Real Estate prices in the most popular parts of Mexico have been on the increase of late, and the demand for property to retire, holiday and invest in has also been on the up – this has created something of a real estate boom in Mexico but for those still wondering what the fuss is all about here are the five main reasons why an investor should consider investing in the Riviera Maya…
1) The government of Mexico has relaxed the rules that once prevented foreign buyers from purchasing on or close to the coast, and nowadays with the simple use of a bank trust structure investors can purchase some of the most beautiful prime beachfront land in the Riviera Maya.
This land is ripe for residential and tourism development and because the demand for hotels and luxury beach front property is so desirable, this means an investor who buys beach front real estate is probably buying themselves one of the most promising investments possible.
2) The Mexican government is committed to the economic improvement of their country and to this end they are doing everything in their power to attract foreign direct investment particularly into the tourism and real estate sectors. This means that not only is investment welcome but there are certain incentives now in place that make investing in real estate even more attractive.
3) The Riviera Maya real estate landscape is incredibly popular with Northern Americans because it is affordable and easily accessible and also because Mexico itself is a low cost country in which to live. The large American baby boomer generation is nearing retirement and as they do so, a surge of interest from this generation is expected. This means that an investor who buys now and targets this particular group of people could profit substantially – especially if they consider buying into or developing retirement, gated or exclusive communities.
4) Over 16,000 foreign companies have recently been attracted to Mexico by the government’s commitment to developing policies to make the country more attractive for overseas companies and investors. The companies who have established trading bases in Mexico have also created substantial employment opportunities for the local people and expatriates – as a result, in the main Mexican towns and cities unemployment is down, GDP is up and local Mexicans and expatriate employees of the international firms are in a strong financial position and are looking to rent quality accommodation for which a premium can be charged.
Real estate investor can buy into the residential rental market in the Riviera Maya at a far reduced cost when compared to similar markets in cities or towns in America or Europe for example, and they can profit successfully from the increased purchasing power that is now apparent in Mexico.
5) The tourism market in Mexico is responsible for generating over 8% of the country’s GDP and supplying over 9% of the country’s jobs already, and sustained focus by the government of Mexico on further developing and promoting tourism in Mexico means that the country is growing in popularity annually. The rise in the numbers of visitors to Mexico means that there is increased demand for quality villa and apartment accommodation and a growing number of overseas investors are now buying up single units, buying into entire developments and even purchasing land for the development of properties to meet this rise in demand.
Those who are focusing on this market sector are making some of the greatest returns in the shortest period of time – and if current statistics are anything to go by, the level of overseas interest in real estate in the Riviera Maya means that the demand for investment properties in Mexico is not abating thus offering real estate investors medium to long term potential for profit and gains.