The growing demand for real estate in Mexico did not happen by chance. Over the past 10 years numerous of economic factors and structural reforms have been implemented which are attracting foreign investors to establish developments with residential, commercial or corporate purposes.
Attractive exchange rates, a relatively young workforce and economic stability are all benefits which have created investment opportunities in our country, which HSBC Global Bank named “the safest bet for investors” in 2014.
Also in 2014, Goldman Sachs, one of the world's largest investment banks, predicted that Mexico will become the fifth largest economy in the world by 2050 (above the UK, Germany and Russia).
“I am optimistic and I believe that Mexico is gaining momentum. 2015 is probably the best time we have had to invest in real estate in Mexico,” said Terence Reilly of MEXLend Mortgage, a mortgage brokerage firm that offers commercial and residential loans nationwide.
One only has to look at the significant increase in competition among real estate agencies in Mexico to see the strength in the market. Mijo! Brands, the branding and digital marketing agency based in Mexico City and Vallarta • Nayarit has witnessed a growing demand for strategic communications in real estate, particularly in relation to vacation properties in major tourist destinations in Mexico.
Daniel Gómez, Partner at Mijo! Brands, said they have witnessed the resurgence of real estate as an engine of economic growth in the region. “Lately we have collaborated with the most influential agencies in Vallarta • Nayarit including Applegate Realtors, Tropicasa Realty and Timothy Real Estate Group, among others, to exploit new technologies and develop solutions that effectively differentiate their services and brands, enabling them to respond more closely to their customers.”
Gómez admits that real estate, including both agencies and developers, have overtaken the hospitality industry as his largest market segment. He also notes that developments such as Sierra del Mar, The Park Vallarta and Zenith are exploiting emerging opportunities in technology to extend their reach and communicate with their new customers in a more attractive and authentic manner, allowing communication with potential foreign buyers before they enter the country.
Tropicasa Realty has responded to the growing demand for new services and benefits in real estate with a new brand strategy and digital promotion. The Vallarta agency concedes that there is high demand in the market, coupled with a need for service and business model to act on global trends like oil instability (sustainability) and the global economy (added value).
“We work with Mijo! Brands to offer an innovative and sustainable business model in response to our desire to actively participate in the conversation about the Puerto Vallarta real estate sector, quality of life and future. In this industry there is a lot of opportunity and there needs to be a formal commitment to nurture and strengthen Vallarta long term, which will benefit everyone,” said Wayne Franklin of Tropicasa Realty.
The new business model seems to be in line with a growing demand for green homes in Latin America. In August 2014, in Mexico there were 6,000 eco-homes listed on Lamudi, a real estate portal focused on emerging and developing countries.
Antonio Hanna, vice president of the Mexican Association of Real Estate Professionals (AMPI) summarizes that the industry is optimistic that it will grow by up to 7% in 2015, a figure that would double the growth rate in 2013. The first challenge for this year will not be sales, but meeting the growing demand in the sector.
• Applegate RealtorsProject under development which will include brand strategy, corporate identity redesign, SEO positioning and strategy and web development.
• Timothy Real Estate GroupCollaboration since 2010, this project has included analysis, brand strategy, corporate identity and web strategy and development.
• Tropicasa RealtyAmbitious project that includes analysis, research, brand strategy, corporate identity redesign, SEO strategy and positioning, consulting, media plan and design of commercial spaces (in collaboration with Atelier RDN).