Weak Peso Boosts Mexico Real Estate Sales in USD
Investment Properties Mexico
go to original
December 21, 2016

Property owners in Mexico are increasingly opting to value their real estate holdings using U.S. dollars (USD) instead of in pesos as a strategic move to protect properties from the peso’s depreciation against the dollar.

In fact, from January through September of 2016, the number of real estate advertisements in Mexico City that were written in dollars increased nearly six times over the number recorded during the same period last year, rising from 188 to 1,109, according to Propiedades.com.

"When there is a phenomenon of depreciation, pricing real estate in dollars instead of our national currency prevents loss of competitiveness and protects the appraised value of the real estate,” stated Leonardo Gonzalez, a real estate analyst at Propiedades.com “In addition, properties that are valued in pesos can lose their reference of value with respect to other properties internationally."

According to experts, in Mexico City, which is the capital of the country, this phenomenon is mainly seen in areas of upper middle-class or higher social status.

"When you see that many of the properties begin to sell in dollars, there is an uncertainty in the economy,” stated Ricardo Marentes, CEO of consulting firm Marhe. “Right now the global economic situation is still unstable, so people opt to guarantee the investment of their properties in dollars.”

This is also happening in tourist and residential areas, such as the many luxury condos for sale in Tulum, Puerto Aventuras, Playa del Carmen and other parts of Mexico’s Riviera Maya. In these areas, luxury, resort-style living is the norm, a reality that has made it one of the best places to move abroad and an area that is ripe for anyone who is interested in owning luxury condos and investing in Mexico real estate.

Read the rest at Investment Properties Mexico

Related: Mexico: High Uncertainty Is Exerting Pressure on the Peso - Commerzbank (FXStreet)

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!

You Can Make a Difference

Coronavirus - How You Can HelpIf you would like to donate directly to the non-profits in Puerto Vallarta and Riviera Nayarit, here are some suggestions you may want to consider to help our local communities in this time of greatest need.

Coronavirus - How You Can Help

Local News

Discover Vallarta-Nayarit

Banderas Bay offers 34 miles of incomparable coastline in the states of Jalisco and Nayarit, and is home to Puerto Vallarta and Riviera Nayarit's many great destinations.