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Projects from Cancun to Tulum booming reports Latin American Real Estate Confederation

Playa del Carmen, Q.R. — Real estate from Cancun to Tulum booming, says president of the Latin American Real Estate Confederation.

Antonio Hanna Grayeb says that there are currently between 40 and 50 billion peso in real estate investment projects along the tourist corridor that are in construction phases.

He points out that these figures are only for Quintana Roo and encompasses the construction of boutique hotels, tourist-residential developments in Cancun and Puerto Morelos, but mostly in Playa del Carmen, in the municipality of Solidaridad, including Akumal and Tulum.

“We are hoping for approximately 40 to 50 projects, not only in Riviera Maya, but also in other places. We calculate this investment, more or less, between 40 and 50 billion peso more or less.”

He says that “the Mayan Riviera is today the showcase of the real estate sector worldwide,” adding that the sector represents 14.1 of the gross domestic product (GDP) for Mexico, making it the second strongest economic force behind the automotive industry.

However, he pointed out that unlike the automotive industry, 98.7 percent of the products and supplies from real estate projects are contributed by Mexicans, adding that real estate generates more than 3 million jobs and impacts about 78 branches of the national economy.

Hanna Grayeb explained that the real estate sector in Mexico will grow at a rate between 5 and 5.2 percent during 2018, “which is the same as we had last year” and predicted that in the case of Quintana Roo, the increase of the activity will be excellent.

“The demographic bonus helps a lot in the country so that the real estate sector continues to grow at those levels. However, if the structural reform had not been made, it would be difficult to maintain sustained growth for two to three years.”

Antonio Hanna pointed out that Riviera Maya is one of the areas that grows the most, and recalled that since 2009, with the outbreak of influenza, the region had no growth in the way that was registered last year, and predicted a growth of between 6.5 and up to 7.0 this year.

“The dollar has helped us. The exchange rate in the area helps because not all prices are in dollars and there are people who come to buy several square meters to take advantage of the exchange rate parity, and people who are smart take advantage of it and buy.”

Alegre Hernández Maldonado, vice president of the real estate section of the National Chamber of Commerce, says the Riviera Maya boom will last for a long time, because the new administration put an end to the lack of certainty in investments that before, generated uncertainty during the previous administration.

He admitted that toward the end of the last administration, questions about certainty in the real estate sector began, as a series of scandals generated by fictitious labor awards or other methods of land dispossession or emptying of accounts was made known.

However, the new administration quickly took action on the matter, and since then, we have only seen interest grow in investing in the state, even in new areas such as the southern zone, which is about to explode.

Hernandez Maldonado said that “Productivity remains optimal,” explaining the largest offers are currently in Playa del Carmen for condominiums.

“The foreign sector is the strongest in this area, with the highest growth,” he explained. “Nationals also invests, but they opt more for a more economical land or houses.”