Are you considering investing in Mexico’s booming real estate market? If so, you’ve likely heard of Tulum and Los Cabos, two of the hottest destinations for real estate investment in the country. But which one is the better option for you? In this article, we’ll compare the real estate market in Tulum vs Los Cabos and help you make an informed decision.
Property Price: Tulum vs Los Cabos
Let’s start with the most important factor for many investors: price. Tulum’s real estate market is generally more affordable than Los Cabos. While both markets offer luxury properties, Tulum tends to have a larger inventory of mid-range and affordable options. This makes it a more accessible market for first-time investors or those on a tighter budget.
On the other hand, Los Cabos is known for its high-end luxury resorts and properties, which can come with a higher price tag. If you’re looking for a luxury property in a prime location, Los Cabos may be the better option for you. However, keep in mind that the higher price point may also limit your potential buyer pool in the future.
Best Growth Potential: Tulum or Los Cabo?
Both Tulum and Los Cabos are experiencing rapid growth and development, but Tulum is currently seeing a higher rate of growth. Tulum’s real estate market has exploded in recent years, with new developments popping up all over the region. The town’s popularity has skyrocketed thanks to its beautiful beaches, eco-friendly vibe, and relaxed atmosphere. As a result, property values have been steadily increasing, making it an attractive market for investors.
Los Cabos is also seeing growth but at a slightly slower pace. The region has long been a popular vacation destination for the wealthy, and its reputation as a luxury destination continues to attract investors. However, some experts predict that the market may be reaching its saturation point, which could impact future growth potential.
Tulum is positioned as having the best growth potential for investment compared to Los Cabos.
Most Popular Tourism Destination: Tulum or Los Cabos?
Both Tulum and Los Cabos are popular tourist destinations, but they attract different crowds. Tulum has a more laid-back, bohemian vibe, with a younger, more eco-conscious crowd. The town has a strong focus on sustainability, with many businesses using locally sourced, organic products. This eco-friendly approach has helped Tulum stand out in a crowded market and attract tourists who are looking for a more authentic and sustainable vacation experience.
Los Cabos, on the other hand, is known for its luxury resorts and high-end dining options. It attracts a more affluent, older demographic who are looking for a luxurious, all-inclusive vacation experience. While the town has made efforts to diversify its offerings and appeals to a broader audience, it’s still primarily known for its luxury properties and high-end amenities.
According to Mexico’s Ministry of Tourism, both Tulum and Los Cabos are popular tourist destinations, but they attract different types of travelers. Here are the latest visitor statistics for each destination:
Travel Statistics for Tulum:
In 2019, Tulum welcomed 3.8 million tourists, a 7.8% increase from the previous year.
Of those visitors, 62% were international travelers, with the top countries of origin being the United States, Canada, and Europe.
The town has seen a significant increase in tourism in recent years, with visitor numbers growing from around 1 million in 2013 to almost 4 million in 2019.
Travel Statistics for Los Cabos:
- In 2019, Los Cabos welcomed 3.7 million tourists, a 5% increase from the previous year.
- Of those visitors, 86% were international travelers, with the top countries of origin being the United States, Canada, and Mexico.
- Los Cabos has long been a popular destination for tourists, with visitor numbers growing steadily over the past decade. However, some experts suggest that the market may be reaching its saturation point, which could impact future growth.
It’s important to note that these figures are from 2019, prior to the COVID-19 pandemic, as of 2023 these numbers should higher now.
Both Los Cabos and Tulum are popular destinations for international travelers in Mexico. However, both attract different people. Los Cabos attracts high-end luxury resort visitors while Tulum attracts the eco-friendly bohemian type of visitor.
Best Rental Potential: Los Cabos or Tulum?
If you’re considering investing in real estate in Mexico, one of the most important factors to consider is rental potential. Both Tulum and Los Cabos offer good potential for rental income, but which one is the better option for you? In this article, we’ll compare the rental potential of Tulum and Los Cabos and provide real-world examples to help you make an informed decision.
Rental Potential in Los Cabos, Mexico Compared to Tulum, Mexico
Los Cabos has a well-established tourism industry and is known for its luxury resorts and high-end amenities. This makes it an attractive destination for affluent travelers, who are often willing to pay a premium for a luxury vacation experience. For example, a four-bedroom villa in Los Cabos’ exclusive Villas del Mar development can fetch over $10,000 per week in high season.
The town’s reputation as a luxury destination means that there’s a high demand for rental properties that offer a similar level of luxury and amenities. If you’re investing in Los Cabos, it’s important to focus on properties that offer a unique selling point and cater to the needs of high-end travelers. For example, a villa with a private pool, ocean views, and access to a nearby golf course may command a higher rental rate than a standard condo in a less desirable location.
Rental Potential in Tulum, Mexico Compared to Los Cabos, Mexico
Tulum is a newer market compared to Los Cabos, but it’s quickly becoming a popular destination for vacation rentals. Its eco-friendly approach and authentic atmosphere have helped it stand out in a crowded market and attract travelers who are looking for something different. As a result, rental properties in Tulum can still offer good potential for investors, especially those who are willing to focus on mid-range or budget properties that appeal to a broader audience. For example, a two-bedroom condo in Tulum’s Aldea Zama development can rent for around $2,500 per week in high season.
Which place is better for investment? Los Cabos or Tulum?
Both Tulum and Los Cabos offer good potential for rental income, but they attract different types of renters. Los Cabos is known for its luxury properties and high-end amenities, which make it an attractive destination for affluent travelers. Tulum, on the other hand, offers a more laid-back, bohemian vibe and appeals to a younger, more eco-conscious crowd.
If you’re looking to invest in real estate in Mexico, it’s important to consider your personal preferences and investment goals. If you’re focused on high rental income, Los Cabos may be the better option if you’re targeting high-end travelers. However, if you’re looking for your first rental purchase in Mexico with a great rental income potential then Tulum may be the better option for you.
Tulum’s growing popularity means that there’s a high demand for vacation rentals in the region.
Better Resale Value: Los Cabos or Tulum?
When it comes to resale value, both Tulum and Los Cabos have good potential for appreciation, but Tulum may offer a higher return on investment due to its current rate of growth and relatively low prices compared to Los Cabos. Tulum’s real estate market has been growing at a rapid pace, and experts predict that the trend will continue in the coming years. As the town becomes more popular and attracts more investors, property values are likely to rise, providing a good opportunity for those looking to sell their properties in the future.
Los Cabos also has good potential for appreciation, especially for high-end properties in prime locations. However, the market may be reaching its saturation point, which could limit future growth potential. As a result, investors who are looking for long-term appreciation may want to consider Tulum instead.
Tulum has the best potential for resale as it’s growing faster than Los Cabos.
The Best Place for Real Estate investment in Mexico: Los Cabos or Tulum?
Both Tulum and Los Cabos offer attractive options for real estate investment, depending on your budget and investment goals. Tulum is a more affordable market with a higher rate of growth and a younger, more eco-conscious crowd. It’s a great option for investors who are looking for a more accessible market with good potential for appreciation.
Los Cabos, on the other hand, is known for its luxury properties and high-end amenities. It attracts a more affluent, older demographic and has good potential for rental income and resale value. If you’re looking for a high-end property in a prime location, Los Cabos may be the better option for you.
Ultimately, the choice between Tulum and Los Cabos comes down to your personal preferences and investment goals. Both markets offer good potential for investors, and with the right research and guidance, you can make an informed decision that aligns with your investment strategy.
Click here to chat with a qualified real estate agent to talk about investing in the vacation rental market in Mexico at no obligation.
