Informality threatens Jalisco's booming real estate market. AMPI urges mandatory professional standards to protect consumers and secure investor trust.
The president of AMPI Guadalajara, Karen Julieta Correa Cabrales, has raised alarms over the high level of informality in the region's real estate market. She warns that this lack of regulation is jeopardizing both consumer security and investor confidence in Jalisco.
According to AMPI, the real estate market in Guadalajara and Puerto Vallarta is massive, estimated at over 135 billion pesos annually. With more than 110,000 property transactions each year—including around 45,000 home sales—the sector also generates over 25 billion pesos in rental income and ranks second nationally in mortgage placements via banks and Infonavit.
Despite this economic strength, Correa Cabrales says informality pervades. She points out that labor informality stands at 45% in Jalisco, and many real estate transactions occur without formal contracts, guarantees, or certified professionals. “This informal sector undermines property security, hinders investment, and erodes market trust,” she stressed.
To combat this, AMPI is urging the state congress to revise Jalisco’s real estate law. They propose mandatory registration and certification of everyone involved in the sector—from agents and developers to valuers, landlords, digital platforms, and notaries—alongside enhanced government oversight. “Professionalization must be obligatory, not optional,” Correa Cabrales asserted. “Those of us who operate formally are paying for those who do not”.
AMPI also emphasizes that legal certainty in real estate is critical to attracting foreign investment. Jalisco, boasting 130 industrial parks and ranking fourth nationwide in foreign direct investment (FDI), benefits from a stable legal framework that appeals to global businesses.
Why It Matters
- Protecting Families: Informal deals often lack guarantees, exposing families to fraud and legal uncertainty.
- Investor Confidence: A legally robust and transparent real estate sector is essential for FDI, especially with Jalisco's growing role in global supply chains.
- Professional Standards: AMPI insists that agents, developers, and real estate platforms must meet accreditation standards to ensure buyer safety and sector legitimacy.
Looking Ahead
AMPI’s push for reform aims to:
- Enact mandatory professional registration and accreditation.
- Ensure all transactions are conducted within a legal framework.
- Strengthen regulatory supervision to prevent fraud.
- Improve Jalisco’s capacity to attract and retain foreign investment.
As Jalisco continues to expand its role in nearshoring and industrial development, securing the real estate sector is increasingly critical to sustaining economic momentum.
