The sentiment among Mexican real estate professionals is heating up - the country is definitely on its way to an economic upturn! Many of the city's 2,500 municipalities are now well on their way to financial recovery. The domestic market in general is sparking new interest as foreign investment and tourism are on the rise. International travel organizations are now rife with enticing Mexican vacation packages, indeed encouraging people to travel to Mexico. A new optimism is born, and much of this excitement is linked to the appointment of Mexico's new President, Enrique Peña Nieto.

"I think we... are on the way up," said Mexican Real Estate broker Gordon Foster in a recent press interview. "I think this coming year is going to be a very good year."

All this good news is music to the ears of would-be expats. When a market starts to show multiple signs of recovery, this is the perfect time to get in early and make that relocation move.


Mexico Economy News


Improvement in tourism sector

Mexico's tourism industry has been gaining force in recent years. Increased visitor numbers and a growing interest from investors is expected to fund around 1,146 large-scale development projects that have been planned by the Mexican government to strengthen the country's tourism industry. New figures released by the secretary of tourism have revealed that 130.6 million international visitors came to Mexico between January 2007 and September 2012; a 12.1 percent increase form the previous five years. The ministry also revealed that it had exceeded its tourism and development private investment target at US$20 billion.


Women in Mexican Economy

Women and growing middle classes are key to recovery

Mexico's booming mortgage market is creating a new target for banks: women. Many of the country's top banks, such as Grupo Financiero Santander Mexico SAB, are launching new female-focused financial products and programs as they look for new ways to take advantage of this surging market. Middle class women are of particular interest to banks; SANMEXB's latest lending initiative targets mortgage lending to women on homes worth over $1.7 million pesos ($131,000). Mexico, which is Latin America's second largest economy, is experiencing a rise in middle class buyers. Between 2000 and 2010, 17 percent more of Mexico's population became middle class, earning between $10 and $50 per day, according to the World Bank. Mexican home loans increased by 10.1 percent from September 2011 to September 2012 to reach 443 billion pesos, according to government data. The country's housing market is expect to improve at a faster rate than Brazil, which, despite its rapid economic growth, showed an increase of 39 percent in outstanding home loans in 2012.

Increased lending and affluent buyers

Another good sign for those looking to move to Mexico is that, along with the surge in mortgage lending, the country's overall lending is increasing. From September 2011 to September 2012, credit card lending grew by 12.5 percent and credit card debt increased by 16.3 percent, according to figures from industry regulator, CNBV. There are even provisions to help those on lower incomes, who would previously have been unable to borrow money; housing lender, Infonavit, has concentrated its lending strategy on low income Mexican families looking to buy property, and has supplemented this with access to extra credit.

Cross-purpose lending

The banks' willingness to lend is kick-starting the country's economy. Many banks are using the surge in mortgages to offer other financial products to customers. The fact that 30 percent of the country's population is served by Infonavit is creating a "growth market" for other banks. Competition from other banks is not cutting in to Infonavit's market share as it mainly consists of low income buyers. This leaves a large, under-utilized market aimed at affluent and middle class borrowers. Because of this, attractive flexible lending products are being offered to those on middle and higher incomes. For example, the Hipoteca Accesible Mujer Banorte program, which is designed specifically for wealthy women, offers payment flexibility when the client experiences life events, such as births, or illnesses.  This lending surge, coupled with the country's tourist appeal, is paving the way for Mexico to become the destination of choice for tourists and ex-pats alike. 

 Playa del Carmen Beachfront Real Estate

Mexico Real Estate Market

Many real estate companies are reaching out to new sectors of the local economy as well as working with ex-pats and retirees.  Playa del Carmen, Mexico is a lovely example of economic boom, it continues to grow and attract record breaking numbers of tourists and ex-pats each year.  BuyPlaya Real Estate Advisors, founded in 2007, is the leading real estate company in the Riviera Maya, Mexico specializing in matching clients with their dream home. They have this to say about the economic upturn, "Playa del Carmen is growing at an incredible rate.  There are fantastic deals on oceanfront property and vacation homes to be found right now while the market is on the rise."

Like Mexico's famous white sand beaches, the Mexican economy is really heating up!

 

 

 

 

Abut the author- Eve Redding is a freelance writer who works on behalf of a number of UK finance websites and product comparison companies. Understanding all your financial options is important. The Internet empowers ordinary people with pertinent financial information before they meet advisers - something that was never possible for them before.