In Mexico, the real estate sector represents 14.1% of the Gross Domestic Product (GDP), being the second economic force in the country, according to figures from the International Real Estate Federation for the Americas (FIABCI). Pawel Kentaro Grendys, a specialist in Latin American real estate, explains why purchasing real estate in Mexico can be a smart investment.

The Mexican Association of Real Estate Professionals (AMPI) estimated a growth of 6% in the real estate industry during 2019. Part of this is because it offers security and flexibility in the future.

Buying a house, apartment or land is an action that will protect your future and your finances in the event of an economic or personal emergency. In addition, investing in real estate will give you the flexibility to build more businesses within the same properties and continue to increase your capital and earning capacity. Finally, thinking long-term, a property is considered a financial guarantee that you can use when you want to retire.

The return on investment rises. When you invest in real estate for a commercial purpose, you should know that your property has a profitability that can be very useful to you. The return on investment is calculated depending on the conditions of purchase, the surplus value and the flow of money that the property obtains after being acquired.

A very important factor when investing in real estate in Mexico is the surplus value, that is, the increasing value that the property you bought acquires over time. This is determined taking into account different factors. The increase in the final value of the property will allow you to obtain an increasingly attractive and useful return on investment to take advantage of your other investments.

By buying a house you not only benefit yourself or the financial institution that supported you to acquire it. Explains Grendys, “The real estate industry also includes all those home service providers in a local space, from architects, masons, blacksmiths, locksmiths, carpenters. Therefore, the moment you buy a house, you put that gear of services to work, and this encourages the economy of your city, generating jobs and opportunities that you can also take advantage of in your favor.”

The investment options are varied and with different results. There are a wide variety of options to invest allows you to diversify your money and reduce the risk of losses due to fraud and sudden changes in the economy. Investing in real estate doesn't necessarily mean just buying a home with a mortgage loan. The properties you can buy range from houses of all sizes, traditional apartments, apartments in buildings, real estate in housing developments, land for construction, commercial premises, buildings, flats in buildings, among others.

You keep your money active. While it is true that the real estate market is high and sales of houses and apartments are more common, real estate prices increase in the country to a percentage that is better to take advantage of when it is at its lowest point, real estate provides tangible and adaptable benefits that you can use to your advantage in many ways. You can inherit them from your relatives, remodel and rebuild them to maintain their profitability and gain the opportunity to continue investing and increasing your wealth.

The surplus value and the context in which a property is located make investing in real estate in Mexico an activity that rewards economically and that, as an added value, is part of your personal assets. Planning is an important key to having stable personal finances. Real estate investments will get you to benefit from passive income, as well as providing tangible and adaptable benefits that you can use to your advantage in many ways.

About Pawel Kentaro

Pawel Kentaro Grendys is a leading expert in the area of Latin American real estate. His background includes experience in both the residential and commercial sides, and he offers extensive knowledge about local investment laws and building codes. In addition to offering leading brokerage services for commercial, industrial and premium residential real estate investments in the region, he is also an advanced real estate marketer. When he isn't assisting clients in finding the right property to meet their objectives, he enjoys spending time outdoors with his family.

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