While Mexico real estate has continued to offer excellent investment opportunities during the last decade, recent news indicates that now is at least as good as time as ever to invest in this exciting market.

 

Specifically, the international bank, Santanter Financial Group, has announced that there are good signs of continuing growth and favorable performance during 2011.

 

The indications mean that there will be continued advancement in the modernization of the country, the growth of the middle class, and in the tourism industry which is one of the most important in this country’s economy. While all of these factors indicate an ever improving lifestyle for expatriate communities in tourist areas, they also indicate opportunities to invest in Mexico real estate in a variety of market areas and property types; the opportunities are not isolated purely to tourist areas.

 

On the whole, Mexico’s real estate market was considerably less effected by the housing bubble and recession than its neighbors to the north. The most effected areas were the primarily beachfront vacation areas, where hesitation in buying from the U.S. had a slight overflow effect, causing a pause in value appreciation. Even in most of these areas, prices are now back on a upward trend. In areas where the prices were most effected, the expected strength of recovery created opportunities to buy properties well below their market value.

 

A growing number of buyers have started paying attention to several colonial cities, as well as small towns in the interior of Mexico. In addition to the stability of Mexico’s housing market in these areas, there are also a number of regions which are showing strong potential to become new areas to capture international tourism. A healthy national tourism market has already brought investment for restoration and development of the communities’ atmosphere, and international travellers are just beginning to take notice.

 

The analysis predicts the performance of Mexico’s economy to be strong, and forecasts an increase between three and four percentage points. Inflation is expected to stay below 4.0% with stable interest rates.

Reports such as this one from Santander suggest that those who have bought during the past year – and are buying now – have made a solid choice in doing so.

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.

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