The Toronto Globe & Mail has confirmed that political uncertainty surrounding the U.S. is changing where Canadians invest. As a result, more and more Canadians are skipping the States and heading further south when looking for their next investment properties. Their top choice? Mexican real estate.
History of Canadian Investment in Mexican Real Estate
Canada is no stranger to investing in the Mexican real estate and tourism industry. In 2013, Canadian Sunwing Travel Group invested $250 million in the Puerto Morelos hotel Royalton Riviera Cancun. The group includes a
major airline, tour operator and travel agency. Moreover, in 2014, the Caisse de dépôt et placement du Québec announced plans to invest $500 million into Mexican real estate over a period of 5 years.
High-Net Canadians Investing in Mexico Real Estate
Canadian companies and individuals have long invested their money into Mexican real estate. However recent political events have spiked Canadians’ interest in Mexican investment properties. Many Canadians attempt to avoid the harsh northern winters. They do this by investing in second homes in warmers location in the United States. Yet, since the inauguration of President Trump and the resulting political fall-out, Canadians are avoiding investment in the U.S.
The current political landscape is a major factor in where Canadians are investing. However this change is also due to the resulting currency fluctuations. The peso has weathered drops as high as 15% against the U.S. dollar since November, yet the Canadian dollar is climbing. Most Mexican real estate in sought-after areas such as the Riviera Maya are generally priced in U.S. dollars. But the strengthening of the Canadian dollar and weaker peso still make Mexico an attractive investment option. Mexican real estate offers Canadians cheaper property options than major cities such as Vancouver or Toronto. Mexico also offers the added benefits of a more temperate climate and very affordable living.
Canadian Lawyers See Rise in Mexican Real Estate Transactions
Canadian lawyers that have opened firms in Mexico have seen a rise in the number of real estate transactions. Charles Tibshirani is a Canadian lawyer that has lived in Mexico for 8 years. He comments that “Real estate transactions are multiplying and multiplying.” Mr. Tibshirani owns 3 offices in Mexico and has seen a steep rise in business. Of the approximate 6 closings each of his offices process per week, 50% of those are from Canadian investors.
Despite the uncertainty surrounding relations between Mexico and the U.S, Mexico looks set to benefit from this political turmoil in unexpected ways.