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.
But how do you make money on your Tulum Investment Property? And what makes Tulum Properties one of the best investments? And is now the right time to invest in Tulum?
Let’s answer all this for you.
Why Invest in Mexico Real Estate?
Buying real estate in Tulum is one of the best investments right now, with luxury condos in Tulum beating the stock market with an 8-15% return on investment on average.
Most stock market’s 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 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 smarter and the safer choice!
Get Tulum Condo Listing for Under $300k. Click here.Click here to Get Tulum Property Listings for Under $150k USD.
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
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. Infact, 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.
Looking for Luxury Tulum Properties in Aldea Zama? Click here.
What’s happening in the Vacation Rental Market in 2021
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 2021 the market has grown considerably.
Tulum Vacation market has grown 66.2% from 2020 to 2021
Tulum has experienced the most growth in the region of Riviera Maya Mexico. Its has grown 66.2% in just 1 year!
This is a huge amount of growth in a short period of time. Infact growth accelerated during the pandemic as Tulum became a safe haven for travelers, digital nomads and entrepreneurs.
Riviera Maya was one of the few place 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 (and the year has not end – this number should rise even further).
That is $485,921.10 USD being spent everyday just on accomodation in Tulum.
Tulum’s Vacation Rental Market Forcast: Will we see a bigger boom in 2022 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.
The Mayan Train will boost Tourism in Riviera Maya by up to 300% says 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 demand for vacation rentals in Tulum.
Click here to read more about the Mayan train.
More people will choose vacation rental over the tradition resorts
Experts also predict a shift in behaviour with more people opting to stay in vacation rentals rather than crowded resorts.
This make 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 offers 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.
Infact, 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 rental 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 mean 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 under supply 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 goes up, so too do the prices of the average property in Tulum.
Thats why the best time to take advantage of the Tulum Real Estate market is right now.
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!