Playa del Carmen and Tulum are in the real estate boom, reported the Inmuebles24 portal and specifies that this region is seeing an increase in the purchase of apartments since both Cancun and the Riviera Maya present an increase between 5% and 10% in rents.
These destinations, despite the pandemic, remained highly attractive for real estate investors, since these cities make up one of the most visited tourist destinations in the country, causing a significant economic spill.
Javier Rodríguez Gil, city manager of Inmuebles24 in Cancun and Riviera Maya, explained that in terms of sales, there is a strong trend towards the pre-sale of developments, in the municipalities of Solidaridad and Tulum.
Javier Rodríguez, explained that the real estate boom is observed in the increase in the supply of neighboring investment lots, which face a vertical development scheme, however, in Cancun it shows a lower growth, due to the oversupply of properties, particularly in the southern area of the city.
Regarding rent, Rodríguez Gil specified that property owners focused on remodeling their properties, which provides a more attractive offer for long-term and temporary rentals.
By 2021, it is expected that both Playa del Carmen and Tulum will be the areas that increase their value, due to the amount of tourism that arrived during the pandemic.
In this regard, Rodríguez Gill stressed that the exchange rate, the prices of the presales, together with the capital gain, make the Riviera Maya an attractive destination for real estate investors.
Tulum Real Estate | Why Shouldn’t You Buy in Tulum?
Why you are considering buying Tulum Real Estate? Is it because you just heard about it from a friend who owns there? Did you read on the internet articles that Tulum’s beaches are ranked among the best ones in the world? Is Tulum is a very convenient destination only a few hours by plane from your City? You really love the warm and tropical weather all year long with sunny skies? or Is it basically because you want to invest your money with a generation-income mind?
This information will illustrate to you the things that you have to consider about Tulum Real Estate Market. Before taking the final decision to purchase a Condo, a Home, or a piece of land to build read these tips.
Recent History of Tulum Real Estate:
The recent history of the booming for the “Tulum Real Estate For Sale” began some years ago, between 2011-2012, following the success of the Riviera Maya as an international touristic destination that attracts visitors from all over the world.
At its origins, The Riviera Maya offered only accommodations in all-inclusive resorts with beachfront properties and small downtown hotels in Playa del Carmen.
There was not really a market for a Tulum Mexico Real Estate.
In fact, Tulum was basically a place for the backpackers and the travelers on a shoe-string budget who could not afford to pay for accommodations in Playa del Carmen and found inexpensive lodging by staying in a palapa or hut for a low price.
Nowadays, conversely, Tulum has become a pricier destination than Cancun Real Estate and Playa del Carmen Real Estate, with growing demand, and the Tulum Luxury Real Estate, has become very appreciated.
The offer for Tulum condominiums is greater than ever before and most of the new buyers want to get into the Tulum condo rentals.
Why Shouldn’t You Buy Tulum Real Estate?
You shouldn’t buy Tulum properties if you want to purchase and sell it quickly with the intention to make a profit. It means that if your intention is to flip it then this is not a market for you. Tulum has a very active market that launches an average of 5 new projects every month. There is a lot of competition among developers.
Selling a Tulum condo for sale by owner is a hard task as you will be competing against new projects that sell in pre-construction with payment plans in contrast with a cash deal. The new buyer will realize the advantages to buy a new condo for sale or a home for sale in Tulum with lower prices from the new development.
It won’t be easy for you to sell your property in Tulum as a resale quickly and with the price that you want. So that if you are rushed to sell you might have to reduce the price possibly at the same price that you purchased.
This means that you won’t make any profit and will get even. Tulum Real Estate is a buyers’ market and not a sellers’ one.
Don’t buy properties in Tulum if you want to resell it in the near future to make a big profit.
You shouldn’t buy Real Estate in Tulum if you believe that it will pay for itself. Some buyers believe that they can purchase a condo or home in Tulum using a loan and making enough money to pay the bank by renting the property as a vacation rental. This is very unlikely to happen.
It is true that vacation rentals in Tulum have increasing demand and that you can generate income by renting your condo or home in airb&b and other similar platforms. However, if you think that you are going to earn all the money to pay for all the financing by itself without you having the backup funds to cover the monthly payments, then you are taking a risk.
Most of the developers advertise that by renting your property you may generate 8-12% ROI. However, this is in most cases a sales pitch to convince you to buy and to create an unreal expectation to compel the purchase.
There are some properties that have already a historical record of rental income which is producing a 9-10% ROI of Tulum condo rentals. But these properties are managed by a professional rental management company and they have been promoted for a minimum of three years.
These properties have gained returning customers and positioned themselves with positive reviews that rank them in the most popular platforms.
In order for your property to make this kind of ROI, it has to be handled in a similar way with a very good marketing strategy and a customer care service of quality, besides being a desirable and appealing condo or house for the renters.
Tulum Real Estate Rentals ROI:
Many buyers who are purchasing a Tulum condo or house are doing it with the purpose to use it for their own pleasure during their holidays. The rest of the time they put it in a rental program to make money by renting the property.
