Mérida is not just one of the most beautiful cities in Mexico, but on my entire global beat. It’s known for sparkling clean avenues and leafy cobbled plazas, art-filled galleries…live music…amazing restaurants…
The historic center of Mérida is a pleasant place to walk and it’s getting more so with work underway to make it even more pedestrian friendly.
It’s a city I love to spend time in…And it’s just a short drive from Progreso, a beach and port town on the Gulf of Mexico where I was able to bring members of my Real Estate Trend Alert a brilliant opportunity to buy in Yucalpeten Marina in July 2021. Our RETA price started from $209,800 for a two-bed condo. Today two-bed condos in the community list for $560,000 and up. Albeit not identical, they give you an idea of how incredible the deal was!
Mérida is easily one of the most beautiful colonial cities in Latin America. For generations, money flowed in. Powerful families built palatial mansions. Grand civic buildings and splendid parks appeared as the city grew. Mérida dominated the henequen trade—a type of succulent plant used to make highly prized rope.
The Mexican Revolution of 1910 marked the beginning of the end for Mérida’s henequen age. It struggled under the new social and political conditions, and never fully recovered. Later, man-made fabrics took over the industry. Demand for natural fibers died, and the historic center fell into decline.
But over the last few decades Mérida’s historic core has undergone a renaissance of restoration, driven by the many North American and European expats.
The whole city is thriving. The locals are entrepreneurial and forward-looking. That’s a big reason their city today has modern infrastructure and first-class services attractive to investors and expats.
It’s an incredibly vibrant and pleasant place to be with something of a European vibe. Things work, streets are spotless, police are polite and help old ladies across the road.
It’s been earmarked as Mexico’s “smart city.”
That basically means you use information and communication technology to improve how the city is run. That impacts everything from traffic and hospitals to power plants and waste collection. The most famous global examples of “smart cities” are places like Amsterdam and Copenhagen. (Often ranked among the best cities in the world to live).
Mérida isn’t just known for its colonial architecture. It’s an up and coming “smart city.”
It’s been a while since one of my team had boots on the ground in Mérida so I asked Oliver Lovett to check it out as part of his trip on the new Mayan Train. (He wrote about that train experience last week.)
Below Oliver tells us what he found in Mérida and on the beaches near Progreso…
Scouting a Stunning Colonial City and Finding Homes for Under $150K
By Oliver Lovett
I arrived in Mérida mid-afternoon on a direct train from Cancun. The plan was to leave my suitcase at the hotel and head straight out to explore the historic center.
That was until I stepped outside, and the August heat hit me like something out of Oppenheimer. I decided exploring would have to wait. Instead, I caught up on some work and ventured out again in the early evening.
I was staying in the Centro district. This is the historic heart of the city, centered around the impressive Plaza Principal de Merida (also known as Plaza Grande) which has been there since Mayan times.
The square is dominated by the Catedral de San Ildefonso, one of the oldest churches in the Americas, dating back to 1598.
Work is underway to make Plaza Grande more pedestrian-friendly. Sidewalks are being improved, a new fountain added, and more seats will be installed, allowing tourists and locals to enjoy the shade under the laurel trees.
Plaza Grande is at the heart of Merida’s historic Centro neighborhood.
Plaza Grande is where you’ll find the Municipal Palace, the Government Palace, and the Museo Casa Montejo, which is the restored home of Merida’s founder.
After taking in the plaza, I branched off to wander the narrow, clean, streets, admiring the well-preserved colonial architecture. Merida is regarded as the safest city in Mexico, and it felt that way.
I passed cafés and restaurants, bars and souvenir shops. There were plenty of tourists, but it didn’t feel crowded.
The warm night air was alive with tantalizing sounds and smells. I followed my nose to a traditional Yucatan restaurant for dinner.
The Yucatan has its own style of cooking, comida Yucateca which has been shaped by Mayan and Spanish influence. There are some incredible restaurants in Centro. I ate cochinita pibil, which is a pork dish, slow cooked in banana leaves, and sopa de limon, made with local limes, turkey, onion and peppers.
The next morning, I went out to see more of Centro. In the early morning light, it looked even better and cemented my impressions from the previous night.
Centro is a beautiful and safe place to stroll around.
Ten years ago, you could find some bargains in Centro, but those days are gone. There’s simply too much demand from both expats and locals. And why not? You get to live in a beautiful colonial city with a host of affordable restaurants and cafés nearby.
For example, $547,000 buys this three-bed home with three bathrooms, a garden, and a pool. It’s located in the middle of Centro and looks to have been restored recently.
A little farther from the center I found this five-bedroom house for sale. It’s still only 15 minutes’ walk from Plaza Grande and priced at $329,000.
Centro is the tourist and expat favorite, but North Mérida is where the most exciting real estate developments have been taking place.
