The first quarter of 2017 has already been a great one for investors in Mexico’s vacation home rental market. Nationwide, vacation homes and hotels are reporting occupancy rates of more than 64%, and occupancy rates in Mexico’s Riviera Maya are at 90% or more this spring, which means excellent vacation rental returns for investors.
Stretching south from Cancun on the Yucatan peninsula along Mexico’s only Caribbean coast, the Riviera Maya is home to some of the world’s best real estate in beach towns like Playa del Carmen, Puerto Aventuras and Tulum.
“Mexico’s Riviera Maya is a much-loved tourist destination,” wrote International Living. “You’ll find many retirees and other expats. It’s worlds away from the hustle and bustle of the resort areas, although you will find hotels and beach clubs.”
Mexico Vacation Rentals & Hotel Performance Q1 2017
According to Hotel News Now, Mexico’s vacation home rental market and hotel industry reported positive year-over-year results for the first quarter of 2017, with occupancy rates rising more than 1.2% to hit 64.7% nationwide and upwards of 90% in Mexico’s Riviera Maya.
“Performance growth continues in Mexico due to a strong dollar and reduction in fuel prices,” stated Fatima Thompson, STR’s associate director of business development for hotels. “These factors will continue to attract foreign travelers to Mexico’s popular destinations.”
Riviera Maya Real Estate Boom
According to the Financial Times, prices in Mexico’s Riviera Maya have risen up to one-third over the last five years and the continued weak peso is attracting growing interest in investment properties among international buyers. Demand for real estate in places like Puerto Aventuras, Playa del Carmen and Tulum in Mexico’s Riviera Maya has risen right along with prices, with sales increasing by at least 25 percent each year over the last three years. For buyers interested in owning a turnkey vacation rental in Mexico’s Riviera Maya, that means right now is the best time to invest if you haven’t already, before prices go up even more.
“Since 2012, prices across the state of Quintana Roo have risen 16 percent,” wrote the Financial Times. “In the third quarter of 2016, prices in Yucatan had risen 26 percent over the same period in 2012.”
Despite this growth, there is still room for movement in the Riviera Maya real estate market, especially in the innovative new turnkey vacation rentals and condos for sale in places like Puerto Aventuras, Playa del Carmen and Tulum.
Turnkey Vacation Rentals
One way for investors to cash in on the real estate boom that’s happening in Mexico’s Riviera Maya right now is to buy a turnkey vacation rental property that offers immediate return on investment (ROI). Realistically, the only way to make this work is to buy a condo that is expertly managed by a professional local team in your absence, leaving you to go about daily life as usual while collecting tidy sums from vacation home rentals throughout the year that cover all maintenance costs and then some.
Sound intriguing? You can learn more about how to be successful at managing vacation home rentals, with our "10 Tips to Improve Your Vacation Rental Returns" guide, which will give you an insight on everything needed to step up your game in the vacation rentals market, make the best out of your property and get the best returns.
Have you ever thought about buying a vacation rental home abroad? If so, what are your biggest questions or concerns?