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Sunday December 17 2017
Overview of Real Estate Market in San Miguel de Allende
Author:
Softec - 2010


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San Miguel de Allende, formerly known as San Miguel el Grande, is now considered a world cultural heritage and a colonial jewel, immortalized as an ancient city.

It is located 97 km’s east from Guanajuato’s state and 274 km’s from Mexico City. San Miguel de Allende has an extension of 1,537.9 kilometers, it barely represent 5% of the territory state.

In the last few years, San Miguel has developed a conjunction of various cultures and nations, reflected through residents from over 33 countries (both European and North American); 15% of the population of the municipal head comes from abroad. It counts with two nearby airports: The Bajio International airport in Leon, located an hour and a half away, and the new International Airport in Queretaro, an hour away from San Miguel de Allende. The easy access to this town makes it appealing for weekend visits from both national and international tourists.

San Miguel de Allende is a renowned important tourist destination, it has a broad diversity both cultural and in craftsmanship and an excellent geographic location and favorable climate as well. It population goes slightly over 140 thousand inhabitants, but the municipal head has a little over 60,000, of which 12,000 are foreigners living in this destination. Regarding to tourist services, San Miguel has 1,200 hotel rooms and a 35% occupancy rate.

Due to all the above, the number of foreign residents has increased constantly in the last few years. The affluence in both national and foreign residents has triggered the real estate market which value increases year after year. To this day, there are 28 registered projects totaling 1,637 units representing a total inventory of 686 units.

57.1% of the projects are in the Residential Plus segment with an average total price above $350,000 USD. In regard to the typical housing product, the horizontal houses represent 89% of the projects and 95% of the total sales.

The highest monthly sales are between the 80 to 100 mt2 range, followed by the 150 to 200 mt2. Each represents a 29.6% and 23% respectively. In relation to the segmentation of the development zones, we find that the “Corredor Dorado” zone has nine projects, with a total sale of 8.3 units. The average price goes from USD$200,000. In the other hand the center region has 19 projects, with total monthly sales of 17.5 units. The average prices goes on USD$289,000.

The strongest development in San Miguel de Allende has taken place in the last 4 years (2006 to 2010), having at the beginning, sales close to 30 projects and adding 1,405 units to the housing stock. The incorporation of these projects into the market has happened as follows: in 2005 one project begun, in 2006, seven projects, in 2007 ten projects, in 2008 thirteen projects and in 2009 three projects, begun.

In 2008, a total of 364 units were sold; this figure dropped dramatically to 123 units in 2009, mainly due to the global crisis. However, since last year, new developments are being proposed, such as the “Artesana” complex, which considers a private investment of USD$198 million and will offer a new alternative to national and international Premium Tourism.

In addition, the Rosewood complex, which has also created exclusive hotels throughout Mexico, such as Mayakobá in Quintana Roo and Las Ventanas in Southern Baja California, is considering a luxury development in San Miguel de Allende, including three swimming pools, four restaurants, a sculpture garden, a 2 thousand square meter Spa area, in addition to a real estate area with 87 high-level residences and 7 family plots, among others.


NOTE: This article was prepared by SOFTEC with proprietary data. This information is obtained in a quarterly base in the 36 most important cities of Mexico. For any questions, comments and/or clarifications, please contact: estudiosdemercado@softec.com.mx

 

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