Holiday home, the biggest surprise in the real estate sector
Today I want to talk about a very interesting topic, it has to do with the real estate sector in Mexico and its growth in the last year. The sector recorded an investment of 492,641 million pesos in 2021 and very similar figures are expected for 2022 according to the firm Softec.
Real estate specialists agree that the segments of housing, vacation home and hotels are the ones showing the greatest dynamism, the biggest surprise is, however, the vacation home (with value of between 2 and 4 million pesos), which means that people want to invest in their patrimony.
How does the market look?
Look at this, a placement of 12,000 units is expected for the current year, this could generate an investment of more than 64,000 million pesos in tourist destinations such as Cancun, Los Cabos, San Miguel de Allende and, of course, the Puerto Vallarta and Bahía de Banderas regions. With a placement of 10,000 rooms that could generate an estimate of 48,075 million pesos, there are also good prospects for the hotel sector.
According to Softec, there is also a wide variety of investment options, lofts and studios for two or up to four people being the most attractive ones, because of their highest turnover for vacation rentals. In addition, even though the residential product has not fully recovered, growth expectations are positive.
The challenges of the sector
Even though the figures are very pleasing, not everything is “picture perfect” for the real estate sector, due to the lack of government support for the creation of new projects and the low financing schemes for developers, the sector is also facing tough challenges, the most relevant ones being the increase in construction costs and inflation and volatility in the prices of the materials.
Because of this, it’s very clear to me that being able to develop and incorporate a real estate product into the market, within the appropriate costs, while also considering the economic changes that we are currently experiencing, is the greatest challenge.
We have an example of this “alignment” in Banderas Bay which has become sought after by investors, both Mexican and foreign, who are assured of their safe and profitable investments in this paradise with high occupancy rates which range from 62% to 78% on average in vacation rentals.
Real estate is being built in the residential segment focused on the vacation market from Puerto Vallarta to the coastal towns of Bucerías, Punta de Mita, Sayulita and, of course, the big tourist developments located in Riviera Nayarit, in Compostela, this means a unique opportunity for investors.
Do you want to know the options of the vacation home in Banderas Bay?