So far, 2018 has brought a predictable amount of stock market volatility, but Mexico real estate investing is having another great year and shows no signs of slowing down. Read on to see why investment properties like turnkey vacation home rentals are providing secure, proven 8-14 percent return on investment and attracting international headlines.
Mexico #1 Among U.S. Buyers
A recent study by real estate website Point 2 Homes has revealed that Mexico is the top international destination among U.S. buyers looking for second home and investment properties, naming Playa del Carmen real estate, as well as Puerto Vallarta and San Miguel Allende as the top locations. The study found that Playa is attracting an average of 6,500 monthly searches from investors looking to buy real estate in the Riviera Maya, which is also home to Puerto Aventuras, Tulum and Cozumel.
“Quintana Roo – the state Playa del Carmen is in – is the country’s third-hottest real estate market”, wrote the Yucatan Times. “Why Mexican cities and resort towns are doing so well in real estate is no secret. It can be attributed to Mexico’s economy, which is not only strengthening but stabilizing as well”.
Situated about 45 minutes south of downtown Playa del Carmen and about two hours south of the Cancun International Airport, Tulum real estate is also booming and was recently recognized by Realtor.com for being one of the world’s most affordable beach towns to buy investment property. In addition to offering fantastic return on investment and excellent value, Tulum is also home to the best beaches in the world, offering amazing snorkeling adventures and easy access to breathtaking Mayan ruins.
“It’s growing popularity as a vacation spot has spurred more and more Westerners to choose it as a place to put down roots”, wrote Realtor.com about Tulum.
InterNations also named Mexico among the top destinations in the world for international buyers last year, noting its growing appeal for American, Canadian and European buyers. Visitors don’t have to speak Spanish to get by in popular tourist spots like the Riviera Maya, which also offer a fabulous array of world-class dining, shopping and adventure activities.
In fact, foreign investment is boosting Mexico real estate deals throughout Mexico, with overall numbers growing by around 71.25 percent during the first quarter. The Riviera Maya is leading this trend, as a growing number of new real estate developments break ground to meet growing tourism demand.
“The Riviera Maya is the country’s leader in foreign investment”, revealed Mexico’s Federal Secretary of the Economy. “When it comes to real estate, Quintana Roo, Campeche, Tabasco and Yucatan show the greatest growth nationwide, receiving billions of dollars from FDI".
The five main countries investing in Mexico’s Riviera Maya are the United States with a total of 109.8 million USD; followed by Spain with 71.2 million; the Netherlands at 44 million; Canada with 19.9 million; and France at 12.7 million.
Canadian Investors Love Mexico, Too
The Point 2 Homes study also revealed that more Canadians are investing in Mexico real estate than ever before, with Playa del Carmen real estate, as well as Puerto Vallarta and Cabo San Lucas rounding out the top three choices for buyers from Canada.
“[Canadians] will groan when they see what their money can buy in Mexico, where the average home price is just $52,325 CAD, more than 10 times less than it is in Canada”, wrote the Vancouver Sun.
Turnkey Vacation Home Rentals
The real estate market in Playa del Carmen is still the fastest-growing in Latin America, propelling this onetime quaint fishing village onto the international stage as one of Mexico’s biggest attractions. As a result, demand for luxury condos and vacation homes is outpacing supply, creating an ideal environment for real estate investing. Similarly, Tulum also enjoys a strong and growing real estate market and is popular among celebs, which means buyers get to enjoy consistently high occupancy rates all year when they invest in turnkey vacation home rentals.
Regardless of whether you are considering buying real estate in Mexico because you want to live here full time, or simply want to escape the roller-coaster ride of ongoing stock market volatility and cash in on the opportunity to get great ROI through turnkey vacation home rental income, there are investment properties to suit every buyer if you know where to look.
Are you thinking about investing in Mexico real estate? Let us know in the comments!
Read 10 Reasons to Invest in Mexico Real Estate Right Now to see why investment properties in the world’s hottest vacation destinations are beating the stock market and providing great return on investment!