Latin America: Second Home Sales On The Rise

Even though the sales of homes in the U.S. have been marred the past year due to the credit crunch, subprime mortgage failure and general economic recession, sales abroad have been steadily rising, particularly in the Latin America region. For those looking for a second home, the Mexican Pacific Coast, the islands of the Caribbean and many more global locations are selling quickly.

Why Homes In Mexico And Latin America?

Part of the increase in interest in this region of the world is due to the escalation in construction. Several hotel, spa and real estate groups have congregated in various part of Latin America to create five-star luxury resorts, all which plan to open within the next few years.

There is also evidence that the luxury home market in Mexico and other regions is still strong. For example, residential development group DINE, which is selling properties in Punta Mita, stated that, “…our strong residential sales performance in 2007 proves that the second-home luxury market in Mexico is still strong, even during a downturn in the United States that has impacted more middle-end homebuyers.” After selling out 45 of 55 pre-constructed private luxury villas, it is hard not to see their point.

Second Home Sales Rising Abroad

Between 2006 and 2007, real estate in the Caribbean and Central American has grown considerably. Property listings in these areas have previously only been available by searching within a specified country, but more real estate companies are catching on and offering land and houses abroad. Real estate portfolios complete with search options based on location, price and amenities are rapidly increasing.

Not only is it easier to find property online, but it is cheaper to build in a foreign country. DINE estimates that is costs about a third of the price to build a similar home in the U.S. than it does in California or Florida. As such a cheap rate, it is no wonder that land across Mexico, Panama, Central America and more is being snatched up for building. Whether it is a real estate investment or a place to get away, Latin America and more has a growing population and surge in housing sales.