{"id":646,"date":"2009-11-10T23:49:18","date_gmt":"2009-11-11T04:49:18","guid":{"rendered":"https:\/\/www.topmexicorealestate.com\/temp-blog\/?p=646"},"modified":"2009-11-10T23:49:18","modified_gmt":"2009-11-11T04:49:18","slug":"playa-del-carmen-real-estate-history-of-market-trends-in-past-10-years","status":"publish","type":"post","link":"https:\/\/www.topmexicorealestate.com\/blog\/2009\/11\/playa-del-carmen-real-estate-history-of-market-trends-in-past-10-years\/","title":{"rendered":"Playa del Carmen Real Estate History of Market Trends in Past 10 years"},"content":{"rendered":"

I had put up an article in a magazine about two months ago and thought it would be good to share with the readers of our TOP Mexico real estate<\/a> blog.\u00c2\u00a0 Here is the article below.\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 The Riviera Maya and Playa del Carmen real estate <\/a>market have had some of the world\u00e2\u20ac\u2122s most interesting\u00c2\u00a0growth rates and fascinating examples of regional trends.\u00c2\u00a0 Mexico homes<\/a> and\u00c2\u00a0condos have\u00c2\u00a0had\u00c2\u00a0continuous increases in demand but those in Quintana Roo have grown the strongest.\u00c2\u00a0\u00c2\u00a0 During the 1990\u00e2\u20ac\u2122s the little village was known as the pier town where you grabbed the ferry to get to Cozumel.\u00c2\u00a0\u00c2\u00a0 Now, during this decade, this little village has become more intertwined with the international business world, and consequently, adjustments to the real estate market have been witnessed from the direct effects of the world economic downturn.\u00c2\u00a0 The loss of jobs and loss of corporate sales in the economies of the United States and Canada have reduced the number of buyers here in Mexico.\u00c2\u00a0 The bankruptcy of several international banks on the world wide scene has also tightened the regulations on credits and the amount of available capital for investments.\u00c2\u00a0 These and other economical occurrences have had a decrease effect on the demand here in the\u00c2\u00a0Playa del Carmen real estate<\/a>\u00c2\u00a0market place, but interesting\u00c2\u00a0Mexico mortgages<\/a>\u00c2\u00a0for real estate buyers have also been introduced in greater varieties from bank institutions and creative transaction models from seller-financed sales are becoming more common.\u00c2\u00a0 With economic turbulence, also comes opportunity.\u00c2\u00a0 Surrounding yourself with regional-market-intelligent Mexico real estate agent<\/a>\u00c2\u00a0 experts<\/em><\/strong> is the first important step towards a safe Mexico real estate acquisition and profitable investment, and this recommendation is even more prudent during times of market adjustments.<\/p>\n

\"\"<\/p>\n

Back in the 1980s and 90s Playa del Carmen was not THE destination, it was the Pier village where you picked up the ferry in order to get to Cozumel.\u00c2\u00a0 This soon changed as people began to notice Playa del Carmen\u00e2\u20ac\u2122s beaches and its growing international community.\u00c2\u00a0\u00c2\u00a0European backpackers began frequenting the area and the 5th avenue began to make a name for itself.\u00c2\u00a0\u00c2\u00a0 Hotels and investors began to notice the potential of the area quite quickly.\u00c2\u00a0 Hotel room inventories grew from 10,000 units up to 15,000 – 20,000 by the later 1990s.\u00c2\u00a0 Today, the Riviera Maya hotels have more rooms than Cancun.\u00c2\u00a0 With the tremendous growth in various industries in Playa del Carmen, the population\u00c2\u00a0boom began and the real estate market began taking off.\u00c2\u00a0<\/p>\n

Over the past five years, Playa del Carmen has been one of Mexico real estate\u00e2\u20ac\u2122s strongest appreciation markets with returns\u00c2\u00a0in\u00c2\u00a0the double digits.\u00c2\u00a0 During the\u00c2\u00a0first years of the\u00c2\u00a02000 decade, many investors would purchase pre construction condo units and sell them\u00c2\u00a08 or 12 months later with 30% or more appreciation.\u00c2\u00a0 It was a boom all over the coast.\u00c2\u00a0\u00c2\u00a0In the middle of this decade,\u00c2\u00a0it was quite common to hear buyers comment, \u00e2\u20ac\u0153I should have bought that property 2 years ago when I first saw it!\u00e2\u20ac\u009d\u00c2\u00a0<\/p>\n

These\u00c2\u00a0observations\u00c2\u00a0from\u00c2\u00a0the buying market in 2006-2008 were also accompanied by a\u00c2\u00a0decline on the\u00c2\u00a0appreciation rates.\u00c2\u00a0 Each year, as the price per square meter crept upwards, the rate of\u00c2\u00a0appreciation began losing some steam as the world economic engine began skipping some beats.\u00c2\u00a0<\/p>\n

2008 and spring of 2009 brought a unique\u00c2\u00a0occurrence to this regional\u00c2\u00a0marketplace.\u00c2\u00a0\u00c2\u00a0The recession from the northern neighbors brought its first effects onto the Riviera Maya\u00c2\u00a0 market place\u00c2\u00a0and in the Mexico real estate\u00c2\u00a0industry.\u00c2\u00a0 The appreciation rates had flattened and begun to drop slightly.\u00c2\u00a0 Large amounts?\u00c2\u00a0 NO, \u00c2\u00a0but very interesting amounts.\u00c2\u00a0<\/p>\n

