I am now back in Puerto Escondido after nearly two weeks visiting family and friends in Texas and spending a week in Oaxaca de Juarez, the capital of the State of Oaxaca. The capital city currently is listed as Semáforo Rojo, or Red Light (the worst COVID-19 status as designated by the Mexican government), but all of the restaurants and hotels were open. Regrettably the museums, some of the city’s main attractions, were still closed after well over a year. Oaxaca is still not out of the COVID-19 woods.
The beaches on the coast are now closed once again until further notice. Strangely, the amount of new real estate seems to increase directly with the seriousness of the virus problem. The worse the virus gets the more expats arrive to make a permanent change from the U.S. to Mexico. There is ever increasing interest in undeveloped beachfront property. The typical buyer is looking for about 2.5 acres. Such property can be acquired for approximately US$5 to US$1,000 per square meter, depending upon location and title regime. For smaller lots of less than 2,000 square meters, the minimum is around US$15 per square meter, as land is discounted based upon volume.
We have also noticed that there is a severe shortage of high- dollar luxury beach villas. Hopefully, developers and speculators will take care of that problem soon.
Most of the Oaxacan coast is Bienes Comunales (Communal Property), which can be acquired by foreigners, but not outright in the foreigner’s name. If you would like more information on Bienes Comunales, let me know.
I am also visiting Puerto Angel, which has been somewhat forgotten over the last years as most expats have been focusing on Zipolite, San Agustinillo and Mazunte. I sense that Puerto Angel is on the cusp of a renaissance due to the fact that it is very beautiful, surrounded by stunning beaches and still much more affordable than the three aforementioned destinations. Lots and residences are being offered on rock outcroppings with truly jaw-dropping views of the ocean and sunsets. Within minutes are La Boquilla and Estacahuite, as well as Zipolite for those who are looking for complete freedom from clothing!
There are many wonderful mom and pop seafood restaurants on the beaches here, as well as very nice upscale restaurants in Zipolite. One of my favorites is Alquimista, which is also a very nice hotel. Zipolite is taking on a distinctly LGBTQ vibe with the LGBTQ multicolored flag on display at several establishments.
No one can predict the future, but my feeling, based upon what I am seeing in the real estate market, is that Mexico, which is a G20 member and already the 15th largest economy in the world, is positioned to come out of the pandemic in a very good place. The amount of foreign capital flooding into the country is very impressive, and Mexico’s investment in infrastructure over the last several decades will undoubtedly contribute to this. The peso also remains very steady, which is another trend that is making me very optimistic about the future for expats in Mexico.