When I arrived in paradise in 2015, the buzz in the real estate industry was development on what everyone was calling New Fifth Avenue. This was the area stretching from Avenida CTM north to the Paradisus Resort. The resort had assisted in developing a new streetscape for New Fifth Avenue, and almost everyone was predicting a revitalization of the area that would compare to Soho in New York.
It never happened. While there was some new development, the explosion of new projects over that 23-block stretch never materialized. Several new projects have been built within walking distance of Avenida CTM. These projects offer investors cheap options with easy access to the beach, but there aren’t as many of them as you go further north.
I see two different trends in development in Playa del Carmen. Land in downtown Playa del Carmen is scarce and expensive, but it is still prime property for new development. So, one trend that I see is the teardown, where developers buy existing land and buildings, tear them down, and develop something new. The prime example of this right now is Ceiba at 25, where longtime local developer Simca has purchased a school and is preparing to begin construction of a 92-unit condo project in downtown Playa del Carmen’s trendy Hollywood district.
Another trend is the migration of development to the west side of the Federal Highway. It’s not an area that is normally popular with tourists. Developers, on the other hand, are betting that cheaper land and luxurious amenities will entice investors away from downtown. One project under construction is called Valle Aurora. It’s a four-tower development with all the amenities of a resort, and it’s less than ten minutes by taxi to the beach. At Valle Aurora, you can purchase a two- or three-bedroom condo for the same price as a studio in the downtown area.
It will be interesting to see where new development trends will take us in the next few years. Land is plentiful and affordable on the west side of the highway, but nothing beats being close to the action and the beach in the downtown area.
By: Gordon MacAlpine
