Colosio is a neighborhood in Playa Del Carmen, Mexico. As Playa Del Carmen has grown, the city has moved north. This has brought development to the doorstep of the Colosio neighborhood. Is this a time to invest there? We take a look in this article.
Is it Time to Invest in Colosio Neighborhood?
Imagine if you had bought property in Playa Del Carmen years ago? Looking back many people would of loved have bought and held something as an investment. People now look to areas to invest in either in Playa Del Carmen or in the Riviera Maya. Where are these areas? We try to look at trends that we see on the ground and report them to you for you to make a decision.
There is no denying that Playa Del Carmen is expanding out in all directions but especially how 5th Avenue keeps moving north. It used to be that tourist would walk up until 34th Street and that was the extent of things to see. Now it is up until 44th Street where pedestrian traffic goes and new businesses continue to fill in empty spots on 5thAvenue. This has brought the center of Playa Del Carmen north which meets up with Colosio neighborhood.
Colosio is a neighborhood to the north of the center of Playa Del Carmen. Compared to other neighborhoods it is large in size. For the sake of the discussion we will define the area of Colosio and the area that is more desirable as 46th St-100th St. and 5th Avenue-15th Avenue.
Here is a list of things to consider if this are is good for investing.
Editors note: We have no vested interest in Colosio or any real estate company. We only provide this article for the informative purpose for people thinking of investing in Playa Del Carmen.
Good. 5th Avenue has been continued past 46th Street all the way past 112th Street and to the entrance to Grand Coral. This renovation work has made a one lane street with new lighting, benches, wide sidewalk and trees. The numbered streets have begun to be repaved.
Bad. Colosio was developed in a random manner years ago and there are issues with sewers overflowing. A good example is at 72nd St. and 5th Avenue where it has consistently overflowed. Many homes or properties in this area are built with poor construction. Even though paving has begun many streets are pot hole ridden and the new 5th Avenue is confusing to drivers because it is one lane but seemingly two directions in some places.
Good. This area is close to the beach and there are access points. There is a mangrove that separates it from the beach. Part of the beach here is on out Top 5 Beach List at #3 because of it’s remote location, not too many tourist and it’s natural beauty.
Bad. It is not beach front and there have been attemps in the past to build in the mangrove area. One hotel (Paradisus) does own part of the land and built upon it in front of this area already. Even though all beaches are public in Mexico, Paradisus Resorts makes is seem separate from the rest of the beach.
Lot Sizes in Colosio
Good. The lot sizes are small in Colosio for the most part. This is good for individual buyers that want to do a small project. It means they should be more affordable.
Bad. Having small lots means closer neighbors. If your neighbors have barking dogs or chickens, all the better to hear them. It also means that it will take longer to develop because acquiring enough lots and combining them for a larger condo building takes time.
Current Development in Colosio
Good. There are some pioneer developments going on. It is only a small portion of the property in this area. These are mainly condo buildings. Having someone else go first always lets them test the waters. (Here are two photos of the most impressive developments to date. They are not finished but seem to be coming along)
Bad. Having new development means people are going to expect more for property that is for sale. It also means people are already there and are in front of you looking things over. In the past most of the property was made into family houses or small rental units. This has left the area with a low income level and impoverished looking. (Here is a photo of construction that started but stopped). The entire front of this building with the bump out has separated and is in risk of collapse.
It should be noted that even though we show you mainly bigger buildings here, most property is smaller homes and of poor quality.
Artist Moving Into Colosio
Good. The typical cycle of neighborhoods goes like this. Areas get developed, they start to go downhill, artist move in because they are usually cheaper, then artist start fixing places up, this attracts attention and then more main stream developers come in. Well, artist are renting, buying and painting this neighborhood. Check out our street art gallery. About 20% of the street art and murals are located in Colosio neighborhood.
Bad. There really is nothing bad about having artist in a community.
Rent prices in Colosio
Good. Rents recently in the past year and a half have going up. Places that rented for 5000 pesos a month are not 7000 pesos. This can mean more return on an investment.
Bad. There is not too much difference between rents in parts of central Playa Del Carmen then Colosio. This means that most would prefer to rent in other areas that are less developing and better looking. It also means there is not much farther then rent can go up.
Check out our rental map in Playa Del Carmen and see how it overlaps this neighborhood.
Restaurants in Colosio
Good. Since it is a local neighborhood you can get a lot of inexpensive meals at small places.
Bad. There are not a lot of places that have opened up that are middle to upscale because there is not a population that can support them yet. So only basic services are available.
Good. There is plenty of on street parking and you are close to drive into town. The new extension of 5th Avenue has a bike trail, so biking into town take just a few minutes.
Bad. Taxis are more limited in the area and bus service is located on 30th Avenue. So getting into the center is limited via these options or will at least take some time.
Good. This all inclusive hotel anchors the north end of Colosio. It extends from 88th Street until 110th Street. It brings in a high end clientele and works hard to clean the neighborhood and improve it. It also provides many jobs for local residents.
Bad. Having a huge hotel complex does not set a good precedent for the remaining mangrove area nor does it lend itself to small scale development for a cute community. It also blocks off the beach and blocks views.
Real Estate Prices in Colosio
Good. We contacted several properties for sale and the asking prices were very high in comparison to other parts of Playa Del Carmen. The good part about that is that many people expect this area to take off. It should be noted that in developing areas where there are less comparisons, asking prices are one thing, the actual sales price another.
Bad. People are already asking high prices before development has really taken hold. This means it will be harder to get a good deal and profit margins will be tight when you add in construction.
These are all considerations for looking into this area. Is it a good place to invest? Well to different people the answer might be different. It will depend on the vision of some and the flow of investments. In the future we look forward to brining you other areas in Playa Del Carmen and around to examine if they are a good place to live or invest.
If you would like to read more about Playa Del Carmen real estate, see our complete guide here.
What is your opinion? Share your opinion below on what you think. Is it a good place to invest or not in your opinion? Is there another area you think is good? Would you like us to cover another area, let us know.