The last five years has seen incredible growth in tourism that has also prompted a major Mexico real estate investment boom. Let us show you why buyers are investing in Mexico real estate in places like the Riviera Maya to get fantastic return on investment from luxury condos and other turnkey vacation home rentals.
Mexico Tourism on the Rise
“The flow of visitors grew by 12% [in 2017] to 39.3 million travelers, and its economic impact climbed by 8.6% to 21.3 million U.S. dollars [according to data from the World Tourism Organization]”, wrote The Yucatan Times. “SECTUR foresees Mexico in the seventh place of the world tourism ranking this year”.
Tourism in Mexico set another new record in 2017, but the number of visitors has increased annually for the last six years, reflecting massive growth of more than 60 percent, and Mexico is already number eight on the list of the world’s top 10 most-visited countries. In 2017, the growth increased by seven percent, and the World Tourism Organization predicts that this strong momentum will continue in 2018 with a rise of between 4-5 percent this year.
“We have a very good chance of positioning ourselves as the seventh most-visited country in the world as a result of an intense promotion campaign in the United States, our main market”, stated Secretary of Tourism Enrique de la Madrid. “In addition, we have diversified actions in other countries in Latin America, Europe and Asia, taking advantage of the new air routes, including China, Japan and Korea”.
Economic Impact of Tourism in Mexico
Mexico is currently in an impressive period of economic growth that is showing no signs of slowing down. The growth is spurred in large part by a steady rise in the number of international tourism arrivals and influx of foreign currency revenue, which have also grown at a much higher rate than ever before over the course of the last six years.
The amount of money international tourists spent while they were in Mexico also reached new heights in 2017, averaging 213.3 U.S. dollars each day. This shows annual growth of 3.41 percent when compared to the average of $145.3 U.S. dollars tourists spent each day in 2010. Most importantly, this trend is showing no signs of slowing down and has instead been rapidly increasing year after year as more people around the world are discovering how incredibly special popular tourist areas like the Riviera Maya really are.
Tourism & Mexico Real Estate Investing
One result of this rapid growth in tourism has been the incredible opportunity for investing money in Mexico real estate, since the demand for luxury condos and vacation homes is greater than what is currently available on the market. Buyers are getting returns of 8-12 percent in places like Playa del Carmen, Puerto Aventuras and Tulum in the Riviera Maya region, which stretches south from Cancun along the Mexican Caribbean Sea.
Turnkey rental properties in the Riviera Maya are getting consistent occupancy rates of 80-90 percent thanks to the booming vacation rental market. In addition, property taxes are virtually nonexistent compared to what buyers would pay in the U.S., Canada or Europe, and the cost of living is also much lower, which means your money goes farther, whether you are investing in real estate or buying dinner at a local restaurant.
In addition, there is a long (and growing) list of good reasons why investment properties throughout this idyllic region will not depreciate. In fact, it’s one of the world’s top 10 fastest-growing property markets – a status that analysts do not expect will change anytime soon, since prices have risen steadily by around one-third over the last five years and demand has risen much more rapidly, with sales increasing by at least 25 percent annually during the same period.
Finally, Mexico’s top tourist destinations offer easy access from the U.S. and Canada, are safer than many popular cities in the U.S., and provide all the creature comforts of home, including fast Internet service, modern infrastructure and many familiar retailers, including Costco, Home Depot and Starbucks, just to name a few.
What’s your favorite place to visit in Mexico and why? Let us know in the comments!
Read How to Buy Property in Mexico with Zero Risk and learn more about safely investing in real estate that will provide excellent return on investment.