Mexico has long been a significant player in the global economy. Its rich history, diverse culture, and strategic location make it a hub for trade and commerce. While the business relationship between China and the USA continues to deteriorate…It is positive news for the Mexican economy since the Northern countries now look to their southern neighbors for future demands in services and products. In recent years, the country has been working to position itself as a top 10 world economy. Therefore, the sooner it becomes a reality, the greater the positive trends for the Mexico Real Estate industry.
Main Economic Drivers in 2023
Mexico has shown steady growth over the last few years. Working its way up to the 11th placement among the largest economies in the world. However, entering the final stretch means that Mexican industries must continue to leverage the economic and political momentum if the country wants to make it into the top 10.
Having one of the largest populations in the world and a skilled, young workforce makes Mexico’s expanding population one of the primary factors boosting its economy. In fact, a substantial share of the population is between the ages 5 and 34. Currently, Mexico has a solid and consolidated industry, mainly in the metal-mechanic, automotive, aerospace, and electrical-electronic sectors. Proving highly-skilled workforce, and most importantly showcasing Mexico as a top-tier manufacturer, exporter, and developer. Tesla announcing their soon to be deployed manufacturing facility in Mexico’s northern region lends weight to this argument.
Local government made significant infrastructure investments, including new highways, airports, and rail lines, which will drive economic growth and create new opportunities for real estate development. For example, a new Mayan Train project covering Quintana Roo, Yucatan, and Campeche. This federally-backed touristic project has already impacted the Playa del Carmen and Tulum Real Estate markets.
Real Estate Industry
The country’s real estate industry is closely tied to the economy’s overall health and here is why:
Industrial and economic prosperity has benefited real estate in Mexico through increased demand for commercial and industrial spaces. As more companies move to Mexico to take advantage of its strategic location, skilled workforce, and favorable business climate; the demand for land increased dramatically, which has driven up the value of Merida Real Estate, and other major cities like Monterrey and Guadalajara. Hence, creating new opportunities for investors looking to capitalize on this trend.
Moreover, it has also impacted residential real estate in Mexico. Particularly in rapid growth areas, more people move to these locations to take advantage of new job opportunities. Hence, the demand for housing increases, driving up property values and creating new opportunities for developers and investors.
Overall, its unique location neighboring the world’s leading economic trailblazer; The increased tension between USA and China, and consumers looking south for solutions, puts Mexico in the financial spotlight. As Mexico continues to attract investment and expand its economy, it is likely that this trend will continue, creating new opportunities for those considering investing in Mexico Homes For Sale.