More countries and are seeing residential property price rises year on year than at any time in the last decade but the average rate of growth is slowing significantly, the latest global index shows.
In the culturally rich city of San Miguel de Allende, home prices are sagging after a recent surge in new construction.
In the city of Monterrey, new developments (and prices) are rising to meet greater demand for luxury properties.
Home sales in the historic city of Oaxaca are “steady but slow,” with most of the focus downtown, where restaurants and hotels attract foreign money.
Puerto Vallarta’s housing market remains strong, with demand from foreign investors and tourists helping to fuel a development boom.
The residential market in Mexico City remains fairly strong, despite predictions that last September’s earthquake, which caused heavy damage and killed more than 300 people, would result in a slump in some areas.
Housing prices in Mexico dropped 20 percent during the global economic downturn, and the increase in kidnappings and other crime over the last decade have hurt the real estate market as well.
The 2008 global economic downturn hit Cozumel hard, Ms. Edwards said. Real estate prices dropped about 35 percent, she said, but started to pick up about a year ago.
The United States economy “greatly affects” the Cozumel market, she added. “It’s still a buyer’s market, but it is rapidly changing.”
Mexico City’s real estate market is performing very strongly this year, agents said. There are many new developments, and prices across the board have increased. This is partly because of a strengthening Mexican economy, and partly because sellers have adjusted to a new tax on capital gains that temporarily made them hesitant to put their homes on the market, agents said.
Tulum has been one of the fastest-growing vacation home markets in the Riviera Maya, stretching south from Cancun, in the last five years, Ms. Herrera said. It is less expensive than the area’s hottest market, Playa del Carmen, she said. In Playa del Carmen, for instance, Ms. Herrera said, $180,000 buys a 646-square-foot one-bedroom apartment seven blocks from the sea; in Tulum, the same distance from the water, it buys a 1,292-square-foot two-bedroom apartment.
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