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Although the Mexican economy grew overall by a small 2% in 2018, the housing market continued to strengthen to 2.92% compared to 0.73% in 2017 (nationwide house price index). The housing demand in the luxury market bolstered overall demand in resort areas. Indeed, according to Google searches by Americans in 2018, Mexico remained their number one destination choice for researching second home purchases.

Many factors contribute to the economic strengthening in the real estate market in Mexico. Elections in July of 2018 with the ultimate victory of Lopez Obrador initially created speculation in all areas of the economy. Economic analysts showed some doubt early on because of the high-profile cancellation of the construction of a second Mexico City airport and some claims to install a refinery. Since these early days, it has come to light that these were the only elements that made analysts doubt the short-term economic viability of Mexico.

In the first few months of 2019, Lopez Obrador committed to many infrastructure projects and continued the funding of ongoing projects. Particularly important for Oaxaca state, the highway from Puerto Escondido to Oaxaca continues to receive funding to be completed in the short term. Significant progress has also been made in the construction of the four-lane highway along the coast from Puerto Escondido to Huatulco and beyond.

 

Combined with a strong dollar, ongoing retirement of millions of baby boomers and their desire to diversify financial portfolios, investment in real estate in Mexico continues to grow.

According to Forbes, real estate investment is increasingly being democratized. Whereas real estate investment was once considered an option for seasoned and wealthy investors, today more baby boomers have learned that real estate investment builds wealth more consistently than stocks and other assets.

Investors are seeing advantages over stock market investment including having a tangible investment and more personal control over their assets. For some, this personal control generates a sense of satisfaction in the way of making decisions regarding property investments and improvements, controlling rent and rentals and ultimately managing resale.

 

Why does investment in Huatulco real estate make sense right now?

Here are just a few reasons that Huatulco real estate stands out as a prime investment choice.

1. Huatulco is a master-planned community. Differing from Cancun and other typical Mexican high-rise model communities, Huatulco is eco friendly. Renewable solar and wind power fuel the town. Two-thirds of the region is reserve land, green spaces and natural park. Huatulco has received Green Globe certification, the first location in the Americas to receive the certification. The town has a state of the art water and sewage treatment plant.
2. Huatulco offers better value. Huatulco focuses on integrating low-rise construction into the scenery. Indeed, the bays of Huatulco form a striking landscape where luxury living can be obtained for less than in other oceanfront destinations throughout Mexico.
3. Huatulco and the state of Oaxaca are safe destinations. Oaxaca state continues to be one of the safest destinations in Mexico with a crime rate much lower than that of many American states. The Huatulco area boasts the presence of a naval base which has undoubtedly deterred criminal activities along this area of the Pacific coast unlike in the more northern Acapulco region.
4. Strong buying power. The peso remains low meaning the U.S. and Canadian dollars both can buy more for less. Combining this increased buying power with the fact that more luxury living real estate can be bought for less than in other areas of Mexico, real estate investors in Huatulco are in a win-win situation.
5. Increasingly easy access via Huatulco international airport. Huatulco has a variety of direct flights to Canada and the U.S. The Mexican government in the development of the master-planned destination, contributed to the mid to long term planning of the development of Huatulco by creating favorable investment conditions for airlines serving the Huatulco airport. Every year, flights are added to the Huatulco airport schedule. http://www.ownmexico.org/flying-to-huatulco-how-to-get-here/
6. A friendly local and expat community. Many Canadians have already chosen to invest here either living part or all of the year or renting out their property or both.
7. Developed infrastructure including high-speed internet, highways and roads, important supermarkets, hospital and services sector where many professionals speak English.
8. Small-town feel. Huatulco boasts an organic and local products market, world-class restaurants that make everything from scratch with market-fresh ingredients, pristine beaches and a genuinely friendly ambiance where it is easy to meet new friends and grow your network.
9. Huatulco is still a secret for many. Known by affluent Mexican families and investors for years, some North Americans are still a little confused as to the exact location of this beautiful, natural coastline. Some investors would likely be happy to keep it that way.

The charm and natural aesthetics of Huatulco combined with excellent value continue to contribute to the growing popularity among real estate investment innovators and leaders. Join them while the market is accessible, maximizing your investment dollars and experiencing a unique quality of life.