Playa del Carmen Real Estate

Real Estate in Playa del Carmen

PARK LANE , TULUM

Available
105,000 USD - Apartment for Sale

Park Lane Tulum$ 105.000 USD /Desde Desarrollos en Construcción in Pre Venta…

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36 sq m 1 Bedroom 1 Bathroom 1 Garage

THE HIGHLINE , TULUM

Available
125,000 USD - Apartment for Sale

THE HIGHLINE TULUM Preventa desde *$125,000 USD hasta $400,000 usd 2 Recámaras…

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34 sq m 1 Bedroom 1 Bathroom 1 Garage

Saasil, Tulum

Available
165,000 USD - Apartment for Sale

Saasil, Tulum is the best choice. Located “La Veleta”, with facilities of…

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125 sq m 2 Bedrooms 2 Bathrooms 1 Garage

MENESSE,PLAYA DEL CARMEN

Available
205,000 USD - Apartment for Sale

INFORMACION Unidad Total: 60 mt2 / Interior: 52 mt2 / Exterior: 8…

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60 sq m 1 Bedroom 1 Bathroom 1 Garage

Playa del Carmen Real EstateIf you are looking for a Playa del Carmen Real Estate you should first get information about this fast growing town. Playa del Carmen is a beach destination, located in the state of Quintana Roo, Mexico. It is 55 Kilometers away from the city of Cancun – around 45 minutes by car. The best option to get there is by flying to Cancun International Airport and then driving along the Tulum highway. Another very convenient option to get there is by bus. ADO is a company that has several options and the bus can be taken directly from Cancun Airport or from downtown Cancun. Its central location makes it perfect to visit other destinations such as Tulum and Cozumel Island.

Moving to Playa del Carmen?

During the last decade, Playa del Carmen has experienced significant development. Although it has a long history, its current municipality named “Solidaridad” was founded only on 1993 and had 10,000 inhabitants. The Real Estate in Playa del Carmen was barely nonexistent, as few houses were built by the first inhabitants and only 100 hotel rooms were available. This is a very interesting fact, considering that now the population is over 200,000 people, there are more than 50,000 hotel rooms (and growing). There’s no wonder why Playa del Carmen Real Estate is a great opportunity to invest nowadays.

But what is so attractive about Playa del Carmen? What is causing this boom on Playa del Carmen Rea Estate? Its inhabitants most often name the size and atmosphere as main attributes. Unlike Cancun it is still possible to buy or rent a property a couple of blocks away from the beach, which is not dominated by big resorts. The mood is very relaxed; you can head to a Beach Club like super famous Mamita’s or you can toss your towel and just lie down on the turquoise clean beach. Another important detail is that people can walk everywhere or move around with their bicycle. There’s a reason why the pedestrian street Quinta Avenida (yes, Fifth Avenue) is the point of reference for both tourists and locals alike. Also, it is important to mention that the beach and its surroundings are very safe.

Its prosperity has attracted people from all over Mexico, mainly from the southern states and Mexico City as well as the rest of the world, particularly Italians and Argentinians. The Instituto Nacional de Migración of Mexico (National Institute of Migration) states that 12% of the population in Playa del Carmen is of foreign origin. Mostly aged between 20 to 40 years old, solo travelers, young couples and families and with the unique blend of cultures and the Caribbean setting, Playa del Carmen has positioned itself as the trendiest place to live.

Playa del Carmen Real Estate Panorama

Per the Association of Real Estate Developers in México (ADI), Playa del Carmen ranks #3 among the best cities to buy a property. This grade is based on several factors such as economic growth, cost of the land, construction costs, security and interest rates among others. According to AMII, the Association of Mexican Real Estate Industry, 40 new projects were constructed on the inner downtown area of Playa del Carmen during 2015. In other words, the Real Estate industry in Playa del Carmen saw an astonishing growth of 40% on 2015 and the forecast suggests that 2016 will have a similar behavior, with the strongest emphasis on residential projects.

Real Estate in Playa in del Carmen with sea viewThis boom in construction has several purposes. There’s an increasing demand for residential condos on the north side of the highways. Mostly family oriented, these Playa del Carmen Real Estate projects like Los Olivos, Selvanova and Real Ibiza offer apartments of one, two and sometimes three bedrooms, equipped kitchen and a common area with gardens and a pool. These condos are about 10-minute drive away from the beach but close to malls like Plaza las Americas, supermarkets like Wal-Mart and several schools.

The increasing demand of young people who moved from all over Mexico and other parts of the world to Playa del Carmen to find a job caused a shift on the construction style in the neighborhoods close to Quinta Avenida. Many adapted old houses into Studio Apartments and new buildings on neighborhoods like Zazil Ha, Gonzalo Guerrero and Colosio are being erected to meet the never-ending demand for affordable equipped spaces.

Furthermore, luxury apartments are also part of the construction boom. Residences like The Fives and several new constructions on famous Playacar like AKAB will impress those interested in investing on Playa del Carmen Real Estate properties. All the apartments have spacious bedrooms, equipped kitchen, pools, gardens and sometimes access to beach clubs.

