Baja California (Norte) Real Estate and What is Real?

Many people have already heard of the real estate boom that is happening all over the two states of Baja California Mexico (see map). Everyday it seems there are more articles written about buying real estate in Mexico. With attractive and affordable beachfront properties in Baja (Norte) like the Rosarito Beach, Ensenada and San Felipe being developed at an increasing rate there are more and more options (see Baja Norte article by Kerry Sims) As well as the areas further south in Baja California Sur (see Baja Sur what is real article) like Loreto, the capital city of La Paz and the ever so popular areas of the East Cape on the Sea of Cortez or Todos Santos and Pescadero on the pacific side and the world famous area of Los Cabos the question I have, is what is real?

Moe below...
 

San Felipe located to the east of Ensenada on the Sea of Cortez has long time been a place for mostly Americans from California and Arizona to escape to. It’s proximity to the U.S and its location on the Sea of Cortez for fishing, water sports and warmer climate have always been a major attraction. Now there are new developers as well as some of the older ones that have recently announced more new developments. There is Vista del Mar, Playa del Paraiso and Baja Diamante which has a golf course coming soon just to name a few.

There are so many areas now under development and so many that are about to be I wonder what is really selling and what areas are the best for investment. I have interviewed several realtors, Notarios (see What is a Notario), and researched some of the articles published recently to see what is real as far as the real estate boom that is going on today in Baja California.

To begin with northern Baja California I have spoken with Kerry Sims of Baja Re-location and Baja Homes and Realty to see what is up in the Baja Norte region. She explained “The Real Estate market in Baja Norte has recently undergone some changes due to the downturn in the California real estate market. This has affected buyers who were investing from the "perceived” equity in the primary residences. The sales of oceanfront condos in the Rosarito areas have already shown a slowdown with only the very high quality developments seeking the same success as last summer. Sales to retirees seeking homes to live in full time are still strong. Baja is going through its growing pains but it's still a great investment.”

Also in speaking with Notario, Angelo Saab Saiv from the Ensenada area he told me that his office is continuously becoming busier trying to keep up with all of the property transactions for all over the state of Baja Norte.

Obviously the famous developer Donald Trump feels the market is still strong in Baja Norte as he has recently announced his new development, The Trump Ocean Resort, about 12miles south of the U.S Mexico border which already has generated a great deal of interest from buyers from all over the world. This will begin pre-selling in early December 2006 and the condominiums will begin around the mid $200,000 price.

According to a Los Angeles times article written by Evelyn Iritani money flowing into Mexico is on track to hit the 20 billion dollars this year, which is up from 16.7 billion dollars of year 2005. Also in her article she states the softening of the U.S. housing market or the tense presidential politics does not seem to have slowed down the amount of investment.

With the advantage of Title insurance, U.S. escrow companies and more traditional financing being offered all over Mexico it is becoming increasingly easier and safer to purchase here.

So depending on the areas of Mexico and the Baja Peninsula specifically there may be some slowing down but overall people are still buying here and developments are being created as fast as they can. If you are interested in just purchasing a home for retirement or really want to be located near the U.S. border and are not that concerned about the long term investment then of course you will want to purchase where you want to live.

However if you are interested in investing and concerned about the return on your investment you may want to look more closely at what areas are going to continue to boom regardless of the U.S. economy. Los Cabos in Baja California Sur (see Baja California Sur article) is one of those areas due to the fact we have so many people from all over the globe moving there.

This article is provided by James Glover of Baja Real Estate & Consulting. He may be contacted via this reply form

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