Growing money is a goal for many people, the reasons may be different but the end is the same, and the best way to achieve it is by making accurate investments in Blue World City that guarantee medium and long-term profits.
When making an investment, once the opportunity presents itself, you must take into account two golden rules:
- Do not invest all your money in a single operation.
- Consider the factors to assess the risks that may affect your business.
When the decision to invest a capital is made, the question arises of where to do it and in which sector, initiating a search for the best options.
Currently there is greater uncertainty about where to invest accurately due to the economic problems generated as a result of the COVID 19 pandemic, however, there are markets that were not greatly affected, and one of them is the real estate market, which remained stable even in times of crisis.
There are many investment opportunities, however, the real estate sector provides additional benefits and even more so when investing in states such as Yucatán and Quintana Roo.
In this article we will tell you everything you need to know about investing in these states, and why they are your best real estate business opportunity.
Why invest in Quintana Roo or Yucatán?
During the last decade, the Mexican southeast has become a key element for the country’s growth, which is why in recent years both the public and private sectors have allocated capital for its development, investments that have benefited various industries among which highlights the real estate.
Thanks to its economic growth and strategic location, the establishment of new industries has been promoted in this region of the country, with Yucatán and Quintana Roo being the states that offer the greatest potential for investment, especially in real estate projects.
The investment in the southeast of Mexico offers guaranteed growth potential, because it has the conditions for project development real estate for favorable construction industry.
For all the above, we will tell you in detail about the 6 main reasons to invest in stocks in states like Yucatán and Quintana.
1. Land costs
The cost per square meter in the Mexican southeast is one of the main triggers for the real estate growth registered in the region. In the last quarter of 2019, the real estate offer in Quintana Roo amounted to 25 thousand properties, of which around 80% were for sale and 20% for rent.
As for Yucatan, it is estimated that the annual real estate market exceeds 2,500 million pesos, with housing developments, offices and shopping malls. In just a year and a half, it became an attractive market for the real estate sector, increasing real estate demand by 22%.
Although the cost per square meter in Quintana Roo and Yucatán is more accessible, Mérida – Yucatecan capital – leads this aspect, since it is 50% cheaper than in Mexico City.
Being a city in expansion, in Mérida it is possible to find land for less than 100 pesos per square meter in the areas surrounding the city with great development potential.
For its part, Quintana Roo ranks third in cost per square meter built, after Nuevo León and the country’s capital.
As we have mentioned in other articles, the purchase of land is a safe investment, with a low level of risk and one of the most profitable businesses, since achieving the required profitability for any real estate project is feasible.
The benefits of buying land in a commercial area or acquiring an investment lot to ensure your retirement are many, thanks to the low costs and guarantee that you get in this part of the country.
2. Inflation level
The Ministry of Finance and Public Credit (SHCP) projects an average year-on-year inflation rate of 3% for 2021 despite the economic conditions resulting from the pandemic during 2020.
In recent years, the southeast of Mexico was the region that registered the highest inflation, with Quintana Roo being the entity that heads this list in goods and services.
According to economic indicators, this trend continues, thus exceeding the inflationary level registered at the national level and increasing the cost of goods and services, including those related to the real estate sector.
Because it is important?
Inflation is the sustained and generalized increase in the prices of goods and services. The ideal inflation level is between 2% and 4%, since inflation that is too low is just as bad as one that is too high.
Thanks to inflation —when it is controlled— it helps to maintain people’s purchasing power, in the same way it encourages the production of goods and services.
3. Regulation and security for the investor
Laws and regulations have been implemented in both states to regulate the establishment of new industries and provide certainty to national and international investors, which has had a favorable impact on their growth.
You will find that most of the procedures, for example, deed a land in Yucatan or the paperwork to establish the type of land use are easier, thanks to the improvements that have been implemented.
Regulation in Quintana Roo
On the one hand, Quintana Roo continues to be an attractive destination to invest in projects related to the tourism and infrastructure sectors. This is due to the actions that have been carried out to combat corruption and impunity, and thus guarantee legal security and transparency to the business sector.
In addition to this, during 2020 the business chambers focused their efforts on reducing bureaucracy and strengthening relations between local and national companies, to continue promoting the economic growth of the entity.
These actions have been reflected in the investments that have been made in the entity: between 2019 and 2021 Quintana Roo will receive a foreign investment of more than 2 billion dollars for the construction of real estate developments that include:
- Shared time
- Vacation Homes
- State-of-the-art hospitals
Regulation in Yucatán
As for Yucatán, in recent years it has established itself as an attractive destination to invest, due to the ease it offers to do business and the improvements that have been made in regulatory matters, with which – like Quintana Roo – it offers Legal certainty so that companies of any line of business operate in a suitable business climate.
