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Texas Real Estate Border Battle vs Mexico - U.S. Mexico Border

Posted by Cecilia Miranda on Thursday, August 25th, 2022 at 5:32pm.

Investing in property overseas offers a great way to diversify your assets, save you money as well as earn you a healthy return on investment (ROI).

Whereas there’s no denying the pandemic has gravely affected the real estate market, new opportunities have arisen, which is common in every crisis.

VIP Realty has run into one of those opportunities, and it happens to be in Mexico. In this article, we will discuss why you should invest in Mexico City real estate, how you can invest, and where you should invest.

If you've gathered that investing in Mexico is the right move, contact us and we'll help you find a property that suits your investment appetite.

Why Invest in Mexico City Real Estate

Mexico City is large. With a population of approximately 22 million people, Mexico City is larger than the combined populations of the Dallas-Fort Worth Metroplex (7.6 million), New York (8.8 million), and Los Angeles (3.9 million). Unlike many U.S. cities, buyers looking for investment opportunities in Mexico City can find relatively cheaper properties and pay fewer taxes.

Foreign investors can also take advantage of great property deals, thanks to Mexico's growing middle class that has kept the domestic housing market alive. In addition, foreigners can buy real estate in Mexico with few limitations on where they can buy it. With that in mind, buyers looking for a great deal can buy real estate in Mexico City at a great price.

For example, the average sale price per square foot in the city is $220 per square foot. The same property outside of the city limits is available for roughly $130. Compared to the average sale price of $675 per square foot in New York, or $507 per square foot in Los Angeles, buying real estate in Mexico City is cheaper than in many US cities.

Mexico's Real Estate Background

Despite a period of instability in 2013 when Mexico’s three largest housing developers collapsed, the country’s real estate market continues to grow, albeit at a slower pace. The collapse was precipitated by a government subsidy to developers and buyers alike in the affordable housing segment in the periphery areas of Mexico City.

Though land values are cheaper in those locations, lack of essential services like water and electricity as well as long commute times meant fewer units were sold. A policy change has seen the building of new units closer to the urban center, with the construction of fully serviced apartment blocks the main priority.

Is Mexico City Safe?

At the heart of Mexico City is an incredible UNESCO World Heritage Site, complete with a palace, cathedral, and the Zocalo—the largest square in the Americas. Although the country had a low rating on the 2020 Global Peace Index (137 out 0f 163), Mexico City is considered relatively safe. Though the media tends to sensationalize violent crime stories in Mexico, this hasn’t stopped more than 150,000 Americans from visiting Mexico every day.

Mexico City is even safer than many major U.S. cities. For example, according to recent FBI reports, the murder rate in New Orleans is declining, but it’s still 5 times higher than in Mexico City. Despite the grim statistics, New Orleans is still an amazing destination to visit and media outlets are right to champion the great city.

Mexico City is equally as remarkable, but there’s a marked difference in how media outlets portray each of these storied destinations. It’s fair to say that every city has places that are safe or dangerous and Mexico City is no exception. What’s more, security in Mexico City is taken seriously as it has one of the highest police officer-per-resident ratios in the world.

Traffic in Mexico City

Traffic is a big con for people living in Mexico City as it has one of the highest concentrations of vehicles in the world. According to the Ministry of Road Transport, over 5 million vehicles travel within Mexico City daily. Five million more vehicles are registered in the surrounding State of Mexico.

Recent urban traffic congestion report revealed that Mexico City ranks No.1 in traffic congestion in North America and No.28 worldwide. Meanwhile, the top-ranked US cities in traffic congestion are New York and Los Angeles which are ranked 43 and 59.

Rank City Time Lost Per Year Congestion Level
1 Istanbul 142 hours 62%
28 Mexico City 87 hours 38%
43 New York 80 hours 35%
53 Vancouver 75 hours 33%
59 Los Angeles 75 hours 33%

Traffic congestion in Mexico City is incredibly high such that vehicles have to travel at an average speed of 32km/h. Day traders know this too well as transporting goods in the city takes on average two and a half hours to reach the final destination. The construction of an 11 kilometers city highway, Autopista Urbana Sur, has helped ease traffic congestion by cutting commute times to the city by half.

Public Transit

Public transportation in Mexico City comprises a massive metro system. Though slightly run-down, the city boasts the second largest subway network in North America. Comprising 12 lines, this infrastructure carries 1.6 billion people every year. Additionally, five different city bus routes cover areas of the city that are unreachable by the metro.

Vehicle Accidents

According to a recent report, roughly 12,250 people die from vehicle accidents in Mexico every year. Besides overspeeding, some of the hazards that make driving dangerous in Mexico are caused by livestock straying onto the roads due to lack of fencing.

Mexican drivers also have a peculiar habit of placing rocks on the road to caution other drivers of a disabled vehicle. Though a noble gesture, such actions often lead to accidents. In addition, drink driving rules in Mexico City are quite relaxed and many people often take the wheel after downing several tequila shots or pints of beer.

Polanco - Best Luxury Neighborhood in Mexico City

Same as the DFW Metroplex which is divided into different subdivisions and neighborhoods, Mexico City comprises 16 boroughs that feature different neighborhoods. Among these boroughs is Polanco, a luxury neighborhood that offers amazing museums, great shopping, and proximity to big sites and parks.

Polanco is located only five miles west of the downtown area of Mexico City, north of Chapultepec, the city's largest park. Considered the safest neighborhood in Mexico City, three of the top 50 ranked restaurants in the world are located in Polanco. It's also the address of choice for many consulates, embassies, upscale hotels, and shopping malls.

