Investing In Property In Mexico

by : Tem Pearson

Traditionally, investing in property in Mexico has been largely overlooked due to the troublesome political history of the country and the perceived economic risks involved.

However, more recently, Mexico has really started to grow and has become much more stable, economically, politically and even socially.

Tourists are now keen to travel to Mexico to make the most of the beautiful coastline and the warm climate. In particular, North American tourists have begun to flock to Mexico, although the appeal is now becoming more widespread with tourists from further afield also realising what this country has to offer.

In order to cater for the tourist market, there has been a huge influx of apartments and new build properties in the popular resorts of Los Cabos, Puerto Vallarta and Ixtapa.

Although new builds are by far the most popular option for those looking at investing in property in Mexico, there are also plenty of older properties available at very reasonable prices.

In these popular regions, property prices have risen consistently over the last few years, at an average annual rate of over 10 percent. Some analysts fear that the market in these regions has now seen the sharp increase and that those considering investing in property in Mexico should look to the less developed areas.

One of these potential options is Manzanillo, on the Pacific Coast, in central Mexico. Until recently this area had been overlooked, as it was consider to be inaccessible and to have weather extremes.

However, the reality is far from this and Mexicans going on holiday have been travelling to this region for decades! The area does not attract the weather extremes that were originally feared and has miles of beautiful undeveloped coastline to explore. The figures suggest that this area is undergoing a huge boom, with property prices rising more than 15 percent a year.

Despite the recent surge in prices, they are still considerably lower than the more popular areas of Mexico, with a detached house a few minutes from the beach available for purchase for under 100,000 US dollars!

One investor has stated: 'The temperature is perfect and the beaches are spectacular. Even though you are able to find beaches and beautiful places all over the world, it is the people that really make Manzanillo a marvellous and special place one would not want to leave'.

Tourism is vital for anyone investing in property in Mexico. Over 55 percent of Mexico's revenue comes from tourism and it is likely that this will be the main audience for any property investors. With this in mind, it is ideal to invest in areas that are experiencing substantial tourist growth such as Campeche, where a huge holiday resort is planned to attract tourists to the area.

The tourist market in Mexico is going from strength to strength, with 22 million visitors making their way to Mexico last year; and this is set to continue for the foreseeable future.

It is this factor that makes investing in property in Mexico a wonderful option for someone wanting to make the most of a booming market and a country very much on the up, in every way.