These increases are not limited to the Centro or its surrounding neighborhoods. Areas once considered fairly affordable such as Francisco de Montejo, and Ciudad Caucel have also seen considerable price hikes.
“It used to be that neighborhoods like Francisco de Montejo and Las Américas did not have much in the way of schools, stores, and other services. But now the areas are bustling with activity, new business and many people are looking to buy,” says Canadevi President Eduardo Ancona Cámara.
Mérida’s north and areas beyond the periferico have experienced a considerable boom over the past 10 years, as droves of people from across Mexico have decided to make Mérida their home and brought along investment with them.
Homes that just 10 years ago were being sold beyond Mérida’s periferico for 250,000 pesos are now fetching at least four times as much.
Yucatán’s position as Méxicos safest state has brought with it considerable economic benefits. According to the country’s federal economic agency. Direct foreign investment in Yucatán grew by 86% in 2020 compared with 2018.
The downside is that low-income individuals and families are finding it tougher than ever to buy a home. As prices far outstrip the caps on government programs that offer low-interest loans for first-time homebuyers.
“It used to be the case that you could buy a home with your government credit and simply take public transit to work. But now everything is so expensive,” said Ricardo Pech, a maintenance worker working in Mérida’s main city market. “If you want to buy you need to go far out of town… but in those areas, there are no jobs.”
High demand has also begun to inflate real estate prices in municipalities such as Kanasín, Hunucmá, and Pisté, while prices in Valladolid seem to be practically on par with Mérida.