Investing in Paradise: 6 Mexican Cities Poised for Growth
- Tourism to Mexico was up 45% Year over Year in 2022, with 22 Million visitors to the country vs 15.4 in 2021, a new record.
- The Mexican Ministry of Tourism projects that the country will receive an economic boost of $46.4B via tourism in the summer of 2023, a 6.6% rise from 2022.
All prices are in USD unless otherwise noted.
In 2021, 15.4 million tourists stayed in Mexico while in 2022 an estimated 22.4 million people spent the night in paradise, a year over year increase of 45%.
More recently, Miguel Torruco, Mexico’s Minister of Tourism announced that overall tourism was up in Mexico this summer (2023), jumping 6.6% compared to the same time period last year.
As tourism rises, so too does the demand for hotels, vacation homes and rental properties generally. According to a recent study published in the Journal of Hospitality & Tourism Research “…higher inbound tourism demand raises both house prices and rental prices”.
Where in Mexico should I invest $250,000 USD today?
In Mexico, property is much cheaper so it’s conceivable to get into the market with only $250,000 in many desirable areas. Using proprietary Far Homes listing data and governmental economic trend figures we’ve selected five places where $250,000 invested in paradise today could become much more in the years to come.
Top Mexico Cities for Investment (2023)
Merida, the capital of Mexico’s Yucatan state, has been capturing investor attention due to its burgeoning cultural renaissance and promising economic indicators. The city’s rich history, vibrant arts scene, and growing tourism sector are attracting both domestic and international visitors. 2022 was another record setting year for tourism in Merida, with notable growth from North American travelers. This surge is partially attributed to the city’s improved infrastructure and accessibility, as the new Merida International Airport saw a record year in passenger traffic last year, seeing almost 300,000 visitors from abroad.
The city’s focus on preserving its colonial architecture and promoting local craftsmanship adds to its unique appeal. Savvy investors are recognizing Merida’s potential for growth as it blends cultural authenticity with modern amenities, making it an alluring investment destination.
San Miguel de Allende
San Miguel de Allende, nestled in Mexico’s central highlands, continues to captivate investors seeking historic charm and investment potential. The city’s designation as a UNESCO World Heritage site has solidified its status as a cultural hotspot. Don’t take our word for it, San Miguel has won Traveler’s “The Best Small City in the World” five times now!
With its proven track record of attracting discerning visitors and maintaining a thriving expatriate community, San Miguel de Allende presents a compelling investment opportunity in an up and coming Mexican city.
Sayulita, a once-sleepy fishing village turned surf haven on Mexico’s Pacific coast, 25 miles (41km) northwest of Puerto Vallarta, has investors enjoying the town’s relaxed atmosphere, vibrant local culture, and world-class surf breaks.
The expansion of nearby Puerto Vallarta’s international airport has boosted accessibility to Sayulita, with a reported 3 million visitors in the first five months of 2023, exceeding 2022’s record by 20%. Sayulita’s appeal extends beyond sun and surf, as the town has embraced sustainable practices and wellness tourism, attracting an environmentally conscious demographic. As travelers seek unique experiences in an increasingly connected world, Sayulita’s blend of nature, culture, and leisure activities positions it as an enticing investment hotspot. Sayulita could end up being to the Puerto Vallarta real estate market what Tulum was to The Riviera’s, an undiscovered gem near a well-known destination.
Tulum, once a hidden gem of Mexico’s Caribbean coast, has swiftly shifted its identity from a tranquil retreat to a bustling investment hub. As a result, Tulum’s population has tripled in seven years. And the boom continues today: according to data from the Mexican Association of Real Estate Professionals (AMPI), Tulum 300 new real estate developments are coming in 2023.
This growth has been driven by both domestic and international buyers, seeking either personal vacation homes or income-generating rental properties. The Wandering Investor says of Tulum:
“People are increasingly looking for cool architecture, beautiful beaches, co-working spaces, health and spiritual retreats, and all of this in an international environment. Tulum fits the bill.”
In a few whirlwind years, Tulum’s trajectory from serene paradise to investment hotspot serves as a testament to the transformative power of strategic development and investor foresight.
Cabo San Lucas, located at the tip of the Baja California Peninsula, has evolved into a luxury vacation destination that is garnering attention from investors. The city’s pristine beaches, world-class resorts, and upscale dining options have been attracting affluent travelers seeking opulent experiences.
CBS San Diego reports that “In 2022 alone, Camacho says there was an 11% increase of Americans looking for properties in Baja Mexico, mainly due to more companies allowing employees to work from home and skyrocketing home prices in cities like San Diego.“
As discerning travelers continue to seek elevated leisure experiences, Cabo San Lucas remains a solid investment choice for those seeking to capitalize on the convergence of luxury and leisure.
Puerto Vallarta, a beloved coastal city on Mexico’s Pacific Riviera, is gaining momentum as a prime investment opportunity due to its timeless charm and growing ever increasing tourism.
The recent expansion of the city’s international airport is setting new records, with this year’s latest numbers (3 million passengers) beating 2022 by 20% thus far. Puerto Vallarta’s commitment to sustainable tourism and ecotourism initiatives has also garnered attention, appealing to environmentally conscious travelers. It’s also one of the safest places in Mexico according to Nomad Capitalist.
Investors are recognizing the potential for robust returns in Puerto Vallarta’s real estate market, as both vacation properties and long-term rentals gain popularity among those seeking a slice of seaside paradise.