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Mexico real estate has been receiving some long overdue press lately as becoming the next booming market. Most of these reports about the plethora of real estate development and investment opportunities have been streaming from numerous American publications, in wake of the fizzled United States housing boom.
Some U.S. mortgage and real estate companies, such as Lyons Enterprises Incorporated (LEI) have even gone so far as to develop a separate LEI Mexico division, with the sole purpose of catering to Mexico real estate and mortgage originations. Mortgages can even be borrowed in U.S. dollars or Mexican pesos.
Still, there have remained quite a few skeptics of the Mexico real estate market. Granted, purchasing Mexico property in the past was not the safest and most secure thing but through concentrated efforts from the Mexican government and the fideicomiso (a guaranteed bank trust), purchasing Mexico property has become quite similar to the ease and security of the U.S. real estate process.
But why did it seem that only Mexico’s northern brother had interest in its so-called fertile market? The article, “Striking pay dirt in Mexico,” written by Kevin Brass and published in the January 11, 2007 edition of the International Herald Tribune, provides evidence of how the Mexico real estate market truly is becoming a global boom.
The beautiful aspect of the potential to thrive in Mexico real estate is that there is a bounty of available areas to develop. Many U.S. companies have begun tapping into San Felipe, Rosarito and Acapulco; with a plethora of opportunities to expand in these areas and further outward.
Cancun is now receiving some attention and has the potential to be the South Beach (Miami, U.S.) of Mexico. But the development is not coming from the north this time. Word and financial success has spread and other countries are getting into the mix.
“For its first large-scale residential and hotel development in Mexico, the Spanish conglomerate Obrascón Huarte Lain is building a sprawling complex around a series of man-made canals and lagoons along the Caribbean coast south of Cancun.”
The 100-acre project in the Mayakoba area just south of Cancun will encompass six luxury hotels, dozens of private villas and ferry boat access from one area to the other. The entire project is expected to endure an end cost of $1.5 billion.
“‘There is no place to do this kind of development in Spain,’ said Juan Aguilar, director of Mayakoba. So, Mexico has become the hot new territory for Spanish developers.”
Tell that to Donald Trump. The New York-based mega-developer recently embarked on a Partnering with notable developer Irongate, the Trump Ocean Resort encompasses 525-room luxury condominium and hotel project in North Baja, just 30 minutes south of the San Diego border.
This statement was released in late December on bdcnetwork.com, “On Friday December 8th, buyers purchased more than $122 million of Trump Ocean Resort Baja, Mexico's condo-hotel residences, setting a one-day real estate sales record for the country.”
Trump seems to be fairing well with his project, so now other developers all across the globe want a hefty piece of the profits.
“Eighteen months ago Jim Reilly, an active Mexico developer, bought a 76- square-meter, or 817-square-foot, beachfront unit in the preconstruction phase of Mayakoba for $665,000. He recently sold the unfinished unit for $1.1 million.”
The real estate investment opportunities in Mexico are virtually endless and are no longer a secret.
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