The investments in real estate and real estate developments in Merida They stand out thanks to a low risk rate, modern infrastructure and between 7 and 10% of return on investment.
Is investing in real estate a good business or is it better to do it in shares of the Mexican stock market? What is the investment landscape in Mérida or southeastern Mexico and the most prominent real estate development projects?
The decision to invest capital in the right place
It is common to hear that investing in real estate is a good business but investing in the stock exchange in Mexico is it also? Both have their advantages and disadvantages.
Considering the advantages and disadvantages of investing in real estate it is a tangible good and therefore, for many investors, it feels more real than investments in the stock market.
On the other hand, investing in stocks is profitable. However, stocks can be very volatile, especially when the economy or company is not very stable.
The important thing is that investors diversify their portfolios in an attempt to mitigate risk and maximize their rewards.
As a result, a combination of investments, including real estate and stocks, offers a great way to invest. Therefore, the real estate vs. stock market debate is not really a debate, but a niche of opportunities.
Investors must weigh the Pros and Cons of Real Estate vs. Stock to Choose Strategy to help them achieve their own goals.
There is no doubt that investing in real estate is a good business. In fact, recently, the magazine Forbes advised his readers to invest in real estate developments, stating that Mexico is one of the four best places in the world to buy a second home or vacation home abroad.
Trends: sustainable real estate development in Mexico, mixed uses and tourism
For this year, the commitment of large real estate developments is focused on sustainability.
The new projects are incorporated into the path of sustainable development in Mexico including different types of green technologies.
The efficient solutions are many. Water collection systems, environmentally friendly materials, use of solar panels and heaters, green roofs, home automation, among other options, to alternatives that allow achieving green certifications such as LEED (Leadership in Energy & Environmental Design) that meets rigorous standards environmental.
Another trend of real estate development in Yucatan is the construction of mixed-use projects.
That is, residential, commercial or work space developments that have amenities, in order to improve daily activities.
At present, In the Yucatan capital, there are more than 100 real estate development projects. For sale there are more than 25 thousand units awaiting investment for housing or business.
On the other hand, real estate developments in the tourism sector They are also on the rise and Yucatan will host many of them. Which is an advantage over the disadvantages of investing in real estate and real estate developments.
There are 20 programmed projects. Most of them are located in the Historic Center of the city of Merida.
Annual return on properties for the tourism sector
According to the United Nations World Tourism Organization (UNWTO), Mexico is the eighth most popular vacation destination in the world. Occupancy rates for 12 months average 85%.
Investment properties are providing a 8-14% average annual return of investment for vacation home rentals, which effectively outperforms the stock market. Without any volatility.
The entire region also boasts consistently high capital gains of 8-10% annually., with a continuous growth of the projected area for the next decades, which means that the real estate of Riviera Maya will never depreciate.
In some areas of Riviera Maya real estate investments in vacation home rentals offer a 7% - 10% return on investment, which exceeds the market stock and also offers coverage against inflation.
To the point that many real estate agencies in Cancun have decided to expand their offer portfolio to other popular vacation destinations such as Playa del Carmen, Puerto Aventuras and Tulum.
Attractive and competitive market for investment
The advantages of living in Yucatan attract many investors and, according to official sources, a great urban expansion towards the outskirts of the city has been detected in recent years.
The Yucatecan real estate market amounts to more than 2,500 million pesos annually. It is made up of housing, office and shopping plaza developments.
There are approximately 5 thousand developments of the housing type and the growth in demand has risen to 22%. Residential real estate developments are the most interesting for investors.
Investing in Real Estate: Affordable Land for Sale and Flexible Regulation
The low cost of land for sale in Mérida they are also a great advantage for investors.
The disposition of large lots, in areas of great capital gain, have motivated developers to invest in the White City, Yucatan.
Likewise, the legislation and approval of the process for real estate developments is much more flexible than in other states since one-stop windows have been established to carry out the procedures and procedures corresponding to permits and licenses.
Environment impact manifestation
On the other hand, environmental measures for construction companies in Mérida include different types of review, evaluation and public consultation processes by citizens.
The intention (following models like those of Mexico City), is that Yucatecans have an active participation in the Environmental Impact Demonstration (MIA) proposed by the projects in their neighborhoods.
In this way, it seeks to propose and implement the necessary mitigation and prevention measures to reduce the environmental impact.
Real estate developments in Merida
Real estate developments in Merida They continue to rise and the offer of properties is wide and varied. Although 2019 was a complex year for real estate developments in Mexico, 2020 foresees a better omen.
The sector is constantly growing and continues to be attractive. An example is the increase in projects that have been registered in some parts of the country, with Mérida being one of the favorite destinations for these investments.
I recommend reading: Profitable businesses 2020; investment and safe rate of return.
The best areas to invest in Merida
The north is the area with the highest capital gain in the capital and has been growing thanks to the real estate developments that have been carried out in recent decades.
The best area to live in Merida is the north. Being one of the safest regions in the city, it is not surprising that there are so many private residences in the area. La Isla, The Harbor, Altabrisa and City Center are the shopping centers located in that area.
With the growth of the city, exclusive services and entertainment options have changed.
For example, a few years ago, Club Campestre or Gran Plaza were the most popular places in the north, but today, Galleries and The Harbor are the busiest shopping malls in Merida.
This growth has been gradual. As development unfolds, the surrounding areas also show an increase in capital gains, and for this reason, many investors see northern Merida as an opportunity to invest in their future.
With the growth of the city, this avenue extended to the north. This expansion is known as Montejo Prolongation.
It is the access road to large stores, bars and restaurants, making it one of the areas with the highest capital gains in Merida.
