While the nation experiences a housing slump on South Padre Island, a new development takes shape.

Once completed, the shores will include beachfront and bayside homes, a private marina, and upscale shopping. It's part of a build up on the island made possible in part by buyers from Mexico.

“If we in fact didn't have Mexico, at least half of the condominium projects (or) beachfront condo projects we have today wouldn't be there,” said real estate developer Richard Franke.

South Padre has long been a favorite of the wealthy from Monterrey. The Mexican city is a two-hour drive from the Texas border and many Mexican citizens own property, businesses and have bank accounts on both sides of the border.

AP

It is difficult to get an exact dollar amount when it comes to money from Mexico invested in South Padre Island. What is clear everyone says, it is significant and that those investors from south of the border are critical to this region’s economy.

“There's more people coming in opening up businesses, coming in and doing investments in property,” said South Padre restaurant owner Eduardo Paez. “It's a big increase from past years.”

The owners of three sushi restaurants in McAllen are part of that trend. They're originally from Monterrey.   

Even so, there's concern about a slowdown in this booming border area.

“Most of the people from Mexico could buy no matter what the conditions are, but they're influenced by the economy by the ups and down in the market,” said Franke.

In the meantime there's hope buyers from across the border will cushion the blow in a declining real estate market.