Is Tulum a good investment | Caryban Realtors

Is Tulum a Good Investment?

WHY INVEST IN TULUM, QUINTANA ROO?

What region is Tulum in?

Tulum is a city located in the Yucatan Peninsula in the region of Quintana Roo, Mexico. Quintana Roo is one of the most touristic states in Mexico, famous for its white sand beaches and crystal clear waters. The city of Tulum is known for its ancient Mayan ruins, beautiful beaches, cenotes, eco-chic style and vibrant nightlife, which is constantly attracting tourists from all over the world.

Tulum is also known for its Spanish colonial architecture and streets full of boutiques, bars and restaurants with an eco-chic touch that characterizes it. The city is a unique blend of ancient culture and modernity, which makes it attractive to tourists, such as actors, influencers, VIPs and more, who visit this paradise looking for an authentic and relaxing experience in the Mexican Caribbean.

According to the World Tourism Organization (WTO) Mexico is among the ten most visited countries in the world, specifically it is in second place with 31.9 million annual visitors, after France. In this regard, number 1 on the list has 54 million visitors. The third and fourth places are occupied by Spain, with 31.2 million and Turkey with 29.9 million, respectively. Despite its tourist popularity, Tulum has managed to preserve its natural charm and rich Mayan culture. The city is a popular destination for nature lovers, as it has an ecological reserve and several national parks nearby. In these parks, tourists can explore the natural beauty of the region, including cenotes, rainforests and wild animals.

In short, Tulum is a city located in the Quintana Roo region of Mexico, known for its beautiful beaches, ancient ruins, vibrant nightlife and Mayan culture. The city is a popular tourist destination that attracts travelers from all over the world looking for a unique and relaxing experience in the Mexican Caribbean.

How much is the average house in Tulum Mexico?

The cost of an average property in Tulum, Mexico can vary depending on the location, size and style of the property. In general, a small house in a less developed area can cost around $150,000 to $300,000 USD, while a larger house or villa in a more exclusive area can cost $500,000 USD or more.

However, it is important to note that the Tulum real estate market is constantly evolving, so prices may vary over time. Careful research and consultation with a local real estate advisor is recommended to get an accurate assessment of the cost of a property in Tulum.

Can foreigners buy property in Tulum Mexico?

Yes, foreigners can buy property in Tulum, Mexico. Mexico has an open foreign investment policy and there are no legal restrictions for foreigners to buy property in the country. However, it is important to follow the legal processes and obtain the necessary permits before buying property in Tulum or anywhere else in Mexico.

In addition, it is advisable to hire a lawyer specialized in real estate and a local real estate consultant who is well versed in the market and the processes of buying property in Tulum. This will help ensure a safe, smooth and easy to acquire transaction.

In summary, foreigners can buy property in Tulum, Mexico, as long as they follow the legal processes and obtain the necessary permits. It is recommended to consult a lawyer and a local real estate consultant for advice and support during the buying process.

How can foreigners buy property in Mexico?

In Mexico, foreigners can acquire real estate; in fact, many of our clients are foreigners.

In the special zones, which are 100 Km from the borders and 50 Km from the coasts, a special process must be followed for the acquisition of real estate by foreigners.

The law of foreign investment contemplates that the purchase of real estate with foreigners must be accompanied by a trust. This has an opening cost of $2,200 dollars and is valid for 50 years, in 50 years you can renew it for 50 more.

You will have the same rights over your property as any Mexican, it is simply a special process stipulated by Mexican Law.

One of the advantages of the trust is that you can set your heirs as beneficiaries, which avoids having to make a will.

There are also other options that your advisor, like us, can help you select according to your needs.

Investing in Tulum

Tulum is a popular tourist destination in Mexico, known for its beautiful beaches and combination of nature and luxury finishes.

Is buying property in Mexico a good investment?

Buying property in Mexico can be a good investment depending on the individual circumstances and expectations of each person. As with any other investment, there are risks and rewards associated with buying property in Mexico.

On the one hand, Mexico is a country with a growing real estate market and offers a wide variety of property options, from affordable housing to luxury properties; as well as professional companies that manage and rent a property to generate rental returns, or buy pre-sale and have profit returns from the appreciation of the property. Capital appreciation refers to the increase in value of a property over time. You can benefit from urban growth, federal construction, new communication bridges, shopping centers, demand in the area, accessibility and much more.

