Despite the COVID-19 pandemic and a struggling economy, the sale of new homes in Yucatán continues to grow.
So far this year, 5,200 new properties have been sold, a number that analysts expect to double by the end of the year.
Roughly one out of every three new homes sold in Yucatán this year has been purchased by newcomers to the state from across Mexico.
“We are seeing significant growth in just about every sector of the industry,” says Eduardo Ancona Cámara, President of the National Chamber of the Development and Promotion of Housing Industry (Canadevi).
But there is a growing concern, evidenced by a large number of empty homes across the state, that much of this growth is fueled by market speculation.
“We can’t know for sure if what we are seeing is a market bubble, but it is clear that the price of real estate in Yucatán is growing at an unprecedented rate,” says Kalycho Escoffié of Animal Politico.
Homes in Mérida’s subdivisions such as Las Americás or Ciudad Caucel start at roughly 800,000 pesos, while luxury properties and apartments can go for several million.
High demand has also begun to inflate real estate prices in other municipalities such as Kanasín, Hunucmá, Valladolid, and Pisté.
But demand and market speculators are not the only factors at play, as the cost of building materials like concrete and steel continues to increase every year.
Another side-effect of Yucatán’s continued real-estate boom has been a shortage of qualified plumbers, electricians, masons, and other construction professionals. As a result, many construction companies have opted to recruit workers from other states.