Riviera Maya, Q.R. — A reform to the state’s Ecological Law now requires all real estate developments to submit an environmental impact statement. In October, the government of Quintana Roo reformed the Ecological Balance Law to require all real estate transactions to have an Environmental Impact Statement to stop irregular development.
The measure, which has been hailed by experts for its potential to regulate urban growth, poses significant challenges for property developers who will have to deal with longer and more complex processes to update properties that predate the reform.
“Putting this lock where you develop (is good), but now to sell and report in the Public Registry of Property and Commerce, you must demonstrate that you did the studies.
“That is positive because it will force real estate agents to not jump fences and follow the procedures,” said Patricia Ocaña Luna, President of the College of Biologists of Quintana Roo.
“In one quarter, approximately 30 studies for environmental impact assessment are submitted to the State Environment Secretariat, and if you look at those submitted to the Public Property Registry, there is a difference of 200 or 300 percent between those that are registered and those that are actually requesting their authorizations,” she explained.
Quintana Roo is attractive for real estate investment of all kinds, which has led to land depletion, uncontrolled growth and the devastation of forests and protected areas.
The new measure decreed by the state government will have an impact on the real estate market, according to Gene Towle, Director of the consulting firm Softec, since there are thousands of buildings prior to this reform that do not have environmental impact assessments.
“This is correct for new developments, but the question is: what happens with what already exists? If you buy a hotel that was built before this regulation existed, can you no longer buy it, can you no longer sell it, is the transaction no longer possible?” Towle questioned.
Cancun was the second largest housing market last year, according to Softec. In 2023, around 58 billion pesos were sold in social, residential, vacation and plus housing.
“The challenge in Cancun-Riviera Maya has to do with environmental regulations, urban infrastructure and the availability of services, water and electricity, which can start to create complications for the market,” he said.
