Buying Pre-Construction in Mexico: What Are the Risks—and How to Do It Safely?

Buying a pre-construction home in Mexico can be an incredible opportunity. From lower prices and customization options to promising investment returns, it’s easy to see why many North Americans are drawn to the idea of owning a brand-new home in paradise.

But it’s also important to understand the risks.

This blog is written for smart buyers who are curious about investing in Baja California Sur—especially around La Paz and El Centenario. We’ll walk through the common risks associated with buying pre-construction homes in Mexico, and then show you how one local project, Villas de Oasis, has structured its development to address those risks head-on with a transparent process and proven results.

If you’re considering buying a new home before it’s built, this guide is essential reading.

Villas de Oasis is a master-planned community just 5 minutes from the Sea of Cortez in La Paz, Baja California Sur, offering modern 2- and 3-bedroom homes with private pools, rooftop decks, and secure escrow-backed purchasing. With 67 homes sold, 46 already delivered, and Phase 4 now open, it’s one of the most trusted and proven new-construction opportunities in the region. Whether you’re relocating, investing, or searching for your dream Baja getaway, Villas de Oasis offers peace of mind and real value—discover why more buyers are choosing to call this community home.

Click on the photo to visit the Villas de Oasis website

Why Do People Buy Pre-Construction in Mexico?

Let’s start with why so many buyers—especially expats—are drawn to pre-construction opportunities in places like La Paz, Los Cabos, or Tulum.

• Lower purchase price: Developers often offer discounted pricing during the early stages of a project.

• Customization options: Buyers can choose finishes, floor plans, or upgrades during construction.

• Brand-new everything: A newly constructed home usually means fewer repairs and better energy efficiency.

• Potential for appreciation: Buyers may gain instant equity if the market grows.

• Lifestyle fit: Pre-construction offers the chance to design your dream home from the ground up.

All of that sounds great. But what’s the catch?

The Risks of Buying Pre-Construction in Mexico (And How Villas de Oasis Addresses Them)

Let’s walk through the most common risks you might face when buying a home that isn’t built yet—especially in a foreign country—and how Villas de Oasis mitigates each one.

1. Developer Reliability and Track Record

The biggest risk in any pre-construction purchase is whether the developer will actually finish what they start.

In Mexico, some developers launch projects without financial backing or proper experience. If costs rise, demand stalls, or permits are delayed, these projects can stall or be abandoned.

How Villas de Oasis Ensures Confidence:

Villas de Oasis has sold 67 homes across Phases 1 through 3. Out of those, 46 homes have already been delivered to buyers, and the remaining 21 are actively under construction with ongoing progress. This track record demonstrates consistent delivery, financial capability, and proven execution.

2. Construction Delays

Delays are common in construction.

Common causes include:

• Permit and zoning delays

• Supply chain issues

• Labor shortages

• Weather impacts (especially hurricanes)

• Poor project management

A 12-month timeline can easily turn into 18-24 months or more.

How Villas de Oasis Addresses This:

By managing construction in phases and continuously building without long halts, Villas de Oasis has demonstrated predictable timelines and on-ground momentum. With 46 completed homes and 21 more visibly progressing, new buyers in Phase 4 benefit from a project already in motion with infrastructure and crews in place. Delays do happen in Mexico...but working with Villas de Oasis means you'll have complete transparency and consistent and regular updates.

Another Villas de Oasis happy client on "delivery day".

3. Legal Issues and Title Problems

Some common legal issues include:

• Land not having clear title or being ejido (communal land)

• Missing or incorrect permits

• No condominium regime filed

• No water or electricity hook-ups

• Issues registering the title to your name

Why Buyers Feel Secure at Villas de Oasis:

Villas de Oasis operates with fully titled land, and all necessary municipal and federal permits are in place. Buyers receive bilingual contracts and legal guidance, and ownership transfers are executed through registered notarios with proper fideicomisos for foreign buyers. The development has existing utility infrastructure already connected.

4. Payment Structure and Lack of Escrow

Some projects ask for large deposits paid directly to the developer without escrow. This is risky.

Safe transactions should include:

• A registered escrow account

• Milestone-based payment releases

• Clear refund clauses in case of delays or issues

How Villas de Oasis Reduces the Risk:

Buyer funds at Villas de Oasis are held in escrow with a licensed third-party legal and escrow firm. Funds are only released based on verified construction milestones. This ensures buyer money is protected and aligned with actual work completed.

5. Quality or Finish Shortcomings

It’s common for buyers to receive homes with:

• Lower-quality materials than promised

• Incomplete features like missing closets or appliances

• Unfinished landscaping or driveways

• Poor workmanship in plumbing or electrical systems

How Villas de Oasis Addresses This:

With 46 delivered homes and walkable models on site, buyers can physically see the quality, finishes, and design before purchasing. Finish levels are clearly detailed in contracts, and optional upgrades are transparent and itemized. On-site visits offer buyers confidence in construction quality.

Happy client in a Casa Terra Basico model just getting settled in :)

6. Market or Location Risk

Even if the home is built, the location could impact your return on investment:

• Is it in a growing area?

• Will there be long-term appreciation?

• Is rental demand strong?

• Are roads, shops, and hospitals nearby?

Villas de Oasis:

El Centenario is a well-established, expat-friendly area just 15 minutes from downtown La Paz and 5 minutes from the Sea of Cortez. It offers a strong rental market and proximity to hospitals, shopping, and restaurants. Villas de Oasis already has an active community with 46 occupied homes and growing demand.

Why Villas de Oasis Is a Safer Choice

• 67 homes sold in Phases 1–3

• 46 homes already delivered to buyers

• 21 more currently under construction

• 21 new homes released in Phase 4, with 3 already sold

Villas de Oasis is not speculative. It’s a functioning community with infrastructure, homeowners, and a proven development team.

Next Steps for Buyers Considering Baja

If you’re considering a home in Baja, take the next step with confidence. Visit the Villas de Oasis site and reach out to us here:

• Request a brochure with floor plans, pricing, and upgrade options

• Schedule a tour (virtual or in-person)

• Speak with homeowners in the community

• Review a sample contract

• Talk to our team about timing, escrow, and the construction schedule

You don’t have to gamble when buying in Mexico.

With Villas de Oasis, you’re working with a project that has delivered, continues to deliver, and is structured to protect your investment every step of the way.

Contact us at Dream Baja Realty to learn more and take the first step toward owning a new home near the Sea of Cortez.

Looking for Your Dream Home in Mexico? At Dream Baja Realty, we specialize in helping Americans and Canadians find the perfect property in Baja California Sur's most sought-after locations. With personalized service, expert local knowledge, and a seamless buying process, we make your real estate journey effortless. Explore our exclusive listings with our advanced search capabilities here, take advantage of our resources page (always 100% complimentary to download) here, or contact us today for a free consultation. Ready to take the next step? Check out Ian's books, "The Ultimate Guide to Relocating to Mexico", or "The Ultimate Guide to Buying Your Dream Home in Mexico" (also available on Amazon) here or browse our Featured Luxury Properties to start your search!

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