According to the Financial Times, foreign buyers have provided a big boost for Mexico real estate in Playa del Carmen and Tulum in Mexico’s Riviera Maya region, which lies just south of Cancun on the Caribbean Sea and also includes popular expat communities and tourist destinations like Puerto Aventuras, Akumal, Puerto Morelos and Cozumel.
“Mexico is one of the top 10 fastest growing property markets in the world,” wrote the Financial Times. "With prices rising 8 percent in the year to June, helped by the strength of the dollar.”
Striking ruins of the ancient Mayan city by the same name can still be seen at the pristine white-sand beach in Tulum, which overlooks the stunning turquoise waters of the Caribbean Sea. Situated just 80 miles south of Cancun on Mexico’s Yucatan Peninsula, Tulum has long been a favorite destination for eco-chic and bohemian travelers, but today it is also a popular spot among visitors of all ages and backgrounds who wish to escape the hustle and bustle of Cancun.
“Tulum’s low-rise style of development, embracing local rituals,has helped draw international investors to the Riviera Maya,” wrote the Financial Times.
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Making Money in Mexico
Mexico real estate in Playa del Carmen,Tulum and throughout the Riviera Maya has reportedly experienced price increases of about one-third over the last five years alone, but demand is also on the rise, with overall sales growing by at least 25 percent annually over the past three years.
“Over the past five years, the peso has lost half of its value against the U.S. dollar, making houses cheaper for U.S. buyers,” wrote the Financial Times. “The weak peso is already boosting interest in investment properties among those with foreign currency.”
In fact, prices for prime homes on the Riviera Maya that are valued above $1 million USD have been growing from between 4-5 percent each year for a while. Since 2012, the Financial Times reports that real estate prices in the Riviera Maya – in fact across the entire state of Quintana Roo – have risen a whopping 16 percent. And in the third quarter of 2016 alone, prices in the Yucatan have risen 26 percent.
Best Places to Move Abroad
Of course, the fact that Mexico’s Riviera Maya region is one of the best places to move abroad also helps to boost the property market. Anyone interested in buying real estate in Playa del Carmen, Tulum or anywhere else in the area already knows the Riviera Maya is a winter sun, year-round destination, with temps ranging from around 70-90 degrees.
“This means homes can attract rental returns of up to 18 percent,” wrote the Financial Times. “Tourists are flooding in from the U.S. because once they have paid for their accommodations and travel, the cost of living in Mexico is cheap.”
Americans are still the largest group of foreign buyers, but others hail from the UK, Germany, Argentina and Canada, as well as other parts of Mexico. Since the security issues that have been seen in some parts of northern Mexico are a non-issue in the Riviera Maya, the safety record is on par with European capitals and actually surpasses many top U.S. cities. The Riviera Maya also has modern infrastructure, excellent police training and there are no advisories or travel warnings in place for the area from the U.S. State Department.
“Playa del Carmen, the most popular area with international buyers, has gone from a small town to a booming resort and golf destination, with more than a dozen courses,” wrote the Financial Times.
These days, real estate in Playa del Carmen and Tulum not only includes condos for sale, but also single family homes and villas.
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