Mexico Real Estate News; Lower Hotel Rates Effect Market

For 2010, the Mexico real estate has received the important news that hotel rates in Mexico have actually fallen while in most of the rest of the world, rates have actually risen.  For the real estate industry this fact has several implications for buyers to consider. The data was released in Hotels.com’s Hotel Price Index (HPI).  The data indicated that on average, during the 2nd trimester of 2010, hotel prices rose by 2% throughout the world, with various from region to region, with South America and Europe seeing the most significant increases.

Mexico’s hotel prices, in contrast, fell by 7%, and as high as 18% and 22% in places like Puerto Vallarta and Cancun.  The data is based on rates that people are actually paying, as opposed to advertised rates for hotels; it probably means that hotels are offering more promotions, and buyers are taking advantage of them.   In general, this is an indication that travelers are choosing Mexico as an option where they can enjoy high quality for an accessible price. This fact is also true of those choosing to live in Mexico; just as importantly as enjoying low prices, expats in Mexico also offer a high-quality lifestyle and world-class services.  Both travelers and buyers can choose Mexico as “affordable luxury.” On the other hand, falling hotel prices are also an important consideration for property investors.  Those buying a Mexico home or condo to generate income from vacation rentals will have to take this factor into account while making income projections.  Hotel prices are not likely to continue dropping as tourism rises in Mexico (which it has been doing steadily after the low point of the recession in 2009.) Some areas of Mexico real estate has also been tackling this issue head on; new gated community developments are offering competitive prices, low monthly maintenance fees and many available services help smart investors be even more competitive than the promotions offered by hotels.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”