A smooth highway leads out of town toward the beach area. It was along this road that I met with a real estate agent to see a few active listings…
A Three-Bedroom House in North Merida for Just $147,550
Mérida has long been a prosperous city. Historically it was a major Caribbean trading hub. Today it’s benefiting from the nearshoring trend. Aerospace manufacturer PPC and car maker LEONI have set up operations here.
For these global companies Mérida was the perfect choice. It has easy access to the Gulf of Mexico via the nearby port town of Progreso. The U.S. border is reachable by land.
There’s been help from Mexican government too. They’ve taken a pro-active approach building modern research centers and science and technology parks.
This has led to an increase in the middle-class population, many of whom live and work in North Mérida.
North Merida is where you’ll find ultra-modern malls, smooth roads, well-maintained parks, expensive restaurants, hotels, hospitals, and all the trappings of middle-class society.
It’s still off the radar as far as most expats and tourists are concerned. Which means there are still opportunities for real estate investors.
I saw a home in Conkal, a suburb in North Merida. Conkal is a quiet suburb, located about 20 minutes from the beach and 20 minutes from Centro. Nate, the real estate agent who showed me around, made the case that Conkal offers easy access to both worlds. It’s true, but you’d need to have a car to make the most of it.
The home I saw was a three-bedroom unit with a plunge pool. It’s available immediately and priced at $147,550.
I’ve included a video walkthrough of the home I saw below. During the video I state the prices in pesos. You can find them below in U.S. dollars for convenience. There’s a lot of volatility between the Mexican peso and U.S. dollar. These prices are accurate as of Tuesday August 13, 2024.
- The three-bedroom home shown in the walkthrough is available immediately for $147,550.
- A two-bedroom home with pool and garage costs $142,300.
- A two-bedroom home with no pool or garage is available for $126,500.
- The maintenance fees are $90 per month.
A video walkthrough of the newly built home for sale.
My impressions of the home were positive. The build quality was solid, and it struck me as good value for money. There were nice touches like polarized UV tint windows to help keep the home cool.
I took a quick drive around the community which was well-maintained with plenty of workers keeping things neat and tidy. Amenities include a padel and basketball court, a small lake, swimming pool, and 24-hour security.
The home in Conkal looks to be great value. You’ve got easy access to everything Merida has to offer at a fraction of the cost of Centro and you are close to the beach.
Steps from the Beach for $1.2 Million
The next home I saw was in a village named Chelem, close to the port town of Progreso. Chelem is a rustic kind of place with sandy beaches, fishing boats, and small seafood restaurants with plastic chairs. It’s set on a peninsula, with the Gulf of Mexico on one side and a large lagoon on the other.
Chelem is where a lot of Mexicans own beach homes, and there’s a small expat community too. The sea breeze keeps it Progreso and Chelem much cooler than Merida.
There’s nothing master-planned about the way Chelem has grown. Homes are huddled together in a jumble close to the beach. Mansions next-door to tiny casitas. The sandy streets were clean and tidy, and I followed them down to the beach. It was relaxed and peaceful with just a few families enjoying the sea.
The beach in Chelem is private and secluded. It’s just a three-minute walk from the house.
The home I went to see is just a three-minute walk from the beach. It looked inconspicuous behind a high wall, but as soon as I walked in the front door, I could see it was special. The house had been custom built by an American couple, and they’d spared no expense. Miele and Liebherr appliances, cast iron sinks, Silestone countertops…outside a beautiful swimming pool sparkled under the afternoon sun. This was supposed to be their dream retirement home, but their circumstances changed, and they’re moving away.
This property features three bedrooms in total, with two bedrooms in the main house and an additional bedroom in a separate casita. The main house has 2.5 bathrooms, while the casita includes its own full bathroom.
This photo taken from the balcony of the casita, shows the main house and swimming pool.
Solar panels provide the electricity and there’s a backup generator as well. Outdoor amenities include a Pentair saltwater pool and a BBQ area. Security is ensured through an advanced camera system and an Arlo wireless doorbell.
I’ve included a video of the house below.
As you can see, it’s literally somebody’s overseas dream home. The real estate agent tells me there’s nothing else in the area comparable. For the right buyer it represents a chance to get a turnkey, luxury home, close to the beach, but the price tag of $1.2 million seems well out of line with the local market.
Note from Ronan…
I’ll be watching closely if this home sells for this asking price or close to it. If it does it will signal that there’s a big opportunity to buy lots and build similar homes. I haven’t seen the home, but my guess is it could be built for $500,000. This stretch of coast is going up market. We have seen this in Yucalpeten Marina where RETA members had a deal and luxury condos are now selling for close to $600,000. It makes sense that there will also be a market for luxury homes and as Oliver says homes like are rare in this area.
