Local US-priced real estate discouraging Mexican buyers

Playa del Carmen, Q.R. — La Asociación Mexicana de Profesionales Inmobiliarios, A.C. (Mexican Association of Real Estate Professionals) — (A.M.P.I.) cautions that the real estate market in the Riviera Maya should avoid “dollarized” prices of properties as national participation is affected.

Wilbert Gutierrez Alvarez, former president of AMPI, says, “For the past five years, the Mexican market represents 60 percent of local investments, a market that has supported the industry during difficult times. It’s important for the industry to manage the impact of the devaluation of the peso against the US dollar.”

Gutierrez Alvarez added that the real estate sector were minimally involved in helping to deal with the excessive Sargasso issue, adding they represented providing less than 1 percent of the help that was needed.

He explains that because the appetite for new investors to enter the local market is growing, property interests in the center are expanding and include the building of more apartments and consequently, prices are increasing.

“The real estate sector should not lose sight that the domestic market sustained sales in many developments over the past four or five years when foreign sales fell through,” he said.

“There is no benefit for nationals to buy overseas. The problem is that the domestic market usually accounts for between 50-60 percent of the operations being carried out in the area,” he explained.

The association recognizes that it is necessary to manage this in a smart way to avoid the impact of negative effects at the end of the year. The current devaluation of the Mexican peso has been cause for many potential Mexican buyers to pull out of real estate deals.

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