MEXICO CITY — Mexican businesses, especially those in real estate and construction, are seeing significant benefits from the surge in nearshoring, as companies relocate manufacturing closer to the U.S. border. This trend is expected to drive economic growth, particularly in industrial zones near the U.S., positioning Mexico as a key player in global supply chains.
Nearshoring in Mexican Real Estate: A Catalyst for Economic Growth
Aeromexico emphasized the importance of this new route. It will offer more travel options to both national and international travelers eager to explore Tulum and the southern Riviera Maya. By adding Tulum to its network, Aeromexico strengthens its commitment to enhancing connectivity within Quintana Roo. The airline already operates flights to Cancun, Chetumal, and Cozumel.
The first passenger flight from Mexico City to Tulum is set for Friday, December 1, 2023. The flight will depart from Benito Juárez International Airport in Mexico City at 11:55 a.m. It will arrive at Tulum International Airport at 3:00 p.m. This marks the start of regular passenger services.
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Impact of Nearshoring on Industrial Real Estate in Mexico
Nearshoring dominated third-quarter earnings calls. Mexico attracted approximately $29 billion in foreign direct investment in the first half of 2023. This marks a 5.6% increase from 2022. Over half of this investment flowed into the industrial sector, signaling strong demand for industrial real estate.
One notable project is Tesla’s planned $5 billion factory in northern Mexico. This project has already attracted $1 billion in Chinese investments to nearby industries. Mexican real estate investment trust Fibra Uno (FUNO11.MX) plans to launch a new trust. This will enable investors to benefit from the growth of industrial assets fueled by nearshoring.
Fibra Uno’s CEO, Andre El-Mann, expects nearshoring momentum in Mexico to continue for the next 15 years. He believes this will further boost the real estate market.
Rising Demand for Industrial Spaces Due to Nearshoring
Lorenzo Berho, head of construction firm Vesta (VESTA.MX), pointed out that nearshoring benefits not only northern Mexico but also the central carmaking region known as El Bajio. This region, including states like Queretaro, Guanajuato, and Jalisco, offers strong infrastructure, a skilled labor pool, and excellent logistics, making it attractive to multinational companies.
Enrique Navarro, finance chief at Banco Regional (RA.MX), highlighted that relocating manufacturing activity will fuel significant growth across northern, western, and central Mexico.
Opportunities and Challenges in Mexico’s Nearshoring Boom
Mexico’s proximity to the U.S., the world’s largest economy, along with its lower labor costs and favorable trade agreements like the USMCA, positions the country as a prime nearshoring destination. However, challenges such as energy infrastructure bottlenecks, water scarcity, and limited industrial space present significant concerns.
Swiss bank UBS recently noted that these bottlenecks could hinder further investments if not addressed. Despite these challenges, nearshoring is already making a tangible impact on the Mexican economy. Cement company GCC (GCC.MX) reported increased demand for cement due to industrial construction projects in Chihuahua State, which borders Texas.
Mexican construction output surged by nearly 46% year-on-year in August, with northern states leading the way, reflecting the growing influence of nearshoring on the country’s real estate and construction sectors. Explore our detailed guide on real estate investment opportunities in Tulum during peak travel seasons to maximize your returns in this thriving market.
