Mexico and Central America, with potential to expand the vacation home market

The living place It is not experiencing its best moment, since there is a significant contraction of inventories and the production of new units is going down, which shows that developers have stopped projects due to the economic situation; However, in this context there are segments that have behaved favorably, such as houses that are in touristic destinations.

According to specialists, the vacation home In Mexico and Central America, it still has the potential for further growth, due to several factors, especially its proximity to countries like the United States and Canada, as well as how attractive these markets can be for Asian or European investors.

“The vacation home it is a great opportunity. While we see an overall drop in the housing marketbecause we have seen the drop in inventories, of new projects that are being developed, but the vacation home increased, this is a great opportunity”, highlighted Gabriela Cano, Commercial and Business Development Director at Softec during the 2022 Results forum organized by the Real Estate Sharks platforms.

For Cano, although the most important tourist destinations in Mexico are those that have stood out for having a greater demand for vacation homeWith both a national and foreign offer, other regions are beginning to stand out, to the extent that this segment has registered a 30% growth in 2022 compared to 2021.

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“Both the national and foreign markets turned to all the tourist spots that we have… The main markets have been Cancun, Vallarta, Mazatlán, but we have Tijuana, where we see medical tourism and different places like Los Cabos, San Miguel de Allende, then I think there is a great opportunity,” said the specialist.

Central America wants its share

In his speech, Pedro Ramírez, president of the Latin American Real Estate Confederation (WHAT), highlighted that, as in Mexico, other Central American countries have sought to detonate this housing segment and some nations have even legislated to be able to detonate foreign investment in this type of housing. living place.

“Central America is two hours from the United States by plane, that is, they can return to their land very quickly and be able to live in very special conditions, a cheaper economy,” Ramírez explained.

According to Ramírez, countries like Costa Rica have created a legal framework that allows foreigners to invest in the housing market of that nation.

“For example, Costa Rica has had a policy of attracting pensioners for many years and greatly favors them by not paying taxes for household items. The interesting thing is that it offers an ideal climate with legal and political certainty,” the president said. of CILA and highlighted countries such as Belize and Panama that have also promoted regulations in this regard.

Ramírez highlighted the new models that have been detonated recently, such as the living place divided where several people can own the same space and thus, each time they use it, it suits their needs.
Regions for different needs

For Florencia Estrada, president of the Mexican Association of Real Estate Professionals (WIDE), there are areas with greater dynamism in terms of vacation homebecause they have characteristics that are attractive to foreigners and to national demand.

For example, in Tijuana or Guadalajara what is medical tourism has been detonated, that is, the arrival of foreigners for some treatment for their health, which also promotes the real-estate market region of.

Likewise, Estrada noted that regions such as Magical Towns or historic centers of some states, also attract the attention of national and foreign demand, which is beneficial for their real estate markets.

“There is a high quality of life and they are very quiet cities and this type of tourism and residents are developing there,” said Estrada.

For the three specialists, it is necessary to adapt the offer to the needs of the demand for this type of householdswith the accompaniment of public policies that encourage investment, as well as the necessary infrastructure for the habitability of people in these regions.

“Mexico has great competitive advantages in terms of culture, infrastructure, tourist centers, which we have not exploited,” highlighted the Softec specialist.