It was a pleasure to visit the San Miguel de Allende real estate market last week, particularly since it is one of the top spots in Mexico for expats. Cooler summer weather brings a number of Puerto Vallarta residents who have bought homes or rent to San Miguel.
Known internationally for its beauty, culture and creative community, San Miguel de Allende has been attracting waves of expats from around the world for over seven decades. It was declared a World Heritage Site by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in 2008 and is well known for its thriving art scene and colonial Spanish architecture. San Miguel also is a designated Pueblo Mágico, You can discover more about Mexico’s Pueblos Mágicos by reading Maria and Fernando Garibay’s blog on them in “Taking Root in Mexico.”
Also a popular tourist stop in Mexico, San Miguel de Allende, or SMA as it is often called by locals, was recognized by Travel + Leisure magazine recently as the best place in the world to live. Although this is the magazine’s own reader’s poll, it is impressive nonetheless.
If you are thinking about San Miguel as a place to live, you can still find many monthly apartment rentals in the US$400 to US$500 range. More homes are for sale than condos, according to the local AMPI Chapter website and what I was told at the AMPI weekly meeting that I attended.
San Miguel has become not only one of the best travel destinations in Mexico, but also one of the best real estate investment markets, according to the real estate portal Lamudi. The company says the average price of a house in San Miguel is in the neighborhood of US$520,600, while an apartment requires an investment of at least US$440,600 as of July 2017.
Although the San Miguel real estate market was hit hard by the U.S. housing market crash in 2008 and 2009, along with Puerto Vallarta and other major expat destinations in Mexico, local experts told me San Miguel did not hit bottom until 2013. Since that time, sales of existing and new projects have increased at a healthy rate each year. The stabilization of Mexico’s economy since 2013 has prompted more Puerto Vallarta expats to buy second homes, and many are choosing San Miguel de Allende.
New projects out of the city core are using incentives to attract buyers, such as vineyard settings, which provide owners with their own wine, health spas, boutique hotels, concierge services and equestrian centers. Some properties are sold furnished for US$250 per sq. ft. Most purchases are all cash, although some developers are offering buyers the opportunity to pay the purchase price in 12 monthly payments.
This article is based upon legal opinions, current practices and my personal experiences. I recommend that each potential buyer or seller conduct his/her own due diligence and review.