U.S. Company Ploughs $1 Billion Into Mexico Real Estate

A luxury real estate construction company in the United States is to invest over $1 billion in Mexican real estate in order to profit from the US demand for second homes on the beach. The Related Group Inc. and its Mexican partners have secured land on which to build hotels and luxury apartment complexes in Playa del Carmen, Puerto Vallarta and Acapulco, among other locations in the country.

Low property prices in Mexico, its proximity to the United States and the fact that so many US residents are looking for luxury second homes, have led companies such as this to pour investment into the region. The weather and natural beauty of Mexico, particularly the coastal regions, make it highly desirable to nearby US residents looking for an easily accessible secondary residence.

Luxury beach property in Mexico is available at a fraction of the price of its US counterparts. A high-end beachside apartment in Puerto Vallarta that costs $300 a square foot will cost around five times that in Los Angeles, for example.

Mexico is increasingly attracting foreign investment from firms wanting to tap into the property market while prices are still low. Resorts such as Cabo San Lucas and Playa del Carmen are among the chosen locations for well-known international brands constructing hotel and apartment developments.

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