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Quintana Roo leads way in Mexico with highest home price increases

Riviera Maya, Q.R. — The Federal Mortgage Society (SHF) says the price of homes across Mexico rose 9 percent during 2022. The Society also said that the sharpest increases were felt in the country’s tourist states such as Quintana Roo.

According to the Sociedad Hipotecaria Federal (SHF), housing prices in Mexico’s tourist states experienced a 14 percent increase. The increase is being blamed on foreigners looking to invest in Mexico’s real estate market.

The states of Quintana Roo and Baja California Sur are two whose economy depends mostly on tourism. According to SHF figures, both showed price increases of 14.6 percent and 14.2 percent, respectively, the highest in the country.

Despite this, the number of units sold in 2022 also grew. According to data from JLL, the sale of luxury homes in Los Cabos, Baja California Sur, increased 8.7 percent annually.

“Last year, of the 2,845 residential units that were sold in the state, 74 percent were sold only in the Los Cabos region. The average price was $1.2 million USD,” the company detailed.

Other destinations that gained popularity among foreign buyers were Riviera Maya (Solidaridad/Playa del Carmen) in Quintana Roo, the Pacific Coast and the Baja California Peninsula.

In cities close to the U.S. border, increases were also observed, for example, the price of housing in Tijuana rose by 13 percent.

The SHF highlighted that this upward trend occurred in a context in which GDP grew 3.6 percent in 4Q of 2022. In addition, according to the Timely Estimate of GDP published by INEGI, the number of workers registered with the IMSS grew 3.2 percent in the same period.

According to their report, in 2022, at the national level, the average price of a home was 1,535,000 pesos and the median price was 893,000 pesos. During 2022, there was a decrease of 11.7 percent in the number of appraisals compared to 2021.

“The SHF Index of new housing presented a variation of 9.9 percent, while that corresponding to used housing increased 8.1 percent during 2022. In this period, a proportion of used housing of 60 percent and 40 percent of new housing was observed,” the SHF published.

“The SHF Index for single houses grew 8.7 percent and that of houses in condominiums and apartments (considered together) appreciated 9.1 percent,” they added.