The Tulum real estate market has seen rapid growth for the past 10 years, and shows no signs of slowing down anytime soon. We have helped investors, and watched our own friends generate healthy returns on their investments. This can be done through equity gain, reliable cash flow, or a combination of both. Real Estate for Sale in Tulum.
Today, I am talking to the uninitiated: those that are just beginning to consider a foreign real estate investment, and have the Riviera Maya (or specifically Tulum) on their list of places to investigate. Aside from having the desire for our team to help you find the right place for your hard-earned money, it is important to first understand the driving factors that have made and continues to make Tulum the perfect storm for real estate investment. The next several blog posts will justify an investment in Tulum real estate based upon its physical location and place in the history of the whole region, why condominiums in Tulum generate the rental revenue that they do, and why the cost of ownership works in the investor’s favor. Today, we begin with Tulum’s place in the growth of Mexico’s Caribbean coast.
Growth along the coast
It is not an accident that Tulum is seeing the growth and attracting the investment dollars that it does. In fact, people in government saw it coming, and did what was within their capabilities to prepare the area. Within the state of Quintana Roo, Cozumel was actually the first well-known tourist destination, made famous by the beautiful coral reefs that surround the island, making it a haven for scuba diving and snorkeling lovers. The international airport made it an accessible destination, but because it is an island and large portions of it are unsuitable for construction, growth is pretty limited. Following Acapulco and Puerto Vallarta’s rise to popularity, the Mexican government then looked for a destination with better proximity to the US, Canada, and Europe. Originally it came down to Tulum and Cancun because of their similar geographies (a wide beach area on one side with lagoons and large portions of mangrove on the other), but Cancun is farther north. Cancun’s hotel zone rose to fame in the 90’s through heavy government investment and marketing efforts, also continuously expanding its international airport with new routes connected to most major cities worldwide. It even became more reasonable to get to fly into Cancun, drive down to the small fishing village of Playa del Carmen, and hop on a ferry to Cozumel if tourists wanted that special diving experience.
By the early 2000’s, more explorative tourists began to look for something different than Cancun’s high-rise, all-inclusive hotels. During this process, Playa del Carmen and the mainland coastline were discovered as prime locations for growth. Cozumel, while still widely-used as a cruise stop and diving destination, saw its growth hit a plateau. Named the world’s fastest growing city in 2006, a town of 30,000 reached 250,000 residents within less than a decade. Personally, I like to say (crudely) that it “vomited” growth in all directions as most people have only seen the development of the beach side of the highway, while the real urban sprawl has taken place on the west side where massive housing developments have been constructed for the local populace. Today, you still see bulldozers at the end of the road, ready for more development.
Throughout these previous periods of growth to the north, Tulum’s humble, yet stunning beachfront and town already existed and boasted a hippie backpacker-type vibe for those looking for a more grassroots getaway. What makes Tulum’s growth special is that it is already restricted to the north by the national park containing the oceanfront Mayan ruins, and to the south by the Sian Kaan, a UNESCO World Heritage Site of over 1.3 million acres. The municipal government made a wise decision to prevent the uncontrolled growth of Playa del Carmen, and create an urban development plan that would do its best to preserve the charm of the beachfront, limiting density and keeping it off-grid, forcing property owners to utilize ecological methods, like solar and wind energy, and water treatment plants to run their operations. For other areas, like Region 15 and Region 8, zoning and densities were determined according to their proximity to the beach AND according to the underground cavern system that can easily be affected by high-density construction.
For more than a decade, the growth of Tulum has continued to flow at a rapid pace. With new infrastructure projects like a new international airport, high-speed rail, and continued local initiatives to connect the entire municipality to electricity, water, roads, and sewage, the town of only 30,000 people will continue to modernize while preserving the Bali-style beachfront that it is world-famous for. There’s always more to the story, but now you have an idea how it all began. Next time, I will go into how Tulum is set up as a town, and what factors make a rental property in Tulum generate the rental revenue that they do.
DON’T FORGET TO CHECK OUT OUR TULUM INVESTMENT GUIDE or our RENTAL PROPERTY INVESTING BLOG
Colibri Property was founded by several international investors. We wanted a change in our lifestyle, and we made it happen with strategic real estate investments. Today, we are a leading real estate brokerage firm in the Riviera Maya. We continue to reach our investment goals while doing the same for our clientele.
Whether you are interested in vacant lots, condos, single-family homes, or growing developments – we have you covered. Because of our large network of real estate professionals and investors, Colibri gets access to properties before they hit the open market.
By: Andrews Schisler
