Mexico’s housing market continues to go from strength to strength, buoyed by strong foreign demand in resort communities, the latest market analysis from the Global Property Guide shows.

The nationwide house price index rose by 5.32% year-on-year in Q2 2016, up from 3.43% during the same period last year. During the second quarter of the year, residential property prices rose by 2.45%.

The research reveals that American and Canadian buyers are returning to Mexico, after a several-year slump, thanks to low oil prices and the strong US dollar, pushing home values up. French, Italians, and Spanish homebuyers are also increasing.

In 2015, Mexico’s peso slumped by about 15% against the US dollar, the biggest annual decline since 2008. In August 2016, the peso depreciated further, and was 10.3% down on a year earlier, at an exchange rate of MXN18.46 = USD1.

The Mexican economy grew by 2.5% year-on-year in Q2 2016, according to the Instituto Nacional de Estadística y Geografía (INEGI). However on a quarterly basis, the economy actually contracted 0.2% in Q2 2016, the first contraction since Q2 2013, primarily due to a decline in industrial output. The economy is expected to expand by 2.4% this year, after 2.5% last year, 2.3% in 2014, and 1.3% in 2013.

For the latest detailed housing market analysis of individual regions and countries, check out the Global Property Guide’s global survey for Q2 2016.