Beach destinations, the new key for financing real estate developments

Los beach destinations in Mexico have opened new places for real estate developersdriven above all by two factors: an adjustment in the market caused by the pandemic that made families seek to acquire a property outside the big cities and a greater tourist demand.

According to the World Tourism Barometer of the World Tourism Organization (UNWTO), in 2020, Mexico ranked as the third most visited country, a fact that encourages the offer of rooms to receive more visitors than, in many cases, , prefer a rented space instead of a hotel.

Faced with this trend, the multiple purpose financial company (Sofom) Serfimex Capital launched a new financing product on the beach for real estate developerswith which he projects a placement of 1,500 million pesos in 2023.

The objective, the company reported, will be to promote niche tourism projects, such as Puerto Vallarta, Playa del Carmen, Tulum, San José del Cabo, Cabo San Lucas and La Paz.

“The beach developments are protected thanks to the wide diversification of funding lines that Serfimex obtains from banks, resources from its investors, among other funding,” the company detailed.

Highlights investment in Playa del Carmen

Sofom’s plan is to take advantage of the effervescence that real estate has shown in touristic destinations. According to the consulting firm Transparent, the inventory of homes available for short-term rental throughout Mexico is 229,526 units at the end of April 2022.

Among the offer that exists today, you can find areas of interest such as Tulum, with a mixed demand from the national and international markets, or Playa del Carmen, where more than 80% of the demand comes from national investors, according to Serfimex.

Further north is Mazatlan, which has had a boom inmobiliario thanks to the opening of the Durango – Mazatlán highway, as well as the renovation of its boardwalk and historic center.

Los Cabos and La Paz, meanwhile, have been influenced by the American market in search of a beach option with accommodation at a better price and features similar to California or Miami.

Instead, Vallarta has been consolidated thanks to the premium LGBT community, which has shown greater interest in the destination.

inflation pressure

For 2022, Serfimex estimates to close with a growth in the granting of bridging loans around 300% compared to 2021, considering the new beach developments in destinations such as Mazatlan, Los Cabos, Tulum, among others.

In the words of José Luis González, director of Credit Bridge of the company, inflation has generated an increase in the cost of materials, generating an increase in the price of housing.

However, he stated that the surplus value offered by a real estate investment remains attractive with mortgages on the market that start at 8.0% at a fixed rate, to which is added the current perspective of the peso as a strong currency against the dollar.

“It stands out that in some beach destinations, purchases and subsequent rentals of real estate are agreed in dollars. Thus, as a whole, the rate of return for the final owner continues to be interesting”, concluded González.