In mature markets, it is becoming more and more difficult to find opportunities with strong returns. In emerging markets, on the other hand, you will have a better probability of finding such opportunities but the risks may be higher.

Surrounding yourself with a good, knowledgeable team on the ground will help you greatly in managing such risks. Within Mexico, there are various regions that have different scales of opportunities, one of those being Quintana Roo. A unique aspect of this region would logically be its location. This state is located on the eastern part of Mexico on the shores of the Mexican Caribbean. By airplane, it is located approximately one hour from South Florida, about 2 hours from Texas, 4 hours from Chicago, 4 hours from California, and 5-8 hours from Canada, and 9 hours from UK. It is the second busiest airport in Mexico after Mexico City, and it is Mexico’s number one tourist destination. Basically, this market is fueled by tourism, and the tourism is diversified from several originating markets, principally the United States, Canada, and Europe. These tourists and visitors create the demand side for real estate opportunities.

What specific real estate markets in Quintana Roo have the best opportunities for appreciation?

Beachfront areas have had the largest investments, and most preconstruction projects have had incredible returns when administered correctly. Tulum has been buzzing for about 2 years with much speculation of a new international airport, along with its existing beautiful turquoise beaches. Playa del Carmen developers have narrowed the gap between existing rooms versus tourist visitor demand, but tourist visitors are projected to outpace room supply for the next 5 years. Finally, there are some interesting new real estate projects that are developing in some niche markets such as Majahual.

Do you think the real estate market in Cancun has peaked or are there still opportunities for growth?

I am surprised at the number of Mexican nationals that have been moving and purchasing residential inventories.

On the luxury and international market side, Cancun has introduced some luxurious gated communities. In addition, there are new golf courses and a deep draft marina, which has the capacity for yachts over 100 feet. Visitors from southern Florida will now have the option to cruise down to the Mexican Caribbean to explore and play in the Yucatan peninsula. These amenities have increased the number of high-income clients purchasing properties in the area.

Have you seen any signs of a slowdown in the real estate market in the Quintana Roo region due to the recent financial crisis in the US?

Yes, over the past 12 months, the quantity of Americans purchasing property has been reduced. The Canadians, on the other hand have spurted upward, taking advantage of the strong Canadian Dollar and the increase in oil prices. Europeans have aldo incremented as a result of both a stronger euro and pound and the increase in number of direct flights from European cities in the past 3 years .

Can you describe some of the advantages or disadvantages of investing in the Mexican real estate market versus the US real estate market?

As mentioned earlier, the Mexican market is emerging, whereas the US market seems to be maturing. The lower cost of living is another factor that has created interest amongst foreign buyers. Whether you are investing for yourself or advising a client, Mexico - with its natural beauty, easy travel access, and lower costs per square foot on beachfront properties – is an excellent investment opportunity.