Six locations in Mexico have been named among the “Top 10 Best Places in the World for Real Estate Investment,” according to Real Estate Trend Alert, a leading source of real-time information for investors. They include: Los Cabos in fourth place, followed by Baja California, Riviera Maya, San Miguel de Allende, Puerto Vallarta, and Merida, consecutively from five through nine. Coming in at number 10 is Plascencia, Belize.
The top three spots on that list belong to Portugal’s Algarve in first place, followed by that country’s Silver Coast, and Costa del Sol in Spain. Other notable locations in the report include Panama City, Costa Rica and Italy’s historic cities of Rome, Venice, and Florence.
Despite the popularity of Mexico’s resort areas and continued surge in real estate purchases, the U.S. Department of State’s (DOS) Mexico Travel Advisory issued last October remains in effect. It cites violent crime such as homicide, kidnapping, carjacking, and robbery in several areas throughout Mexico, including some of those on the Top 10 List. “The U.S. government has limited ability to provide emergency services to U.S. citizens in many areas of Mexico,” the website indicates. “U.S. citizens are advised to adhere to restrictions.”
Currently, those restrictions include completely avoiding travel to six Mexican states, reconsidering travel to seven states, and using increased caution when traveling to 17 states. Only the Campeche and Yucatan states are considered safe for travelers.
Ronan McMahon, editor of Real Estate Trend Alert, acknowledged that there have been some serious problems with traveling throughout Mexico, but said that crime not limited to Mexico—it’s in every country.
“Mexican resort destinations aren’t without their problems, but most are still safer than some U.S. cities,” he told The Epoch Times. “The incidents of issues with foreigners in resort areas are much lower than in other less populated areas of the country.”
McMahon’s team of international real estate professionals are constantly on the lookout for new popular areas for real estate investment opportunities. Their clients range from large investors to retirees to couples or families seeking a single investment for relocation or second homes. “We review the market and see where new buildings are going up, or we look for places with new or expanding airports or highways,” he explained. “We investigate what’s fueling demand for a particular location.”
McMahon revealed that Mexico has always been a popular destination with its beautiful beaches, luxurious resorts, and rich history and culture. “Mexico is a big and complex area which is geographically diverse. Los Cabos, for example, is now more like a satellite of the California real estate market and almost completely Americanized,” he said. “You have also have people of every political persuasion who tend to keep what’s happening at the U.S. border out of mind because it’s not impacting them directly.” He added that there are more than 1.5 million Americans who currently live in or own property in Mexico.
Los Cabos, located in Baja California Sur, is currently on the U.S. Department of State’s “Exercise Increased Caution” list. Still, its ideal climate, luxurious lifestyle opportunities, and picturesque landscapes continue to be a draw for investors.
Labeled “the world’s aquarium” by explorer Jacques Cousteau, Los Cabos is also known for its extraordinary sea life, including blue whales, dolphins, giant manta rays, sea lions and more. “Hollywood stars like John Wayne and Bing Crosby, as well as the world’s superstars, have been hopping in private planes or sailing in yachts to visit Cabo since the 1940s,” McMahon’s report indicates.
In 2022, the Los Cabos Tourism Board reported more than 7 million visitors—the most in its history. New resorts continue to open, and last year, Cabo won the 2022 “Travvy Award” as the “Best Destination in Mexico.”
However, Los Cabos may not be the ideal destination for those on a tight budget. “The average real estate sale for a single-family home in Los Cabos is $1 million,” said McMahon. Some two-bedroom condos may be available for $400,000–500,000, depending on their location and amenities. “This area is also a long way from the migrant caravans, which tend to transport through the middle of the country.”
Michael and Sue Nicol, broker/owners of Cabo 4 Sale, have been living in Los Cabos for the past 26 years. The couple moved there from the United States after visiting the area many times and deciding to call it their new home. “We actually feel safer here than in the states,” Michael Nicol told The Epoch Times. “The people here are amazing, very friendly, and trustworthy,” Sue Nicol added.