If you buy a condo or a home in Tulum, you may rent it for vacation rentals and expect to get around 4-5% of ROI during the first year. For the second year, your ROI may rise up to 6-7% based on proper rental management. After the third year, your vacation rental ROI may be 9% with constant good marketing and service.
In the reality of the numbers, it is not seen a condo or home that is generating more than 10% of ROI with rental income.
However, if your main reason to buy Tulum Real Estate is to invest only to generate the highest ROI and not using it for your own pleasure, then you may consider buying a property in a Condo Hotel.
A Condo-Hotel will offer you a unit that will be handled by the developer in a rental pool and they will maximize the occupancy with a strong marketing plan and will manage the project like a hotel operation. These units usually include all the furniture and accessories to be the same in all the units and keep the uniformity in the quality and the rates charged to the guests.
In a condo-hotel, you won’t have to worry about the administration and maintenance of the unit and you will only be receiving your earnings by bank transfers. You will not be able to use it for yourself except for a few weeks of the years and during the low seasons.
This option is the way to go in case you mainly focus to acquire an investment property that produces the highest ROI possible.
To handle a regular property, there are already many options for Tulum Mexico Real Estate for rent management companies that charge 20-30% for their services.
Tulum Real Estate Rental Rates:
If you look for a property for sale in Tulum Mexico with the goal to rent it you should know what the average rates are. The prices per night in a condo for rent depend mainly on the season of the year and on the location of your unit.
You can realize that in Tulum are the Riviera Maya condos for sale with the highest prices if you compare them with Playa del Carmen. This is why Tulum properties are getting more attractive to buyers.
Let’s make some examples with an average apartment in a good location and with nice amenities for the renters:
2 BEDROOMS CONDO:
The rates during the Low Season are around $ 160 USD per night and the average occupation is 15-17 nights per month.
The rates during the High Season are around $ 350 USD per night and the average occupation is 20-23 nights per month.
1 BEDROOMS CONDO:
The rates during the Low Season are around $ 60 USD per night and the average occupation is 18 nights per month.
The rates during the High Season are around $ 100 USD per night and the average occupation is 24 nights per month
Logically, the smaller the unit, the more affordable the rates and therefore the higher occupancy. That is why in Tulum most of the real estate market is offering 1-2 bedrooms apartments. 3, 4 or more bedrooms homes are not so easy to get. Nevertheless, there are also options available.
Tulum beach house rentals can charge considerably higher rates but it is only a few of them and they may accommodate a larger group of people.
How is the Market of Real Estate in Tulum?
At present you have many options for Tulum condos for sale, Tulum houses for sale, Tulum lots for sale, and a very few beachfront homes for sale which are priced over one million dollars.
Some People believe that they can still find beachfront condos for sale in Tulum Mexico for less than $ 100,000 USD and this simply does not exist.
You can find plenty of choices for one, two, and three-bedroom condos. Also for two and three bedrooms’ penthouse with a private roof-top terrace with a pool. There are just a few options available for a four-bedroom condo and usually, these are the penthouses with a considerably higher list price.
In regards to houses, there are not so many options for a stand-alone family home. In this case, the way to go is to buy a lot and have your home built with your own design. Nevertheless, if you prefer to buy a brand new home in pre-construction, there are some options that you may like. These are townhomes in small communities with shared amenities and common areas.
Homes with two and three bedrooms and two stories are the most common to find. Homes with four or more bedrooms are not so common. About homes, there are some eco-sustainable communities like Los Arboles and Kuyabeh Tulum Real Estate that sell a big piece of land (2 acres) to build a single home in the middle of the jungle and completely off the grid. Your home here has to be eco-friendly and run on power generators and rainwater collectors.
It is clear that there are fewer Tulum homes for sale than Tulum apartments for sale. About Tulum land for sale, there are also still plenty of choices in all sizes.
In case you want to buy a home near Tulum Mexico, you can find listings in Punta Soliman Bay, Tankah and Akumal.
You easily find many choices of Tulum Mexico real estate for sale for every budget and taste.
How Much does it cost buying a Property in Tulum?
Tulum Real Estate prices have been increasing considerably during the last years. Buyers who bought a property 10-15 years ago may not believe the prices today. They were very fortunate to have purchased at that time bargain deals.
Due to the high demand and the newer upscale and jet-set profile of Tulum, the properties are more and more appreciated. Currently, the prices for a condo or home designed and built with the most quality materials and intended for the international buyers range from $ 1,900 USD to $ 3,100 USD per square meter in pre-sales developments.
The prices for residential lots range from $ 150 USD to $ 560 USD per square meter. Commercial lots are priced at double than that. For Tulum Commercial Real Estate spaces, the prices are from $ 3,600 USD upwards. Newer properties are more luxurious and with better amenities and comforts than the properties built and sold only three years ago.
Regarding Tulum beachfront condos for sale or Tulum Real Estate for sale Beachfront lots is another world. They are not abundant and their prices range from 1 to more than 3 million dollars. However, it is kind of hard to find a Tulum beachfront property for sale nowadays.
In the Sian Kan area, you may find beach homes for sale in Tulum Mexico. Here is the Tulum beach house Pablo Escobar that now is a Hotel. If you are looking for Tulum real estate beachfront lot to build your custom home, Sian Kan is still an alternative.