In addition, Mexico’s privileged geographic location, close to the United States and Latin America, makes it attractive to international investors. On the other hand, there are challenges associated with buying property in Mexico, such as the complexity of legal processes and the need to follow government regulations. In addition, the real estate market can be volatile and subject to fluctuations in the future.

In summary, buying property in Mexico can be a good investment if you carefully consider your individual circumstances, follow a rigorous research process, and consult with real estate professionals for advice and support.

It is important to follow the following recommendations to successfully invest in real estate:

1. Define your total investment budget and/or partial payments.

2. Consider a reasonable horizon so that the capital gain matures and the profit gain is more advantageous.

3. Acquiring a property in pre-sale, guarantees between 15 to 30% discount and potentiates the return on investment.

4. Review the legal details of the Development and/or the property to be acquired.

5. Get good advice from a team of local real estate consultants and real estate investment experts.

6. Review the Real Estate Builder’s CV and background.

7. Invest to rent the property and have rental income, options such as the condo-hotel model.

8. Invest in areas with a vision of growth and tourist attraction.

Is it worth investing in Tulum?

This is a subjective question and depends on individual preferences and what a person expects from a place. However, Tulum is a popular tourist destination in Mexico, known for its beautiful beaches and combination of nature and luxury. Tulum has a wide variety of accommodation options, from luxury hotels, studios, apartments, villas or Airbnb pent-house, as well as dining options, activities and attractions.

Tulum ranks 4th on the list of the top 10 most popular destinations in the world in 2022 according to Tripadvisor. The hot destination category is for places that showed the largest year-over-year increase in a combination of positive Tripadvisor traveler reviews and ratings for accommodations, restaurants and things to do.

In addition, Tulum is a growing tourist destination, with a lot of real estate development underway. This may be attractive to investors interested in the real estate market or those looking for a place to live or invest in a place with great growth potential.

What makes Tulum attractive for investment is its exclusive tourism, it has become a favorite destination for travelers from all over the world, mostly from Europe and the United States, including public figures, influencers, VIPs, world travelers and much more. Most of the tourists come to experience the contact with nature, the eco-chic design of the buildings, the incredible views to the beach and especially to the Mayan Jungle. All this brings with it short, medium and long term growth, generating capital gains in the area and high returns on investment.

Quintana Roo is beginning a new stage of growth as never seen before, especially in Tulum; this year the Mayan Train, the Tulum Airport project, the Jaguar Park also in Tulum and the Mangrove Park in Puerto Morelos will be completed.

Also announced was the construction project of the Riviera Maya F1 Race Track, which will be world class and will have an investment of more than 3.7 billion dollars; it will be located in Puerto Aventuras, Quintana Roo, just 20 minutes from Tulum; it will cover an area of approximately 500 hectares. The project will have indoor and outdoor cenotes, glampling area, spa wellness retreat and yoga center, art garden, water park, immersive space inspired by the history of the Mayan world, light and sound show, driving academy, go-karts and 18-hole golf course.

In summary, Tulum is a growing tourist destination, today it already offers a wide list of options, both in gastronomy, accommodations and tourist attractions, however what is to come is even bigger, which brings with it guarantees of growth in real estate investment and therefore investment returns in capital gains and/or vacation rental earnings, for this and more Tulum may be worth it for you.

However, it is important to carefully consider individual preferences and expectations before deciding if Tulum is a good place to invest for you. Start by asking yourself the right questions to consider, based on your tastes and needs, such as:

– Do you want to invest in pre-sale to resell years later that the appreciation has increased the value of the property?

– Do you want to invest for vacation rentals with the support of a professional condo-hotel company that helps you manage and rent your property and you just wait for the profits generated without worrying about anything? This also means having a property for as many years as you want and keep generating profits year after year.

– How would you like to live for 6 months away from your home in the winter season?

– What kind of amenities would you like to have, how close do you want your property to be to the center of town, the beach, a quieter area or an urban area?

– If you are close to retirement and wish to live in a tropical environment, living an incredible experience close to the sea and the jungle leading a very quiet life.

For these questions and many more, Contact us and we will gladly help you to solve them and have all the answers for your next investment.