Market Update April 2024 - San Miguel de Allanede
Why Real Estate in San Miguel de Allende Will Remain a Solid Long Term Investment
The stability of every real estate market is the economic strength and jobs that support it. Most of you have probably heard the term “nearshoring.” The term became popular after the global supply chain fiasco during the covid era where manufacturers could not get their products to the consumers in a timely manner – particularly from Asia´s manufacturing hub to the consumers in the US and Canada.
To alleviate the problem distributors in the US and Canada began choosing items made in Mexico instead of Asia to insure that it would be easier to actually get them. Global manufacturers begin subbing out their manufacturing to plants in Mexico and as of today there has been huge investment in Mexico´s manufacturing – both by local investment groups and foreign investors. The first quarter of 2024 topped $31.5 billion dollars in direct foreign investment. As a result, Mexico unseated China as the largest exporter to the US in 2023, and become one of the top 10 exporters globally.
It is this economic strength that will keep San Miguel´s real estate a stable long term investment. Although San Miguel does have its own growing manufacturing sector, it is surrounded by several cities that are powerhouses in manufacturing and rely on the population of San Miguel as their employees.
A few other things to note about the stability of Mexico in general are; Mexico was listed again in Kearney´s 2024 Confidence Index rating, the exchange rate at the beginning of the pandemic was around 25 pesos to the dollar, where today it is around 16.40, and Mexico rates 6.7 in the Global Happiness by Country. The US is also at 6.7 and Canada is at 6.9. Visual Capitalist put out a “Confidence in the Global Economy by Country” where residents of each country were asked, “will the global economy be stronger in 2024 than it was in 2023.” 62% of Mexico´s residents answered yes compared to 45% in the US and 39% in Canada.
As for San Miguel itself? It will remain a popular vacation and second home destination because of the wonderful abundance of the cultural and artistic events and because it constantly receives national and global gastronomic accolades for many of its four and five star restaurants and bars. The fact that San Miguel de Allende is a UN World Heritage Site and has been named the Best Small City in the World several times by Conde Nast is icing on the cake.
Here we feature one of the Iconic homes of San Miguel de Allende.
