Apartments in Paseo de la Reforma
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Capital gain, what is it?

In real estate terms, a capital gain is an increase in the value of a real estate property due to extrinsic and independent circumstances of both the property itself and any improvements made to it.

Why is capital gain important?

From an investment perspective, a property is considered to generate income in two ways: rents and capital gains.

The rental income from a property is a monthly flow, fairly predictable and stable over time, which is generally relative to the market value of the property itself.

The capital gain is nothing more than the difference between the purchase and the sale values. Since the capital gain occurs the moment a sale happens, it is a less liquid, but no less real return.

In fact, in the Mexico City real estate market, it is sensible to think that the bulk of the returns a property will generate will come from capital gains.

In summary, a real estate investment is a good store of value since it maintains the purchasing power of the money invested for its acquisition and generates returns on an ongoing basis through rents, and in aggregate, through the capital gain at the time of closing a sale.

Capital gains of Colonia Juárez:

Colonia Juárez was built during the Porfiriato for the upper class in Mexico City, so it was originally planned with large lots and wide streets and was provided with all the basic infrastructure services. In the mid-twentieth century, due to the urbanization of new areas on the outskirts of Mexico city, the profile of the population in Juarez changed.

The area is currently undergoing a resurgence thanks to the restoration of historic buildings, the construction of new housing complexes, the emergence of stores, and a rich gastronomic and cultural offer.

Due to the above, the added value of the Juarez neighborhood has a solid value proposition that will continue to increase in the coming years, since it draws from various sources, such as:

Communication routes:

• It borders Paseo de la Reforma and Chapultepec Avenue and crosses Insurgentes Avenue.
• Subway stations (Chapultepec, Sevilla, Insurgentes and Cuauhtémoc).
• Metrobus stations (Reforma, Hamburgo, and Insurgentes) and the Ecobus that runs on Reforma.

Location relative to places of interest and urban landmarks:

• Adjacent to Paseo de la Reforma, one of the city's most important financial centers and economic zones.
• Close to downtown Mexico City, where the Palace of Fine Arts and other important historical monuments are.
• Chapultepec Park, the lung of CDMX.
• Colonia Roma and Condesa, areas with many bars, restaurants, nightlife, and cultural centers.

Gentrification of the area:

• New restaurants and bars in the area.
• Reuse of existing buildings.
• Iconic projects on Paseo de la Reforma.

Economic:

• Increase in demand and/or decrease in supply
• In CDMX we have a significant deficit in housing supply: every year more people are wanting to live in the city than the number of homes available, which drives values up.

Due to its proximity to Paseo de Reforma, a business district, Colonia Juarez is of great interest for housing.