The environment for second home buyers was shifting pre-pandemic and has continued to do so post-pandemic. There are upcoming areas where American, Canadian, and European buyers are now buying for second homes and vacation homes in Mexico. Some of these areas are relatively near major commercial cities or traditional vacation markets. It appears that buyers are now looking for homes in areas with more space, less congestion, but within easy access to major tourist and commercial markets. In this way, these up-and-coming markets benefit from good airlift, infrastructure, and a low-cost workforce. Herein, we look at these up-and-coming second home markets for international buyers in Mexico.
Due to its close proximity to the United States and Canada, Mexico is becoming a more and more interesting second home location. Retirement increasingly has become of interest due to the low cost of living in Mexico. Investors, retirees, and vacationers are looking to Mexico.
Tulum – Tulum is considered to be the hottest market currently in Mexico. It is located south of Cancun in the Riviera Maya and benefits from close access to the Cancun Airport, and beautiful white sandy beaches. Real Estate Market Lifestyle magazine highlights Tulum as one of the premier vacation and second home markets in Mexico. There are new hotels, subdivisions, and condos planned. Aldea Zama is a large master plan in Tulum which will be a focal point for growth, as the infrastructure being installed will help support many different types of residential development types. There are villas, condos, and homes planned in the master planned community. Tulum is attractive for international second home buyers and vacation home buyers.
San Miguel de Allende – This ‘pueblo magico’ or magic city is a colonial town north of Mexico City in Guanajuato. The city originally benefited from the beautiful architecture and churches that are plentiful in the town but is now considered a major second home market for international buyers – as well as Mexican nationals. The city offers low-cost living, but with cultural benefits and a great climate. The weather is not considered hot but is dry and there are minor variations in the seasons. San Miguel is particularly attractive for retirees, both international and Mexican.
San Miguel de Allende, Home
Puerto Escondido – This town, located in Oaxaca has seen growth in recent years as second home buyers have begun to buy homes in the area. The development in Oaxaca tends to be low-rise villas and custom homes at this point. Benefits of the Puerto Escondido market includes low-cost living, a bohemian lifestyle and surfing.
Costa Alegre – This new upcoming market is north of Puerto Vallarta in Jalisco. It appears to be targeted towards luxury second home buyers who desire a location that is more private, but with close proximity to a major airport (Puerto Vallarta) and easy access to Guadalajara (via the new highway). The New York Times cites its secluded beaches and tropical climate as attraction for vacationers and second home buyers.
Second home buying does have benefits in Mexico according to Market Watch, without a doubt, as costs rise in the United States and Canada for affordable Housing and healthcare continue to rise. LOGAN offers appraisal of condos and second homes and works often in the major traditional markets (Los Cabos, Cancun, Puerto Vallarta, Cancun) as well as the up-and-coming markets. Typically, these appraisals are for acquisition purposes, divorce appraisals, litigation appraisals, or for international financing purposes. Sometimes foreigners cannot get a local mortgage and prefer to utilize private lending sources either internationally or locally. International mortgage brokers for second home buyers include: Mexlend, Global Mortgage, CMN Funding. Title and escrow services are provided in Latin America by TLA, a company that specializes in second home purchases by Americans and Canadians.
