As business opportunities in Mexico continue to grow, there is an increasing demand for prime real estate. Over the past few years, investing in Mexico’s real estate market has proven to have strong returns. This growth is driven by iconic cities, unique tourist attractions, and the expansion of the professional middle class, resulting in a highly competitive real estate industry.
The real estate sector is a significant pillar of the Mexican economy, accounting for 15% of the country’s economic activity and generating over 15 million jobs, both directly and indirectly. From the end of 2018 to the beginning of 2019, Mexican real estate experienced a growth rate of 2.1%. The Mexican Association of Real Estate Professionals (AMPI) predicts a further 6% growth in the sector for 2019.
Hotels in Mexico have seen exceptional appreciation, contributing to the country being one of the top ten fastest-growing real estate markets in 2019/20. In 2018, real estate investment accounted for 12.1% of foreign direct investment in Mexico, with hotels in cities such as Monterrey, Guadalajara, Querétaro, and Tijuana being in high demand. Additionally, thanks to their tourism industries, cities like Tulum and Merida have become preferred destinations for real estate investors.
The real estate and tourism industries are significant contributors to the Mexican economy, with tourism having a major impact on the real estate sector. The Mexico City district and tourist destinations like Tulum, Merida, and Playa del Carmen are experiencing significant growth in real estate development due to the cross-pollination of these two sectors.
To successfully invest in the Mexican real estate market, it is crucial to be familiar with the legal process of buying property. The purchase process typically involves an “offer to purchase” contract, followed by a buy/sell contract that includes a deposit from the buyer. It is recommended to consult with a lawyer to navigate the legal complexities and ensure a smooth transaction.
There are several reasons to consider investing in Mexico. The country is the second-largest economy in Latin America, strategically positioned as a bridge between North America and Latin America. With a business-friendly culture, Mexico receives a significant amount of foreign direct investment. The Mexican real estate market offers a solid return on investment, a diverse range of locations, and convenient real estate laws that allow foreigners to acquire property without a residence or work visa.
Mexico’s high level of local mobility, with many airports and affordable bus transport, makes it easily accessible from abroad. The Mexican real estate market is generally stable, with property values showing appreciation over time, making it a secure investment. Working with local experts like Biz Latin Hub can further facilitate entry into the market and ensure compliance with Mexican laws and regulations.
Investing in Mexico’s real estate market is an attractive opportunity, supported by the tourism and business sectors and offering potential returns on investment ranging from 2% to 10%, with some destinations reaching 17%. To navigate the market successfully, it is beneficial to seek the guidance of local experts who can provide insights into the Mexican real estate market and offer legal services. Biz Latin Hub, with its offices across Latin America, can assist foreign investors with their real estate ventures.
