Tulum real estate has exploded with growth over the last several years. As a real estate investment expert in the area for the past seven years, I often say, “Tulum condominium developments are usually sold out before they are finished being built”. In most cases, this is a true statement and it creates an interesting predicament for prospective investors.
One has to take a leap of faith and invest in properties that cannot yet be seen or touched. Prices on condos in the area are now surpassing more than $2,000 USD per square meter. While that does reflect an increase in land prices, one can also argue that it should be reflected in improved building materials and luxury finishes.
If investors are willing to invest in new construction projects and pay these types of prices, here's a list of some things they should definitely look for in a development. Most of these are based upon the fact that Tulum real estate exists in an area of the world where the natural elements are not conducive to the preservation of much of anything. We have 300+ days of sunshine per year. When it rains, it pours. Humidity averages 80%. Salt, lime and calcium fill the water and wind.
Minimization of Exterior Wood
It pains me every time I walk into a new development and see wood decking and railings. Unless it's an amenity of the property that will be paid for and maintained by hotel management, the sun will destroy it within a year or two. The cost of replacing it with a higher quality material that should have been utilized in the first place will fall upon the owners. FYI, Palapas are okay in that their foundation is a solid wood, and the grass roofing can last up to 10 years when it is properly maintained (not expensive to replace either, and they look great).
Solid Wood Doors
Out of habit, I knock on every door of a property I enter for the first time. Why? The reason is simple: Solid wood doors cost more, are more durable (think about renters) and also just feel more luxurious.
Hurricane Grade Glass
Most condominium developments in the Riviera Maya are not being delivered with any type of hurricane protection on the basis that, because they are not waterfront, it's not as necessary. But as the comedian Ron White so eloquently said, “It isn’t that the wind is blowing; it’s what the wind is blowing".
In the unfortunate event that a large storm does hit the area, coconuts, roof tiles and branches are all things that will break windows. Of course, hurricane shutters and other protection methods can be installed, but once again that upfront and ongoing maintenance cost is going to fall upon the owner. Plus, thicker windows are insulating and help keep the heat out, which will also help owners keep their electricity bills down.
The law requires a one-year builder’s warranty. Look for a developer that takes a little extra pride in their work, and will give you more than that. This shows that the developer wants to keep their properties looking nice and their clients happy, which in turn will help sell their next project.
A Developer with a Track Record
Have they previously constructed in the area? How successfully was the development sold? Do they have happy clients who are prospering from their investment?
To the real estate investor prospecting this part of the Riviera Maya market: Get your money’s worth up front. This list will help. Unlike 10-15 years ago, this part of Mexico's Riviera Maya now has easy access to top quality products on a global scale. Constant maintenance and replacements should not eat into your investment returns. As real estate values in the area continue to climb, so should the quality of construction and the builders responsible for the work. Lucky for everyone, there is one development that does check all of my boxes: Villas las Palmas. If you would like to learn more, do not hesitate to contact me.
What type of real estate investment are you considering? Let us know in the comments!
Read Discover the Tulum Lifestyle in Mexico's Riviera Maya to learn more about what makes this area such a great place to invest!