EMERGING REAL ESTATE MARKETS

The case of Q.Roo is a very peculiar case and of unprecedented success. This wonderful state began to explode at the tourist level only 50 years ago. The natural and cultural beauty of the place is unbeatable. From then on, and with the logistics solution that the Cancun international airport provides, the different destinations of the state have been gradually developing, all taking on their own personality and very different from each other.

The first three destinations with a massive real estate development, were Cancun started as we said 50 years ago, Playa del Carmen that began its development 20 years ago and Tulum that started it just 10 years ago. Why these three destinations were the first to develop, very simple, due to their location, connectivity and proximity to the airport.

What destinations are now emerging in the state, apart from those already mentioned, in terms of real estate opportunities? Puerto Morelos, Cozumel, Isla Mujeres, Bacalar and Mahahual.

Where are the investment opportunities in emerging real estate markets? It is something very simple and at the same time very important to understand.

Absolutely everything that happens around a property, impacts it in a positive or negative way, impacts its capital gains, appreciations, returns of investments and the resale capacity.

In areas of new urbanization, everything is missing, services, paving, electricity, water, etc... everything... Every time something new is implemented, this favors the capital gains and appreciations of properties, this is where the opportunities lie, it is the real and sustainable business over time in emerging destinations. For example, they pave the street, the properties go up in price, they electrify the area, the properties go up in price, they inaugurate a train and an international airport, prices skyrocket, of everything, built products and land. This is why properties in emerging destinations have an infinitely higher margin of appreciation than those in an already developed destination. What happens with the returns of investment from rentals income and resales capacity. This are also a good Bussines in emerging markets, but with a very short duration, not in a sustainable way over the years, it usually happens at a very early stage of development, when there is little offer and a lot of demand and in the final stages of development, when cities are already fully urbanized and is no longer developing massively. So basically if you’re looking for quick returns of investment in emerging markets, is all about the “momentum”. This must be very, very clear to all those people interested on investing in real estate products from emerging destinations, since they usually confuse it, and it could be4 very disappointing as much as a bad investing experience. That is just the problem, by not often having adequate real estate advice, the expectations of the buyers are completely different from what they are going to achieve with their investments.

So in short, the real business in emerging destinations lies in capital gains, appreciations and long-term resales capacity and NOT in return on investment or immediate resales.

Beware, the professional we choose to advise us MUST have a deep knowledge of the real estate market of the area and also of the future growth projects of the destination of both a private and governmental nature. To all those buyers who were suggested to invest in the Mexican Caribbean when the projects of the Mayan train and the Tulum international airport were in a very early phase of planning and sounded like "rumor", today they already had a very considerable gain in their investments, and whoever invests before the first flight or trip of the train is inaugurated will also have made a great deal. It is worth mentioning that in no destination in the country is something like this happening. Never has a federal government made such a large investment and two such ambitious projects in the same state in unison. This will continue to position Q.Roo permanently as the state of greatest capital gains and appreciations in the country. As a final fact...

#TIPTOP :
There is a” rumore" on the construction of a track and the arrival of F1 to Q.Roo.