Yucatán, Epicenter of Real Estate and Commercial Development in Southeast Mexico

Mérida, the capital of Yucatán in southeastern Mexico, is becoming a key hub for investment in the commercial real estate sector due to its demographic growth, public investment, infrastructure, and strategic location, attracting companies and offering exceptional investment opportunities through properties marketed by Colliers.

Vía Montejo, which includes the construction of Torre Dos, is an unparalleled project in the most valuable area of Mérida. Photo: Colliers.

By: SiiLA News

11/13/2023

In the heart of southeastern Mexico, Mérida, the capital of Yucatán, is emerging as a key hub for investment and growth in the commercial real estate sector. This expansion is driven by public investment and significant regional infrastructure projects. Mérida's strategic location ensures security and connectivity on a national and international level, thanks to its access to roads and ports with routes to the eastern United States, Europe, and Latin America.

Over the past decade, Yucatán's population has increased by nearly 20%, with two people migrating to the state for everyone who emigrated in the last five years. This population growth, coupled with a 46% reduction in unemployment over the past decade, has strengthened the economy and contributed to social stability in the region. This is reflected in a 26% increase in GDP and a 3.5-fold increase in foreign direct investment (FDI) since 2013. Additionally, the region has seen a 50% reduction in the crime rate per 100,000 inhabitants since 2015, according to data from INEGI, the Economy Secretariat, and SESNSP.

Due to its strategic location, growing technological infrastructure, and highly skilled workforce, Yucatán has become a magnet for nearshoring. In the past decade, the region has witnessed the growth of industrial parks, technology hubs, and business centers, facilitating the expansion of international companies supported by pro-business government policies and a stable investment climate. Yucatán has excelled in manufacturing and technology and has driven growth in sectors such as research and development, innovation, and higher education.

Industrial growth in Yucatán is attracting large, medium, and small businesses. An outstanding example is Heineken, which recently announced an investment of 8.7 billion pesos (around 483 million USD dollars at an average exchange rate of 18 pesos per dollar) for constructing a new plant in Kanasín, slated to begin operations in the first half of 2026.

Quality Properties in a Strategic Market

Javier Lomelín Gascón, Director of Colliers Mérida, talks about Torre Dos in Yucatan. Photo: Colliers.

The influx of companies is also boosting the demand for corporate, residential, hotel, mixed-use properties, and entertainment areas, including shopping centers. This is where properties marketed by Colliers stand out as strategic investment options.

Javier Lomelín Gascón, Director of Colliers Mérida, emphasizes the role of the local government in transforming Mérida into a corporate center and the transition from old mansions and traditional offices to modern, high-quality functional spaces. However, this process presents logistical and service challenges already being addressed in the region, including improvements in infrastructure such as electricity supply, water provision, roads, and public transportation systems.

"What we are witnessing is Yucatán and Mérida becoming a regional hub for corporate, industrial, and logistical sectors," Lomelín noted. He highlighted the recent announcement of two new industrial parks in the region and the presence of major firms like Amazon, Barcel, Bimbo, Cemex, Kekén, Mercado Libre, PepsiCo, and Walmart, which are driving the expansion and arrival of new businesses.

Location, Flexibility, and Quality: Three Pillars of Real Estate Development

Torre Dos is a corporate building that will be essential for the financial sector in Mérida. Photo: Colliers.

To capitalize on the surge in demand in Mérida and Yucatán, a key factor is the evolution of spaces to facilitate work activities and improve the quality of life. This implies that properties must be efficient in their operation and management, offering added value with amenities and accessibility. Properties need to be versatile and adaptable to tenants' needs. Examples of such properties are those marketed by Colliers, which stand out in Mérida not only for their quality and unique features, but also because Colliers provides comprehensive solutions tailored to the needs of developers, investors, and end-users, ensuring the best possible service.

Among these properties is Torre Dos. Located within the Vía Montejo project, north of Mérida, this corporate office tower is an integral part of a development that includes residential buildings, the shopping center "The Harbor," the United States Consulate, and a hotel. Construction is underway, with completion expected in the last quarter of 2023. The concept behind this complex is to create a hub focused on the financial sector.

According to Javier Lomelín Gascón, one characteristic of Colliers' properties in Yucatán is that developments are designed to suit the region's climatic and topographic conditions, with Class A+ features. This includes considerations like orientation to optimize natural light and sustainable aspects aligned with Environmental, Social, and Governance (ESG) practices.

In a context where Mérida and Yucatán are emerging as prime commercial investment destinations, Colliers stands out as a strategic partner. Its comprehensive approach and versatile properties are a smart choice for those looking to seize opportunities created by the expansion of businesses, high-quality real estate projects, and improved infrastructure in the region.

To explore more properties marketed by Colliers, visit their portfolio on SiiLA SPOT and contact us at spot@siila.com.mx.

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