Best Places to Buy Property in Mexico

With over 1 million North Americans now living in Mexico it is becoming quite the destination to retire to.  But as well as the retirement market, real estate in Mexico offers a great investment opportunity. 

With almost 2 million square miles of land and 5,800 miles of coastline on the Pacific, Gulf of Mexico and Caribbean coasts, the property possibilities are endless ranging from beachside properties to village houses, city apartments, estancias and mountain retreats. 

But let’s face it, the draw has to be the beach, so where are the best locations for buying Mexican property ocean-side?

Described as Mexico’s Southern California, Los Cabos is the Baja peninsula´s most expensive and popular destination.  It is quite Americanized so isn’t to everyone´s taste, but it does have excellent beaches.  With some hotels in the area charging from £1,300 to £4,500 per night, it’s a destination for some very wealthy travellers.  The upside of this is that there’s a very healthy rental market, but it’s not the cheapest place to buy property in Mexico. 

Prices for apartments start at £100,000 and upwards, with good letting units going from £180,000.  Rental rates start from £650 per week for a modest unit in a popular area, and management fees are between 20-30% for short-term rentals.

Cancun is the number one destination for international travellers to Latin America.  It’s also a very good investment location to buy property in Mexico.  Close to the east coast of the USA it’s easy to get to, has a tropical climate on the same latitude as Hawaii, is close to Mayan ruins and has an 18 kilometre hotel zone that boasts 80% occupancy in the spring and summer months.  For many years Cancun has been said to have peaked, but property prices continue to rise and are now having a positive effect on areas further south. 

Prices range across the board starting from £58,000 for a 2 bed, two bath duplex just outside of town and 800 metres from the beach.  1 bedroom beach front apartments start from around £150,000.

Located on the western coast in the state of Colima is the port city of Manzanillo.  Having one of the lowest crime rates in Mexico, the city is a favourite destination for holidaying Mexicans and is only now coming onto the radar of investors buying property in Mexico.  Prices have been rising by 20% per annum over the last 5 years, but there are still bargains to be had.  Studio apartments start from £32,000 and a two bedroom apartment in a modern complex will cost from £80,000.  A 3 bedroom 2 bath beachfront house with pool is currently on the market for £390,000.

One of the fastest growing beachfront destinations in which to buy property in Mexico is Puerto Vallarta.  Set on the Pacific coast the once quiet seaside fishing town is now home to around 300,000 inhabitants and has the slogan “where Mexico comes to life”.  In 2000 £32,000,000 of resort property was sold for retirement and second homes, in 2007 that figure reached £320,000,000!  Apartments within complexes outside of Puerto Vallarta start at around £100,000.  A four floored villa with ocean, jungle and town views, large guest suite and Jacuzzi is currently on the market for £290,000.  You can create the perfect vacation atmosphere if you want to visit this part of Mexico before you buy in with puerto vallarta tours, and experience all the puerto vallarta activities that will be on offer to your tenants if you decide to buy a holiday home for rental in Mexico for example!

So, there are four destinations to buy spectacular beachfront property in Mexico.  Obviously there is a lot more country to explore, but it’s clear that there’s investment potential in Mexican property despite the state of the world’s economy!