What are capital gains in real estate and how do they benefit property sales?

In real estate investment and sales, capital or property value gains, also known as appreciation, are a very important concept to consider. Understanding the importance of real estate appreciation will help you choose a better property when deciding where to invest your money. That's why today we'd like you to find out more about the concept and how it matters to the real estate market.

Defining the concept of capital or property value gains.

Property value gains, or appreciation, are defined as the value that a property acquires over time. The importance of this concept lies in the fact that it provides security for investors purchasing property, since investing in real estate is a long-term strategy that offer yields as the property increases in value over time; that is, as your assets appreciate.

Factors that increase property value

The value of a property can vary according to several different factors that you should consider when you invest. Some of these factors are:

• Location: A good location can be critical when investing, since some areas are better perceived than others, either because of the area's safety levels, the nearby services available, the quality of life, or the property being located in a tourist area or close to the beach, etc.

• Accessibility: Accessibility refers to the property being easily reached; that is, whether direct roads, in good condition, lead to it; whether there's transportation available, nearby airports, etc. The more access points a property has, the greater the value it will acquire over the years.

• Design and infrastructure: Construction quality and design are also important, especially when it comes to housing or residential developments, since these factors determine the building's comfort and safety.

• Amenities and services: Some developments also include amenities and services that increase their value, from basic services such as electricity, running water, and sewage, up to spaces and elements that may be attractive to owners and investors, such as gyms, elevators, yoga areas, child care centers, swimming pools, coworking areas.

The more these and other factors are met, the more the value’s property will increase, as long as it is properly and constantly maintained.

Grupo Emerita property appreciation

At Grupo Emerita, we are a real estate company with more than 30 years of experience. Over that time, we have built 67 developments on more than 1,480 hectares. Our developments have the highest rates of rental demand, and yield the highest capital gains, because they're always located in the best areas of every important city in southeast Mexico. Some of our most outstanding projects include Aldea Zamá in Tulum and the Yucatán Country Club in Mérida, among other developments of great quality and innovation.

We’re currently offering projects for investors looking for macrolots and residential developments in exclusive areas of the Mayan Riviera. Learn more about our developments and discover why Grupo Emerita offers the best potential for property value gains.

You may be interested in: Grupo Emerita: An Experienced Developer