Mexican Investors Show Growing Interest in US Real Estate Sector
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Mexican Investors Show Growing Interest in US Real Estate Sector

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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Tue, 07/25/2023 - 16:50

The US business environment continues to attract an increasing number of investors, solidifying the country’s position as the world's primary recipient of foreign investment. Interest has reached a growing number of Mexican investors seeking to diversify their portfolios and capitalize on the historically robust American economy. 

In 2021, the US received a total of US$156 billion in foreign direct investment, representing nearly 24% of the global investment inflow. The real estate sector stands out among the segments that have captured the attention of Mexican investors, accounting for 23% of the investment in this sector. By 2022, Mexicans surpassed other Latin American countries, including Colombia and Argentina, to become the leading investors in US real estate with US$2.9 billion. Multifamily properties are among the most popular assets, as 25% of foreign investors in North America opt for this model.

Multifamily complexes are residential properties with multiple independent housing units, all owned by a single landlord. These properties can range from small buildings with 15 units to large apartment complexes with hundreds of spaces. Their appeal lies primarily in their potential to generate a steady stream of income through rental payments from tenants.

One platform that has enabled Mexicans and other Latin American investors to tap into the US multifamily real estate market is Dividenz. The platform operates in several countries, including Argentina, Colombia, Guatemala, Chile, Peru and Mexico, and grants investors access to multifamily properties in the US with just their passport, eliminating additional concerns. These properties are already constructed and tenanted, streamlining the investment process.

Through Dividenz, Mexican investors gain access to properties located in high-performing states such as Utah, Nevada, Philadelphia and Texas. These markets, as per the Case-Shiller index, have experienced sustained growth in key areas like economy, demographics and employment. They are particularly attractive due to post-pandemic internal migration, resulting in expanding populations and new job opportunities alongside robust commercial activities. Additionally, these markets represent a significant part of the US GDP, demonstrating strong growth potential.

"Investors receive monthly income in dollars from hundreds of apartment units' rentals, ensuring a constant flow of income with annual returns ranging from 10% to 17%. With occupancy rates exceeding 90%, investments made through the platform in multifamily properties provide stability and free investors from the burden of finding tenants,” Iván Chomer, CEO, Dividenz, highlights.

Investing in the US real estate sector has become an attractive option for Mexican investors seeking to diversify and strengthen their investment portfolios, while leveraging the stability of the American economy. The appeal of multifamily properties, coupled with the convenience of platforms like Dividenz, has facilitated an influx of Mexican capital into the US real estate market, benefiting both nations' economies. As the US economy continues to thrive, this trend is expected to gain further momentum, solidifying the economic ties between the US and Mexico.

Photo by:   kenishirotie

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