We believe that there has never been a better time to buy property in Mexico as a result of the convergence of four megatrends.
Megatrend # 1: The Rise of Mexico as an Economic Powerhouse
According to PwC, Mexico’s economy will grow to become the 7th largest in the world by 2050, and will have surpassed that of Japan and all European countries. As a result, the growth of the Mexican middle class is continuing unabated. This translates into rising income levels and purchasing power. It means that more and more Mexicans can afford a better home to buy or rent or even a second home.
Megatrend # 2: Influx of Remote Workers
As a result of the Covid-19 pandemic, there has been a huge increase in the number of remote workers and digital nomads and it looks like the genie is out of the bottle. For them, Mexican properties are much cheaper to buy or rent than at home. While Mexico has to compete with many other countries when it comes to US and Canadian tourists, there is no contest when it comes to remote workers. Indeed, other countries can’t compete against Mexico’s advantages: easy access, same time zones, first class infrastructure, low cost of living and real estate prices and familiarity, as the country is home to many US franchises.
Megatrend # 3: Post-COVID Tourism Boom
Before Covid-19, there was already a megatrend in place in international travel. As the pandemic comes to an end, an explosion in international travel is expected, known as revenge travel. According to Brian Chesky, Airbnb’s CEO, there is a huge deficit of houses to satisfy the demand. Prior to the pandemic, Mexico was already climbing the ranks of the world’s most visited countries reaching the 7th spot in 2019. In 2020, it occupied the 3rd spot, almost in a tie with Italy for the second place. While the ranking was boosted by the country’s openness during the pandemic, many more people got to discover Mexico so we can expect a part of the country’s gain in the ranking to be of a permanent nature.
Megatrend # 4: Baby Boomers Retiring
Mexico is already home to the largest community of US and Canadian retirees living abroad, which is more than 1-million people strong. They are expected to be joined by a large number of baby boomers with social security checks insufficient for a comfortable standard of living at home after retiring.
Clearly, as a result of these megatrends, the number of Mexicans joining the ranks of the middle class and the number of foreigners either visiting or living in Mexico will undoubtedly support real estate values and rental income. In turn, that will make Mexico even more attractive to real estate investors going forward. This leads us to believe it is the best time to buy property in Mexico.
If you want more information on this topic or any other topic pertaining to buying or investing in real estate in Mexico, reach out to us through the contact form.