Some people like to say that the glass is half empty; but not the smart investor.\u00c2\u00a0 The current\u00c2\u00a0scenario in Riviera Maya presents some fantastic opportunities for the investor who is open to options from professional and market-intelligent real estate experts.\u00c2\u00a0 Mexico financing\u00c2\u00a0 <\/a>is becoming more common when purchasing real estate here in Mexico.\u00c2\u00a0 Large multi-national banking institutions that weathered the fall out of the financial crises remain in the market offering their mortgage products to non-Mexicans buying properties in this country.\u00c2\u00a0 Some of these lenders have made recent adjustments to their requirements such as lowering the LTV ration from 70% downwards to 65%.\u00c2\u00a0 Also the FICO scores might have increased in the spring of 2009 in order to reduce risks and to approach this year slightly more conservatively.\u00c2\u00a0 If qualified, these financing options can create some interesting opportunities for investors ready to take advantage of market pricing that is adjusting downward.\u00c2\u00a0 Developer and home owner financing options are increasing as well.\u00c2\u00a0 Some of these home owner deals can be very attractive with interest rates equal or quite similar to the rates commonly seen from our home countries.\u00c2\u00a0 However, such offers need close professional review of the conditions in order to protect monies, to protect the property, and to protect all parties involved in such transactions between non-financial entities.\u00c2\u00a0 Certain contracts and bank trusts can be established giving ample protection and security to both the buyer and seller allowing for immediate physical possession while a percentage of the commercial value of the property remains outstanding.\u00c2\u00a0 Many people feel that the time to invest into the Riviera Maya market has passed and it is too risky given the world economic conditions.\u00c2\u00a0 However, this is an interesting period for investment with high potential, if you are able to hedge yourself with qualified and top experienced advise.<\/p>\n

\u00c2\u00a0In fact, when reviewing the factors on some investment alternatives in the market it can be noted that 2009 is an even healthier market\u00c2\u00a0for investment purposes\u00c2\u00a0than the investment environment\u00c2\u00a0originally witnessed during the beginning of the years 2000.\u00c2\u00a0 At the beginning of the Great Appreciation Boom of Playa del Carmen, there were still many risks in the market, there was the risk of new developers\u00e2\u20ac\u2122 lack of experience, risk of the poor reaction and acceptance of the buying market, risk of the unknown infrastructure development to support the construction growth.\u00c2\u00a0\u00c2\u00a0 Today, investors have first hand, regional real estate history data.\u00c2\u00a0 The market absorption and projections are based more on historical facts and data rather than a guessing game or correlating future results based on similar marketplaces from other regions.\u00c2\u00a0 Risks\u00c2\u00a0within investment alternatives can also be managed with the assistance of a well chosen team of regional experts.\u00c2\u00a0 Purchasing finished products, versus the unknown\u00c2\u00a0results of investing within a new construction might be an example of strategies to take advantage of the current market conditions. \u00c2\u00a0These first hand facts and historical results give you and your consultant better data to manage your investments and increase your probabilities of strong returns.\u00c2\u00a0<\/p>\n

The probabilities of continued long term growth are strong in favor of the real estate investor when purchasing properties in the Riviera Maya.\u00c2\u00a0 Obviously there is a short term downturn.\u00c2\u00a0 But as this article\u00c2\u00a0discusses, if you are able to surround yourself with TOP-knowledge and experienced advice, the summer of 2009 can present\u00c2\u00a0some incredible and unique\u00c2\u00a0real estate opportunities.\u00c2\u00a0 For those who missed the appreciation wave of the early 2000s, this is your \u00e2\u20ac\u0153Second Chance\u00e2\u20ac\u009d to enter into the market before the next wave.<\/p>\n

Thomas Lloyd <\/strong>graduated from Purdue University Krannert School of Management with a degree in Management\/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree <\/strong>and Mexico Professional Real Estate License<\/strong> S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at <\/em>(512) 879-6546<\/span><\/strong> or through the company’s web site<\/em> www.TOP<\/span>mexicorealestate.com<\/a> NETWORK
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I had put up an article in a magazine about two months ago and thought it would be good to share with the readers of our TOP Mexico real estate blog.\u00c2\u00a0 Here is the article below.\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 The Riviera Maya and Playa del Carmen real estate market have had some of the world\u00e2\u20ac\u2122s most interesting\u00c2\u00a0growth rates […]<\/p>\n","protected":false},"author":2,"featured_media":13659,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[77,270,315,236,376,70],"tags":[108,1539,109,1526],"class_list":{"0":"post-646","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-how-to-buy-real-estate-in-mexico","8":"category-mexico-cities","9":"category-mexico-economy-living-in-mexico","10":"category-mexico-homes","11":"category-mexicorealestateagents","12":"category-playa-del-carmen-real-estate","13":"tag-mexico-financing","14":"tag-mexico-homes","15":"tag-mexico-mortgages","16":"tag-playa-del-carmen-real-estate","17":"entry"},"_links":{"self":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/comments?post=646"}],"version-history":[{"count":5,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/646\/revisions"}],"predecessor-version":[{"id":656,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/646\/revisions\/656"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media\/13659"}],"wp:attachment":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media?parent=646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/categories?post=646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/tags?post=646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}