US real estate developers on the hunt for Mexican investors

Despite the context that exists in the real-estate market United States, with rising interest rates, an oversupply and considerable price increases, there are still opportunities to invest and generate profitability in the medium and long term, said Silvano Geler, founder and director of the consulting firm Grupo SG.

Faced with this scenario, Geler explained, the real estate developers of the United States seek to attract capital from Mexican investors who are willing to invest in said market, with average tickets of between 200,000 and 400,000 dollars, and in real estate that generates an almost immediate return, since most of them are apartments already built, or almost completed, which can be put on lease.

“The Mexican is the natural investor in the United States, although it is not the country that has the largest investment in the United States, due to a geographical issue it is the first investor, an example is that the southern United States practically belongs to Mexicans,” he commented. Geler.

For the specialist of the knowledge and networking firm of Real Estatethe real estate developer The US is looking for foreign capital, which is an advantage for the Mexican investor because intermediation costs are removed and the properties can be acquired at a lower price.

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“It is unprecedented that United States developers put focus and axis in Mexico. The owners of the developments themselves are traveling directly and contacting potential buyers, this is the first time it has been done,” explained Geler.

The next 12 and 13 October will be held in Mexico City the Expo Real Estate International Investments, where more than 40 real estate projects from the United States, and others from different countries, so that the Mexican investor can invest in them.

mexican profile

For Geler, Mexican investors look for more opportunities abroad, once they acquire their first property outside their country, since they discover that investing in this type of asset represents a haven for their resources over time.

“In general, (the profile of the Mexican) is of middle or upper-middle class people, who have fully defined financial channels open, with whom they have to make decisions about what type of property to buy and in general they are investors who already have some kind of property,” Geler said.

For the founder of Grupo SG, although they are average tickets of up to 400,000 dollars, the investor can usually enter with 30,000 dollars and the rest can be financed with bank credits.

“In general, the developers (US) They offer apartments, rental apartments that are about to be finished or finished and in several cases are already finished and rented, with which they begin to generate profitability”.

The specialist acknowledged that the United States is experiencing a complex moment in real estate matter; however, it foresees that supply and demand will stabilize in at least three years, so that the investment made would be positive in the medium and long term.

“There is an oversupply and that is true, prices appreciated in the last two years, but in two or three years supply and demand will stabilize, I think they are investments that will not be good in the short term, but in the medium and in the long term, yes,” explained Geler.

The founder of Grupo SG highlighted that, currently, technologies can help the investor to make the best decision, since there are tools where there is real-time monitoring of the state of real estate developments or, through virtual reality, which allows knowing the future vision of a space under construction.