Real Estate Developments in Mexico

More than 76 million U.S. baby boomers are expected to reach retirement age in the next 20 years, and 25 percent of them have no health insurance or savings, according to an AARP report.

Analysts say the influx of U.S. citizens coming to Mexico is fueled by such factors as a lower cost of living, more affordable housing, warm weather, a more relaxed pace of life and a different political atmosphere.

With that in mind a slew of high-end real estate developments have sprung up to cater to this ever-growing market. Let’s take a look at some of the most in demand areas.

Baja Region

Backed by some of the world's biggest names in capital, mega-projects are transforming the landscapes of the Baja region. Representatives of U.S. tycoon Donald Trump, for instance, recently announced a new US$200 million-dollar condominium development slated for Baja California's Rosarito Beach area, a popular tourist destination located about 30 minutes south of San Diego. Sources inside Trump Ocean Resort Baja disclosed that the 400-unit condo complex in the exclusive, ocean-front Punta Bandera zone will be flanked by a shopping center and world-class restaurants.

Heading to the tip of Baja California and the popular Los Cabos region which is renowned for it's world famous surfing tournaments and spectacular marine life, new development projects are underway to expand the region even further. A titanic marina project earmarked at US$850 million will include golf courses, high-end homes, hotels, shops and a faux Mexican village. Puerto Los Cabos will already add to the luxury resorts like Esperanza and Las Ventanas al Paraíso that have been built to cater to the wealthy. With the influx of the rich and famous looking to Los Cabos for their second or third holiday home, oceanfront property prices have spiralled out of control in the last few years with some villas fetching up to US$8 million.

Meanwhile, further up the coast another massive development project is underway although environmental lobbyists have recently put a halt to construction. The brain-child of former President Vicente Fox, the “Nautical Staircase” in Santa Rosalillita will boast 27 new or revamped marinas along the area's 1,000 miles of rocky coastline, then add luxury hotels, new airports, world-class golf courses, and exclusive oceanside bistros and spas. The total cost has been set aside at US$1.3 billion although with delays in construction and the fact that Fox is no longer in the seat of power may see the final figure far exceed the original estimate.

Another development hotspot in the Baja region is Puerto Penasco which up until now has been a popular weekend getaway for students from Arizona, California and New Mexico. However, a vigorous government program has seen the construction of a marina and other boat-related developments as part of a chain of 'tourist-class' marinas sprinkled up and down the Baja coast in an effort to promote nautical tourism. The advent of the marina has led to a host of property developments sprouting up in its wake with baby boomers seeking possible retirement homes in the region.

Some credit fallout from the U.S. housing market across the border has also propelled Puerto Penasco's rapid growth. Investments in the once-quiet resort have soared from an estimated US$56 million dollars in 2001 to a projected US$1.2 billion dollars for the 2006-09 time period. Residential real estate sales are so hot in Puerto Penasco that tiny apartments in the upscale Bella Sirena development fetch about US$600,000 dollars. Still, for the less well-heeled, Puerto Penasco offers options in the form of 4 trailer parks that rent lots with utility hook-ups for US$20 dollars per night.