Yucatan and Quintana Roo: 9 reasons to invest

Yucatan and Quintana Roo: 9 reasons to invest

The southeast of the country is an area rich in natural resources, skilled labor and a stable economy in constant growth.

States such as Yucatán and Quintana Roo stand out for their high tourist and industrial influx, which is why they become ideal areas for investment, which has not gone unnoticed by foreign companies and investors, who are betting on new projects in their main cities.

The real estate sector is not far behind, because thanks to tourism it has kept on the rise, generating multiple benefits to the community with the creation of new jobs, as well as the development and urbanization of more areas near the cities.

In this article we will talk about the main reasons to invest in these states, especially in Blue World City, as well as its advantages.

Reasons to invest in Yucatán and Quintana Roo

Both states have become key pieces for the growth of the country. Before the pandemic in 2019, the south and west were the only regions of the country that showed growth in the construction of public infrastructure.

In the same way, the Mexican southeast stood out as the favorite investment headquarters, both for small and large investors and national and international entrepreneurs. The latest awards received by their mayors or governments, as well as the events and congresses they hosted, confirm this.

The city of Mérida in Yucatán was named the “Best City in the World” in the small town’s category at the 2019 Readers’ Choice Awards.

For its part, Quintana Roo received an accumulated 28 awards in 16 categories, in the Tavy Awards 2019 and Campeche, was named the “Best state to travel in 2019” by the Unknown Mexico Traveler Community.

Due to all these recognitions and the economic growth that the southeast has shown in recent years, more and more people from both Mexico and abroad choose the southeast as their new home or territory to invest in companies and businesses.

Despite the fact that in 2020 the Mexican economy – like that of the rest of the world – was paralyzed by the pandemic and many companies had to close their doors, generating an alarming number of unemployed, as a result of the good organization for the economic reactivation, the country is on the right track.

Among the sectors that were part of the first wave of reactivation was construction and real estate, as it was considered essential, which allowed new large-scale real estate projects to start, favoring the local economy and providing a source of jobs that benefited largely to society.

Taking all this into account, we will talk to you below about the 9 reasons why investing in the real estate sector in Yucatan and Quintana Roo is the best business option.

1. Privileged location in the Mexican southeast

The Mexican southeast is a privileged area for being surrounded by the coasts of the Caribbean Sea, as well as the Gulf of Mexico.

The location of Yucatán and Quintana Roo in the southeast of the country provide these states with a high potential for foreign investment because they are located just two hours from the United States by plane, which favors commercial exchange and foreign direct investment.

This location is a vital access point from Mexico to the rest of the world and vice versa, since there are two of the main airports in the country, which are the Mérida International Airport and the Cancun International Airport.

In real estate issues, location is of the utmost importance, as it is one of the main factors that will determine the equity in a property. It is not only about the area where the property is located, but the city or state where it is also playing an important factor.

It is not the same to acquire a land in Mérida, Yucatán, which is a city with high economic and tourist development, as in Cárdenas, Tabasco where insecurity and low levels of growth are reflected in the zero profitability of its properties.

Similarly, buying a commercial land ideal for vertical developments in Playa del Carmen can be more effective than a residential lot in an underdeveloped area.

2. Regulation and security for investments

Laws and regulations have been implemented to regulate the creation and establishment of new businesses and industries, both national and foreign, in order to provide legal certainty to investors.

These modifications to the law and the implementation of new regulations have facilitated legal processes, such as the deed of a property, as well as the establishment of the type of land use of a specific piece of land.

3. Job stability and skilled workforce

If something characterizes the southeast of the country, it is the high quality of the professionals, since millionaire investments are made for educational institutions to provide high-level education.

The educational offer in Yucatán is one of the best in the southeast with a high academic level, where professionals graduate for the various labor areas of the state. Much of this is possible because job stability plays an important role.

The arrival of new companies in these states gives rise to the creation of new jobs that provide stability and job security to recent graduates who find employment opportunities in their respective areas of preparation.

This has a benefit for companies that save large amounts of the budget, avoiding the need to bring in labor from outside.

4. Availability of land and competitive prices

As is known, in the center and north of the country, the offer of properties for residential, commercial and industrial developments is limited to the lack of space, and the levels of overcrowding.

It is becoming increasingly difficult to find the right land within cities for the development of high-level real estate projects, and especially with affordable prices.

The great advantage of the southeast is that, although it is a highly valued area for being a first-rate tourist area, it is possible to find land with competitive prices, within the cities or in the surroundings within a few minutes.

The real estate offer is varied and to satisfy the needs of any development or industry. For example, buying commercial land in Cancun is an excellent option to start a business, as well as real estate in Playa del Carmen.

The price per square meter of land is cheaper than in other parts of the country, which provides a higher profit margin. There are undoubtedly many reasons to invest in Yucatán and Quintana Roo, and this is one of the main ones.

