Mexico Real Estate Developers Looking to Canada for Buyers

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With the United States still wallowing in the blahs, Mexico developers are allocating more resources to target Canadian second home buyers.

Although difficult to quantify, project managers say the Canadian snow birds are bouncing back quicker than other buyers. Canadians also seem more willing to pull the trigger on a sale, un-encumbered by the recent economic nightmares haunting U.S. buyers, developers say.

For example, on the southern tip of Baja California, 25 percent of the second home buyers in Puerto Los Cabos, a 2,000-acre marina and resort project, have been from Canada, according to Grupo Questro, the Mexican developer. In recent months builders in the Cabo San Lucas-area have specifically bulked up their marketing budgets to Calgary and Vancouver, a spokesman says.

Similar stories can be found in most Mexican resorts, which are trying to fight back after a year of intense coverage of horrific drug-related violence and various disasters, both man-made and natural.

Last week, Sarah Cox, who specializes in international sales for Grupo Grand Coral Riviera Maya, a developer with a series of gringo-oriented projects on Riviera Maya, participated in the Mexico Living Expo, an exhibition in Vancouver. In an e-mail interview, she discussed the "Canadian effect."

What kind of people were you seeing? Serious buyers? Lookie Lous?

A lot of area brokers were asking about listing our properties. We had several very serious buyers that will be visiting within the month, and a few "lookie lous."  Everyone was interested, but some knew they wanted Playa del Carmen while others were undecided as to where in Mexico they would like to go.

What surprised you about the event?

In spite of the latest negative news going out about drug crimes in Mexico, people still had a favorable view of Mexico and were not afraid to visit or invest.

What did people want to know about Mexico?

People asked a lot about health care and safety. They wanted to know the statistics for growth in the region. How rentable would their property be when they were not using it? And how complicated it is to let someone else manage the property for them?

How important is Canada as a market to you these days? What percentage of your buyers is from Canada?

Very important.  I've seen the market very strong and people have the money to invest in a winter vacation/investment property.  Canadians as a whole have been looking in the price range of $300,000 to $500,000, which might mean going away from a beachfront in exchange for a golf property that includes private beach club membership.  From our latest golf property, Nick Price Residences, 50 percent of the owners are from Canada.  From our beachfront property, maybe 15 percent is from Canada (starting from low $600s.)

How has your marketing approach changed in the last year?

We are focusing more in meeting the people where they are. In other words, participating in real estate expos, networking with the local broker community, or reaching out with local brokers to their contacts in Canada.

How would you describe the mindset of the attendees toward Mexico?

Positive in spite of recent news.  Canadians really like the cultural and language aspect, high interest in submersion and cultural programs.  Mexico seems to be the buzz of Canada, and more when it's very cold!

What is your biggest challenge pitching Mexico these days? How do you overcome it?

Security.  I overcome it with a map that shows distances between "trouble" zones and tourist zones, and we're talking days away.

What did you learn from the event?

Canadians will keep coming to Mexico and favor it as a resort destination over various U.S. locations (Florida or Arizona, for example.)

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