I was actually in Baja Mexico a few weeks ago and the house prices there are growing too. I was seeing plots of land for 50-70k USD. You know the prices are going to be high when the signs are in English and phone numbers are American.
Also, I'm about 90% sure you have to be a Mexican citizen to own land in Mexico otherwise you can only lease the land. This might be hearsay though.
> I'm about 90% sure you have to be a Mexican citizen to own land in Mexico
It's a little more nuanced. My understanding is that if you're near the water (where you probably want to own in Mexico) you can't directly buy but can set up a trust ("fideicomiso") that owns the land. Not sure how big of a deal that is.. never done it personally.
Within 31 miles of the coastline or 62 miles of an international border. Costs about $1000USD to setup a bank managed trust as part of a real estate transaction and $500USD/year in ongoing costs.
Living in Mexico can be a good deal. If it worries you, setting up a trust is not that big an issue. It's routine and your agent usually handles it. I do pay about $500 a year for my trust, but my property tax is only about $85 a year.
Also, I'm about 90% sure you have to be a Mexican citizen to own land in Mexico otherwise you can only lease the land. This might be hearsay though.