A recent report from the Mexican Foreign Relations Secretariat (SRE) indicates that real estate sales are experiencing a significant slowdown across Mexico. According to real estate expert Linda Neil of The Settlement Co., foreign buyers must hold property in Mexico through a bank trust, known as a fideicomiso, which requires a permit from the SRE.
From January to November this year, the SRE approved only 1,412 fideicomisos. This figure appears surprisingly low, especially when compared to data from FlexMLS, a platform tracking real estate activity in Baja California Sur. FlexMLS reports 1,840 condo sales in the same period, signaling a 26% drop in sales compared to last year. Notably, these figures do not include single-family home sales, leaving the true scope of the slowdown unclear.
Whether the discrepancy is due to reporting errors or other factors, one thing is evident: the real estate market is in flux. For opportunistic buyers, this could mean a golden opportunity. As Warren Buffet might say, “Be fearful when others are greedy, and greedy when others are fearful.” With prices and sales slowing, this could be the perfect moment to invest in Mexico’s stunning real estate market.