The swimming pool has been tiled, which is rare for this part of Mexico. Listing here
What could a member of my Real Estate Trend Alert do with a $1.2 million budget? By acting on our off-market deals, they’d have secured a portfolio including…
- A one-bed condo in Singular Dream, Playa del Carmen from $181,400. A similar one-bed condo in the same building recently listed for sale at $316,000. RETA members who bought are reporting gross rental income of more than $17,000 over the first six months of 2024.
- In December 2019, RETA members could buy in a community called Santa Maria in Lagos, Portugal. Two-bed condos available to RETA members for €390,000 (around $432,500 at the time) now list for €550,000. A boost of €160,000 ($175,000).
- In 2015 a RETA-only deal in a Quivira, a community in Cabo, Mexico had a RETAprice of $336,156 for a two-bed condo. When I last checked, a condo with the same layout but two floors higher was listing for $725,000.
- RETA members could buy two 1-bed self-contained beachfront hotel suites in Surfside at Playa Caracol, Panama. The price was from just $219,000. A suite in Surfside was listed for $330,000 in March 2024. No wonder, Playa Caracol is growing fast. Margaritaville recently announced plans to launch a hotel and residences there…
All that, for just over $1.16 million!
Following the Path of Progress to Progreso
Before leaving the beach area, I went down to Progreso to see how the Path of Progress was reshaping this thriving beach town. Progreso has undergone significant transformation in recent years. A $250 million federal investment has improved infrastructure, including the modernization of the malecon area and surrounding streets.
The malecon in Progreso is lined with bars, restaurants, and boutique hotels.
Money has been found to build new roads, a highway bypass, underground wiring, and upgraded water and sewage systems. An elevated viaduct will keep goods coming from the pier away from the tourists.
There are plans for a 32-mile extension of the Mayan Train to Poxila-Progreso.
The summer holidays are one of the peak seasons for Progreso and the town was heaving when I visited in late July. The malecon looked great. I strolled along with the rest of the crowd, looking at the different restaurants and bars along the way.
Before leaving, I stopped off for a bottle of water and reflected on what I’d seen.
Even at the end of the day, the beach along the malecon at Progreso was busy.
It was hard not to be impressed by the scale of work going on in Mérida and Progreso. Money is pouring in, and international tourists are joining the scores of Mexicans who visit here each year.
The international airport in Mérida is booming. In the first half of 2024, nearly 1.8 million passengers arrived—a new record. Tren Maya is open and is expected to soon connect the port in Progreso with the rest of the region.
I’m sure readers will be hearing a lot more about Mérida and Progreso in the coming years.
Ronan Says:
I watched the Path of Progress as its swept from Mérida, down the coast to Progreso. It was clear that big changes were coming to the region. It’s what made our deal there in Yucalpeten such a no-brainer…
Multiple factors converged in Yucalpeten to make it a unique opportunity. A Path of Progress bringing jobs, money, and new infrastructure to the region…the rise of Mérida as an international tourist and expat destination…and of course the incredible community located in one of the most desirable spots in Progreso.
The Yucatán government invested $2.37 million in improving the main tourist area of Progreso, including the malecon and adjacent streets. Merida International Airport is receiving record numbers of passengers.
RETA members paid $209,800 for their marina view condos in Yucalpeten Marina, a self-contained high-end beach and marina resort with amazing comforts and amenities.
RETA condos are under construction and scheduled for delivery in winter 2025… But other buildings are already delivered.
This aerial photo of Yucalpeten shows both the marina and close proximity to the beach. There’s simply nothing like Yucalpeten anywhere in Progreso.
Check out the prices below to get an idea of just what an amazing deal RETA members were able to secure.
- A two-bed condo with ocean view now costs around $560,000
- A three-bed condo with marina view now costs around $585,000
While these condos aren’t identical to the Torre Bonanza building that RETA members bought in (the two-bed condo is slightly bigger) they give an idea of the demand for condos in Yucalpeten.
RETA members who paid from $209,800 for their marina view condos will soon own in a community where similar condos with an ocean-view are selling for well over $500,000.
Deals like the one we had in Yucalpeten, are exclusive to RETA members. If you want access to future deals I share with this group, you need to become a member. All the details you’ll need to join are here.
Ronan McMahon, Founder, Overseas Dream Home & Real Estate Trend Alert
Your Daily Dream Home
Badesi, Sardinia, Italy
This cozy ground-floor, two-bedroom apartment features a living room with kitchen, bathroom, and entrance veranda. Fully furnished and air-conditioned, it includes a condominium parking space.
The residence is just steps from a supermarket and 655 feet from restaurants. The community offers a pool with summer lifeguard service. Condominium fees cover water, pool and garden maintenance.
Badesi is a charming coastal town located in northern Sardinia, Italy. With its pristine beaches and crystal-clear waters, it’s a popular tourist destination offering a blend of natural beauty and relaxed Mediterranean lifestyle. The diverse landscapes range from sandy shores to rolling hills covered in vineyards.
