The opportunities and advantages of making real estate investments in Quintana Roo and Yucatan.
Making money is the goal of many people. The reasons may be different, but the purpose is the same. The best way to achieve this is to secure medium and long term profits through accurate real estate investments.
- DAY November 25, 2021
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When investing, once an opportunity arises, you should consider two golden rules:
- Do not invest all your money in a single operation.
- Consider assessing the factors that may affect your business risks
When the decision is made to invest capital, the question arises as to where to do it, in which sector, and to start looking for the best option.
Currently, due to the economic problems caused by the COVID 19 pandemic, there is greater uncertainty about where exactly to invest, however, some markets have not been greatly affected. real estate investmentseven in times of crisis.
There are many investment opportunities, however, the real estate industry offers additional benefits, especially when investing in states such as Yucatan and Quintana Roo.
Through this article we tell you all about how to invest in these states and why they are your best real estate business opportunities.
Why make real estate investments in Quintana Roo or Yucatan?
In the last decade, the southeast of Mexico has become a key factor in the country's growth, and in recent years both the public and private sectors have allocated funds for its development, investments that have benefited all areas of life, especially the real estate sector.
Due to its economic growth and strategic location, the region has boosted the establishment of new industries, with Yucatan and Quintana Roo being the states with the greatest investment potential, especially in real estate projects.
The real estate investments in the southeast of Mexico has a guaranteed growth potential because it has conditions for the development of real estate projects that are conducive to the construction industry. Get to know now all the real estate projects that iBrokers has in its portfolio
For all of the above, we will tell you in detail the 3 main reasons to invest in stocks in states such as Yucatan and Quintana Roo.
Cost of land
The cost per square meter in southeastern Mexico is one of the main drivers of real estate investment growth in the region. In the last quarter of 2019, real estate offerings in Quintana Roo reached 25 thousand units, of which around 80% were for sale and 20% for rent.
As for Yucatán, the annual real estate market is estimated to exceed 2.5 billion pesos, between residential developments, office buildings and shopping centers. In just a year and a half, it has become an attractive market for the real estate industry, with an increase in real estate demand of 22%.
While the cost per square meter in Quintana Roo and Yucatan is more readily available, Merida, the capital of Yucatan, is in a leading position in this regard because it is 50% cheaper than Mexico City.
As a growing city, in Merida, you can find land for less than 100 pesos per square meter on the outskirts of the city with great development potential.
Quintana Roo's construction cost per square meter ranks third, only surpassed by Nuevo León and the nation's capital.
As we have mentioned in other articles, buying land is a safe investment with low risk and one of the most profitable businesses because it is feasible to achieve the profitability that any real estate project requires.
The benefits of buying land in a commercial zone or buying investment land to secure your retirement are many, thanks to the low cost and the guarantee that you can get it in the area.
Level of inflation
Despite the poor economic conditions caused by the 2020 pandemic, the Ministry of Finance and the Ministry of Public Credit (SHCP) expect an average annual inflation rate of 3% in 2021.
In recent years, the southeast of Mexico has the highest inflation rate, Quintana Roo occupies the first place in terms of goods and services. According to economic indicators, this trend continues, thus surpassing the national inflation level and increasing the cost of goods and services, including real estate.
Inflation is the continuous and generalized increase in the prices of goods and services. The ideal level of inflation is between 2% and 4%, because inflation that is too low is as bad as inflation that is too high. For inflation - if controlled - helps to maintain people's purchasing power and, by the same token, encourages the production of goods and services.
3. Government funds and incentives
In order to strengthen real estate investmentsThe governments of Quintana Roo and Yucatan have developed funds and plans to simplify the procedures to be implemented for development projects in the commercial sector.
Supporting the business sector in Quintana Roo
Quintana Roo provides loans and financial products to secondary and tertiary industry companies that are committed to innovation and provide greater vitality so that they can utilize local capabilities and maximize the value of their products and services.
Likewise, in order to promote the development of an industrial park that establishes a strategic fiscal fence in ChetumalIn addition, the government will grant 100% subsidies to companies operating in the aforementioned industrial buildings in certain areas:
- Payroll tax.
- Possession of vehicles.
- Recognition of alcoholic beverage license.
- Services of the Public Registry of Property.
- Right to pay.
On the other hand, the government of the state of Yucatan is also working hard to support those who wish to invest in Merida by simplifying regulatory procedures in the business sector, providing support and financing for the development of various industries:
- Economic linkages with tourism.
- Financing for small and medium-sized suppliers
- Low-interest loans for renovation, construction or purchase of machinery.
At iBrokers we have highly profitable projects in the southeast of Mexico. If you want to know your options for real estate investments, contact us so that our trained consultants can provide guidance on the most suitable destination for your investment project.