How and Why the Mexican Real Estate Market Continues to Grow

The growth in the Mexican real estate market has never been healthier, with a strong return on investment across the country but a particularly strong property market in Puerto Vallarta and other tourism destinations.

In fact, the real estate market in Mexico showed an increase in home prices by 9.19% in 2019, a pinnacle achievement to end a decade of secure and steady growth, with particularly strong gains in 2017 and 2018.

Some of the reasons for this growth include:

  • An extremely strong domestic market, particularly in Mexico’s emergent middle class, which prefers ownership over long-term rentals.
  • High foreign demand due to a strong USD and Canadian dollar against the Mexico peso. In fact, Mexico ranks as the number one second home destination search on the internet for American and Canadian buyers.
  • Mortgage rates in Mexico becoming more affordable, particularly with the rise of private mortgages in Puerto Vallarta and other destinations in the county.

With the real estate market showing such strength in 2017, 2018 and 2019, does that mean that 2020 is not good time for buying real estate in Puerto Vallarta? No, quite the opposite, for two key reasons:

  1. A strong foreign driven marketplace has attracted developer interest, with numerous new constructions coming to market, making the Puerto Vallarta real estate market competitive yet not with an overrun of inventory. Essentially, buyers have many properties from which to choose, so the market self-regulates with pricing.
  2. The rise of the short-term rental. With Airbnb and VRBO being such popular vacation choices for today’s vacationer, the return on investment on your Puerto Vallarta property has never been higher nor easy to manage.

Overall, there has never been a better time to invest in a second property in Puerto Vallarta, with steady growth predicted for the next several years and a strong, stable and secure market and destination. Talk to one of our agents today for more information.

Click here for more Puerto Vallarta real estate and lifestyle tips from Tropicasa Real Estate.

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