The Mexican housing market experienced a significant rise in prices during 2022, with the sharpest increases felt in the country’s popular tourist states. The Federal Mortgage Society or Sociedad Hipotecaria Federal (SHF) reports that homes across Mexico rose by an average of 9% in value.
However, the states of Quintana Roo and Baja California Sur, both renowned resort destinations, saw an even more substantial rise of 14.6% and 14.2%, respectively, with the increase being blamed on foreign investment in Mexico’s real estate market.
Both Quintana Roo and Baja California Sur rely heavily on tourism, and their property markets are consequently exposed to external demand factors. These tourist destinations have seen an increase in demand for residential properties, particularly from foreign investors who see value in Mexico’s growing economy and a stable political environment.
Quintana Roo includes Cancún, the islands of Cozumel and Isla Mujeres, and the towns of Bacalar, Playa del Carmen, Tulum and Akumal, while Baja California Sur is home to such popular hotspots as Cabo San Lucas, San José del Cabo, Todos Santos and La Paz, its capital city.
Despite the high prices, the number of properties sold in 2022 continued to increase. According to JLL data, sales of luxury homes in Los Cabos, Baja California Sur, increased by 8.7% annually. In 2022, of the 2,845 residential units sold in the state, 74% were sold only in the Los Cabos region, with an average price of $1.2 million USD.
Foreign investors are also targeting other destinations such as Riviera Maya in Quintana Roo, the Pacific Coast, and the Baja California Peninsula, indicating that the trend of rising property values in Mexican tourist destinations is unlikely to slow down any time soon.
Even cities near the U.S. border saw increases in housing prices, with Tijuana recording a rise of 13% in 2022. The SHF noted that this upward trend occurred in a context in which GDP grew 3.6% in the fourth quarter of 2022, and the number of workers registered with the IMSS rose by 3.2%.
The average home price in Mexico in 2022 was 1,535,000 pesos, with the median price at 893,000 pesos, according to the SHF report. However, there was an 11.7% decrease in the number of appraisals during 2022 compared to 2021.
The current growth in the Mexican housing market indicates an increase in investment opportunities for foreign buyers looking to expand their property portfolio. Mexican tourist states, in particular, are attracting attention for their stable political environment, growing economy, and stable property market.
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The Mexican Caribbean (which includes Cancun and Tulum) has proven to be one of the hottest destinations for traveling in the world. The area has grown significantly in the recent years and offers the best luxurious hotels, restaurants, beach clubs, condos and houses.
Our CEO Michael Dee has various opportunities for investment in properties, private estates and award-winning condos.
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