San Miguel de Allende Real Estate Market Update - Fall 2022
Updated: Nov 9, 2022
Since 2021, despite nearly two full years of pandemic-based fears and travel restrictions, the real estate market in San Miguel de Allende has been bullishly hot. Demand never really diminished, it was simply suppressed. Once the world started to get back to normal, the SMA market took off and has not slowed for the past 18 months. In particular, mid- to high-end properties have been selling quickly.
The increase in the US interest rates caused the US market to slow. However, it did not affect the SMA real estate market because nearly all transactions here are done on a cash basis. Once you pay for your house, your cost of living decreases and your standard of living increases by at least a factor of three. A very compelling combination.
A new mortgage product, which KRG is intricately tied to, is now available. The loan is based on your US-based credit, not Mexican credit as in the past. Ask us about it by contacting us here.
One very interesting trend that has emerged is that expat buyers are no longer mostly retirees. Two distinct new sets of buyers have emerged since pre-covid years. The first are remote workers. There is a flood of expats moving permanently to SMA between the ages of 25 and 45. Both, singles and families are buying houses here constantly. The second are politically motivated expats moving here for a myriad of reasons.
A severe recession in the US could hit SMA hard, as has been the case historically, and it could slow the real estate market significantly (think 2008–10). However, this time it may further motivate both the remote workers and the politically motivated buyers to move due to the advantageous cost of living and higher standard of living.
For more information, please do not hesitate to reach out to us here.
Jeff Kimmel is a lawyer and a member of the California bar since 1980. He became a partner of the Mexican law firm PORTILLA, RUY-DIAZ Y AGUILAR in 2017 (https://www.portilla.com.mx/attorneys). He is a licensed Mexican real estate broker in Guanajuato. He started KIMMEL REALTY GROUP in San Miguel de Allende in 2021 with the mission to help its clients take the risk out of buying real estate in Mexico (https://www.krgsanmiguel.com/).
© 2023 Jeff Kimmel DBA KIMMEL REALTY GROUP all rights reserved.
Use by others requires prior written permission.