry risks and it will be up to the investor to carry out the one that best suits their financial needs.
1) Future Mayan Train, and New international airport
2) Real Estate Sector.
3) Hotel Complexes.
5) Beach area.
6) Logistic Centers.
7) Office buildings.
8) Hemp Industry.
If you decide to invest today in houses in Yucatán, it is likely that you will not only recover your investment but also that you will obtain a high return thanks to the increase in appreciation.