Is it cost effective to build in Merida, Yucatan, Mexico? Absolutely. Both from a personal and business perspective it makes absolute sense and is easy to do. Let me give you the numbers:
Land: 300 sqaure meters - $25,000.00. USD
Construction cost: 200 square meters - $65,000.00. USD
Total Cost of land and Construction: $90,000.00 USD
Closing Costs: $5,000.00 USD (estimated)
Total Cost: $95,000.00 USD
Sales Price $125,000.00 USD
Profit/Equity $30,000.00 USD
If you want a pool add another $5,000.00 USD. On a three hundred square meter lot, with two story construction, this would still leave you with a nice size backyard.
All in all the real estate market is very healthy in Merida. It is beyond anything you see in the United States at this time. Many people are moving to Merida from all over the nation of Mexico. We hear of people moving here from Villahermosa, Mexico City, Monterrey and even Cancun. The economy here has been growing, it is considered very safe to live here and we also have 11 colleges and universities inside the city. The people of Merida are becoming very educated.
From both a personal and business perspective it really makes sense to build here. It is very common for homebuilders to buy lots that will accomodate 3 to 10 homes and just build one or two at a time until they completely build out the project. You don't have as many large established home-builders here like you do in the states. You have some but not as many. I think it is a very good business opportunity for those looking to invest in emerging markets.
If you are interested in exploring this side of Meridian business send me an email. We can help you get started. We already have a construction and legal team ready to help you with all of your business needs (Realtors, Attorneys, Architects and Construction Managers).
Look forward to hearing from you. My email is email@example.com.