Why Should I Hurry to Invest in Mazatlan Real Estate?

Part I  

By: Shaun Klynstra

Hola to everyone! Welcome to another edition of the Buzz in Real Estate!

Mazatlan, Sinaloa, Mexio, June 17Th of 2008.- For those of you who think that Mazatlan’s real estate prices are too high, especially on new construction (homes and condominiums), you might want to reconsider your position. For those of you who are waiting to buy until the market softens, you also might want to reconsider. 

Prices of real estate in Mazatlan have definitely gone up in the past few years, but it is not only because people want to make more money. There are many other attributing factors. 

Material Costs

Recently, the June 3^rd edition of one of Mazatlan’s newspapers, El Debate, exposed some alarming facts regarding construction costs. According to their data, some of construction’s most essential materials have increased in cost to an alarming amount – in some cases, up to 112% compared to 2007 numbers.

In February, The New York Times published an article stating the iron ore costs are skyrocketing, which will lead to an increase of at least 20% in steel prices, one of the most important materials used in any construction.  

These large increases are obviously going to be reflected in consumer prices.  

Hot Spot

When a local market heats up, real estate prices generally begin to go up as well. For those of you that come from markets such as Calgary or Vancouver, you will be the first to attest to that. Well, Mazatlan is definitely heating up.  

With elements such as the long-awaited Durango-Mazatlan super highway and the completion of the Guadalajara-Mazatlan highway, global industries are looking to Mazatlan as a very competitive port of entry and exit for their products and services.  

On February 22, Business News of Americas announced the Mexican government’s investment of $1.1 billion USD in an attempt to “fast-track” the completion of the Durango-Mazatlan highway which will “connect Mexico’s Pacific and Atlantic coasts, positioning Mexico as a vital link for Asia – US trade by serving as competitive option to the Panama Canal”.  

More industry in Mazatlan means more, better paying jobs, and in return means that more families will have the potential to purchase real estate.  

On the horizon are also plans for a large commercial development where corporations will house their operations, in addition to their production and storage facilities, again adding value to real estate prices.  

In our next edition, we will continue to analyze the factors which make Mazatlan a great place to invest in right now, and also which are attributing to rising real estate prices.  

As always, if you have any questions or comments, please feel free to write me an email or call me directly.