Is Tulum a good investment to make in 2023?
Tulum is one of the top high-rental-yielding beach towns in the world. Popular for real estate investors who want to invest at a fast pace.
Let’s answer all this for you.
Who Am I and why you should listen to my advice on investing in Tulum Mexico?
My name is Mark Kilpatrick and I help run Caribe Luxury Homes one of the fastest-growing real estate agencies in Riviera Maya Mexico. Last year we helped 124 investors from around the world invest over $25 million USD in the Tulum real estate market. And we have a team of experienced experts who help you find profitable investments in vacation rental properties in Tulum.
So everything you read about is based on real knowledge to help keep you up-to-date with the market and latest trends so you make a sound and informed decision on investing the right way in Tulum Mexico.
So let’s get into it.
Why Invest in Tulum Mexico Real Estate?
Most stock markets’ average yearly expected return is between 5.43% according to conducted reports (view graphic below). With most people planning on this investment to be for their retirement.
When you do the calculations and factor in yearly inflation rates (roughly -1.6% per year) then 6-7% drops to between 4.4% and 5.4%.
Why Tulum Mexico Real Estate is better than stocks
Real estate naturally goes against inflation. In fact, it consistently delivers better returns of 10.71% or more since 2000. Real Estate outperforms the stock market 2:1 since 2000.
That 10.71% is compounding making this more lucrative. That’s why real estate investors do much better and are more secure investors over a long period of time.
This is why many investors are putting their investment money into real estate rather than stocks.
It’s the smarter and the safer choice!
The Mexican Vacation Rental Market grew 3,165% from 2015 to 2019
A good sign of the strength of the real estate market in Mexico is the huge rise in the number of vacation rentals on the market.
Averaging a 633% increase over the past 5 years. In fact the sum of growth over 5 years is 3,165%.
Best Ways to Make Money on your Tulum Investment Property
The best way to make money from your Tulum Investment Property is through vacation renting your property.
Right now brand new condo-hotel developments in Tulum offer resort-style services and amenities, with a “Hands-off approach”.
What does this mean for our investors? It means that you don’t have to worry about anything when it comes to maintaining or profiting from your Tulum investment property.
All you have to do sit back, relax, collect ongoing rental income, and enjoy a Mexico vacation away from home with friends or family whenever you feel the urge (up to 30 days available for personal use – optional).
To get the maximum ROI possible you are best to buy pre-sale or pre-construction investment properties.
You can expect to be buying real estate at a 20% discount when buying early with investment property on pre-sale. If you wait and buy in the delivery stage you are likely to pay 20% more as the property is at the market price.
Buying pre-sale means sometimes means waiting for up to 2 years for the construction to be fully complete and ready for your property to go on the market and make you money.
Get Off-the-Market Tulum Investment Property Listings Today!
World Class Tourism in Tulum makes for High Occupancy rates all-year-around
In high season, Tulum vacation rentals and hotels experience occupancy rates of between 80 to 90+%. Why so high?
It’s no secret that Tulum is a very popular destination for tourists. In fact, the predicted percentage increase for Cancun airport tourist arrivals is expected to increase by around 6%. This number steadily grows every year.
In recent years Tulum has experienced occupancy rates as high as 72% in low season. This is world-class for anywhere and is considered a very good rate for low-season.
Price rates for low-season remain high for Hotels and vacation rentals. Charge up to $500 USD per night in the low-season months is fairly normal.
Your rental property can expect to experience a steady, high occupancy rate 365 days a year and a strong return on investment every year.
Make Money with your Tulum Investment Property
ROI for well-managed rental properties in Tulum is 10% and can be much higher. When you factor in the appreciation of Tulum property, the yearly increase of land value in the Tulum (around +8% per year) and pre-sale prices, then you see why Tulum investment property is a solid investment opportunity now and into the future.
What’s happening in the Vacation Rental Market in 2023
Riviera Maya Mexico sits in the state of Quintana Roo. Quintana Roo is the largest Vacation Rental Market in all of Mexico.
Playa del Carmen, Cancun, and Tulum are the main cities in the Riviera Maya.
But as an investor is now the time to invest in vacation rentals in Quintana Roo Mexico?
Yes. Right now is the best time to take advantage of the rising tourism in this region.
Quintana Roo Vacation Rental Market has grown by 50.39% within 2 years. This is from 2019 to 2021. And this is despite a pandemic sweeping the world and putting most vacation rental markets on hold.
The best place to invest in is Tulum and it’s clear to see why. As so far in 2022 the market has grown considerably.
