Mazunte Mexico: A Guide to Real Estate Investment Opportunities

An Overview of Real Estate in Mazunte, Mexico

Mazunte is a small coastal town located in Oaxaca, Mexico along the Pacific Ocean. Over the past few decades, Mazunte has gone from a quiet fishing village to an up and coming tourist destination, especially for those looking for yoga retreats, surfing, turtle camps, and off-the-beaten-path beach vacations. With increased tourism and expat interest, Mazunte’s real estate market has seen steady growth.

Mazunte's Transition from Sleepy Fishing Village to Growing Tourist Town

Up until the 1990s, Mazunte was home to mostly fishermen and their families. There wasn’t much development or tourism. However, that changed when the Mexican government granted the town an official designation as a Pueblo Mágico (Magical Town) in 2002. This brought government funding for new infrastructure, promotions to attract visitors, and incentives for ecotourism businesses to set up shop.

As a result, Mazunte saw a number of yoga retreats, surf schools, lodges, tour operators and other small businesses open over the following decade. The town’s laid back, authentic vibe also attracted digital nomads, expats looking for a winter escape, as well as Mexicans wanting a quiet beach getaway. This growing influx of visitors and residents needing short and long term accommodations has supported increasing construction and real estate transactions in Mazunte.

Mazunte's Unique Offerings Drawing Continued Interest

What makes Mazunte such an alluring destination is its striking natural landscapes and calm energy. The town is known for its idyllic beaches, sweeping ocean views, and opportunities to observe sea turtles and other wildlife. As one of the world’s first designated Pueblos Mágicos, Mazunte holds onto its fishing village charm while integrating sustainable tourism.

For these reasons, Mazunte continues to capture the curiosity of investors and prospective residents. Demand rises every year for vacation rentals, B&Bs, private villas, condos and other residential offerings. While the heart of town maintains a laidback, community vibe, the surrounding hillsides and shoreline have become dotted with modern constructions taking advantage of prime views.

A Range of Real Estate Options in Mazunte

For investors and prospective residents, Mazunte has a growing range of real estate inventory. Options include everything from affordable building lots to luxurious beachfront homes:

• Beachfront land and homes with stunning ocean views
• Hillside lots and houses overlooking the town, beaches and sunsets
• Townhomes, condos and apartments within walking distance to restaurants and shops
• Building lots for custom home construction throughout the area
• Existing fixer-upper homes, cabins and bungalows for renovation projects
• Commercial buildings and storefronts in town suitable for small businesses

Home prices vary greatly depending on location, size, condition and amenities. Small townhomes start around $150,000 USD while large modern constructions along the ocean can fetch over $500,000 USD. However, values are still much more affordable than coastal hotspots in the USA and Canada.

Mazunte's Year-Round Draw for Visitors & Growing Expat Community

Mazunte enjoys pleasant weather and activities all year-round. As a result, real estate targeted as short term vacation rentals can achieve solid occupancy and returns. The high season for tourism runs November through April. However, surfing, yoga retreats, turtle camps and more attract steady visitors even in the summer low season.

In addition to tourists, Mazunte appeals to location independent expats and remote workers thanks to its tranquil pace of life and scenic landscapes. As digital nomads and retirees continue to discover Mazunte, the expat community keeps expanding. This fuels demand for long term rentals in addition to real estate purchases.

Purchasing Real Estate as a Foreigner in Mexico

It’s important to note that foreign nationals can easily buy property throughout Mexico. The purchase process through a bank trust or limited liability company is relatively straightforward.

Working with a multilingual real estate agent and lawyer helps international buyers navigate regulations and feel fully confident in their investment.

Using a Bank Trust for Property Ownership

One popular way foreign buyers can acquire Mexico real estate is through what’s called a bank trust, or fideicomiso. This special trust holds the property title on a buyer’s behalf, since Mexican law prohibits foreigners from owning land outright in certain designated zones.

The bank trust lets non-Mexican nationals retain all the rights to use and profit from their purchased property on a renewable 50-year timeline. Many lawyers and realtors can quickly facilitate setting up a fideicomiso during the buying process.

Owning through a Limited Liability Company

Another ownership structure accessible to foreigners is purchasing real estate through a Mexican limited liability company, known as an S.A. de C.V. Working with a lawyer to properly establish the business entity provides the same rights and protections as using a bank trust.

An increasing number of international investors opt for the LLC route since there are generally lower upfront and recurring costs compared to utilizing a fideicomiso.

Regardless of whether using a bank trust or LLC, reputable professionals can guide foreigners through meeting regulations to successfully buy and own property in desired Mexican destinations like Mazunte.

Why Real Estate Should Continue Rising in Mazunte

Looking ahead, analysts expect Mazunte’s tranquil and beautiful setting to keep attracting growing numbers of tourists, expats, investors and new residents. As demand increases against limited land and construction opportunities, real estate values should continue rising.

Mazunte offers a peaceful, authentic small town Mexican lifestyle alongside modern amenities and conveniences. For these reasons, more digitally connected remote workers now call Mazunte home part or full-time. Retirees also view Mazunte as an optimal destination thanks to the friendly community, leisure pace and access to stunning nature.

In addition, sustainable tourism expansion through upcoming boutique hotels, training facilities and specialty venues are set to bring greater prosperity and notoriety to Mazunte. This bodes well for appreciated property values over the coming years.

Despite its growth, Mazunte aims to retain its fishing village identity and charm. The limited land available for development supports real estate remaining a wise investment for years to come.

FAQs

Is it safe for foreigners to purchase property in Mazunte?

Yes, overseas buyers have the same property rights through available ownership structures like bank trusts and LLCs. Reputable real estate agents ensure the process is secure.

What type of properties are available to purchase in Mazunte?

Options range from building lots, fixer uppers requiring renovation, condos and townhomes in town, to custom homes and luxury villas along the oceanfront.

Can I rent out my Mazunte property when not there?

Yes, many owners rent out their Mazunte homes successfully as vacation rentals when not occupying the property part-time. This can provide attractive returns.

Is it easy to get to Mazunte for visits?

While Mazunte is a bit off the beaten path, convenient airports in Huatulco and Puerto Escondido provide easy access. The drive from either is about 30-40 minutes.