5. High levels of quality of life

In the case of Yucatán, the quality of life is guaranteed thanks to its high levels of security, its impressive history and how the inhabitants live their traditions and customs to the surface. In addition to being a quiet, prosperous area, it has a wide variety of first-class services.

Quintana Roo stands out as a bohemian and cosmopolitan state, its natural environment perfectly combined with the modernity of luxurious tourist and commercial complexes, make this place a perfect area to live and to start a business that provides excellent results.

The investment opportunities in Quintana Roo and Yucatán, allow to have a high quality of life with profitable businesses that generate great returns.

6. Access to international markets

The southeast of Mexico is a strategic point to carry out commercial import and export deals. During March 2020, the new Law on General Import and Export Taxes (LIGIE) was approved, in order to update and modernize tax rates and adapt them to international trade flows.

As we mentioned in point number one, the strategic location of the Yucatan Peninsula facilitates commercial exchange, from important ports such as the Puerto de Progresso in Yucatan.

According to INEGI, during the first quarter of the year there was a monthly increase of 4.30% in total exports. Regarding the importation of merchandise, this presented an increase of 31.4% in the annual rate.

7. High tourist and cultural activity

Both in Quintana Roo and in Yucatán, the Mayan culture is present in the daily lives of the inhabitants, their traditions and customs are one of the main tourist attractions that attract thousands of tourists each year to Mayan lands.

Cancun —a relatively new city— is one of the most visited destinations in the country along with Mérida and Playa del Carmen. In these cities, the tourist infrastructure has luxurious complexes with the capacity to provide the highest quality of service to visitors.

Tourist places such as the paradisiacal beaches of Quintana Roo -the Riviera Maya- and archaeological sites in Yucatan -for example Chechen Itza-, captivate nationals and foreigners who visit these states, which increases the demand for real estate for purchase and rent. .

Similarly, the tourism sector promotes commercial and industrial real estate development, as more and more large companies seek to have a headquarters in these cities.

8. High security levels

One factor that investors looking for an area to acquire land to start a business or expand their industry take into account is the level of security in the area.

Yucatán has been awarded several times as one of the safest states in the country, and Mérida – its capital – as one of the safest cities in Mexico and Latin America.

Quintana Roo is implementing strategies to improve the security of the state in general, and in Yucatan millions of pesos have been invested to equip the infrastructure that allows raising the security levels of the state.

According to the ENSI (National Survey on Insecurity), Yucatán is always among the lowest levels of insecurity perceived by the inhabitants of the region, which is a factor that provides confidence for investments.

9. Top-notch infrastructure

Yucatán and Quintana Roo stand out for having first-class infrastructure, from the public transport system, roads and highways with several road distributors that allow the circulation of cars, buses and cargo trucks.

They also stand out for the improvements that have been implemented and the development of the electrical structure, which allows access to clean energy.

The urbanization of rural areas is on the right track, which improves the quality of life of citizens with new transport routes.

Among the most ambitious projects is the Mayan Train, which will have a 1,500-kilometer route through the states of Chiapas, Tabasco, Campeche, Yucatán and Quintana Roo, through 15 stations so that connectivity in the Mexican southeast will still remain. more consolidated, attracting a greater flow of services and therefore greater business opportunities.

Outlook for 2022 in the Southeast

Thanks to the strategies that the country has implemented since the beginning of the health crisis due to COVID-19 (coronavirus) in 2020, it is that at present we can say that there are good projections for the remainder of 2021 and 2022.

Among the state governments that have best implemented these strategies are those in the southeast of the country, especially in the Yucatan Peninsula.

According to the Ministry of Finance and Public Credit (SHCP), it is estimated that by the end of 2021 the economic sectors could open in their entirety, as the vaccination program against COVID-19 advances. This will allow the economy to continue growing and leave behind the bad taste in the mouth that 2020 left behind.

The real estate sector is positioned as one of the main investment options thanks to its stability in the face of crises, in addition to conserving the value of your money and on par with inflation.

Without a doubt, the purchase of land in privileged areas such as Mérida, Cancun or Playa del Carmen will be the right decision.

Investing in real estate in the southeast, the best option

The real estate growth in Mexico, is the key to investing in operations that will grow your capital. If you want to know the best options to invest in 2021 in the Mexican southeast, we recommend you read the article we have on this topic, in order to arrive prepared for 2022.

With all these data, both the past and those expected for this 2022, Yucatán and Quintana Roo continue to demonstrate their great potential for investors who wish to acquire real estate for subsequent rent or sale, since they are states in which the demand for real estate continues to grow.

At BMF Inversions we have extensive knowledge in real estate, we are backed by more than 25 years of real estate successes, as well as market studies that guarantee the certainty of your investments.