Home Investing in Mexico How new travel trends affect the Mexican real estate market

How new travel trends affect the Mexican real estate market

by Brent May

Is this the right time to invest in Mexican real estate?

What do changing travel trends have to do with the Mexican real estate market?

Huatulco has long been a desirable destination for vacation homeowners.  The quality of life in Huatulco is high and the cost of living low. When Erin and I moved here over 10 years ago after deciding to make huge lifestyle changes leaving the rat race and long winters behind, we traveled the Mexican coastline. We always came back to Huatulco.  For its natural beauty, its warm community, the quality of its infrastructure and its smart mater-plan concept: integrated green spaces, potable water systems, wide streets and amenities.

Huatulco is a quality destination. Contrasting many other “big name” coastal towns and cities in Mexico, Huatulco is a smartly preserved destination. You won’t find high rise stretches here or concrete as far as the eye can see. You will find trees, gardens and parks and green spaces in town and acres of protected Huatulco National Park lands surrounding town. You will also find back country hills and mountains covered in forest that lead to a tropical cloud forest producing small-batch, shade-grown coffee just 50 minutes into the mountains behind Huatulco. And properties with stunning views.

An Amazing brand new 2 Bedroom Oceanfront Condo available in #Huatulco!

 

Vacation home investment

We continue loving the magic of Huatulco and the quality of life it affords those who choose to call it home. Infrastructure continues developing and health care services broaden. And as a result, many vacation homeowners offer their property as a short-term vacation rental when not in use to offset the costs of their property. This is a great way to not only enjoy your second home but help your vacation home pay for itself.

We see properties located in the quality destination areas like Huatulco, Puerto Escondido and Yucatan State continue to raise in value. Many savvy investors are starting to look at other types of developments that offer more affordable homes that have a strong appeal on the long-term rental market, a market which has seen rental rates steadily increase over the last five years and incrementally increase for the past 18 months. During the past 18 months of apparent world uncertainty, our Mexican destination rentals have only increased in value and in bookings.

 

How traveler trends affect the Mexican real estate market

Now, we face a travel landscape forever altered by the global pandemic. Of course, trends continue to change, but here we would like to provide some fresh insight into the trends driving travelers to quality destinations in Mexico.

Travelers’ appetites, expectations and decision-making influences have changed. According to Siteminder’s Changing Traveler Report for 2021, American, Canadian and European travelers are traveling and are optimistic. 78% say they see themselves traveling about the same, more or much more than prior to Covid in the year ahead. That’s great news for Mexico where “official” tourism industry jobs account for over 6% of all jobs or 2.3 million people.

In the Mexican and US hotel markets, hotel bookings are at above 80% of 2019 levels recorded by the World Hotel Index. Although international travel has rebounded more strongly in Mexico than in much of the world, domestic travelers are still vital, accounting for more than 35% of the of current occupancy.

Top 5 travel trends in North American markets

The 5 big travel trend takeaways on the new North American travel scene

  1. Travelers indicated that they now expect more from their accommodations. This not only refers to higher levels of cleanliness but to memorable and experience-led stays.
  2. Over 40% of travelers plan to work during their vacation. They plan to book longer-term stays.
  3. Travelers want packages with experiences.
  4. Travelers plan to book their stay directly or through a personable booking or travel agency.
  5. Domestic travel continues to grow and Mexican demand for vacation rentals continues to grow as they leave big chains and resorts.

 

What travel trends mean for vacation homeowners

Vacation homeowners in quality Mexican destinations were in a good position pre pandemic. Now, post pandemic, not only are they in a better position but will have more bookings, more long-term and quality bookings.

The good news from the travel trends data is that:

  • People are looking for long-term rentals in places like Huatulco because of infrastructure, wifi, lifestyle and experience opportunities. Rentals ideal for professionals and small families, in central or peaceful locations close to green spaces and parks, shopping, medical centers, banks, services, schools and daycares, and within walking distance to downtown, Huatulco and Puerto Escondido offerings are perfectly positioned for the lucrative long term rental market.
  • Real estate investment continues to make a lot of sense for savvy investors. If you want to live part-time and rent your property, indicators are strong that you will be doing that more consistently than ever before.
  • There is one thing missing from the travel trends report. Price. Nowhere do travelers mention concerns about pricing. They are ready to pay for quality accommodations.
  • Travel agencies like Bayside Vacations are the go-to reservation resource for travelers today. These personable travel agencies complementing Bayside Real Estate services have your best interest in mind as a homeowner.

The combined optimism of American, Canadian and Mexican travelers revealed by these results is excellent news. If you’re ready to get into the real estate investment market, contact us. We can get you started.

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