At this point is worth mentioning the options to rent in Playa del Carmen:

  1. Vacation Rental: this is the most common option. All services and appliances are included. Good deals can be found close to the beach. Rates are per night and of course, it gets pricey if you want to stay longer than 2 weeks.
  2. Short Term Rental: these contracts are intended for people who look for furnished or semi furnished apartments and stay for 1 to 6 months. It is possible but difficult to find properties for short term rentals at a good the price since most people prefer to rent their properties per day or long term. Be careful here, as the host will most likely require a contract and not all services are included. In fact, most rentals require energy to be paid separately and the calculation of the amount of energy effectively used in a certain period can be a headache. This is because in Mexico, electricity is paid every 2 months and some houses turned into studios cannot determine how much electricity is consumed by each unit. Also, in most cases landlords require an upfront deposit of 2 months’ rent.
  3. Long Term Rental: this option is for those who want to move to Playa del carmen and don’t want to buy a property. In most cases, it is possible to find a furnished apartment, where all services need to be paid separately and the contract requires to stay a minimum of 1 year (if lucky, only 6 months). Similar to short term rentals, a contract needs to be signed and an upfront deposit of 2 months’ rent is needed. It’s becoming quite difficult to find these properties.

Renting or Buying in Playa del Carmen?

It is a dream for many to own a house next to paradise but taking that big step should be considered deeply. The portal “Metros Cubicos” has recommendations on what needs to be considered before investing on Real Estate in Playa del Carmen or other locations:

These are the red flags that indicate that you are NOT ready to buy:

  • Your savings are not enough for a down payment of at least 20%, additional start-up expenses (proof of ownership fees or Deed, credit opening fees, house appraisal), and money to make renovations, adaptations or remodeling.
  • You have no ability to save. Your fixed expenses are very high (tuition, insurance, income, taxes) and compromise your monthly budget.
  • You have large debts in the long or medium term (cars, furniture, electronics, travel).
  • Your income is low for the mortgage you need. Evaluate if you can afford it. Plan how to increase your current income, generate additional streams of revenue or change prospects.
  • You have little control over your finances. Your budget is a disaster and you almost never finish as planned (or you just do not plan it).
  • There are problems in your marriage.
  • You and your partner plan to have a family. Maternity expenses are high and children are very demanding in every way. In this case, it’s best to wait until the baby is born to stabilize your budget and reconsider the buying options.
  • You have plans to go back to school or you already enrolled on some postgraduate course.
  • The company where you work is experiencing a period of instability. They can reduce hours or benefits, or cut staff.
  • You have plans to travel and know the world.

If buying is not an option yet, look on the bright side and consider the advantages of renting:

  • You live happily without paying property, and other taxes and expenses related to a house. You have to take care of the property, but the most serious problems like changing the heater, the electrical installation and other major repairing are the owner's responsibility.
  • You have access to a better house than you could buy. Rents are cheaper than monthly payments.
  • You can have access to a better location. There are more houses for rent than for sale.
  • It gives you mobility. If you do not like something, you can leave when you finish your contract. A neighbor, the area, or the neighborhood, the apartment itself -it may have hidden defects. If you live with your partner and it does not work, there is freedom to move.
  • If you lower your income you can cancel and look for a cheaper site.
  • If you change jobs and the commute does not work for you, you can move. Living close to work provides significant savings.
  • Your work requires periodic residence changes.
  • If you do not have enough savings to buy a house or to give a good amount of down payment that allows you to obtain a payable mortgage, you can save the difference between your rent and what you would have to pay of mortgage to buy later.

Is it a good idea to invest on Playa del Carmen Real Estate Properties?

Real estate with luxusOne of the most common concerns when buying a property anywhere is its profitability and sustainability. The good news is that Playa del Carmen has a very stable market. Its known that the state of Quintana Roo has experienced fluctuations on the housing prices but according to statistics, the overall results are more than favorable for Playa del Carmen: during the last years, Playa del Carmen has seen an investment of 2,500 million dollars in construction. Several commercial corridors have been put in place and malls and supermarkets increased the quality of living.

A riskier investment is to buy a lot and construct on it. It has proven to be a very good investment as well but the years to see a result depend very much on the location. As mentioned before, Playa del Carmen is growing rapidly, but that doesn’t mean that gentrification will reach all the surrounding areas soon and even though there’s significant expertise on the region when it comes to construction, it might be difficult to get all necessary permissions from the government and the language barrier might be an issue to communicate. In this case, it’s advisable to reach out to an expert.

One Last Advice

It might seem tempting to navigate the web and find cheap good deals to buy a property but it’s always the best to look at the certifications and permissions of the person who is offering a property. Be aware that there are special regulations in Mexico and there are “restricted areas” that prevent foreigners from owning a land.

Until recent years, the only possible way to own a Restricted Area property was through a Fideicomiso. It sounds menacing, but it simply a commercial contract governed by the Mexican Law. In the case of acquiring a Fideicomiso, like in a Bank Trust, there are three parties that should be considered:

  1. Fideicomitente (Trustor). This is the person or institution that sells and transfers the rights of the property.
  2. Fiduciario (Trustee). This is the person or institution (in this case a Mexican Bank) that works in good faith and holds the rights of the property for the beneficiary to use.
  3. Beneficiario (Beneficiary). This is the foreigner who uses or enjoys the property

On 2015, the Mexican Senate made an amendment to the Article 27 of the Mexican Constitution. With these changes, foreigners are now capable of purchasing a land without a bank trust or fideicomiso on the so called “restricted area” that is the coastline 50 km inwards and on the Mexican borders 100 km from the border line inwards. That was 45% of the Mexican territory.

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