The 5 indicators every pre-construction buyer must verify.

A pretty render isn't an investment analysis. Most pre-construction buyers focus on the visual attributes of the project —design, amenities, map location— and neglect the indicators that determine whether the project will actually be delivered, and whether it will deliver the promised returns.

These are the five numbers we ask for before listing any project on GP.

1. Pre-sale percentage required to start construction

Most pre-construction projects require selling between 30% and 50% of units before starting construction. What is that threshold for the project you're evaluating? If the developer doesn't know or won't say, that's a red flag.

2. Developer delivery track record

How many projects has this developer completed? How many are currently under construction? A developer with 10 delivered projects has a verifiable history. One with zero delivered projects is, by definition, a greater risk.

3. Trust structure

In Mexico, the buyer protection standard is the guarantee trust: capital raised in pre-sale goes to a trust account that is only released as construction progresses. If a project doesn't have a trust, the risk of fund diversion is real.

4. Current market absorption

How many similar units are selling per month in the same area? If the market absorbs 20 units per month and the project has 200, sales timelines are predictable. If the market absorbs 5 and the project has 300, there's a potential liquidity problem.

5. Price per square meter vs comparables

The pre-sale price of a project only makes sense relative to the secondary market in the area. If the pre-sale price is comparable to the market price of finished properties, the appreciation margin is minimal. Real appreciation comes from buying at a structural discount to the secondary market.

These five indicators don't guarantee the success of an investment. But they guarantee you're asking the right questions.