Widely considered a safe haven in Latin America when it comes to investment, Mexico is a great place to own real estate.
Mexico boasts the second-largest economy in Latin America, behind Brazil, with GDP totalling $2.492 trillion at the end of 2022 in purchasing power parity terms.
Bordering the USA, Mexico occupies a strategic position between America and Canada and the rest of Latin America. It is now a major player on the world stage, largely thanks to the North American Free Trade Agreement which created a free trade zone for Mexico, Canada, and the U.S.
Mexico is one of the emerging countries most open to foreign direct investment, and FDI rose by 12% to $35.3 billion last year. The country offers a range of benefits for international investors, such as low property taxes compared to the U.S. and Canada.
The Mexican peso is performing strongly, having appreciated by over 20% against the dollar in the last three years. Oxford Economics predicts that the peso will gain 4.9% in 2023, bringing the currency to an average of 19.2/US$, up from 20.2/US$ last year.
A Strong Demand For Coastal Properties
Mexico’s housing market has proved resilient in recent years thanks to strong demand and a low supply of properties. In December 2022, annual house price growth reached an all-time high of 10.41%, following a 9.4% increase in the previous quarter according to CEIC data.
The country’s growing middle class is creating significant demand in the domestic market. Meanwhile, international buyers, particularly from America and Canada, are flooding back into Mexico now that the pandemic has cleared—and they’re snapping up beachfront properties along the Riviera Maya.
Over the last decade, those who have invested in property in Mexico’s coastal hotspots, such as Tulum, Cancún, and Playa del Carmen, have watched their real estate values increase exponentially.
Additionally, Mexico is classed as an “emerging” economy and is ready for substantial changes in the coming years, which could mean significant returns on your investment. In comparison with other countries, land prices are stable and, as economic development progresses, the value of Mexican land could increase substantially.
Tulum: A Pocket of Paradise
Tulum is a gorgeous country with so much to offer. It is one of the world’s most popular destinations for tourists and investors alike, known for attracting celebrities and famous influencers from around the globe—and it is easy to see why.
Once a sleepy fishing village, Tulum is now a little pocket of paradise which lures thousands of tourists every year to its ancient Mayan ruins, crystalline turquoise waters, sun-soaked beaches, Michelin-star restaurants and fabulous, lively ambience. Tulum is also home to some of the world’s most incredible boutique inns and luxurious hotels.
Despite the pandemic, the demand has been higher than ever over the last couple of years, with Mexico being the third-most visited country in 2020 and Tulum being one of the country’s most popular destinations.
With the destination’s ever-growing popularity, real estate in Tulum, Mexico is incredibly sought after. Investors can expect strong investment returns thanks to lower costs of new, luxury developments in Tulum, as well as the growth of the Mexican rental market for vacations.
It is predicted that Tulum’s real estate market is set to keep growing, with even more people looking to escape to Tulum and enjoy a taste of paradise.
Contact us today to secure your dream property in Mexico.