After working in the real estate sector here in Mexico for several years, I have had the opportunity to watch the trends in the market. We have been in a recession and a true buyer’s market for the past four years. The few properties that have sold in the past four years had sellers that were willing to take large losses on their property investments. At this moment, I have noticed the market improving here in Ixtapa Zihuatanejo and fewer sellers willing to take such substantial losses on their investments. I feel comfortable saying that we have now entered into a neutral market here in Ixtapa Zihuatanejo.
A neutral market is one which neither the buyer nor the seller has the upper hand in the negotiation. This shift indicates that, within the next two to four years, the market will once again become a seller’s market. For that reason I have strongly suggested to my buyers that are interested in investing in our lush tropical paradise to act quick before the market turns into a seller’s market.
We are noticing new trends of buyers here in Ixtapa Zihuatanejo. With the new world powers coming into our viable market, the Chinese and Russian investors are taking a strong interest in the available possibilities here in Mexico. The amount of Asian tourism and investment is at a record high in all parts of Mexico. I can foresee a shift in growth from focusing on American and Canadian investment to the potential Asian market. The Mexican middle and upper class is also growing at an all time record rate, which I feel will continue to expand their interest in making substantial investments in Ixtapa Zihuatanejo.
Many properties here are still available at incredibly low prices, however I know that the discounted listings that are currently on the market here will not be available for much longer due to the increased interest in this lush paradise that we call Ixtapa Zihuatanejo. My best advice as a real estate expert would be to invest in this growing market while you can still buy real estate at the low prices that will not be lasting for much longer.
As the owner of Costa Grande Real Estate, one may believe that my opinion is biased. That is not the case – just take a look at the numbers that are readily available. The Mexican stock market is at a record high. The GDP of Mexico has been higher than the USA and most European countries. Development in our local area has not stopped even during the great recession of the 2000’s. We have several new projects that are being built or have just been finished, such as the new towers that have been built in Playa Linda.
If you have any interest in seeing what types of deals are currently available, please check out my website www.costagranderealestate.com or stop by my real estate office located at 62 Nicolas Bravo in the center of Zihuatanejo. I would be happy to answer any questions that you may have.
By: Douglas Hudson, Owner, Costa Grande Real Estate, Zihuatanejo