Mexico’s real estate markets are highly localized and accurate data in regard to prices and historical trends is not easy to come by.
Long-established local realty agents are among the better people to talk with to get an indication of prices in a given market; being based locally in the area where you are interested in buying is another good way to get a real pulse of local property values.
Unlike the U.S. and U.K., for example, in Mexico there is no publicly-accessible central register of prices or trends, and even some of the ‘informal’ registers which exist may peddle doubtful data, as sellers are not always forthcoming about the full details concerning the prices at which properties changed hands. Official registers do exist – on records at local government offices – but getting access to these data is difficult, and it’s near-impossible for any individual to build up a true picture of what is happening regionally or nationally.
As a result of this situation, the price of a piece of land or a property in Mexico is most-often arrived at using combination of ‘what the current owner is asking or willing to accept’ coupled with ‘what someone is willing to pay’.
Most foreigners who have been purchasing real estate in Mexico have purchased using cash, by trading down from (or out of) property markets in their home countries. This high proportion of capital investment has provided an additional support mechanism for the property market here, as the people who own the properties have no immediate need to conduct a fire-sale, even in falling market, because they are not subject to usual pressures of property finance repayments.
As the real estate market here and world-wide continues to consolidate after the strong price increases between 1999 and 2008, areas likely to continue benefiting from investor interest are places which offer good value, character, development potential, and local amenities which people commonly seek when moving to a new place: access to good transport links, medical services, shops and local amenities, schools and vibrant local communities.
Popular places like southern Baja, Puerto Vallarta, and the Riviera Maya are continuing to experience a slack in demand compared to the buoyant years, although in Vallarta, for example, the slack in US buyers is being, in part, taken-up by Canadian and Mexican buyers. Foreigners are also looking inland, beyond the coasts to highland colonial cities where the year-climate is temperate and improving transport and local amenities make these places more appealing. You can learn more about destinations to consider in Mexico on our Living Places guide.
Notwithstanding the worldwide consolidation of realty prices, property continues to be attractive in Mexico for another significant reason: the total cost of ownership is low. Lower property taxes, lower land and construction costs, lower maintenance fees and a lower cost of living in comparison to the US (and especially in comparison to Europe) make Mexico an attractive long-term prospect for those relocating here.
Find detailed information about property in Mexico on our guides to Real Estate in Mexico.