HVS International Bullish On Mixed-Use Resorts in Mexico

From its interior to its sunny coastlines, Mexico is experiencing a boom in the development of mixed-use resort-residential communities that will influence the way resorts are built in Mexico and tourists experience the country for years to come.

That’s the conclusion of HVS International in a report written by Luigi Major, a project manager with HVS Mexico City.

Master-planned communities, such as the multimillion-dollar Mayakoba development on the Riviera Maya, are normally anchored by one or multiple upscale hotels, which are complemented by custom homes, condominiums and villas. Additional amenities might include golf courses, marinas, spas and private landing strips.

According to Major, the benefits of these mixed-use resorts to developers include a diversified source of income (hotels and residences); flexibility in deal structuring that enables developers, for example, manage an entire community or create joint ventures; and the peace of mind of a well-designed project with quality infrastructure for third-party developers.

For tourists and buyers, master-planned communities can offer greater security and privacy; ample amenities; quality infrastructure; and legal certainty, with homebuyers in Mexico benefiting from improved access to U.S.-based title insurance and mortgages.

According to Major, although the current turbulence in global financial markets might put a damper on the short-term performance of many of these mixed-use projects, mid- to long-term travel and retirement trends in the U.S. and Canada are expected to provide a stable base for growth of resort-residential communities.