Todays business world and world economies have increased their relations between economies and markets throughout all countries in the world. What occurs in China is felt in NYSE, and what occurs in the middle east is also seen on the economic indicators of Europe. So naturally one would think, being that USA and Mexico are next door neighbors, the financial market and housing market conditions from the north should be reflected in Mexico’s markets as well as the Playa del Carmen and Cancun real estate markets.
But, in the past 6 months, Mexico’s financial markets have fared quite strongly to the storms that have been hitting the North American markets. Not only Mexico, but the majority of Latin Americas markets have been pumping forward. This is quite an interesting occurence. The world economy is much greater intertwined than what it was 10 years ago. Yet, if a regional market is having a slowdown, should this not be felt throughout the world markets and especially here in Mexico as a stronger affect
Fortunately, various Latin American countries have diviersified their business relations with a number of countries throughout the world. Such countries will not have such a strong tie to the slow down. Mexico has done very well over the past decade to bolster their domestic economies, their inflation, their overall exportations. So the good news is that Mexico`s economy is doing very well this first quarter of 2008. The tourist sector is going stronger than ever. And the Playa del Carmen real estate, although not witnessing the incredible rates of appreciation seen over the past 4 years, is still quite positive
(see prices in general https://www.topmexicorealestate.com/playadelcarmen-real-estate/b-listado-playadelcarmen.php).
My “not so exciting” opinion though, is, how long can Mexico’s financial markets continue to churn on their own Mexico’s number one destination for exports continue to be the USA. The quicker that USA can rebound, the better off their country business partners, and the world economy as a whole is better off. Us here in small Playa del Carmen, continue to monitor closely. We see how various Mexico Real Estate investors are now comparing Florida Real Estate or even Arizona Real Estate prices versus the Playa del Carmen properties. I remind the investors of several factors as they do their analysis. Don’t forget the hidden costs of your analysis. What is the day to day cost of living between the real estate markets. How easy and inexpensive are the transportation, logisitics of arriving to your second home investment. Â Is the tourism projections strong in comparisons What is the population growth projections for the area, what is feeding this growth Remember, you may want to flip, or re-sale your property in 3 years, 5 years. Just because the price on a property has dropped 15% – 35%, how long will the local real estate market take to regain this drop and reflect 2007 avg. prices again
