Mexico — The tariff uncertainty caused by Donald Trump has extended its reach to Mexico’s beach destinations, leading to a contraction in home sales and rentals in popular coastal areas. Over the past months, transactions have dropped by an average of 25%, with buyers hesitant amid economic instability, according to industry experts.
Economic Uncertainty Deters Buyers
Karim Oviedo, president of the Mexican Association of Real Estate Professionals (AMPI), confirmed the downturn. “There has been a significant impact. Many developments in places like Mazatlán, Puerto Vallarta, Tulum, and Riviera Nayarit are at a standstill. Clients are not purchasing as they did in previous years, and this is reflected in falling prices—a negative trend for investors in the long run,” Oviedo stated.
The slowdown coincides with rising costs for construction materials, including steel rebar, cement, and lumber, which have driven up final home prices and further complicated sales. “People are holding off on purchases, waiting to see how the situation unfolds before making investments. In the meantime, the economy begins to shrink,” Oviedo added.
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