Polanco Real Estate

Development in the Polanco area took place in the early and the mid-20th century. Instead of a suburban-style design, Polanco was built to emulate the downtown areas of European cities of that era. Sleek, posh, and glamorous, Polanco real estate features a combination of modern architecture with classic Spanish Colonial Revival-style homes that were built in the 1920s and 1940s.

Some of those buildings have been transformed into high-end boutiques while the rest are residential homes that cost $3 million to $4 million. The neighborhood blends old and new to give the area an exciting, lively vibe.

A stroll through the leafy side streets will reveal single-family homes that sit on plots that average 5,400 square feet in size. The layouts range in size from 1,075 square feet to 2,100 square feet in living space or inbuilt areas. The bulk of Polanco homes for sale is luxury apartments in high-rise complexes that feature luxury amenities including pools, gyms, elevators, and roof gardens.

Buyers looking to invest in an apartment in Polanco will have to part with at least $1 million. High-end apartment complexes also tend to form the bulk of new construction homes in the area. The homes feature distinct product lines with big terraces, social areas, and floor plans that meet the needs of the most discerning buyers.

Getting Around

Daily commuters will appreciate that Polanco is only 5 miles from downtown Mexico City. However, Polanco only has one Metro station which is located in the heart of the neighborhood. Metro bus services are not available in the area though major routes have normal bus services. Micro-buses or peseros help cover the mass transit shortage.

For those who feel adventurous, there are several shared transportation options in Polanco. They include Ecobici (a shared bike program), and Econduce (a shared electric scooter program).

Things to Do in Polanco

Jam-packed with a plethora of activities for all ages, boredom is not in the vocabulary of most residents living in Polanco. Outdoor aficionados can explore and enjoy the outdoors at several of Mexico City's amazing green spaces including Chapultepec Park. Polanco residents also enjoy easy access to Lincoln Park.

This delightful spot features a reflecting pool, bike paths, a statue of Martin Luther King, and a weekly farmer's market. For visual arts, Mexico City's museums feature a collection of local and international works spanning different styles, cultures, and times. Discover two of the best museums in Polanco—Museo Soumaya and the Museo Nacional de Antropologia.

Where to Shop

Living in a fashion-forward neighborhood such as Polanco means enjoying access to some of the best shopping Mexico City has to offer. Furnish your new condo or upgrade your wardrobe at various stores and specialty boutiques in Avenida Presidente Masaryk, Polanco's main street. More retail therapy awaits at the Saks Fifth Avenue store, the Palacio de Hierro Mall as well as Antara Fashion Hall Mall.

Where to Eat

If you're wondering where to eat in Mexico City, the culinary scene in Polanco is bustling. The neighborhood is home to world-renowned restaurants including Rosa Negra Restaurant and Ling Ling Restaurant.

Rosa Negra Restaurant

Swing by Rosa Negra Restaurant anytime you’re in the mood to eat out alone, with friends, or just want to grab a quick bite to eat. This space pays tribute to Latin American cuisine that includes gastronomic traditions from countries such as Argentina, Peru, Brazil, Colombia as well as Mexico.

Ling Ling Restaurant

Winner of OpenTable’s Diners’ Choice 2022 Award, Ling Ling Restaurant is a unique destination lounge and dining venue in Mexico City’s historic Reforma. The restaurant boasts a convenient location above the Ritz-Carlton on the 56th floor of Chapultepec Uno, a mixed-use, 58-story skyscraper.

Nightlife

When you're ready for a full night on the town, there are plenty of entertainment options within a short walk or drive of Polanco homes for sale. Sample the city's best nightlife in popular bars and intimate pubs such as Jules Basement. The Polanco area is also home to excellent craft beer breweries such as HOP: The Beer Experience, a favorite spot for residents. If you’re attuned to a more casual setting, catch the live acts and performances in Downtown Mexico City.

Where to Stay

Whether you travel to Mexico City for business or leisure, you will need a place to stay. Though Polanco is chic, you can easily find accommodation that suits different budgets—whether you prefer cheap accommodation or posh resorts, Polanco offers plenty.

Rising 58 stories in the center of the financial capital, The Ritz-Carlton, Mexico, enhances Paseo de la Reforma's skyline. Located on ten floors (37 to 47), the hotel boasts spectacular views of Chapultepec Park. Guests get to enjoy unobstructed views of the city's landmarks from each of the 153 accommodations and private residences.

Education

Polanco residents appreciate the easy access to quality education, and proximity to the American School Foundation is a plus. Recognized as one of the best schools in Mexico, the independent co-ed institution serves pupils aged 3 to 18 years. The school is located 3.5 miles away in the Las Americas neighborhood. Other top schools in the Polanco area include the Lycée Franco-Mexican (French Mexican School) which is also one of the largest French lycées in the world.

Who Lives in Polanco

Home to the business headquarters of multinational firms such as Nestlé and Coca-Cola, Polanco is described as cosmopolitan with different residents and a mix of cultures. Some of the community’s long-standing residents include Jewish, Lebanese, and Spanish communities who moved to the area in the early to the mid-20th century. You will also find old-money Mexican families as well as Argentinian, Chinese and Japanese expatriates.

Final Thoughts

In recent years, buyers from all over Europe have been falling in love with Polanco thanks to its global recognition for its amazing culture, cuisine, and weather. Besides finding better deals, investors will pay less property tax and earn more rental income from Polanco properties. Once you make up your mind to take up the challenge and invest overseas, don't hesitate to contact us to schedule an appointment or visit our website for more information.

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