If you could live anywhere in the world, where would it be? Here’s an idea – Named the best city in the world by Travel + Leisure in both 2017 and 2018, the small town of San Miguel de Allende is revered around the world for its stunning architecture, incredible cuisine and peaceful lifestyle. Gaining attention from both retirees and expats, the city is becoming increasingly popular leaving many to wonder if home prices will increase over time. In this month’s Global Market Guide, we take an inside look at the current state and the predicted future of the luxury real estate market in San Miguel de Allende, Mexico.
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Transactions in San Miguel are primarily done in cash, so many agents have found that it is easier to vet clients because they know that potential home owners are coming to the table prepared to buy.
Exclusive listings are prevalent among sellers in the market. Buyer representation is not dominant like it is in the United States although, there are agents in San Miguel de Allende that focus specifically on helping buyers throughout the transaction since the process is much different than in other parts of the world.
CURRENT HOUSING MARKET
Clients come to San Miguel for the high-end location, stunning views, pools and a relaxing quality of life. Recently, buyers in the area have been looking for homes with cleaner lines and contemporary design, which differ from the arches and Spanish colonial aesthetic that is dominant in the area.
There has been an influx of new construction just outside of the city within the past 5-7 years, and many luxury buyers have been attracted to these new developments. Traditionally buyers are interested in nearby attractions such as vineyard and equestrian offerings and several have been attracted to the mall and golf course near many of the new developments outside the city.
LUXURY BUYER PROFILE
Because San Miguel is a secondary market, where many buyers travel to purchase second and vacation homes, many buyers are often very clear on their preferences when purchasing a residence. These buyers are focused on harnessing the cultural experience with a level of sophistication.
CURRENT POLITICAL CLIMATE
Last year (2018) proved to be the best year on record for our member. Sales saw a significant decrease during the election, however following the election, when it was confirmed that the peso would not be affected, sales began to increase. Since the election prices in the area have remained steady and buyers are once again confident in the market.
GROWTH IN THE MARKET
Currently, San Miguel is seeing significant price improvement in the area, which our member predicts will stabilize the market for the next quarter. The demand for real estate is high in the area as more retirees and expats flock to the area.
Both culturally and artistically dynamic, the small city is protected by UNESCO preserving much of the original architecture and historically significant monuments that draw potential buyers to the area.
In mid-2018 local authorities temporarily blocked individuals from selling buying or remodeling properties until new regulations were set up to limit and preserve architecture in the area. Since then, new construction has remedied much of this and San Miguel de Allende continues to expand welcoming locals and foreign buyers alike.
Special thanks to our member CDR Bienes San Miguel for providing their insights about the luxury market in San Miguel de Allende, Mexico.
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