Mexico Real Estate Investment Guide

Mexico represents both a solid long term investment opportunity to the real estate buyer seeking underlying price growth and a good short term opportunity for the property investor interested in drawing down a strong income from rental rates. 

The opportunity for sustainable and strong long term price growth is built on the fact that the Mexican government are working consistently to strengthen and broaden their economy and also because the demand for property for sale in Mexico from overseas buyers is intensifying annually.

Those mainly interested in drawing shorter term income in the form of rent should target the holiday and tourism market where there is year round interest in well serviced and facilitated accommodation and where the weekly rental rates can be impressive.

The majority of those looking for real estate investment opportunities in Mexico are already aware that their target resale or rental market is retiree or tourism based.  The retiree market is growing as baby boomers head towards retirement age and interest in property for sale in Mexico is no longer restricted to North American citizens because European retirees are also aware that they can have an affordable retirement in the sun simply by relocating to Mexico.

In terms of the tourism market, Mexico receives around 22.3 million international visitors a year and of those an estimated 300,000 to 500,000 Americans and Canadians take extended holidays in excess of four months in Mexico every year and this figure is not only rising but substantially supplemented by long staying visitors from Europe and the UK.  A large percentage of all visitors seek accommodation to let out on a weekly basis and this form of short term letting reaps the highest rental yields.

Real estate in Mexico is significantly cheaper than property in either the United States, the United Kingdom or in mainland Europe but as demand increases so prices inflate.  Those buying now are buying into a predicted strong period of growth.  The government of Mexico highlight five main reasons why an investor should consider Mexico and if you’re interested in real estate for sale in Mexico for investment purposes you should also bear these five points in mind: -

1) Mexico is located right next to the United States; it has excellent transport links to North and South America, Europe and Asia making it an accessible country for tourists and retirees and a country that can forge stronger economic ties with all of these aforementioned geographic regions over the long term.

2) Mexico has already signed free trade agreements with more countries in the world than any other nation to make the country massively competitive and attractive; this is already resulting in free flowing inward foreign direct investment which makes the country’s economy even stronger.

3) The Mexican government is committed to a program of economic growth through sustainable development and improvement which is already making Mexico a more attractive country in which to live and invest.

4) Mexico has already attracted in excess of 16,000 foreign companies to its shores and this has created jobs and increased the wealth of thousands of local Mexicans which in turn has resulted in increased domestic purchasing power.  There is now a strong local rental market in many of Mexico’s major cities which a real estate investor could consider targeting for long term rental income.

5) The tourism sector already generates around eight percent of Mexico’s GDP, it provides nine percent of all jobs in Mexico, it generated in excess of USD 8.9 billion annually and is Mexico’s third biggest currency generating activity and is therefore of massive and fundamental importance to the economy of Mexico.  As a result the Mexican government is not only keen to further promote it, they are keen to receive foreign investment into the tourism sector as well.

Real estate investors considering Mexico should take great comfort from each and every one of these facts as they highlight the fact that Mexico is one of the safest ‘emerging’ countries with a forward thinking government committed to economic growth and that the real estate market in Mexico is growing built on solid foundations, is affordable and is growing in appeal with housing units in cities and major resorts massively in demand both locally and from overseas buyers creating a perfect environment for price growth and rental yields.

South/Central America:- Mexico Property Reports
Complete listing of all current property reports for region: South/Central America:- Mexico

Mexico Purchase Process for Real Estate

Mexico Guide for Real Estate Investors