Economic uncertainty stemming from possible tariffs on Mexican exports is favouring the US real estate sector, especially in Miami, where Mexican investors are seeking refuge for their money. According to sector experts, the threat of a devaluation of the Mexican peso has generated a considerable increase in interest in properties in the southeast of the country.
Fernando de Núñez y Lugones, CEO of Vertical Developments, and Robert Thorne, CEO of Urban Network Capital Group, said that the number of Mexicans interested in acquiring real estate in Miami has grown.
Visits to their websites by Mexicans increased by 27-28%. While physical visits to their showrooms rose by 16%.
‘Given the fear of a possible devaluation of the peso, many Mexicans are keeping their savings in real estate, as they see it as a safe investment,’ said De Núñez y Lugones.
Miami, the Preferred Property Investment Destination for Mexicans
Historically, Mexicans have invested in real estate in states such as California, Arizona, Nevada and Texas. However, in the last 15 years, Florida, particularly Miami, has experienced a remarkable boom. This, making it an attractive destination for the Mexican upper class. The city’s proximity to Mexico, as well as destinations such as Cancun and Monterrey, have facilitated this trend.
According to experts, Monterrey is now one of the main source cities for Mexican buyers in the region. In 2023, Mexicans transacted a total of $250 million in Miami, making them the fifth largest group of Latin American investors in the region. This year, purchases by Mexican investors are expected to exceed $300 million. That, hightlighting the importance of this community in the Miami real estate market.
The Impact of Trade Balance and Remittances
Despite the economic uncertainty, the Mexican peso has shown remarkable stability, thanks to the trade balance between Mexico and the United States. Also, the flow of remittances into the country. However, tariffs are expected to negatively affect Mexico’s finances in the future, which could lead to a devaluation of its currency and a possible outflow of capital in the short term.
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