In 2022, home appreciation nationwide closed at 16.7%, according to the real estate portal Propiedades.com.
There are internal and external factors when valuing a property; one of the most important is local safety.
In the real estate business—just like in any other—knowing the value of your assets is essential. Whether you’re an investor, a frequent buyer, or you’re planning to sell your house, understanding your property’s appreciation is crucial to setting a favorable deal for yourself, avoiding undervaluation or overpricing.
But what is appreciation? The term refers to the increase in a property’s value over time, which is calculated based on both internal and external elements. While the former can be managed through modifications and improvements, the latter are beyond your control, and you must always be aware of them.
It’s worth mentioning that the current real estate outlook in Mexico is positive. In 2022, home appreciation across the national market was 16.7%, according to Propiedades.com. As mentioned, knowing this value is key—especially if you’re planning to make a move with your property. That’s why Coldwell Banker Mexico shares some key recommendations to help you calculate it, divided into two categories:
Internal Factors:
- Evaluate the architectural design: Each home has a unique layout, from construction structure to spatial distribution. Whether your property is single-story or multi-story, has wide hallways, or a layout that promotes natural light—these are features that add value. For example, spacious areas are ideal for people with reduced mobility.
- Ensure access to basic services: Missing even one essential service can significantly reduce your property’s value. It’s crucial to have water, sewage, electricity, and gas installations in place. Also, keep all utility payments up to date—any outstanding debts may negatively affect your sale price.
- First impressions matter: As the saying goes, “how you look is how you’re treated.” This applies not only to people but also to properties. A home’s appearance is one of the most critical factors for attracting buyers or investors. Keeping the house visually appealing—refreshing the paint, fixing age-related wear, and ensuring everything works properly—can go a long way.
External Factors:
- Research local urban development: Factors like location and mobility influence the initial price of a home, but they also affect its long-term value. Some neighborhoods gain value over time thanks to new malls, improved infrastructure, or expanded transport options.
- Analyze the type of location: This doesn’t just refer to the city, neighborhood, or street. In Mexico, the real estate market classifies areas into four zones:
- Consolidated: Fully urbanized with established benefits.
- Redevelopment: Close to consolidated zones and showing growth potential.
- Brave: Areas with social challenges but active commercial activity.
- Marginalized: Remote zones with limited services and infrastructure, making appreciation unlikely.
- Consider local safety: According to the 2021 National Urban Public Safety Survey (ENSU) by Mexico’s National Institute of Statistics and Geography (INEGI), 78% of respondents prioritize safety in a neighborhood—over proximity to work or public transport. If your home is in a gated community or residential area, security improvements (like surveillance) are easier to implement and can positively impact its value.
While there are formulas to calculate a property’s appreciation, it’s always best to consult an expert. They can help you clarify doubts and advise whether selling, renting, or pursuing another option is best. As we always say: making informed and secure decisions is the key to a solid future.
Guía rápida de Inversiones Inmobiliarias para Emprendedores
Coldwell Banker México https://coldwellbanker.com.mx
https://www.lahaus.mx/blog/tips-financieros/plusvalia-aplicada-contexto-inmobiliario
https://blog.vivanuncios.com.mx/bienes-raices/como-calcular-la-plusvalia-casa
https://www.credimejora.com/informacion-hipotecaria/calcula-plusvalia-inmobiliaria
https://www.bbva.com/es/mx/que-es-la-plusvalia-y-como-mantenerla-al-alza
https://blog.vivanuncios.com.mx/bienes-raices/plusvalia-de-una-casa-en-tiempos-de-covid-19
