Mexico’s Construction Sector Poised for Resurgence in 2024: Opportunities and Investments in Premium Real Estate Soar
In 2023, formal housing construction witnessed a notable slowdown, marked by significant minimal figures. The industry grappled with several challenges, including escalating construction and financing costs due to high interest rates, alongside regulatory hurdles and dwindling sales due to diminished purchasing power.
Improvements in infrastructure, effective urban growth planning, and stronger regulations are all needed within the construction industry. External economic factors, such as those mentioned above, which are beyond our control, have a negative impact on Mexico’s construction sector.
However, there are signs of a resurgence as developers begin to reactivate projects. 2024 is shaping up to be a year of recovery in the construction sector.
All segments of the housing market are expected to experience significant growth, especially premium residential housing and premium plus, with an expected annual growth of 27% over 2023. This opens a wide range of investment opportunities for both domestic and foreign investors, especially in cities with high tourist activity, where attractive returns can be obtained, allowing for long-term investment recovery.
The main tourist destinations in Mexico, renowned for their quality and appeal to travelers, are likely to experience an increase in property demand and subsequent appreciation. Investing in properties with the intent of generating additional income through rentals can serve to offset maintenance or financing costs.
Mérida, Yucatán stands out as one of the most sought out destinations, esteemed for its natural beauty and a blend of luxury, serenity, and security, alongside a diverse array of activities for visitors to relish.
Other favored destinations include the beaches of the Riviera Nayarit, as well as the cities of Playa del Carmen and Tulum in Quintana Roo, and Los Cabos in Baja California. These destinations not only captivate with their natural beauty but also offer an array of gastronomic, entertainment, and cultural experiences.
When investing in a property, it is paramount to factor in considerations such as return on investment and enhancement of quality of life. This aspect holds particular significance for retirees considering Mexico’s tourist cities, given the tailored services and amenities catering to older adults.
It is crucial to emphasize that age or place of origin need not be deterrents to real estate investment. Purchasing property in another country or distant from major urban centers can offer superior cost-effectiveness and potential for property appreciation.
Discover how Mexlaw can make your real estate dreams come true in Mexico! Whether you’re looking to buy, invest, or retire in this beautiful country, our team of Real Estate Law experts is here to provide you with the guidance and support you need. Contact us today and let us help you turn your real estate projects into reality in Mexico!