The high-end real estate market has found an increasingly strong development opportunity in the northwestern part of the Guadalajara Metropolitan Zone. According to Hiram Prigadaá Guevara, general director of Capital Brokers Guadalajara, Zapopan has positioned itself as an important municipality for the construction of projects whose priority is luxury and exclusivity.
“Currently, Zapopan is an area with great demand for luxury real estate, as its geographical location benefits it a lot. Also, it is a quite safe city for the high-end market.”
The high-end real estate market has become one of the fastest growing segments in Mexico. According to real estate consulting firm Tinsa, in the last quarter of 2018 this sector registered an increase of 6.3 percent, compared to the same period the previous year.
For a residence to be considered high-end, it must meet certain specifications and conditions that make the property more valuable.
The development of projects with strategic locations, close to means of transportation and communicating roads, as well as the construction of spaces with high-quality designs, maximum durability and distribution of spaces are important aspects to consider for the current luxury property investor.
Guevara points out that, at present, the high-end residence buyer does not skimp on his investment, since he wants his property to have all the technological, recreational and security trappings necessary to guarantee its exclusivity.
However, he stresses that the fact that these residences are high tech is in response to the demands for safety, savings and care of the environment, consequently becoming a luxury.
In its catalog of high-end properties, real estate firm Capital Brokers Guadalajara offers super luxury residences located in the neighborhoods of Puerta de Hierro, San Javier, Jardines Universidad and Valle Real, with prices ranging from $26,000,000 to $90,000,000 pesos.
According to the study carried out by Tinsa, although the cost of this type of real estate is high, the most used form of payment is cash (76 percent), then bank loans (19 percent) and last COFINAVIT credits (4 percent).
This same analysis shows that people who plan to acquire high-end residences prefer to consult physical sources, real estate agencies and recommendations of nearby people to search for properties before resorting to digital means.
For Guevara, the current consumer of this real estate is no longer the same as those who purchased high-end homes a few years ago. “In the case of high-end luxury, we have observed that they buy bigger houses, but have small families.”
On this same subject, the study also shows that those more interested in acquiring high-end real estate are between 30 and 35 years old and “Double-Income, No Kids” (DINK) couples.
Guevara shares that the theme of good taste, the architecture and the luxury lifestyle play an important and decisive part in the acquisition of high-priced real estate.
He stresses that, most of the time, ostentation that can be perceived at a glance is a predominant factor; this, according to the specialist, is due to interest in showing a much higher purchasing power or range.
However, he notes that, although one might think luxury and comfort would be associated, in this segment those elements do not necessarily go hand in hand, as a property can be luxurious, but not necessarily comfortable.
“We have sold luxury homes with unique architectural designs; however, in daily life they are not always very comfortable.”
From his point of view, interest in purchasing a luxury property is linked, in some cases, to the emotions of the future owner.
“People who buy luxury properties are more emotional than analytical; however, they justify their investments with the capital gain the property they desire may have.”
What is a fact is that the word “luxury” brings to mind various amenities that, concentrated in the same place, create the necessary environment to generate the value propositions sought by high-level investors.
6.3 percent was the growth of the luxury real estate market in the last quarter of 2018.
In areas such as Puerta de Hierro, San Javier, Jardines Universidad and Valle Real, the prices of super luxury homes range from $26,000,000 to $90,000,000 pesos.