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Old 02-15-2017   #8 (permalink)
very sparkly
Join Date: Jan 2017
Posts: 35
Originally Posted by applegal View Post
Thanks everybody for the input, wasn't looking to spark a political debate but with the uncertainty at this current time maybe a decline in real estate prices in resort areas is on the horizon. We were just in the area, seems to be lots of construction and if American buyers and current American have some concerns could there be a market impact? More supply, less demand. Any one seen indications of a slowing real estate market?

I would say if anything if the Mexican economy is slumping then it will promote investment in the long run for long term investors and retirees.

However, if there is pushback against the US or US citizens (won't happen until NAFTA is torn up) then it will likely scare off some American buyers.

The thing about Playa though is that there is a wack of Europeans in Playa also. Things like BREXIT and EU solvency will be ongoing concerns. However playa really is a place for capital flight so if things get bad it might stimulate investment in offshore real estate.

Personally over the last 5 years I have seen a steady increase in properties available in playacar, this while there are a heap of condos going up in other parts of Playa. Playa has continued to grow, and the building projects around the edge of town, as well as condo developments in town have supplied available real estate.

In fact I have been told that the development is actually being held back by infrastructure shortages in electrical supply. Not fact checked, however, the tearing up of NAFTA if it happens could see a movement on Mexican real estate.

Mexico is already somewhat restrictive with how property ownership happens (land is sort of owned by the federal government).

The market will likely have a slow growth over this year as there has been a steady increase of properties available due to new developments.

There is a lot of uncertainty with how the US domestic market will develop this year. I suspect by the end of 2017 the period to 2020 should be fairly clear.

I am expecting the peso to stay supressed to the USD though, so if there is not an attack on Americans in response to US trade poicies directed to Mexico, then things may continue normally in PDC. Any reaction to US trade policies could see the market reduce in favour of other latin American places. Bear in mind PDC / Cancun is a short flight from Miami, other Latin American locations are much further from the US.

This is my take on it.

I expect about 70% that relations between the US and Mexico to sour over 2017, and this will result in reduced capital exchange. I would not go so far to say that Mexico will take actions against American property owners in 2017. However some sort of real estate tax would not be out of the question.

Bear in mind this is what the media is saying about US tax to pay for the wall.

Last edited by EditedUser; 02-15-2017 at 07:52 PM..
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