The Nicols point to the weather, golf courses, fishing, beautiful landscapes, and a better quality of life as the main attractions to Los Cabos, and in particular, Cabo San Lucas. Since the pandemic, the area has experienced an 18 percent growth in population, with Americans and Canadians comprising the largest share of foreigners. “Nine months of the year you have temperatures from 60 to 80 degrees,” said Michael Nicol.
According to the Nicols, the local area exploded with over $2 billion in real estate sales just last year, with investors seeking to rent out vacation properties, retirees, and those purchasing second homes. “The high-end market is crazy now—there’s very little inventory and new construction is everywhere,” he said.
Lisa Torres, partner with Elite Real Estate in Los Cabos, describes the area as a melting pot of locals, Americans, Canadians, and Europeans. “It’s becoming the ‘go-to’ destination for so many now with about 30 different gateways, including direct flights from all over the United States and Madrid,” she told The Epoch Times. “We see a mix of retirees and investors looking for second homes for vacationing or renting.”
Torres agrees that during the pandemic, people flocked there in droves, sending home prices skyrocketing and creating an inventory shortfall. Currently, there’s a wave of construction starts, particularly for two-bedroom condo units. “We have a range of more affordably priced condos up to multimillion-dollar beachfront properties,” she said.
Dotted with high-end hotels and luxury residences, Los Cabos also offers quaint, historic towns that offer shopping, cultural sites, boat tours and more.
Both Torres and the Nicols report most real estate deals are in cash. While conventional financing is available from Mexican banks and finance companies, interest rates can often run as high as 12 percent and require at least a 25 percent down payment.
Located about 1,000 miles from the U.S. border, Los Cabos in Baja California Sur is a long distance from its northern half, Baja California, listed on the U.S. government’s “Reconsider Travel To” list. “There have been a lot of problems in many of the border towns there, but at the same time I’m reading about shootings at schools and malls in the United States. That doesn’t happen here,” said Torres. “Yes, there are drug cartels in Mexico, but they’re everywhere else as well.’
The Nicols concur. “There is no major crime here—no kidnappings, violence, or guns,” assured Michael Nicol. “Again, the border towns are a different story, but we’re at the tip of Baja, and there have never been any tourists hurt or killed here.”
Michael and Sue Nicol say they love the freedom of living in Mexico. “Years ago, I never would have thought in a million years we’d end up living here,” he admitted. “We’re almost on an island here, and when we see the news back home or even about other parts of Mexico, it’s hard to believe.”
The Rivera Maya, listed as the sixth top locale for real estate investment, is in the Yucatan Peninsula and deemed safe by the U.S. Department of State. However, San Miguel de Allendre in the Guanajuato state and Puerta Vallarta in Jaliso, ranked seventh and eighth best investment locations, are listed on their “Reconsider Travel To” list.
Most recently, the family of retired American citizen Maria Del Carmen Lopez held a press conference in Los Angeles to share the status of their search for their mother, who was kidnapped from her home in the state of Colima, Mexico, named on the U.S. government’s “Do Not Travel To” list, specifically due to crime and kidnapping.
The kidnappers originally demanded a ransom, but then suddenly cut off all communications with the family. The FBI along with the Mexican government are involved in the case, with the FBI offering a $20,000 reward to anyone knowing the whereabouts of Lopez. Meanwhile, the family has set up a website, Justice4Carmen.com, for additional help and any leads.
“Maria Del Carmen Lopez is not only a mother but a cherished member of our family. She is the light in our world,” the website states. “The void her absence has created is immeasurable, and we are devastated by the thought of her suffering in captivity.”
For potential vacationers and real estate investors interested in any area of Mexico, the U.S. Department of State recommends keeping traveling companions and family at home informed of all travel plans. If you get separated from your group, send a friend your GPS location and take photos of taxi license plates.
They also suggest avoiding driving alone at night and exercising caution when visiting local bars, nightclubs, or casinos. “Do not display signs of wealth such as wearing expensive watches or jewelry,” the U.S. State Department website warns. “Also, be extra vigilant when visiting banks or ATMs.”
