The strength of the dollar against the peso is the main reason for foreigners buying real estate in Mexico right now. In 2016 and 2017 the number of closed sales to foreigners rose to 1,105 on an annual average. From 2008 to 2015 it was 663 on average, according to information obtained through a Transparency request to the Ministry of Foreign Affairs (SRE); so far in 2018 there are 290 properties sold to foreigners.
This investment occurs mainly in the historic centers of colonial cities such as San Miguel de Allende, as well as in the border strip and beach destinations, such as Los Cabos and Cancun.
Mexico ranks first of 30 in favorite US and Canadian destinations for second home searches, according to research conducted by the property portal Point2 Homes. From January 2017 to January 2018, the most sought after locations on Google were beaches such as Puerto Vallarta, Playa del Carmen, Cabo San Lucas and Cancun, as well as destinations such as San Miguel de Allende and Mérida, Yucatán.
For this year it is estimated that there will be between 1,300 and 1,500 home acquisitions by foreigners, which represents a growth of almost 30%, said Miguel Ángel Lemus Mateos, director of Lemmus Resort Real Estate México.
Currently, the housing inventory of the Mexican Association of Real Estate Professionals (AMPI) is 420,000 housing units, and foreign investment operations represent 3%.
For some time now, several entities of the real estate market in the country have been looking for the modification of the constitutional Article 27, which would facilitate the purchase of properties by foreigners. This is because it would have a positive impact on the sector, especially in relation to tourist housing, since there would be an increase of 30% in sales of these properties.
The information provided through the Transparency Unit only refers to the total of transactions, but not to the location or payment for the property, adhering to the provisions of the Federal Law of Transparency and Access to Government Public Information and its Regulations, as well as the Internal Regulation of the SRE, with the purpose of safeguarding and protecting the property of the client.
Source: Vallarta Daily