Playa del Carmen is one of the tourist destinations in Mexico that has grown the most in recent years.
White beaches, nightlife and the cosmopolitan vibe have enchanted both foreigners and Mexicans tourists -and potential inhabitants.
And this has not gone unnoticed by the Mexican government. In February of this year alone, authorities announced an investment of 600 million pesos to reinforce economic growth in Mexico’s southeast.
The Riviera Maya, Tulum, Merida and Playa del Carmen have been developing their economic potential thanks to their natural beauties which attracts visitors. Also, the great quality of life of people in the Yucatan Peninsula is something more and more people are taking into account for retirement.
One thing that most attracts foreigners is the possibility of acquiring real estate in areas with high surplus value.
One of the reasons to invest in Mexico that foreign investors most agree is the possibility of acquiring residences in areas with very high surplus value at relatively cheap prices, compared to property prices in Canada, Europa or the United States -some of the home countries of investors and tourists who visit Mexico and fall in love with their culture, cuisine and possibilities-.
A house in Playa del Carmen may be more beneficial and affordable than a residence in areas like Los Angeles or Florida: thanks to the popularity of Playa del Carmen, your property will be in an area with high surplus value and you can generate extra income if you decide to rent it.
People who want to retire in Mexico are attracted by the lower cost of living and great quality of life. As mentioned in ‘Moving from Canada to Mexico in an easy way’, in addition to insuring your money, early real estate investment allows you to generate extra income, especially if you buy your property before retirement.
That is why some investors choose to buy properties to generate money while they are not inhabited. For example, some Canadians spend the summer season in their home country while renting their property or apartment, but return to Mexico to avoid the cold of winter.
But extra income is not the only reason for more and more people to invest in real estate.
You don't need to go to business school to be a successful investor, but you need to analyze the real estate market in the long term.
One of the most frustrating things for first-time real estate investors is that return on investment may not be immediate, but this does not mean that an investment is not worth it. On the contrary, property value increases over time and this does not depend entirely on the property itself, but on the surplus value of the area where it is located.
Location is one of the most important things you need to prioritize before investing in a house, apartment or lot, since it will influence property value.
And speaking of the future, do you know why investing in real estate is considered one of the 5 safest investments you can make in your life?
One of the advantages of investing in real estate is that it is a way to protect your money from inflation. A property is a tangible asset, so it is protected from devaluation. In addition, real estate value is determined in dollars, which serves as insurance for investors who are still afraid to invest in Mexico, where the currency is the Mexican peso.
And as you know, time is a good ally. Merida, the Riviera Maya, Tulum and Playa del Carmen are perfect examples of how surplus value of an area can grow over time. In the last decade alone, Yucatan Peninsula has become reference in tourism, investment and sustainable growth.
Everything in real estate is about the location of a property, that is why one of the key factors to invest in Playa del Carmen is that the city is part of the famous Riviera Maya.
The Riviera Maya is the name of the geographical region located on the shores of the Caribbean Sea. It has a total of 120 km of extension and you have probably heard about it since it is the most important tourism site in our country.
Did you know that the Riviera Maya is the most important and recurring point for meetings in Latin America? Yes, several international events are held in the region.
The natural attractions in the Riviera Maya have no comparison in Mexico: clear water beaches to relax, the Mayan jungle to live adventures, cenotes, to name a few.
In the case of Playa del Carmen, its location in the Riviera Maya has made it one of the most exclusive and important cities in the region.
One of the most characteristic features of Playa del Carmen is the large number of shops, restaurants, and entertainment centers. The 5th Avenue has a distance of more than 40 km that runs along the coast of the beach.
No type of transport is allowed –skates, bicycles, cars, etc–, which gives tourists the opportunity to explore the local culture just a few steps from the beach.
If you are thinking of investing in Playa del Carmen, you need to know that the 5th Avenue is the area with the highest capital gain in the city.
