Foreign Investment in Mexico's Real Estate: An Introduction to Legal Aspects of Real Estate Transactions

During the past ten years, and since the deregulation in most sectors of the Mexican economy, real estate investments increased considerably. Possibly, one of the reasons why people's interest has turned to Mexico is the thousands of miles along the border and seashores that still have not been developed. Whatever the interest of a foreign individual or corporation might be, Mexico is now offering a variety of investment opportunities in the real estate field. Touristry, recreational, industrial, commercial, and even residential purposes are attracting foreign investment in the Mexican real estate market, representing a substantial portion of the foreign capital flow into the country. Furthermore, with the enactment of NAFTA, the Mexican federal government in conjunction with state and local authorities has been implementing better laws and policies related to human settlements, urban development, zoning and environmental issues in order to address a sustainable economic growth and international integration. The above policy has resulted in a complex body of law that requires continuous attention when dealing with a real estate transaction in Mexico.