Americans, Canadians, and other foreigners are still buying homes in Mexico’s popular beach destinations – they’re just not buying as many as they did two or three years ago. And they’re not buying nearly as many as Mexicans, who as a group are buying about half of all new properties currently sold in popular regions such as the one anchored by Puerto Vallarta.

The real estate market in Mexico was hit hard by the housing bust in the U.S., though home sales in Mexico have been supported somewhat by a strong Canadian economy and by many Mexican buyers acquiring second or third homes. Though Mexico’s real estate market is currently in a historic slump, the people who are optimistic about its rebound have much evidence to support a forecast of increased sales and home values in the next few years. Realtors and other people who work in real estate need to be optimistic about the real estate market, but they usually temper their optimism with hard data whenever they gather to discuss the market realities. These realities framed a fascinating exchange of information and expert insight at the 2011 Mexico Real Estate Forum recently held at the Westin Resort & Spa in Puerto Vallarta.

The event brought together an impressive list of top real estate, tourism, financial, and legal experts from Canada, the U.S., and Mexico. Presenters from distinguished financial firms and government agencies spoke about recent developments, and updated forecasts and projections for the Mexico real estate industry. Adam Bryk from Canadian firm Deloitte concluded that there are many investors (domestic and foreign) interested in increasing their real estate investments in Mexico. “The money is there,” says Bryk. With improved financial management by Mexican developers, Bryk says more investment dollars will flow to real estate projects in Mexico.

The conference event was organized by Lynne Strauss of Teal Education (www.tealeducation.com) and Cecilia Gonzalez of CGBD Consulting Group (www.CGBDGroup.com).

“The response from delegates and speakers has been tremendous,” says Strauss. “The education aspect combined with the networking opportunities allowed participants to gain valuable knowledge while connecting with new colleagues.”

“We were delighted to see the interaction and collaboration between the American, Canadian, and Mexican business leaders as well as people from Mexican federal institutions such as FONATUR (Mexican Fund for Tourism), The Mexico Tourism Board and Bancomext (National Bank of Foreign Commerce Trade).”

Healthy private investment in real estate seems to be matched by government investment in infrastructure, according to FONATUR, the institution responsible for the planning and development of tourism projects of national impact. Infrastructure investment from 2007 to 2011 was $574.9 million U.S. dollars.

More than one million Americans are currently living in Mexico, many of them retirees seeking warm weather and a lower cost of living. The housing crisis and recession in the U.S. have greatly impacted sales of vacation homes in Mexico, yet experts say that it´s this very economic crisis and inflation that has many retired Americans looking to make Mexico their primary or only home. Mexico’s growing and stable economy and its excellent private healthcare system are also giving retirees increased confidence in making the country their home.
As the real estate market fights to emerge from the global recession, Mexico seems well-positioned to compete in the global marketplace of real estate and tourism. The country’s natural advantages of climate and proximity to the U.S. and Canada continue to fuel tourism and a growing foreign population. Demographic trends and cost of living pressures in the U.S. are also set to fuel a healthy rebound that for current property owners, and real estate people, cannot come too soon.