Profound Implications for the Mexican Economy and the Real Estate Market in the Riviera Maya
In an increasingly interconnected world, the concept of nearshoring has emerged as a significant economic strategy, especially for countries like Mexico. Nearshoring involves relocating business and production operations near consumer markets, as opposed to offshoring, which entails outsourcing these operations to distant countries. This strategic approach promises to significantly transform the Mexican economy and, by extension, have a notable impact on the real estate market, particularly in the thriving region of the Riviera Maya. Thus we are exited about The Rise of Nearshoring.
One of the greatest benefits of nearshoring for Mexico lies in attracting foreign direct investment. Mexico’s geographic proximity to the United States, one of the largest consumer markets in the world, makes it an attractive destination for companies looking to reduce logistics costs and tap into skilled labor at competitive prices. This investment not only boosts the Mexican economy but also generates a cascade of positive effects, including the creation of new jobs and the stimulation of local entrepreneurship.
One of the biggest challenges for 2024, especially for Mexico.
- It will represent 0.5 to 0.6 of GDP
- Barkley’s in England estimates foreign direct investment of 40 to 50 billion dollars
- The greatest impact will be in 2024 and 2025
- BBVA Research: 495 new companies in Mexico in the next 2 years
- 20% will be Chinese
- From 2018 to 2022: 830 new companies, 35% American, 12% Asian (excluding China), and 9% European
- In the first 3 months, the offer will be up to 400 thousand formal jobs
- Main benefited industries will be: Hospitality, Information Technology Services, Aviation, and Construction.
México is in the right PLACE at the right TIME
The opening of new businesses as a result of nearshoring will not only diversify the Mexican economy but also increase its global competitiveness. Mexican companies will have the opportunity to establish strategic partnerships with foreign firms, fostering the transfer of technology, knowledge, and best business practices. This collaboration will strengthen Mexico’s innovation capacity and position the country as a key player in the global economy.
The impact of nearshoring will be particularly felt in the real estate market of the Riviera Maya. This region, known for its natural beauty and tourist appeal, will see an increase in demand for commercial and residential spaces as more companies seek to establish themselves there. The need for corporate offices, distribution centers, and employee housing will create sustained demand in the real estate market, driving prices up and generating lucrative investment opportunities.
However, this growth will not be without challenges. The rapid expansion of the real estate market may raise concerns about environmental sustainability and uncontrolled urban development. It is essential for authorities and real estate developers to work together to ensure orderly growth that respects the natural environment and the needs of the local community.
The Rise of Nearshoring. What to expect.
Nearshoring represents an unprecedented opportunity for the Mexican economy, with tangible benefits in terms of foreign direct investment, job creation, business strengthening, and global competitiveness. While the impact will be particularly notable in key regions like the Riviera Maya, long-term success will depend on careful planning and responsible management that maximizes economic benefits without compromising the environment or the well-being of local communities.
At Select Riviera Maya Real Estate, we share this vision of development for the region and have a significant portfolio of high-value real estate options for those looking to take advantage of this economic boom, whether to live in this part of paradise or to find new and lucrative sources of income through long-term or vacation rentals. If you would like more information, do not hesitate to contact us.
