Alignment with the U.S. Economy Boosts Mexico’s Prime Real Estate Mexico’s third-largest city, Monterrey, has experienced strong recent economic growth, spurred in part by an influx of new automotive plants from overseas companies in 2014-2015.
The city is leveraging its traditional industrial base, highly skilled labor force, and its strategic location 80 minutes from Houston by plane, to position itself at the center of Mexico’s economic transformation. The flourishing economy has bolstered an already recovering luxury housing market, with an increase in affluent domestic as well as international buyers. “Wealthy buyers from Brazil and Argentina are buying properties here due to the numbers of international firms now investing in local companies in Monterrey,” says Lucia Cavazos of Gerencia Red. Interestingly, both business hub Monterrey and second-home resort destination San Miguel de Allende saw increases in buyers thanks to a more stable Mexican economy. “We are seeing more domestic buyers from large cities like Mexico City and Monterrey purchasing weekend homes or leaving the city for a lifestyle change,” notes Nancy Howze, owner and managing partner of CDR Realty in San Miguel.
Tourism and Government Incentives Bolster Spain’s Luxury Resorts Benefiting from a weak euro and prime property prices still beneath the 2007 peak, Spain’s resort destinations have witnessed a resurgence in international tourism in recent years, which is translating into prime property sales. Overseas home buyers are the “principal motor of growth,” claims the General Council of Notaries, and are further incentivized by the nation’s “Golden Visa” for residency for €500,000 investment in property. Prime beach destination Valencia, which saw an astonishing 89 percent year-on-year increase in luxury sales, is a beneficiary of overseas buyers taking advantage of both opportunities, notes Jose Ribes Bas of Rimontgó. “Valencia’s property market is likely to grow further in 2016 and beyond as tourism activity escalates, discretionary income increases, and property prices stabilize.”