Mexican Real Estate Investors on the Rise in Puerto Vallarta
A recent event for members of the local and regional real estate community proved ideal to poll brokers in attendance with a single question: Where does the Mexican buyer stand in your overall real estate strategy? Thanks to their answers, we can confirm that investment opportunities for Mexicans are on the rise, along with the available options, without disregarding the international market.
One of the key factors that have triggered the current demand increase among Mexican buyers is the industrial boom that has been taking place in Mexico’s Bajío zone (Aguascalientes, Guanajuato, Querétaro and San Luis Potosí), where business is thriving. Along with other advantages, this boom has resulted in:
1) This area of Mexico becoming one of the most important suppliers of manufactured goods for the United States.
2) Better opportunities through more and better-paid jobs for Mexican employees in the four aforementioned states, resulting in a better quality of life.
As a result of this, many Mexican entrepreneurs from the region—responsible for quality products and services—are increasingly setting their sights on Puerto Vallarta and Riviera Nayarit as an ideal real estate investment destination.
On the other hand, even though the current MX/USD rate exchange may seem to be working against the local market, many visionary developers have realized that, when offered a preferential rate exchange along with financial tools (such as financing opportunities in Mexican currency through local institutions offering low interest rates and/or personal financing for five years or more), Mexican buyers are more likely to close their deals. This makes local investors an increasing priority in destinations such as Vallarta · Nayarit, one of the most important real estate investment destinations in Mexico.
While international real estate buyers favor the fall and winter months, Mexican buyers flock to Vallarta · Nayarit in June – August, to spend school vacation time with their families and research their real estate investment options.
Along with the financial aspect, it is well known that most Mexican investors are interested in a dynamic destination, where their lifestyle can be complemented with quality infrastructure and services, such as top-notch hospitals, gourmet restaurants, prestigious golf courses and cultural offerings that include performing arts.
Making comparisons between Mexican and foreign investors and their cultural differences is, unavoidably, a touchy subject. It is always easier to look after a client’s needs when client and broker share a common language. That said, a large number of Mexican brokers in the region are bilingual and bicultural, which makes them more successful with both local and international buyers.
Although a radical shift cannot be foreseen in the future, it is good to confirm that real estate opportunities for national investors is on the rise. Nowadays, the Mexican market has triplicated its activity and buyers are acquiring properties that may have originally been designed for the international market.