All the major beach towns in the Riviera Maya have continuously grown with tourists and expats wanting to call Mexico home. Latin American travelers still prefer the Riviera Maya as a place to travel to above most areas around the world. Travel companies in the region had over a 20% growth rate in tourism in 2017. Looking at the first quarter of 2018, it has risen to 35% growth. It is important that the economy stays stable and relevant to what tourists want. The economy also continues to work with businesses for supply and demand. This is also relevant for vacation rental investors. These figures are important to look at when deciding whether to invest in the area or not.
Important Economic Revenue from Tourism
Tourists are now booking their travel plans in advance. This is creating less congestion and making it easier on the companies in the Riviera Maya. People have wants and needs when they travel, and in order to fulfill them, booking in advance saves them time, money and frustration. According to the Riviera Maya Times, “the flow of visitors grew by 12%, to 39.9 million travelers and its economic impact climbed by 8.6%, to 21.3 million US dollars; SECTUR foresees Mexico in the seventh place of the world tourism ranking this year.”
The Bank of Mexico released data that shows the number of arrivals coming to Mexico has increased for six consecutive years. From a revenue standpoint, the numbers have grown for the past five years. This is great for businesses – including vacation rentals. The more demand, the cheaper the costs, and the greater the money that comes in. It’s a win-win situation for the travelers and the investor or business owner. Moreover, with the now-confirmed Cancun-Palenque train, more tourists will flock down to the region.
Real Estate Market on the Rise
The President of the Mexican Real Estate Association, Wilbert Gutierrez Alvarez, stated that “there is concrete data that shows 400 apartments are being built in the center of the city of Playa del Carmen.” He also highlights that the average value of these properties is about $150,000 USD. “So you are talking about $100 million dollars just in the center of Playa del Carmen,” he shared. Moreover, there are many other buildings being constructed in the residential housing market in surrounding areas. This puts today’s value at just over $200 million USD.
There is no doubt that tourism in the Riviera Maya will remain a hot topic for many years to come. Places like Tulum, Cancun and Playa del Carmen are growing in popularity and there are no signs of stopping. Often, you will see Tulum and Playa del Carmen listed in top-ten lists of best places to live, best beaches to explore and retirement hotspots. Despite the concern for violence in the Riviera Maya, people are and feel safe in the region. With the low peso compared to the dollar, this is a great potential for investors looking to purchase property in the Riviera Maya. You will get more bang for your buck and can rent it out. Especially with the growth in tourism.
And remember, at Top Mexico Real Estate…we make it happen!