Looking to own your own Caribbean vacation property? How about one bringing in solid year-round passive income? And what of creating unforgettable memories alongside loved ones and friends at the hottest social venues and grandest archaeological sites? In a market of great real-estate appreciation! With Mexican hospitality to boot!
All this is the ancient Maya city of Tulum, meaning “wall” in the Maya language. 19th-century explorers used the name for the newly-discovered walled city, which had its heyday from the 13th to the 16th century as a key commerce hub along the Caribbean. Today, enter Tulum’s archaeological zone and experience the thrill of finding yourself amid incredible indigenous sites, with a breathtaking expansive turquoise view, due east, of a glorious sea!
The Mexican government began investing in developing the Riviera Maya, Mexico’s gorgeous Caribbean coastline, back in the ‘70s, with Cancun becoming the crown jewel; since then, other spots have come alongside, such as Playa del Carmen and Cozumel, forming the hopscotch tourist havens that have dazzled and catered to millions of national and foreign visitors, helping make Mexico the world’s fourth tourism destination in 2023, ranking first among all Latin American countries.
This is also in no small measure to Tulum, the new gem on the Mexican Caribbean crown. So the good news, dear friend, is that Zamá, meaning “dawn” and another name for Tulum, has only in the last twenty years become a new focus of development, thus offering a unique investment opportunity as well as a whole new vacation experience compared to the hustle and bustle surrounding the Cancun epicenter.
Tulum is also eco-friendly, and offers a wealth of property purchase options such as townhouses, villas, bungalows, single-family homes, condos and hotel condos. We at Happy World Homes, in association with global realtor eXp, offer you every imaginable option in the latter, as our main connections to Zamá are with developers and agents marketing and listing units large and small in some of the world’s most chic developments now standing or soon to open.
Bear in mind that Mexico’s recently retired President, Andrés Manuel López Obrador, made it a priority during his six-year term to uplift the mostly-neglected south of the country, finishing two key projects in, one, the fantastic Maya Train, now spanning the Riviera Maya and connecting Cancun’s airport with Tulum; and, two, Tulum’s own international airport, located just 1.8 miles (3 kilometers) from the Maya Train Airport Station. This exciting new tandem allows wide-eyed tourists to land in Tulum and hop on board rails-away towards all of southern Mexico’s jungle and archaeological treasures across all of five states! Mexico is all yours.
While Cancun and neighboring mainstays – with all their nightclub life and beach-bum glut – have been partially beset by the challenges any such universal tourism hub faces, Tulum, nestled 81 miles (131 kilometers) south along the coast, provides many more smaller and quieter places to stay, reside and shop – in close proximity with lush jungle and indigenous landmarks – yet taking no backseat to any spot on the entire Riviera Maya for dramatic nightlife and amazing world-class shopping.
Which brings us to a fascinating glimpse at hotel-condo purchasing and pay-off.
Right now there is a Tulum construction furor. Among it all, prestigious developers are raising up top-end hotel complexes offering for sale rental units ranging from your one-bedroom studio apartment to the sprawling penthouse. Prices are comparatively lower than elsewhere in the region on account of pre-sale terms going from 10% to 100% down at these expansion or brand-new projects, in a buyer’s market where an agent with good hands will lead you to a handsome investment opportunity.
Overall, the occupancy rate for vacation rental properties in Tulum ranges from a low of 40% to a high of 85%. Hotel units are administered by professional rental management companies, which are a buyer’s associate and take care of every step involved in keeping the unit in regular occupancy and consistently good condition year-round. For a 20% to 30% charge, all the owner need do is set up a wire-transfer bank account to smoothly receive regular rental proceeds, and schedule those unit-usage dates on the calendar entirely of his or her own choice.
At the present time, you can expect to get around 4% or 5% of ROI during the first year. For the second year, your ROI may rise up to 6% to 7%, based on right rental management. After the third year, your vacation rental ROI may be 9% or 10%, with constant good marketing and service. Again, in the reality of the numbers, a 10% ROI is perfectly feasible once the property has been promoted for three years, having gained returning customers and become positioned with positive reviews ranking it on the most popular platforms.
A one-bedroom condo rents during low season for around USD$60 per night; average occupation is 18 nights a month. During high season, the rate is around USD$100 per night, and the average occupation is 24 nights a month.
A two-bedroom condo rents during low season for around USD$160 per night; average occupation is 15 nights a month. During high season, the rate is around USD$350 per night, and the average occupation is 20 nights a month.
A three-bedroom condo rents during low season for around USD$210 per night; average occupation is 15 nights a month. During high season, the rate is around USD$400 per night, and the average occupation is 20 nights a month.
Here is more information you may find useful:
The most profitable investment properties for short-term rentals tend to be the bigger units, like three- or four-bedroom penthouse units, or stand-alone homes of four or more bedrooms. All in all, there seems to be a niche of clients seeking larger rental properties offering all the benefits of privacy, luxury and comfort. These are people who do not wish to mix with the crowd, and do not like to be subject to the restrictions or rules that apply in a condo building. Instead, they desire full control and complete intimacy, and they are willing to pay a higher price.
The segment of larger properties with more than two bedrooms has the least competition compared to one- or two-bedroom condos.
There are fewer private homes than new condos for sale in Tulum.
A rental hotel condo will not pay for itself. However, in good time, and because of Tulum’s excellent annual appreciation rates, now ranging from 7% to 15%, your unit will continue to increase in value, and it will become, years down the road, should you wish to sell, one of the better investment returns for your money.
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