Vacation rental market analysis in the Riviera Maya, Mexico

Are you considering investing in vacation rentals in the Riviera Maya? Great! We've prepared a market analysis real estate for the main cities in the region, including potential return on investment. Keep reading to discover the best investment opportunities in the Riviera Maya real estate!

The Riviera Maya is one of Mexico's most coveted tourist destinations and one of the most prosperous real estate areas. Located on the Caribbean coast of Mexico, the region has three main cities: Tulum, Playa del Carmen, and Puerto Morelos, which we will explore in this article to understand the vacation rental market and discover the potential return on investment in real estate. Here we go!

Is Riviera Maya a good investment?

The Riviera Maya is a booming real estate area and, according to Airbnb, one of the most popular vacation rental destinations in the world. Every year, over 9.7 million tourists visit the Riviera Maya in search of properties to rent for their vacations! This means that there is a high demand for available rentals, and you can take advantage of it.

The vacation rental market in the Riviera Maya has experienced significant growth in recent years. The COVID-19 pandemic has changed tourists' preferences, as they now seek private accommodations instead of staying in traditional hotels.

If you're thinking of investing in real estate in the Riviera Maya, you have plenty of options! You can choose from houses, condominiums, and even land. Condominiums are a very popular option for their extra amenities and convenient location, while houses are ideal for those seeking more space and privacy.

Vacation rental offerings.

The vacation rental offerings are extensive and varied in the Riviera Maya. In Tulum, for example, you can find luxury villas and houses with incredible ocean views and surrounded by the jungle. In Playa del Carmen, there are a variety of apartments and condominiums very close to the beach and the city center. And in Puerto Morelos, most of the properties are luxury houses and villas.

Of course, the services offered by properties vary according to their location and price. Some properties may include a private pool, direct access to the beach, daily cleaning service, and many other amenities.

Market analysis real estate Riviera Maya

Market analysis real estate Riviera Maya

If you want to invest in vacation rental properties in the Riviera Maya, it's important to have a good understanding of the market in the main cities, such as Tulum, Playa del Carmen, and Puerto Morelos. According to data from AirDNA, a website specialized in vacation rental data analysis, the demand for vacation properties in the Riviera Maya has been increasing in recent years.

For example, in Playa del Carmen the occupancy rate is 62%, while in Puerto Morelos and Tulum it's 61% and 52%, respectively. And when it comes to prices, the highest rental rates are in Tulum, with an average nightly rate of $111 USD. Puerto Morelos closely follows with a rate of $105 USD per night, while in Playa del Carmen the average rate is $86 USD per night.

Comparative market analysis real estate Riviera Maya

As an investor, it is crucial to have a clear idea of what you can expect in terms of return on investment (ROI) when investing in vacation rental properties in the Riviera Maya. To do so, we can use AirDNA data on rental prices and occupancy rates as a reference.

It is also important to consider the costs associated with the property, such as utility bills, maintenance, and cleaning. These expenses can vary, but we can estimate an average cost of around $3,600 USD per year.

Let's take a look at some examples of how to calculate ROI on vacation rental properties that are available through eRealty in Tulum and Playa del Carmen.

●      Tulum vacation rentals - ROI

Xical

●      You paid $248,000 USD in cash for the rental property.
●      You collected $1,776 USD in rent each month with a 52% occupancy rate at a rate of $111 USD per night.
●      One year later, you earned $21,312 USD in rental income for that year.

Your annual statement was $17,712 USD ($21,312 USD income - $3,600 USD expenses).

ROI = $17,712 USD ÷ $248,000 USD = 0.07

Your ROI was: 7%.

●      Playa del carmen vacation rentals - ROI

Oxygen

●      You paid $216,000 USD in cash for the rental property.
●      You collected $1,600 USD in rent each month with a 62% occupancy rate at a value of $86 USD per night.
●      One year later, you earned $19,200 USD in rental income for that year.

Your annual statement was $15,600 USD ($19,200 USD in income - $3,600 USD in expenses).

ROI = $15,600 USD ÷ $216,000 USD = 0.07

Your ROI was: 7%.

These statistics are just a general guide and can vary depending on various factors such as location, size (the more bedrooms and bathrooms, the more you can charge per night), and the quality of the property, as well as the season and demand. However, they are a good starting point for understanding the potential earnings of vacation rental properties in the major cities of the Riviera Maya.

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Conclusion 

If you decide to invest in vacation rentals in the Riviera Maya, you could potentially get an attractive return on investment! It is a booming real estate area thanks to the growing tourism and demand for private accommodations. However, before making a decision, it is important to consider some key factors, such as competition, pricing, and location. Having the assistance of a local real estate agent is crucial for this.

At eRealty, we are experts in the real estate market of the Riviera Maya and can help you find the perfect property to maximize your ROI. So don't hesitate to contact us for more information and start your investment in the Riviera Maya!