Baja California Real Estate Update

Baja Real Estate Update Baja California By James Glover March 26, 2013 Having just driven the majority of Baja, from San Felipe through Tecate to Ensenada and from there all the way south to Cabo San Lucas I had the opportunity to have a quick review of the majority of the regions of the Baja peninsula. I’ve written this article to assist you to better know these very different regions in hopes of familiarizing you with the diversity of real estate markets, improvements and lifestyles that can be available. Baja Real Estate Market The overall real estate market of Baja California, Mexico has seen some serious changes since the downturn of the United States economy of 2008. Mexico and America being commercially tied neighbors with the majority of Mexico’s exports going to America has put an economic slowdown on much of Mexico as well. The old saying when “America sneezes Mexico gets a cold” has seemed to hold true. However this slowdown has been a good thing in many areas of Baja and Mexico overall as the Mexican government has been able to work hard at improving and finishing many infrastructures like highways, roads, airports, schools, government offices, power, water and sewer treatment to handle the new growth that is expected. These improvements have been seen all over the entire Baja Peninsula and while the real estate market is not booming it appears to have begun to recover in many areas. Tourism had slowed and has begun to pick up in some areas as well but not everywhere as there is still a fear amongst many of the violence in Mexico. Obviously a country the size of Mexico cannot be painted with one big brush stroke as all bad and many foreigners are finding the truth that there are many safe and wonderful places to live, retire, work and invest. The most current census statistics from 2010 show almost 1 million Americans were living in Mexico with a large portion of those in the 2 states of Baja California, Mexico. One important change we have noticed in inquiries for real estate in Baja is not as much for the second vacation home but for primary residences for those that wish to retire or relocate to Baja for the new business opportunities that do seem to be available. In the past, the majority of homes bought by Americans and Canadians were not for year round residency and this does seem to be changing. There is still a great deal of inventory in most areas of Baja as many people that have second homes here are selling due to the slowed economy keeping the prices down for now and creating a greater opportunity for those wishing to invest in Baja now. If you are interested in living or investing in Baja at this time or the near future then the question becomes where? The where also is divided into not only what area of Baja but what kind of neighborhood or community within the area that you desire to live or invest? Baja is a 1000 mile long peninsula made up of 2 states Baja California (Norte) and Baja California Sur. I have broken this article into these two states because being such a long peninsula it had become a long article (see mileage chart ). I have written as best from North to South zig zaging down as the highway goes. I’ve added a few comments about real estate in each area but this article is more to help you understand the diversity of the regions and lifestyles that can be created. Tijuana- Ensenada The Baja peninsula begins just over the border from San Diego California with Tijuana the largest city of Baja and the 5th largest in Mexico according to the 2010 census of INEGI. Being a major metropolitan city with all the modern amenities, yet not the cleanest or safest in some areas, like any big city in a developing country. Real estate is cheap and many large businesses from all over the world are here or moving to Tijuana and other border areas like Tecate and Mexicali for manufacturing. Tijuana’s tourism has taken a big downturn due to violence reported over the past years and the city is trying hard to get their tourist back. I was there just after the New Year and found the police and army had a very strong presence yet very friendly and helpful. However while it is inexpensive it is not what most people are looking for when retiring or relocating to Baja. South of Tijuana are the very popular beach communities of Puerto Nuevo, Rosarito Beach and the very large bay area of Ensenada just a couple of hours drive from the U.S. border, on the Pacific side. This close proximity to the border has made it very popular for those that wish to be close to the U.S. yet take advantage of the lower costs of living in Mexico. The Pacific coast of Mexico is cooler that the rest of Baja and has fog and some rains much similar to San Diego. (To see climate please click here). Activities here can include sport fishing, golf, surfing, windsurfing, kite boarding, theaters, night life, dog racing, museums, art galleries, shopping, horseback riding, off road and just about any kind of lifestyle you may desire. Tecate- San Felipe Inland and east of Tijuana is the beautiful mountain region Tecate with its many ranches, haciendas and rural properties allowing for a very tranquil life if desired. Between Tecate and Ensenada is the Ruta del Vino (Wine route) which has grown significantly in years past with many large and small vineyards. This area is well known for wine tasting, horseback riding, hiking, camping, offloading and yet is close enough to go enjoy the nearby coast for the day. Further east to the Sea of Cortez side is the very well known and popular beach area of San Felipe, the furthest north city on the Mar de Cortez. San Felipe which is 2 hours south of Mexicali has been made popular for those again that wish to be closer to the U.S. and yet has all the beauty of a great but small beach city on the very peaceful Sea Of Cortez. Activities here include fishing, golf, sailing, all water sports, camping, beach combing and of course offloading (To see climate please click here). Back to Mex 1 heading south of Ensenada you will pass through more wine country in the inland valleys of Santo Tomas and San Vincente, then along the coast to the major farm communities of Camalu and San Quintin. These inland valleys can be a beautiful place for a small vineyard, ranch or hacienda style life. The major farm community of San Quintin itself is not that popular or pretty to live in but there are a fair amount of ex-pats that have found a nice place to live in along the coast in the Bay of San Quintin with wide open beaches and dunes. Heading further south on Mex 1 you will soon leave the coast just before El Rosario and begin the long desert drive down through Catavina and Vizcaino desert areas. Along this section of Baja you will see the amazing contrast of desert versus the sea or ocean. There are however several major and minor roads going out to both the Pacific Ocean and Sea of Cortez all along the way. These desert areas are very sparsely populated with small communities along the highway junctures to the coastal accesses. After passing through the boulder strewn areas of Catavina you’ll encounter one of the more major routes east to the Sea of Cortez which begins at Punta Prieta and will take you out to the popular Bahia de Los Angles (L.A. Bay). This somewhat remote area over the years has seen growth over the years and yet is still a small rural community on a fantastic bay for fishing, diving, sailing all water sports and offloading. Southward again for several hours you’ll come to the halfway point of the peninsula at Guerrero Negro on the Pacific side and the border between Baja and Baja California Sur. This area is well known for two things, whales and salt. The very famous Laguna Ojo de Liebre (formerly known as Scammon’s Lagoon) is located just south of Guerrero Negro and is world famous for whale watching as these lagoons are used by the migrating whales for calving in the winter months. Guerrero Negro is also one of the largest salt producers in the world with giant salt flats and trucks moving tons of salt per day. This area is generally not considered by many as more than a place to stop on the drive down or to go whale watching and not a place to live unless you want to live in a very rural cooler and windy area.