While Mexico real estate wasn't hit nearly as hard as the U. S. by the housing bubble and the following recession, sales did slow down, and there were a handful of places where U. S. owners were selling off their properties for huge reductions because of their situation back home.
2010 generally saw a pick-up in sales and slightly fewer recession-based price reductions – although some amazing deals were still available. For 2011, buyers interested in Mexico can probably expect the following developments:
Increase in tourism – The majority of Mexico's most active real estate markets are closely linked to tourism, being located in major tourist destinations, enjoying the benefit of stores, activities, roads, golf courses, theme parks and shopping which investment drawn by healthy tourism brings. Tourist numbers increased significantly during 2010 over 2009 and are expected to continue doing so during 2011. This means all of these benefits will continue to appear.
Economic growth in Mexico – Indicators from late 2010 showed that the economy was clearly on an upward trend; as the U. S. economy slowly begins to turn around, economists have shown that Mexico is poised to grow at least 1.5 times that of the U. S. , meaning a faster and stronger recovery. Projects that were put on hold during the recession have already been picked up again, many nearing completion. These include everything from real estate developments to items such as bowling alleys and large new stores. As the economy grows, buyers can likewise expect to see benefits such as these increasing.
Increased global significance for places like Cancun. While Cancun has long established itself as one of the world's favorite vacation destinations, it is now emerging as a major center for international conferences and summits, and its airport is beginning to develop as an international travel hub. The rising importance of emerging economies like Mexico mean that further locations throughout the country are likely to gain increasing significance in the world's new economy.
A handful of new price reductions – While there is not going to be any huge burst, with prices falling like the recent U. S. bubble, as the U. S. housing market recovers very slowly, a handful of owners will respond to pressures back home that they have so far avoided; while there will only be a handful, there will be enough and significant enough price reductions that savvy buyers who watch for these deals will be able to “grab them up" quickly, setting themselves up to take advantage of the positive trends mentioned above.
These savvy buyers will begin watching the Mexico real estate market now, so when the deals turn up, they will be ready to move on them.
Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. A Mexican Certified Realtor he is the current president of Mexico Real Estate , you can contact him at (512) 879-6546.