One thing is certain: There is no more beachfront property being created in the world, a fact that is driving the price of beachfront and near-beach property higher with each passing year. Beaches are part of ecosystems that have a dramatic effect on the health of both the oceans and human cultures they border. This fact has now been recognized, even in underdeveloped nations, and steps are being taken to protect all of the beaches of the world. As so-called “beach laws” are being enacted throughout Mexico, it must be remembered that it is not only waterfront property that falls under these laws, it is also all of the land, to varying degrees, along a 20 km wide strip that borders the waterline. This is a federal law that monitors the overall health of mangroves, swamps, and both flora and fauna habitat throughout the nation. Investors must be aware that those laws exist and that each state also has its own set of laws governing coastline development. The case of the State of Yucatan is a perfect example of what can happen when beach laws change.

July 21, 2007 was the last day in office for Yucatan’s then Governor Patricio Patron Laviada, now Attorney General for the Environment for all of Mexico. The last thing Governor Patron Laviada did before leaving his office was sign Decreto 801, a new law whose purpose is to protect the environment, and especially the coastline, of the State of Yucatan. The law is the result of the work of 60 researchers and it took three years to write it. In the end, Decreto 801 is 96 pages long (located here).

The Federal Government already had a law stating that nothing could be built on the first 20 meters from the waterline. Decreto 801 added 40 meters to that in the form of a State law. This means that nothing can be built any closer to the sea than 60 meters. Part 19 specifically includes a denial of authorization, in the state of Yucatan, for the building of hotels, condominiums, villas, homes, housing developments and urban development, pools, restaurants, businesses and services in general, marinas, docks and streets in a zone of 60 meters from the coastline. This does not apply to the installation of structures that do not require cementing and can be dismantled, but it does apply to permissions to add on, remodel, or rebuild structures that existed prior to the decree. This could seriously affect the ability of homeowners to recover after a hurricane. Part 20 specifies that in the case of buildings that "at the date of publication of the decree" (end of July 2007) did not have the dimensions indicated above, the builders could opt for elevated construction systems, such as having the buildings resting on pylons that maintain the dunes and vegetation. In cases where dunes and vegetation have been damaged, property owners are required to repair the damage.

Over the course of the past two years, a myriad of complaints have been heard, many around the issue of how the waterline is to be defined, since one side of Yucatan is eroding and the other is building up. Many hearings have been held. Some homeowners complain that they had wonderful, environmentally friendly home plans drawn up – only to be refused permission to build. Sometimes it was later learned that the environmental impact of trying to bring water and electrical service to their section of the beach runs afoul of the national laws concerning that 20 km wide ribbon of protected land whose environment is under national control.

Does this mean that investors should not look at beachfront property in Mexico? Or that they should not look in Yucatan? Certainly not. What they should do is make certain that they (1) build a knowledgeable, professional team to help them work within the law and (2) are prepared to wait while their plans work their way through the system. The implementation of this law seems to be moving forward on a case by case basis and there are certainly more smiles than tears for those who still want to invest in the beach area and are as concerned about their footprint in the sand as is the State.