Once a favorite international hot spot, Acapulco is coming back into favor with cultural elites, royalty and Mexican nationals.
Acapulco Remains Popular Vacation Spot
Acapulco retains its lure as a popular vacation destination despite the entire country being hard hit by pandemic lockdowns. During Q1 2021, just 11.4M visitors recorded their vacation stays with the economic affairs unit of the Embassy of Mexico, one-half the number recorded during Q1 2020.
Most recently, however, high-end hotels in Acapulco are registering record levels of bookings from foreign travelers over the coming winter holidays. These record high bookings could suggest positive interest in investing in vacation homes.
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Average Sale Price of Homes Up Since Pandemic Onslaught
Despite reduced access to Mexico in general and Acapulco specifically due to travel restrictions, average home sale prices are up. In Mexico as a whole, the average sale price rose +7.1% y/y during the first half of 2021.
In the Mexican state of Guerrero, one of Mexico’ 32 Federal Entities in which Acapulco is the largest city with approximately 780,000 people, the average sale price of a home rose +7.3% y/y during the first half of 2021.
Acapulco’s average sale price increased +7.6% y/y, according to Mexico’s Federal Mortgage Society.
Lola Aguirre Gutierrez, the broker with Century 21 Lol and Associates, indicated that the price range for homes in Acapulco is “wide.” Aguirre Gutierrez said, “There are properties facing the sea from $25,000 to $3.5M. It is a versatile market – Acapulco is for all budgets.”
The housing market in Acapulco is primarily resale homes although there are some new condominiums in what’s called the “Diamond Zone,” a newer upscale resort area in the southern part of the city.
Who Buys in Acapulco?
Some 80% of buyers in Acapulco are Mexican nationals primarily from Mexico City, Puebla, Pachuca and Queretaro. The remaining 20% are a mix of North Americans and Europeans.
Buying Basics
Foreign buyers are required to obtain a permit from Mexico’s Ministry of Foreign Affairs for any residential purchase. Foreign buyers purchasing property within 30 miles of the coast or 60 miles from the border must buy through a Mexican corporation or Mexican bank trust.
All transactions are completed through a notary to hel[ prohibit money laundering..
Thanks to The New York Times.
