Mexicali Mexico

The first settlers in Mexicali back in the early 1900s were farmers lured by the fertile agricultural lands. They were followed by Chinese workers who were hired to construct the irrigation systems. A Chinese community, the La Chinesca, was eventually established at the intersection of Avenido Madero and Calle Melgar streets. Today, the Chinese population is around 5,000.

Mexicali experienced further population increase during the American prohibition in the 1920s, when the manufacture, transport, and sale of alcoholic beverages were made illegal. The city’s bars, casinos, hotels, and restaurants became popular among Americans. It also became a major source of bootleg alcohol which were smuggled into the United States.

With a current population of around 850,000 inhabitants and a growth rate of 2.5 percent, Mexicali is one of the fastest growing cities in Mexico. Thus, demand for real estate is also on the rise. According to the Association of Promoters of Housing in Baja California (PROVIVAC), there is a housing shortage of approximately 30,000 units and this increases every year by about 4,557.

The local government partnered with the private sector in constructing more than 14,000 low-end houses in 328 hectares to partially address the housing deficit. It has also simplified the processing of land and building permits in order to encourage and fast-track the real estate development in the region.

For immigrants who want to settle in Mexicali, travel agents advise that they rent a place first for at least six months before buying a property. Apartments and residential condominiums are generally more accessible than houses. Licensed real estate agents are the safest to go to for renting or buying a property. They must also be members of the Mexicali Real Estate Association. They usually charge 2.5 percent to 3 percent of the sale price when selling a place.

For college students and people in the academe, apartments and rooms for rent are available near the local universities. Short-term fully-furnished housing is also offered for tourists. Rental rates usually increase each year based on the government’s computation of the annual cost of living.

There are several property types that customers can choose from when investing in real estate. A multi-family estate is a residential complex located in the city proper or in nearby suburbs. Mixed-use properties combine residential with different uses such as retail and office spaces. There are also traditional office and office type properties. Retail properties include a mix of businesses that cater to neighborhood residents while light industrial estates are single or multi-tenanted spaces utilized for warehouse, manufacturing, distribution, or research.

After forging an agreement with a real-estate broker on the rental or purchase of a property, both parties have to sign a contract. Before the contract becomes a legal and binding document, however, a purchased tax stamp must first be attached to it together with the appropriate seals of the local government of Mexicali. Buying a brand-new property will entail a payment of property tax and luxury properties may be charged with additional local taxes. A mortgage requires at least 20 percent down payment of the purchase price.