Real estate investment grows in Morelos amid national anti-money laundering scrutiny

Xochitepec has emerged as a leader in real estate investment in Morelos, driven by new housing developments and high demand. According to Karla Mata Aguilar of the Mexican Association of Real Estate Professionals (AMPI), the municipality is experiencing a significant boom alongside Cuernavaca. A major driver of this growth is capital from Mexico City, where approximately 30 percent of buyers are seeking second homes due to the region's climate and tourism appeal.

Simultaneously, the Mexican real estate sector faces increased regulatory pressure. The Financial Action Task Force (FATF) has identified real estate as a high-risk channel for money laundering in Mexico. To combat this, new anti-money laundering rules take effect on November 30, and the Financial Intelligence Unit (UIF) plans to implement a certification process for vulnerable activities, including construction and development, by 2027. Additionally, a new agreement between the Ministry of Finance and the National Guard aims to increase transparency regarding the true owners of assets and accounts.