While the Mexican economy is going strong, and the country is on its way to recovering its pre-recession levels of foreign direct investment (that received in 2008), property investors may wonder if now is a a good time to invest in Mexico real estate deals. The strength of the economy, growing tourism and the availability of low prices would suggest that in deed it is, with markets like Rocky Point real estate or Lake Chapala real estate offering excellent potential.
Recent economic and investment news for Mexico looks promising. While the country’s Foreign Direct Investment for 2010 reached $17.7 billion dollars, falling short of the $25.8 billion USD reached during 2008, the recovery is going in a very positive direction, and Mexico is expected to return to these levels within less than 2 years, according to the Economic Commission for Latin America and the Caribbean (ECLAC).
It is also worth noting that during 2010 the country was the second largest recipient of investment in Latin America, which points to its strength compared to the rest of the world.
For real estate buyers, the ongoing strength and attractiveness of Mexico for foreign investment means several points. One is that buyers can be confident that the Mexican economy will continue to flourish; recently Mexico’s status was upgraded to that of BRIC countries, indicating that it has surpassed the status of “emerging economy.” This means that more international stores and services as well as modern infrastructure will continue appear and become common place in the country.
Another point is that the country is continuing to make and apply policies that are favorable to foreigners investing in the country. These types of policies typically bring benefits for real estate owners as well.
With all of this in mind, it is important that excellent deals are available in various markets. The towns on Lake Chapala, for instance, have been a retirement favorite for years. Prices are very accessible, on one hand, and, on the other hand, the nearby metropolitan of Guadalajara (Mexico’s second largest city) continues to offer the most modern conveniences as the country advances economically.
Rocky Point, on the northern tip of the Sea of Cortez, which divides Baja California from mainland Mexico, only a couple of hours by car to the Arizona border, currently offers excellent deals in beachfront condos. Now would be an ideal time to take advantage of the lower-priced deals before full recovery brings the prices back up to normal. (Even though these “normal” prices are still low!)
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