From Temozón Norte to Cholul-Conkal, north of Mérida, this area stands out for its potential. It houses residential and residential plus projects.
In the case of the economic segment Temozón Norte and Santa Gertrudis Copó they are favored for their proximity to entertainment and commercial centers.
Neighborhoods such as Tixcuytún also stand out in this area, whose medium / long-term capital gains have attracted the attention of important real estate developments and projects in the area.
In this part of Merida there are three neighborhoods that are perfect for moving: Campestre, Colonia México and Miguel Alemán.
These neighborhoods are just north of Downtown, about a 10-minute drive from the heart of the city. All three neighborhoods are affordable and generally slightly cheaper, compared to Merida's old town.
The Historic Center of Mérida and its nearby neighborhoods like Santa Ana and Santiago are also a good place to live.
Its traditional and, in some cases bohemian, atmosphere are excellent combinations if you are looking to move to an area with modern services and a great offer of housing.
Most prominent real estate developments in Yucatan
During 2019, the first stage of these luxury towers was inaugurated, seven in total, which are located in the North Zone of Mérida.
Via Montejo is one of the best real estate developments in Yucatan. It has parks and green areas of up to 80 thousand square meters in length.
Located in one of the best areas of Merida, to the north of the city, in Altabrisa, they are favorites due to their proximity to hospitals, shopping centers and access roads to the Yucatan coast.
Country Towers is a luxurious project consisting of two towers of 30 floors and 110 meters and an exclusive tower with fabulous amenities.
Rosavento Mayan City
Located to the north of Mérida, Rosavento Ciudad Maya, is an average residential subdivision that offers 5,000 lots distributed over 162 hectares.
The lots are from 140 to 500 square meters. They are located 4 kilometers from the Technological Wellness Pole, between Mérida and Progreso.
Aura Coast, Telchac Puerto
Following the environmental measures for construction companies in Mérida and having as axis the sustainable development in Mexico, The Aura Coast project, located in Telchac Puerto, consists of a set of departments that incorporate sustainable technology.
The investment is for a total of 2,752 million pesos. Other real estate developments of Grupo Aura in Yucatan are Aura Smart Luxury Living, Torre Aura and Marena.
The advantages of investing near the sea
Many who decide to move to Mérida, decide to live on the beach. The main city is Progreso. It has more restaurants, services and amenities than other coastal cities.
Other options are Chelem and Chuburna, these towns to the west of Progreso are smaller and more intimate and are the ones chosen by foreigners.
East of Progreso is Chicxulub, this city is another alternative and popular with Mexicans.
Playa del Carmen, vibrant and cosmopolitan
The cost of living in Playa del Carmen, and throughout the Riviera Maya region, is extremely affordable, offering shoppers a fabulous lifestyle at a fraction of the cost that they would pay in other parts of the Caribbean.
When you buy real estate in Playa del Carmen, you can also enjoy the many unique charms of this bustling international city.
Investing in real estate is good business in southeastern Mexico. There are hundreds of shops, restaurants, and entertainment venues along Fifth Avenue, a large community of foreigners, and the property market is constantly growing.
Tulum, the jewel of the Caribbean
Last but not least, the city of Tulum is home to a large number of real estate investments.
It has a wide variety of properties available, including turnkey condos for sale and vacation homes that are designed to provide continuous rental incomeBut they could also serve as easily as a retreat haven.
Despite its rustic and wild atmosphere, the city is also home to many shops, restaurants, and entertainment venues. It is clear: investing in real estate is a good business and in Tulum a guarantee.
Vacation Homes and Condos in the Riviera Maya
The Riviera Maya is a magical region that stretches along the Mexican Caribbean coast, and is located south of the Cancun International Airport.
Therefore, it offers easy access and modern infrastructure for millions of annual visitors from all over the world.
The Riviera Maya is home to famous tourist destinations such as Playa del Carmen, Cozumel, Puerto Aventuras and Tulum, and offers an exciting combination of activities, shopping, restaurants and unforgettable adventures that you will not find anywhere else in the world.
As we mentioned earlier, investing in real estate is good business and if you do it in the Riviera Maya the return is guaranteed.
This is achieved then the real estate market is the fastest growing and fastest in Latin America and offers a better value for your investment than any other beach destination in the world that is equipped with modern infrastructure, luxury services and first-class amenities.
Why invest in real estate in Mérida?
And why do so many investments come to Yucatan? Well, the context is unique. The advantages of living in this part of the country are many. The cost is affordable and the quality of life is one of the best in Mexico.
Real estate developments are modern and property values are affordable, if it is compared with other capitals of the country such as Monterrey or Guadalajara.
For example, a house has an average cost of 2.09 million pesos, while an apartment can be purchased for 1.72 million pesos. If it is about renting a property, the average price to rent a house in Merida is around 9,584 pesos per month and an apartment of 6 thousand pesos, for the upper middle class.
Another advantage is the privileged location. Despite being a city, it is 20 minutes from the beach, and thanks to its road infrastructure, it is increasingly easy to get to ports like Progreso, so investing in real estate is good business.
If you are looking for more reasons why investors bet on Yucatan:
1. Modern capital
The state capital is the most developed center for business, financial, technological, medical and educational services in the southeast.
2. Job stability and skilled labor
In Yucatan education is of high quality. There are programs at different levels and prestigious universities. So your workforce is qualified and trained.
3. Export and import and exits to large markets
Progreso and its Port of Height is strategic for exporting and importing. It is also a key point for the arrival of cruise ships.
Finally, if you still do not know what to invest in, there is no doubt that real estate developments and real estate in Merida and Yucatan offer great returns.
Whether you decide on the residential, tourist or commercial segment, the possibilities and benefits are numerous. What are you waiting to invest and build your future at the lowest risk?