Why investing in Real Estate in the Riviera Maya is such a great idea

September 13, 2019
By TAO Mexico
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Why investing in Real Estate in the Riviera Maya is such a great idea

Numbers do not lie. People can lie, brokers might not tell you all the truth, and even the developers can hide something from you, but if I have learned something during these past years as an investor is that numbers are always trustworthy. This is the reason why investing in real estate in the Riviera Maya is a great idea.

In the Riviera Maya, tourism numbers are on the rise and demand is getting past supply. Today, according to the United Nations World Tourism Organization (UNWTO) Mexico is the 8th most popular vacation destination in the world, and Cancun and The Riviera Maya are the most popular tourism destinations in the country. Thus, buying property in this growing area has been very much proven to be a solid and smart investment strategy.

And how not to, this unparalleled region spans more than 80 miles along the turquoise waters of the Caribbean coast. Its weather is perfect, with 300 days of summer and an average of 85 degrees throughout the year. Its location south of the Cancun International Airport offers easy access for millions of annual visitors around the globe. It is home to award winning beaches and tourism hotspots such as: Playa del Carmen, Puerto Aventuras, Akumal, and Tulum. To all that we add world-class shopping and dining, water activities, and unforgettable adventures we have as a result an incomparable magical place.

Investing in real estate in the Riviera Maya was very easy and quite affordable for my wife and I. When we started looking for a place to buy we realized all the advantages that the Riviera Maya has both for tourists and investors. This is why I want to share with you the reasons and benefits that make this region such a great place to invest.

A busy region

Like many of us, we first came to the Riviera Maya on a getaway weekend. So we experienced this firsthand. We rented online a very popular condo for the weekend and, during our stay, we started talking to some locals and expats. The condo was full and it was not high season. So we were wondering if there was some kind of event that we didn’t know about. They told us that the average occupancy rate is 85%, which we could confirm by then and we still can see it today. 85% it’s quite impressive even for a top vacation destination!

In the Riviera Maya, rental demand is high all year long, and future projections show continued growth, which is beneficial whether you intend to rent your property short or long-term. By investing in a rental property, you can enjoy the appreciation of your property’s value over time, while benefiting from monthly cash flows.

A top destination

When we landed at the Cancun International Airport we were shocked to see how many tourists were arriving at the same time. It is obvious that it is one of the most popular destinations in Mexico.

Hundreds of flights from all over the world come in and out every day. As a result, more than 20 million passengers visit the Mexican Caribbean each year. The Mexico Tourism Board plans to build on this growth by the year 2021. The goal is to achieve 50 million international visitors!

Cheap, cheap, cheap!

Although some people consider Playa and Tulum expensive places, we realized the cost of living is quite low. I would risk stating you pay about half of what you are used to in the U.S., Canada and Europe. In fact, after President Trump was elected, the peso dropped by 15%. This helped the tourism industry since the rates were a lot cheaper due to the weaker currency. You can also expect to enjoy world-class shopping and fine dining at a fraction of the cost you would pay anywhere else.

So, when we were there for the first time, we started making some calls and found out that real estate prices in the Riviera Maya are much lower than other top beach vacation destinations worldwide. As a result, we were going to get a higher ROI and enjoy faster appreciation. And we did!

On top of all, Mexico has extremely low property taxes, which come in at around 1/10th of 1% annually.

Ideal weather, incredible beaches and great activities

The tropical weather at the Riviera Maya is one of the reasons we decided to invest. It is so warm and pleasant. When you come down here, you will definitely meet some snowbirds and people running away from the winter for a while. The weather is normally hot during each season; perfect to enjoy the beautiful white-sand beaches and cool cenotes that run along the coast.

Not many people know that the Riviera Maya is also home to the world’s second largest barrier reef, habitat for an innumerable number of marine species, so snorkeling, diving, world class water sports and deep-sea fishing are very popular, along with a wide variety of other entertaining options, such as exploring ancient Mayan ruins and swimming in freshwater cenotes.

Fastest growing real estate market

The world is filled with beautiful beach destinations; nevertheless, the Riviera Maya has the most rapidly growing real estate market in all of Latin America. Since the prices are much lower here than in any other beach vacation destinations, you will have better value for your money.

Great ROI

The one thing we could prove in 18 months, which we were a little skeptical is that investment properties here are beating the stock market! Vacation home rentals are truly providing an average 8 to 14% return on investment per year.

Strong annual appreciation

In addition, the Riviera Maya has a constant annual capital increase of 8 to 14% as well, with a continuous growth of the area projected for the next decades (with projects like the Mayan Train or Amikoo, which is the Maya cosmology themed park), which means real estate will continue appreciating.

Modern infrastructure

The Riviera Maya is very close to one of the best airport and highway transportation systems. We noticed that because of this, modern infrastructure and world-class amenities are present all the way south starting from Puerto Morelos, Playa del Carmen, Puerto Aventuras, Akumal, and Tulum.

If you are looking to invest in real estate, there are many opportunities and variety in The Riviera Maya that will fit your budget. It doesn’t mater the size of your investment, you can find studios, one, two, and three-bedroom units, penthouses, lofts, entire buildings, residences, single-family homes, and even commercial offices.

Playa del Carmen and Tulum are both trendy spots based on opportunity, variety and great ROI, but I will definitely recommend you to keep an eye on Puerto Aventuras and Akumal, two wonderful small towns full of luxury and entertaining activities.