Tourism is the main reason of the increased growth of both Playa del Carmen and the Riviera Maya. Since the area is full of biodiversity and beautiful beaches, the Riviera Maya has won the hearts of both Mexicans and international visitors who spend their vacations in the Caribbean coasts.
It is considered one of the 20 best tourist destinations in the world along with cities such as London, Paris, Italy and Dubai.
Playa del Carmen is a cosmopolitan city: there are many luxury shops, restaurants, bars, entertainment centers and activities. The 5th Avenue is the main area of the city where you can enjoy life at its fullest.
That is why Playa del Carmen is also the ideal city for young adult tourists, especially for those who want to enjoy vacations for couples, and even celebrate weddings.
Only in 2018, destination weddings in the Riviera Maya grew by 7%, and more than 14,000 weddings were held in Playa del Carmen, a very popular destination.
This is a very important indicator for investors who want to acquire a property and generate extra income -something that is even easier thanks to apps like Airbnb-. Tourists not only want to rest, they want to explore the city and enjoy as if they were locals. That is why the 5th Avenue has become one of the most important areas for investment in Playa del Carmen.
The influx of tourism is a main indicator for investors; especially for those with rental properties.
As we explained before, when studying the tourist phenomenon in the Riviera Maya and Playa del Carmen, what is most impressive is the growth of the area. The unique natural attractions of the Caribbean were a key factor for the consolidation of Playa del Carmen as one of the most exclusive and instagrammable destinations in the world.
Currently, local authorities seek to improve urban mobility, so that inhabitants improve their quality of life.
Did you know that Playa del Carmen is the second largest district in Mexico? Playa del Carmen is one of the fastest growing cities in Latin America, and not only in terms of population growth.
According to the Nacional Chamber of Commerce, Services and Tourism (CANACO), there are 9,000 affiliated business and 72.2% of them are ran by micro-entrepreneurs.
So Playa del Carmen is not only an ideal destination, but it is also a perfect place to invest and open business. Soon-to-be expats see in Playa del Carmen the opportunity to open a business: from restaurants and bars to boutiques and of course, accommodation services.
In order to be a successful real estate investor, you need to think about real estate acquisition for what it is: an investment.
Location and surplus value are the most important things you need to consider when investing in real estate. It does not matter if you are buying an apartment in Playa del Carmen or a residential lot in Merida: Location determines property value and that is why residences in areas with high surplus are worth more.
Whether you want to rent or resell the property, location is important to know if the investment will be worth in the long run. For example, people who bought apartments on 5th Avenue about 5 years ago made a good investment because property value is higher than before. This way, owners not only protected their money from inflation, but their investment continues to increase.
For many foreigners, investing in Mexico is a golden opportunity: acquiring properties with high surplus value is more affordable than in their home countries.
In the end, the relationship between surplus value and property price is more beneficial for investors, since they acquire a property in areas that offers them the opportunity to recover their investment, generate extra income and grow even more with the step weather. And so, not only foreigners are taking advantage of this opportunity.
Mexicans from the center and north of the country find in southeast the possibility of creating an investment portfolio that allows them to retire sooner and secure the future of their family.
Do you know why Playa del Carmen is one of the favorite destinations for expats? The possibility of leaving near the beach, surrounded by Mexican culture - as well as a great diversity of options for entertainment- is part of which expats see in Playa del Carmen the best option for retirement.
And the quality of life in Playa de Carmen has no comparison: you can enjoy all the attractions of a big city and enjoy the beach.
For Mexicans, Playa del Carmen is a place where they can improve the quality of life, mainly because wages are paid in dollars, the currency used in the local economy. Paying groceries in dollars may seem impressive for some Mexicans, but for the residents of Playa del Carmen this is common.
That is why the city is growing: with the arrival of tourism, job opportunities have increased and with that, salaries and entertainment options have improved
And as we told you in the previous sections, Playa del Carmen is ready to create better infrastructure for both its residents and visitors.
Without a doubt, investing in Playa del Carmen is an opportunity you should not miss, especially if you want to invest in an area with steady growth, high capital gain and many possibilities to generate extra income with rental homes.