In addition, in order to continue attracting investment to the state, actions have been carried out to publicize – at a national and international level – its competitive advantages, areas of opportunity and growth indicators registered in recent years.
Due to this, Yucatán poses a positive scenario for the coming years in the tourism, textile, technological, educational and mainly real estate industries, a sector that investors have been able to take advantage of by allocating their capital to subsectors that are innovating the real estate offer in the region. region.
For this reason, Yucatán stands out as a central focus in real estate investment and is positioned as one of the preferred states for entrepreneurs seeking to grow their capital.
4. Government funding and incentives
In order to strengthen investment, the governments of Quintana Roo and Yucatán have financing and programs to streamline the procedures that the business sector must carry out to develop a project.
Support to the business sector in Quintana Roo
The state of Quintana Roo offers loans and financial products to companies in the secondary and tertiary sector that are dedicated to innovation and provide greater dynamism, so that they take advantage of local capacities and maximize the value of their products and services.
Likewise, to promote the growth of the Industrial Park with a Strategic Tax Enclosure to be built in Chetumal, the government will grant 100% subsidies in certain areas to companies that establish their businesses in said industrial warehouses:
- Payroll tax.
- Vehicle possession.
- Endorsement of licenses for alcoholic beverages.
- Rights payment.
- Services of the Public Property Registry.
Support to the business sector in Yucatán
On the other hand, the government of Yucatán is also working to support those who wish to invest in Mérida by streamlining regulatory procedures in the business sector, and providing support and financing for the development of various industries:
- Economic bonds to the tourism sector.
- Financing for small and medium providers.
- Loans at low rates for remodeling, construction or acquisition of machinery.
It is to be expected that in states where investment opportunities thrive, it will be required to have the adequate workforce for projects and developments at the door. This does not represent a problem in the Mexican southeast, since there are enough people focused on the industries where they are required.
Human capital in Quintana Roo
Quintana Roo is an entity with a constant demand for labor to cover the tourism and services industry, in fact, investing in Playa del Carmen —one of its main destinations— has paved the way in various areas for the business sector.
One aspect to highlight is the low labor costs in the state due to migration, since in 2018 wages decreased by 50%, compared to previous years; a situation that, according to INEGI, benefits the profitability and productivity of companies, as well as remuneration and the generation of new sources of employment.
Proof of this was the increase in production during the first quarter of 2018, which reached $ 165 MXN per hour worked, exceeding the amount corresponding to the same period in 2017.
Human capital in Yucatán
Yucatán stands out for having trained human capital, since its active population exceeds 1.1 million workers and its 15 thousand graduates guarantee the business sector professionals with knowledge in areas such as:
- Information technology.
- Health Sciences.
- Business Administration.
Unlike Quintana Roo, in Yucatán there was a rebound during the first quarters of 2019 in terms of the amount in pesos produced per hour worked, which is a reflection of the actions implemented by the business sector in partnership with the government, to streamline processes and improve its operation and production.
6. Connectivity with Mexico and the world
Regarding its connectivity, the Mexican southeast stands out for its strategic location that facilitates communication and commercial exchange with other countries; which shows the importance of Quintana Roo and Yucatán, not only as a tourist destination, but as a key point in the world economy.
Connectivity and transportation in Yucatán
On the one hand, from Yucatan you can easily access different parts of the world such as Asia, Europe, Canada, South America and the United States; and it has one of the main ports of the National Port System: Puerto Progresso.
- Air connection: its airport is the sixth largest in the country and offers 16 national and 4 international destinations.
- Land connection: it has a wide road network that connects with the entire state and the main cities of the peninsula and the country.
- Rail connection: it connects with the Isthmus of Tehuantepec and the ports of the Pacific Ocean; and it has more than 600 km of roads connected to Kansas City Southern and Ferrone.
Connectivity and transportation in Quintana Roo
In Quintana Roo, the Cancun International Airport stands out, which is considered the second most important airport in Mexico and one of the busiest in Latin America.
- Air connection: Cancun International Airport operates 56 airlines offering 102 destinations that include national, international and cargo.
- Investment in infrastructure: The Ministry of Communications and Transportation (SCT) invested more than 13 thousand million pesos in road, air and port infrastructure projects.
Investing in the real estate sector is your best option
Undoubtedly, the Mexican southeast offers opportunities to invest in assets that allow maximizing capital, due to its geographical location and the conditions that they offer to facilitate the entry and exit of national and international income.
Quintana Roo is a consolidated state that guarantees high returns to the business sector as long as an adequate investment is made. Investing in Cancun or Playa del Carmen, for example, represents a convenient option to take advantage of the tourism industry by betting on offering services that meet their demand.
As for Yucatán, it is an entity that is innovating in various sectors, which is why it opens a range of opportunities to offer new proposals that adapt to the foreign market that chooses this destination for vacation or as a new place of residence.