Three years after the onset of the Covid-19 pandemic, Mexico has shown great strength and resilience, emerging with a recovering economy. The country has navigated through this turbulent stage, carving its way to a promising future.
Two years, starting in 2020, it took the Mexican economy to experience 3.1% growth, meeting expectations of 3% projected at the beginning of the year 20221. This increase was mainly driven by dynamism in industry and agriculture, which grew by 2.8% and 2.1% respectively.
This improvement is more than a mere statistic; it is a reflection of the determination and indomitable spirit of Mexicans in times of adversity, as well as a series of economic movements that the country has witnessed, such as nearshoring, which refers to the practice of moving business processes to nearby countries, such as Mexico, seeking lower costs and geographic proximity. This strategy has attracted investments from companies, especially from the United States, boosting employment and the local economy.
The real estate sector has also played a key role in Mexico’s recovery in recent years. In 2022, this sector accounted for more than 5% of Mexican GDP, which includes activities such as construction, real estate services and the rental of personal and intangible assets.
At the beginning of the second half of 2023, the country’s growth stands at 3.6%, one percentage point above the estimate, showing that growth is promising for the future.
But this aspect does not stop at Mexico’s borders. Many Mexican investors, willing to explore new horizons, have invested abroad, and in particular, in the U.S. real estate market. Last year, among foreign buyers who invested their capital in U.S. real estate, Mexicans were the leading Latin American group, with 23% of the market share, followed by Colombia and Argentina.
During this period, they invested a total of 2.9 billion dollars in the residential sector in the United States.
It is also relevant to mention that, during 2023, the Mexican peso has had notable movements in its value, oscillating between 16.60 and 17.33 units per dollar. This variation in the exchange rate has been one of the several reasons that have configured a scenario of entry into the U.S. real estate market from Mexico.
In this context, investment in the U.S. multifamily model has stood out from other sectors of the real estate market. This form of investment, which includes residential properties with hundreds of units for lease, has captivated Mexican investors due to its profitability potential and resistance to economic crises; 25% of foreign investors in North America choose this model for their investments, making it the sector most chosen by this segment.