Cancun, Q.R. — Foreign real estate purchases throughout Mexico are the result of a strong dollar, reports the Ministry of Foreign Affairs.
The ministry says it is the main reason behind foreigners acquiring properties throughout Mexico since 2016. They show an annual average of 663 real estate transactions in the country to foreign buyers, and say that already this year, 290 Mexican properties have been bought by foreigners.
These purchases are occurring mostly in historic colonial cities such as San Miguel de Allende, but also along beach resort areas including Los Cabos and Cancun.
According to a report by Point2Homes, from 2017 to 2018, the most Googled real estate locations were Puerto Vallarta, Playa del Carmen, Cabo San Lucas and Cancun, as well as the inland city of San Miguel de Allende. They report that Mexico ranks first of 30 for a preferred second home location with both Americans and Canadians.
According to Miguel Ángel Lemus Mateos, director of Lemmus Resort Real Estate and former head of the Mexican Real Estate Association of Cancun, this year they estimated that there will be between 1,300 and 1,500 home acquisitions by foreigners, which represents a growth of almost 30 percent.
In the state of Quintana Roo, Playa del Carmen is the most sought after place for foreign real estate purchases, says the former head of the Mexican Real Estate Association for Cancun. Although Americans make up approximately 60 percent of the real estate purchases, Italians, Argentinians and Spanish buyers are also investing in the city.
He says that for the past several years, agencies in the real estate market around Mexico have been trying to modify Article 27, which prevents non-Mexican nationals from acquiring direct ownership of land in a 100-kilometer strip along the borders and 50 kilometers from beaches.
He explained that modifying that article would have a positive impact on the real estate sector. Currently, he says, there are 420,000 housing units for sale throughout Mexico.