REAL ESTATE BOOM IN MEXICO: QUINTANA ROO LEADS THE HIGHEST PRICE INCREASES
Real estate prices in Mexico have been on the rise, with the country seeing a 9 percent increase in home prices in 2022. The biggest increases were seen in the tourist states, with Quintana Roo leading the way with a 14 percent increase. This rise has been attributed to foreign investors looking to buy properties in Mexico’s real estate market.
Two of the states with the highest home price increases are Quintana Roo and Baja California Sur, both of which rely heavily on tourism. The SHF reported that the average price of homes in these states rose by 14.6 percent and 14.2 percent, respectively, making them the highest in the country. Despite this, there has also been an increase in the number of units sold in these areas, including luxury homes in Los Cabos, Baja California Sur, which saw an 8.7 percent increase in sales annually.
Other popular destinations among foreign buyers were Riviera Maya (Solidaridad/Playa del Carmen) in Quintana Roo, the Pacific Coast, and the Baja California Peninsula. Even cities close to the U.S. border, such as Tijuana, saw increases in housing prices, with a 13 percent rise in the cost of homes.
This upward trend in home prices occurred in a context where GDP grew by 3.6 percent in the fourth quarter of 2022. Additionally, the number of workers registered with the IMSS grew by 3.2 percent in the same period. At the national level, the average price of a home in 2022 was 1,535,000 pesos, with a median price of 893,000 pesos. However, the number of appraisals decreased by 11.7 percent compared to 2021.
The SHF also reported that the index for new housing rose by 9.9 percent, while that for used housing increased by 8.1 percent in 2022. Used housing made up 60 percent of the market, with new housing comprising the remaining 40 percent. Single houses saw an 8.7 percent increase in the SHF index, while houses in condominiums and apartments appreciated by 9.1 percent.
Overall, the real estate market in Mexico saw significant growth in 2022, particularly in tourist states such as Quintana Roo and Baja California Sur. The rise in foreign investment and increased economic activity contributed to the upward trend in housing prices, which is expected to continue in the coming years.
