- In 2022, nationwide home appreciation closed at 16.7%, according to the Propiedades.com portal.
- There are internal and external factors when valuing a property, with local security being one of the most considered.
In the real estate business, as in any other, it’s important to know the value of your assets, in this case, properties. Whether you’re an investor, regular buyer, or planning to sell your house, knowing the property appreciation will be very useful to negotiate a favorable deal for yourself and avoid undervaluing or overpricing it.
But what is property appreciation? The term refers to the increase in a property’s value over time, which is calculated based on both internal and external factors. While you can more easily control internal factors by intervening and modifying your house, there are also external factors beyond your control that you must be aware of at all times.
It’s worth noting that the current outlook in Mexico is positive, as in 2022, home appreciation in the national market was 16.7%, according to the specialized portal Propiedades.com. As mentioned earlier, knowing this value is necessary, especially if you are planning to do business with your property. Therefore, Coldwell Banker Mexico shares some recommendations to help you calculate it, which we will divide into two branches.
Internal factors:
- Evaluate architectural design: Each house has a unique plan, from the construction structure to space distribution. Whether your home is single-story or multi-story, features spacious hallways, or has a design that enhances natural lighting, these factors can be leveraged during a sale, determining the benefits for different uses. For example, spacious areas benefit people with reduced mobility.
- Ensure essential services: Not having basic services can significantly decrease your property’s value. It’s crucial to ensure from the outset that you have drainage, water, electricity, and gas installations in place, and keep up with corresponding payments, as overdue payments could affect the sale price.
- “First impressions matter”: They say the first impression counts, not only in meeting people but also in real estate. The appearance of a property is crucial to attract buyers and investors. Therefore, it’s advisable to maintain an appealing appearance, refresh paint, address time-induced imperfections, or keep installations functional.
External factors:
Research urban development in the area: Aspects like location and mobility are key determinants of a house’s initial price and future value. Sometimes, a locality can grow over the years due to the construction of shopping centers, urban infrastructure improvements, and increased transportation routes.
- Analyze the type of location: It’s not just about the city, neighborhood, or street. In Mexico’s real estate market, there are four zones: consolidated areas, urbanized areas whose value includes local benefits; conversion areas near consolidated zones with potential; bustling areas with social challenges but high commercial activity; and marginalized areas far from the city with insufficient services and infrastructure, unlikely to increase in value.
- Consider neighborhood security: According to the National Survey on Urban Public Safety (ENSU) by Mexico’s National Institute of Statistics and Geography (INEGI) in 2021, 78% of respondents prioritize living in a safe neighborhood over proximity to work or transportation. If your house is in a gated community or residential area, enhancing security through measures like surveillance is easier.
While there are formulas to calculate property appreciation, it’s advisable to consult an expert to clarify any doubts and advise on whether selling, renting, or exploring other options is the best choice. As always, making informed and secure decisions is the path to a solid future.
TIPS de decoración para refrescar tu casa contra el calor
Fuentes de consulta:
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
