AMAR: Key foots and opportunities in CaliBaja

Real Estate Broker/Owner with Remax Baja Realty

CaliBaja is a bi-national mega-region formed by the states of California, USA and Baja California, Mexico. In June 2011, six regional economic development organizations (DEO´s) signed a Memorandum of Understanding, to promote the region together as CaliBaja. Since then, this relationship has generated great benefits on both sides of the border due to its unique commercial and cultural exchange, example of this is that, in 2017, the Ports of Entry of San Ysidro and Otay Mesa (both located in Tijuana – San Diego) reported a flow of more than 49 million people through them. This exchange has been a big opportunity for the manufactured industry, tourism, gastronomic and health sectors in Mexico.

This last industry, the health tourism, has based its success in affordable costs while offering services with a quality equal or superior to those available in California. The growth of this industry is observable in Tijuana with the construction of New City Medical Plaza and Del Prado Medical Tower. Despite the show of success of this formula in the health tourism, the opportunity of another broad sector has been missed: The Senior Living Industry, more commonly known as Retirement Communities.

While the medical tourism is limited to medical service and stay no longer than the required by the recovery period, Retirement Communities are based on a permanent stay, which involves the acquisition or rental of a Real Estate, with the addition of medical and assistance services as sources of income; this is without mentioning the economic benefits generated towards the community by residents through their daily consumption in other sectors such as grocery shopping, etc.

The demand for this type of communities seems natural if we look at the next figures:

By 2016 the 50+ population in California already represents just over 1/3 of the total population, this is equivalent to 11.7 million older adults, and if we limit or percentage to those who had already reached the official retirement age, it would be equivalent to 5 million seniors citizens (Baja California total population in 2015 was of 3.3 million people). It should be noted that the sizes of the 50+ population are even high to that of children and teenagers.

More than half of households in California in which the age of householder is 65 years or older, reported an annual income of 35,000 USD or more in 2016; more than 15% reported an annual income of 100,000 USD or more.

Business Model

Despite de high figures handle in the previous charts, 56% of household with a householder of 65 years of age or older, lacks the minimum income to enter an Assisted Living Community (51,300 USD annually). This difference between income and high cost opens a window of opportunity for the development of Retirement Communities in Mexico. Baja California has all the advantage to capture the market share of 60% of household with annual income of 35,000 USD (approximately 3,000 USD a month) or more, following the same formula that has been highly successful for the medical tourism: high-quality service for affordable prices.

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Gustavo Torres

(619) 270 5446

RE/MAX Baja Realty



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Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good day 

Thank you for sharing your information with us 

Have a great day.


Jul 13, 2018 11:29 AM #1
Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

Excellent! Thank you for taking the time to prepare and share this information.  Buyers and seller need information like this to make informed decisions.  

Jul 15, 2018 07:07 AM #2
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Gustavo Torres / RE/MAX Rosarito Beach, Tijuana Coastal, Ensenada, BAJA

Remax Baja Realty, Baja California
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