The U.S. dollar is gaining on Mexico’s peso again, and foreign property buyers have noticed.
Nearly 30 percent growth in home sales to foreigners is expected in 2018. That’s between 1,300 and 1,500 home acquisitions, said Miguel Ángel Lemus Mateos, director of Lemmus Resort Real Estate México in Cancun.
In 2016 and 2017, an average of 1,105 properties closed with foreign purchasers. From 2008 to 2015, the yearly average was just 663, according to information obtained through a Transparency request to the Ministry of Foreign Affairs (SRE). So far this year, 290 properties in Mexico sold to foreigners.
This investment occurs mainly in the historic centers of colonial cities and in border and beach destinations.
The exchange rate is main reason people from outside the country are buying real estate in Mexico right now, reports Vallarta Daily.
Hovering around 20 today, the Mexican peso could trade at up to 22 to the U.S. dollar by the July 1 general election.
A five-week downward trend has created the most lopsided exchange rate since March 2017.
Analysts point to ongoing uncertainty over NAFTA negotiations, the trade talks between Canada, the U.S. and Mexico.
Sources: Vallarta Daily, El Universal