What location is better to Buy a Condo or a House in Tulum?
For buying Real Estate in Tulum, there are only two main suggested neighborhoods that you may consider: Aldea Zama and Region 15.
The Condos for sale in Aldea Zama is the most luxurious of Tulum Real Estate Mexico and the ones that offer the best amenities. Aldea Zama is a private community. It has world-class infrastructure, services, and the closest location to the beach. Here you find many of the newest condominium developments, single-family homes, and a commercial area that offer the residents cafes, bars, and shops for their convenience.
Aldea Zama has lots of green areas and pedestrian-only streets. It has a very natural atmosphere that makes you feel surrounded by the jungle. It is all in all the most beautiful location with many advantages and benefits that no other location can match so far.
The Region 15:
Also known as “La Veleta” is a developing area where many developers bought land and where they are building condos and homes to compete with the projects offered in Aldea Zama. There are already properties being sold practically at almost the same prices as the ones in Aldea Zama. These buildings have the same quality of materials and with interesting and beautiful designs.
However, Region 15 is still to be urbanized and to have all the services in place. It means that many streets are still unpaved. Neither there are not yet all the municipal services already working.
In Region 15 you have the main road named Av. Kukulkan. This is the main avenue that is intended to eventually give second access to the beaches of Tulum. So, when this becomes a reality, it will make all the neighborhoods more appreciated in value.
For sure, this will change in the future and Region 15 will transform into the second most desirable location to buy a condo in Real Estate Tulum Quintana Roo.
Besides Aldea Zama Tulum Real Estate and Region 15, the other locations to buy a property that is advisable is the beachfront condos or homes in Akumal and Sian Kaan. These are out of Tulum town but close by.
Why Should You Buy Tulum Real Estate?
You should buy an apartment or a house in Tulum if you really appreciate all that the destination has to offer. Tulum is a place for people who are looking to be away from city life. It means being surrounded by natural beauties like the jungle, the beaches, and the cenotes. If you like activities like yoga, diving, relaxing, working out, and going to artistic events. This is a place where you can meet people who are coming from all over the world. In Tulum, you can easily make new and interesting friends. This is a charming town to experience.
You should buy Real Estate in Tulum if you want to combine having a vacation home that you will actually use to live great moments with your family and to make some money by renting your condominium during the time you are not using it. Or also, if you are looking to move or retire in a town that offers you a good quality of life and that is much more affordable than your own country.
How to Purchase Tulum Real Estate?
First, you need to look for Real Estate Agents of Tulum who are licensed. In 2014, the state of Quintana Roo enacted the Law of professional Real Estate Services. This law made it mandatory for all the individuals providing real estate representation to buyers, sellers, landlords, and tenants, to take a course and pass an exam in order to get the license to be a real estate agent or broker.
Before 2014, there was no obligation to have a license so that everybody was doing it without the necessary knowledge and formation. This is why many people got into trouble. They lacked a good representation and many transactions were carried on poorly and inefficiently.
Despite this law, there are still many people serving as real estate agents in Tulum that show no interest in getting their license. It is very important that you get in touch only with professionals that are trustworthy to you.
Besides the license, in Tulum, there are few agents who are also members of important Real Estate associations like AMPI and NAR-Realtor. This assures you even more that you will be represented and supported by a real professional of Tulum real estate that is able to help you in a proper way.
It is good advice to always ask an agent to show you his valid and current license. SEDETUS issues the license. It is the state government agency that controls the real estate activities. This license is granted on a yearly basis, meaning that it has to be renewed each year by proving a good record and by completing additional formation courses.
Find a Real Estate agent who represents your interests and who can help you to buy or sell your condominium or your home in Tulum successfully without risks.
What Are the Payment Options to Buy Tulum Real Estate?
If you want to buy an apartment or a home on resale, the payment has to be in cash in one single payment at the time of the transfer of title. Sometimes you could give an earnest deposit and pay the full price at the time all the paperwork is ready to sign the transfer of the title before a notary public. This may take between 4-8 weeks depending on the necessary documentation. This documentation involves certificates and permits from governmental offices. There are some additional documents when the buyer is a foreign national so that it takes some time.
When you decide to buy a property in Tulum in a project during the pre-construction phase, you pay a downpayment of 30%. Then you pay the balance of 70% either in monthly payments or in one or more balloon payments. You can negotiate the terms of these installments. Depending on the project, you may pay the 70% balance at the delivery of your property at the moment of transferring the title.
Besides, if you want a reduced price, some developers offer a discount between 3-9% when you give a downpayment between 50% – 80% of the sales price.
In these cases, you have a period of time between 4 – 18 months from the downpayment until the delivery date to cover the full price of your condo or home.
Keep in mind that the sales price does not include the closing costs. When buying Tulum Real Estate the closing costs represent approximately 7% of the price.
If you are a foreign national and a non-resident in Mexico, you cannot have a mortgage loan from a Mexican Bank. However, you can qualify to get an equity loan or a personal loan from a bank in your country. It means that you have to apply on your own account in order to get the credit and come here to make a cash deal.