SAN DIEGO (Border Report) — Half of the real estate being sold in the city of Tijuana is being purchased by investors, primarily from Southern California, who are looking for income properties, according to the Mexican Association of Real Estate Professionals in Tijuana, or AMPI, as it’s known south of the border.
“Half of those buying residential properties in Tijuana are investors intending to rent out their properties,” said Carlos Bustamante Mora, president of the association. “Or they plan to live in the property for a time and rent later on like you would an apartment or home.”
Most of the real estate being sold now are apartments or condos, Bustamante said.
“There aren’t a lot of developments building houses in Tijuana due to the topography and lack of space because of the high cost of land across the city, so all projects now involve vertical buildings,” he said.
And according to Bustamante, almost half of the real estate buyers in Tijuana are from Southern California.
The lack of inventory and high demand has sent property values upward in Tijuana.
By the end of 2022, the average price for an apartment was set at $250,000, an increase of 11 percent from the previous year according to AMPI.
And AMPI also reports that while the cost of real estate north of the border has decreased since late Spring 2022, it has not gone down in Tijuana.