As in any type of market, real estate investment is a delicate dance of supply and demand. With investment real estate in Mexico, the supply side of the equation is simple as there is only a finite amount of land. However, there is a complicated network of factors that determine the demand.
Factors such as physical landscape and the size of the lot play an obvious role in sizing up the potential demand of a piece of investment real estate in Mexico. Other factors like the tourist popularity of the location, the availability of water and electricity, the amount of work that must be done to the land in order to get it ready to live upon all enter into the equation.
The ideal combination of factors when hunting for investment real estate in Mexico is an undeveloped lot, prepared enough to include a water and electricity solution, in an area that is classically beautiful and budding in interest. This is precisely why the Costa Maya has become a big name in investor circles.
Landscape of the Costa Maya:
The area known as the Costa Maya is a 57 mile strip of Caribbean coastline along the southern tip of the Mexican state of Quintana Roo. The coastline of the Costa Maya is the classic Caribbean image, boasting hypnotizing blue oceans, white smooth sandy beaches, and luscious green tropical foliage. Real estate in the Costa Maya is in the form of gorgeous unspoiled lots that are guaranteed buildable. The area has recently been the focus of a massive government revitalization project for the purpose of making it attractive to foreign investors.
Tourist Popularity in the area:
If you’ve heard of the Mexican state of Quintana Roo before it’s because this is the home of Mexico’s most popular tourist destination Cancun and the investment hotspot Playa del Carmen where thousands of foreign real estate investors made big profits over the last 10 years. Tourism is one of Mexico’s top revenue streams, much of which is derived from this area of the country.
Availability of Water and Electricity:
As part of the revitalization project, the Caribbean beachfront lots in the Costa Maya have been set up for water, electricity, and fiber optics. The highway that runs south through the Costa Maya has recently been renovated, drawing even more attention to the area. While most of the land is still raw and inexpensive, the area shows signs of serious growth. There are 3 airports nearby, marinas, a cruise ship dock, beachfront shopping and a professional golf course.
Building on the land:
Like all investment real estate, those who can see the potential of an area and then build upon it stand to make much more than those who look for prepackage solutions. While the land in the Costa Maya must be paid for in full, many US banks are now offering home loans for investors to build homes in Mexico. Many investors will choose not to build on the properties and instead hold onto the land and sell it as the demand for the area rises. In a blossoming area like the Costa Maya, either option is lucrative.
There are numerous opportunities for investment real estate in Mexico, but not many as exciting as that in the Costa Maya. Demand factors in the area mimic that of Cancun in its early years of development not that long ago. Today beachfront homes in Cancun sell for upward or $1million US compared with lots in the Costa Maya selling for as low as $65,000.