Global real estate is worth more than the global stock and bond market combined, and almost four times the size of global GDP.
Real estate investments are a cornerstone in building personal wealth and diversifying financial portfolios. For decades, they have been recognized as the safest, most efficient and most profitable.
The real estate market is constantly growing and experiencing changes due to factors such as inflation, construction supplies, consumer preferences, among others that have modified investment models.
In this article, the CREA SOLUCIONES team is in charge of showing you what real estate investments are, their types and characteristics, how to determine their profitability, why invest in real estate in Mexico in 2024 and the best places to do so.
What is real estate investment?
Real estate investments involve acquiring and managing real estate with the goal of generating long-term income. These assets can be residential, commercial, industrial properties, vacant land or real estate developments.
There are various investment strategies, from direct investment in properties to investment funds and crowdfunding.
Types of real estate investments and characteristics
- Traditional Rental: Involves renting properties on a long-term basis to earn regular income.
- Tourist Rental: Focuses on renting short-term properties, generally to tourists.
- House Flipping: Involves buying properties, remodeling them, and selling them quickly for a profit.
- Real Estate Crowdfunding: Allows multiple investors to finance real estate projects.
- Investment Funds: They group the funds of several investors to invest in properties.
- Presale Real Estate Acquisition: Involves purchasing properties before they are completed.
Turns in the real estate sector in which you can invest
- Vertical and horizontal housing
- Commerce and entertainment
- Industrial
- Offices
- Hospitality
- Health sector
- Education
- Senior Living
- Master Plans
How do you know if a real estate investment will be profitable?
The profitability of a real estate investment depends on several factors, including location, property type, total cost, projected income, appreciation and yield.
It is crucial to perform a detailed analysis and seek professional advice to properly evaluate the profitability of an investment.
Reasons to invest in Mexico real estate in 2024
- Growing market: The Mexican real estate market continues to grow, offering investment opportunities.
- Diversification: Real estate investments can help diversify an investment portfolio.
- Stability: Real estate offers stability and protection against inflation.
- Appreciation Potential: There is potential for long-term capital appreciation.
Top 10 places to invest in real estate in Mexico and why
- Querétaro: Growing city with high demand for properties.
- San Miguel de Allende: Popular tourist destination with a stable real estate market.
- Mérida: Expanding city with a booming real estate market.
- Puerto Vallarta: Tourist destination with a growing demand for properties.
- Tulum: Real estate market in rapid growth due to tourism.
- Mexico City: Offers a variety of investment opportunities in different sectors.
- Guadalajara: City with a dynamic and growing real estate market.
- Monterrey: Offers investment opportunities in commercial and industrial sectors.
- Playa del Carmen: Tourist destination with high demand for residential and vacation properties.
- Cancún: Real estate market in development due to tourism and foreign investment.
Conclusion
Real estate investments are a solid option to diversify an investment portfolio and generate long-term income.
With a clear understanding of the types of investments available, the factors that influence profitability, and opportunities in the market, investors can make informed decisions to get the most out of their real estate investment.
Trust CREA Solutions for the success of your investment
At CREA Soluciones we specialize in consulting for real estate developments, this allows us to adapt to the specific needs of each project, which will help you achieve success in your investment.
Request more information through the contact form, email info@creasoluciones.com.mx or call us at 5552778044. A specialist will be happy to assist you.
