Data provided by the Federal Mortgage Society, shows that the average house price in Mexico has increased to $90,850 in the first quarter of 2023, up 11.7% against the same period last year.
The Mexican housing market has experienced a dynamic evolution over the past decade, successfully navigating the ebb and flow of global economic trends. The growth trajectory seen in Q1 echoes the steadfast resilience and potential that characterises Mexico’s housing sector.
In addition, high levels of inflation have been pushing up construction costs, leading to even higher increases in the new build sector. The average house price for new builds—which make up 40% of the housing market in Mexico—grew by 12.8% over the year.
Overseas Investment Drives Demand
Developers have noted that a lot of the growth in certain areas is driven by high demand from overseas buyers, seeking property in popular coastal locations either as a holiday home or for the vacation rental market. This has shifted significantly as inflation has driven up prices in the USA—making Mexico and exciting alternative for those seeking beachside property. In addition, the rise of the digital nomad in the country is also thought to be putting upward pressure on the market.
Rising Demand in Riviera Maya
The Riviera Maya region, home to popular locations like Tulum and Playa del Carmen, stands out as a hotspot for property investors and homebuyers. Known for its picturesque beaches, rich cultural heritage, and bustling tourism industry, the region presents an attractive investment proposition.
Tulum, in particular, has seen an unprecedented upswing in demand. Known for its pristine beaches and ancient Mayan ruins, this idyllic town has transformed into a vibrant real estate hub. Developers are constructing a range of offerings, from luxury villas to eco-friendly condominiums, to meet the growing demand.
Similarly, Playa del Carmen has captured investor interest with its lively shopping and dining scene, diverse activities, and stunning oceanfront properties. The city’s cosmopolitan charm, blended with a laid-back beach town feel, continues to attract a diverse set of buyers.
What’s Next for Mexico’s Housing Market?
With the prevailing trends indicating positive growth, prospective investors considering Mexico, and especially the Riviera Maya region, can expect a promising and potentially profitable venture. The current buoyant market is indeed reflective of the underlying strength and the future potential of the Mexican real estate sector.
As we move further into 2023, the surge in Mexico’s house prices is expected to continue, driven by consistent demand and stable economic fundamentals. With a particular emphasis on regions like the Riviera Maya, Mexico’s housing market looks poised to maintain its upward trajectory—offering exciting opportunities for investors and homeowners alike.
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