In recent years, migration to coastal cities in Mexico has surged, driven by the rise of remote work, economic growth in tourist regions, and the pursuit of a better quality of life. This trend has notably increased capital gains in various coastal areas across the country, according to a recent analysis by Propiedades.com.
The report highlights that cities like La Paz, Baja California Sur, saw a significant appreciation in property values, with an increase of 11.52% over the past year. Similarly, Mérida, Yucatán, registered a growth of 10.93%, and Mazatlán, Sinaloa, experienced a rise of 11.29%. Meanwhile, Puerto Vallarta, Jalisco, reported a capital gain increase of 9.86%, Manzanillo, Colima, 9.68%, and Veracruz, Veracruz, 4.4%.
Sales and Rental Market Dynamics
The Propiedades.com study also sheds light on the dynamics of the sales and rental markets in these coastal cities. In La Paz, apartment sales prices range from 1,195,500 pesos to 2,281,800 pesos, with an average price of 1,139,929 pesos. Puerto Vallarta stands out as a premium destination, with an average sales price of 2,755,968 pesos.
When it comes to renting, the average monthly rent in these six cities is 17,878 pesos. Puerto Vallarta again tops the list, with the highest average rent at 24,186 pesos per month, while Veracruz has the lowest average at 11,744 pesos.
Factors Driving Coastal Migration
The analysis suggests that the growing demand for property in coastal areas is fueled by a combination of factors. One of the key drivers is the increasing prevalence of remote work, which allows more individuals to live outside of large urban centers. Additionally, the allure of a more relaxed lifestyle, closer to nature and away from the hustle and bustle of city life, is attracting many to these regions.
Infrastructure and connectivity improvements in these areas have also played a critical role in facilitating this migration. Each coastal city has its unique characteristics that contribute to the trend of people moving towards the coast.
For instance, in La Paz, over 60% of residents report feeling safe, according to data from the National Institute of Statistics and Geography (INEGI). Mérida has been ranked as the second safest city in the Americas, according to CEOWorld’s 2024 study. In Mazatlán, the unemployment rate dropped to 1.86% in the first quarter of 2024, based on the National Employment and Occupation Survey (ENOE).
In Jalisco, the average monthly salary increased to 6,360 pesos during the same period, reflecting an improvement compared to the previous quarter. On the other hand, Veracruz, despite a 4.4% increase in capital gains, shows moderate growth attributed to the city’s ongoing struggle with perceptions of insecurity, even as official crime indicators show improvement.
Expert Insights
Juan David Vargas, CEO of Propiedades.com, emphasized that remote work is a significant factor influencing migration to these coastal cities. “The shift towards remote work has expanded the geographical options for many people, enabling them to choose a lifestyle that prioritizes quality of life over proximity to traditional urban work centers,” Vargas said. This shift has resulted in a growing demand for living spaces in Mexico’s coastal regions, contributing to the upward trend in property values.
As more individuals seek to balance work with a lifestyle closer to nature, the migration to coastal cities is likely to continue, further impacting the real estate markets in these areas. With ongoing improvements in infrastructure and safety, these cities are becoming increasingly attractive destinations for those looking to relocate, whether for work, retirement, or simply a change in pace.
This migration trend not only highlights the evolving preferences of modern workers but also underscores the dynamic nature of Mexico’s real estate market, particularly in its coastal regions. As these areas continue to develop and attract new residents, the economic and social landscapes of these coastal cities are set to transform, potentially leading to sustained growth in the coming years.