The Tulum Vacation market has grown 66.2% from 2020 to 2021
Tulum has experienced the most growth in the region of Riviera Maya Mexico. It has grown 66.2% in just 1 year!
This is a huge amount of growth in a short period of time. In fact, growth accelerated during the pandemic as Tulum became a safe haven for travelers, digital nomads, and entrepreneurs.
Riviera Maya was one of the few places in North America that was open to travelers worldwide.
Tulum went from $106,705,400 USD vacation rental revenue in 2020 to $177,361,200 USD in 2021.
That is $485,921.10 USD being spent every day just on accommodation in Tulum.
Tulum’s Vacation Rental Market Forecast: Will we see a bigger boom in 2023 and beyond?
All statistics point towards an even greater lift in people visiting Tulum Mexico. The Mayan train is projected to be completed in 2023 – 24. With construction already underway starting in 2020.
The Mayan Train will boost Tourism in Riviera Maya by up to 300% say experts.
The Mayan train is predicted to boost tourism so much so that experts are predicting a double or triple rate of tourists visiting Riviera Maya every year.
Having a double to triple increase in tourism will drastically increase the demand for vacation rentals in Tulum.
More people will choose a vacation rental over the traditional resorts
Experts also predict a shift in behavior with more people opting to stay in vacation rentals rather than crowded resorts.
This makes sense as COVID-19 has created a natural tendency to be wary of crowded places with is ultimately what resorts provide.
Instead, people are most likely to adopt the trend of staying in vacation rentals instead which offer a private yet social environment with many benefits of a resort in terms of service and amenities on offer.
With the Mayan train being complete in 2 years’ time, it makes now the right time to invest in the vacation rental market.
Rather than leaving it until Mayan train is complete and the Tulum vacation rental market is booming.
In fact, statistically, Tulum will need to supply much more vacation rentals to keep up with the growing market demand.
It looks like in 2023 to 2024 the number of vacation rentals available will not be enough to supply the demand as the number of vacation rentals entering the market every year sit around 900 odd.
But in order to meet the demand, the number of vacation rentals constructed per year will need to be 5 times this rate.
However, there is expected to be a number of people placing their properties on Airbnb and VRBO as it becomes more lucrative to do so.
This means that anyone who invests in the Tulum vacation rental market is likely to increase the ability to charge premium prices.
In any market that has high demand with an undersupply owners can raise their daily charges and this looks to be extremely likely for Tulum.
But don’t expect to be able to buy a vacation property in Tulum at the prices they are right now. Because when the prices per night charged in the market go up, so too do the prices of the average property in Tulum.
That’s why the best time to take advantage of the Tulum Real Estate market is right now.
Find your Tulum Investment Property Today
We have access to soon to pre-construction Tulum Investment property deals that are high ROI condo-hotel’s . If you would like more information comment below or Click here to contact us today via our contact page.
Don’t Buy the Wrong Investment Property in Tulum
Buying a holiday rental can be very stressful. Finding suitable properties isn’t easy, there’s no search engine in existence that can quickly give you all the links to the properties you might have otherwise missed.
We offer a personal experience for you that allows you to discover Tulum investment properties based on your criteria. You tell us your budget, the type of investment properties you are interested in, and we advise you on these properties and offer you a selection of options.
We make buying real estate in Tulum easy for you by helping you navigate the finding of your investment property, advising you on the best offers on the Tulum market, and help you make an offer and secure your investment property. Click here to contact us now.
Discover Tulum Investment Properties Today!
Are you interested in an investment property in Tulum but don’t know where to start your search?
Most real estate agent wants you to see lots of properties and even fill out paperwork before they find the right property for you.
But our expert real estate agents will show you only the best investment property in Tulum that fit your lifestyle, and budget. And you don’t need to see lots of investment properties to find the right one, and you won’t spend much time filling out paperwork with us.
What are you waiting for? Explore the available Tulum investment properties that meet your budget now! Click here to begin.
Get the Best Tulum Investment Property Listings Today!
- Get Tulum Condo Listing for Under $300k. Click here.
- Click here to get sent the 10 Best Pre-Construction Properties for Sale in Tulum Mexico
- What Mexico Property Appreciates the Most? Click here to find out.
- Click here to Browse Tulum Properties for Sale
- How Tulum Green School Creates Massive Opportunity in Tulum Real Estate Market
- Is Buying Property in Mexico Safe? Click here.
- Why Forbes Says Tulum Is The Best City to Live in Mexico. Click here to find out.
- Follow these 5 Steps to Buy Property in Tulum Mexico.
- Looking for Tulum Real Estate Listings? Click here.
- 3 Big Reasons to Invest in a Tulum Vacation Rental in 2023