Mexico is already an established tourist destination, with endless postcard-perfect beaches for days sleeping off those tequila-fuelled nights. With a property market on the rise and no signs of this slowing down soon, Mexico is an appealing prospect for overseas buyers.

Mexico is a popular holiday home destination for Americans, who have been snapping up property there for a while. The established tourism market has created a high demand for the development of luxury property and resorts with a ready rental market, especially in coastal areas of Mexico.

There are plenty of reasons to be confident about buying property in Mexico. The economy in Mexico is undergoing dramatic growth and the president, Felipe Calderon, is an advocate of the rising property market and keen to encourage overseas buyers with favourable legislation. Foreign investors can now purchase property through bank trusts called the fideicomiso system, circumventing the previous restrictions on foreign property ownership.

When it comes to track records the government of Mexico has shown that it can get it right. In the 1970s vast sums of money was invested into developing a deserted sand split into what has emerged as one of the world's best-known holiday resorts, Cancun. With a well-planned infrastructure and a seemingly endless sandy beach, Cancun is the starting point for most tourists heading to Mexico from Europe. The regular stream of tourists provides plenty of opportunities for rental. Cancun Properties is marketing a property development of oceanfront condos, with three-bedroom homes starting at £326,000.

For those looking for something a little more authentically 'Mexican', the small town of Tulum, also on the coast, has been developing slowly and boasts its own Mayan ruins overlooking the palm-fringed beach. On the other side of Mexico, close to the Californian border, is the Baja California peninsula. The investment of Donald Trump in the Trump Ocean Resort, only 30 minutes from San Diego, has attracted the interest of property investors. Prices are yet to be determined as development is in the very early stages, but it is believed that prices will start in the low $300,000s.

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Article published July 2007