The demand for real estate in Mexico is changing
During the pandemic, real estate in Mexico has gone through a number of changes, as have markets elsewhere. First of all, it concerns the requirements on the part of buyers. Now people pay attention to a number of criteria that were not important before the pandemic. For example, the demand for housing in small towns has increased, although previously Mexicans sought the megacities. Such trends are especially true for wealthy buyers.
If previously this category of investors were interested in objects in tourist areas, such as in San Miguel de Allende and Los Cabos, but now they are actively buying real estate in smaller communities. One of these has become La Paz, where the population is about 25 thousand inhabitants. The city is not a popular resort, although it is located on the coast of the Sea of Cortez. However, La Paz has a lot of advantages – a mild climate, clean beach and the absence of a large number of vacationers. The combination of these factors makes it the perfect place to retreat and comfortably quarantine and self-isolation.
The La Paz real estate market is not as numerous as Los Cabos. In two years, only 250 apartments and houses have been sold here, compared to 1,070 properties sold in Los Cabos. The average home in La Paz will cost $180,000 and Los Cabos $900,000. Condominiums are from 200 thousand dollars to 400 thousand at the famous resort.
Last year, the average home sale price in the township was $152,029, compared to $187,401 in 2019. However, experts note the positive dynamics of the local real estate market. It is expected that by the end of this year, the price tag will increase by 10-15%, and sales volumes will increase by 15-20%.
La Paz market has two important problems that hamper its development. The first is the lack of direct flights from the United States and Mexico. The second negative factor is the limited supply, but in this case there are positive trends. Lately, more and more developers are interested in the city and see it as a promising option for business.
Before the pandemic, active demand for real estate in La Paz came from the citizens of the United States, Canada and European countries. Also bought a home here and the representatives of Latin America. However, the pandemic has made adjustments in the implementation and volume of transactions, so most foreigners left the local market. At the same time increased the number of buyers among Mexicans who began to leave the big cities and began to look for decent alternatives for holidays and as a permanent residence.