The real estate market today is an international affair. Previously, buyers were limited to buying property only in their state or country. Today’s investors travel the world looking for opportunities to own property. One of the most sought-after destinations for purchasing property is Mexico’s Riviera Maya and Yucatan Peninsula. In addition to its white-sand beaches and turquoise Caribbean waters, the region has near-perfect climate year-round, making it an investor’s dream. So, what is the future of the Riviera Maya real estate if it’s already booming?
Years of Steady Growth
According to several regional and national publications in and around the Playa del Carmen and Riviera Maya area, the residential developments outweigh the commercial sector. Authorities consider the area a tourist destination. However, visitors are now residents. The largest planned development in the area, for example, is Playacar. It shares its perimeters with several brand name resorts, which are far outnumbered by the privately-owned residential structures. This is not to say that commercial growth isn’t happenin. It’s just not growing as rapidly as the real estate in the area.
Since the mid-70s and early 80s, the Riviera Maya has steadily grown in double-digit figures. The once small fishing village of Playa del Carmen has become Mexico’s fastest growing city. With an annual growth rate of approximately 4.6%, the demand for housing has skyrocketed beyond belief. Not only investors, but individuals and families are taking advantage of the opportunity to purchase property in the region. This creates and off-center of supply and demand – more demand than supply, which will, in turn, create an ROI (return on investment) much quicker than anticipated.
Where is the Riviera Maya real estate headed?
This brings us back to our original question. What is the future for the Riviera Maya real estate market? The more demand there is, the higher the prices will go. You can guarantee supply will be back logged with pre-sells at premium prices when you have a destination where everyone wants to be. The United States is expecting its largest retiring generation, the baby boomers, to come of age. They will be ready to spend their hard-earned savings and retirement money. Baby boomers are looking for places where they can vacation and/or semi-retire to, while earning a passive income or profit. We call them snowbirds.
The Riviera Maya’s property explosion has allowed the local government(s) to build and support a modern infrastructure that includes water and sewage, a reliable power grid, and an interstate roadway that supports the region’s rapid growth. It also promotes entrepreneurship in the retail and service industry. When you have economic growth, you create a middle-class society. The most consuming class of people who purchase locally-produced goods and services is this particular segment.
Invest Today
There are still plenty of deals on virgin land, in progress and ready-made structures. Investors should not overlook the opportunity to get in on the ground floor, however, because this will not last forever. If the growth rate maintains its upward climb, five years from now you won’t even come close to the prices you are seeing today. So, get your foot through the door right now, because the future of the Riviera Maya real estate is today.
Check out our currently listed properties in Tulum, Playa del Carmen and the Riviera Maya to find the perfect investment opportunity. Come in first and profit from the unstoppable growth of the area.
And remember, at Top Mexico Real Estate…we make it happen!