There are multiple factors that determine that the prices of land rise. We can list the scarce supply, the growing demand, the economic activity and the per capita income, among others.

 

Real estate gains are generated by the demand for residential, commercial, industrial and tourist spaces in certain geographical areas.

There are multiple factors that determine that the prices of land rise. We can list the scarce supply, the growing demand, the economic activity and the per capita income, among others.

It would illustrate us a lot to know which are the 10 cities worldwide where the value of land is higher per square meter. According to the report of the Knight Wealth Report 2018, Monaco is located first, which is at the same time a city, state and nation.

In order to measure the cost of land there, the price is 62,500 dollars for just one square meter. Second place is Hong Kong, third place is New York, fourth is London, fifth is Genoa, sixth is Paris, Sydney is in seventh place, Shanghai is eighth, Los Angeles is ninth, and Beijing, in tenth place, where one square meter of land has an average value of 15 thousand 150 dollars.

It is noteworthy that the most expensive place in the world to find a home to live in is Hong Kong for the seventh consecutive year. It must be remembered that Hong Kong was known as the famous "Crown Jewel" of the British Empire.

For property consultant Wellcot, the most expensive land in Latin America is located first in Sao Paulo, in Brazil, with an average value of three thousand 893 dollars per square meter, second place is Mexico City, with a value average three thousand 646 dollars, in third place Lima, in Peru, with an average value three thousand 77 dollars, in fourth place we find it in the Colombian city of Bogota, in two thousand 883 dollars and in fifth place is Santiago de Chile , with an average price of two thousand 444 dollars per square meter.

Another important element of our analysis is the Gross Domestic Product per inhabitant and per municipality. In our country, the first place according to a Standard & Poor's study corresponds to the small municipality of San Pedro Garza García, Nuevo León, where approximately 125 thousand inhabitants reside. Here we can make a little history and to show them the evolution of prices and the capital gains of the land that are generated over time. In a study conducted in mid-2002 by the City of San Pedro Garza García, the average value of the land was $ 401 per square meter in 47 colonies of the aforementioned municipality.

In Colonia del Valle the value was 447 dollars. If we compare it with the records of the AMPI Green Book, from the January edition of 2018, the high price is 30 thousand pesos, that is, an equivalent of $ 580 dollars per square meter at the current exchange rate of 19 pesos per dollar. That is, a growth in prices over 16 years of 353 percent in the municipality known as "La Joya de la Corona" in our country and the richest municipality in Latin America.

My advice is that to make good investment decisions we must be well advised by real estate companies that have statistics and historical records to make smart investments that generate the best capital gains and returns.

The author is an expert in the real estate sector in Mexico. He is president of the leading real estate firm in the country, Realty World Mexico, and chaired the International Federation of Real Estate Professions (FIABCI) in 2014, 2015 and 2016. Mexico Chapter.

 

Transcribed from: El FinancieroMTY / OponiónMTY Real Estate World Jorge Paredes Guerra / October 16, 2018.