What’s new in Playa Del Carmen’s downtown real estate market?
What is going on with the real estate market in Playa Del Carmen? In this article we are focusing on the south end of the downtown area. This part of downtown Playa Del Carmen has been one of the earliest developed areas branching off of Juarez Avenue. Playa Del Carmen does seem to develop in waves and then cover back over areas and redeveloped them. For a while Playa Del Carmen was moving north but as prices have risen for both land and condos, this part of the downtown is getting a second look. We are defining this area as 10th Avenue to the 307 Highway and from Juarez Avenue to 8th Street. Here is our look at what is going on with real estate in Playa Del Carmen’s downtown on the south end.
This south end of the downtown was dormant for the past few years but now it has sprung alive with building. Just look at the map and click on the markers to see what is going on. This area is now offering condos starting around $100,000 USD and that is bringing some people back into the market in the center of Playa Del Carmen. Is this are area for you? What are the drawbacks of this area? Is this a good area for a rental property? We examine these things below.
Our map of the south end of downtown real estate
Here is a visual of what we are talking about. This is the section of downtown Playa Del Carmen and what is happening with real estate. If you click on the markers you will see a brief description of what is there and a photo.
What are some of the advantages and disadvantage of this area for real estate?
Like any neighborhood you are looking to invest in or live, you need to think about services, what is close by, what the neighborhood is like, how the area is changing and what it will be like in years to come. In Playa Del Carmen you also need to think about access to the beach and rentability if you are looking for a rental property.
Since this area was one of the first areas to be developed in Playa Del Carmen you find a mix of one and two story houses in this area. Toward the south end near Juarez Avenue you find more businesses. The top end near the highway is quieter since this is not as desirable to live in. 30th Avenue cuts through this neighborhood providing a main commercial avenue where you can find public transportation.
Restaurants, shops and grocery stores
In Playa Del Carmen it is always important to think about going to the grocery store and accessibility. In this part of downtown your nearest grocery store would be Walmart on 8th Street. An alternative would be the Chedraui three blocks below Juarez Avenue and between 45th and the highway.
Shopping is going to be mostly low end shops in this area of the downtown. Juarez Avenue offers cheaper clothing stores, shoe stores and bags and purse stores.
Most all the restaurants in this area are local or budget restaurants. You can find one of the El Fogon taco places (which is famous in Playa Del Carmen) here and some great local chicken restaurants. La Brocherie Restaurant is one of the highlights in this area offering gourmet taste at budget prices. You can also find a good number of our cheap eats restaurants in this area. These are restaurants where you can eat for under 100 pesos.
Bars, strip clubs and poor areas
Probably one of the most noticeable drawbacks to this this area is the proximity to local bars and strip clubs. There is nothing bad about being close to a bar but some bars draw certain crowds that might not be what you want to be walking past in the evening. It is important to get to know an area that you are looking at. A real estate agent showing you a condo might drive certain streets just to bypass some of the things that are not as attractive in the area. Make sure you walk around. Playa Del Carmen can change block to block.
If you are looking for a rental property you have to remember what your renters are going to say in reviews. This will effect your rentability and bottom line. Of course some of these bars and clubs will not stay in this area forever. Eventually if the neighborhood keeps developing the property will be more valuable to sell and these will most likely relocate. But remember, things take time in Mexico and many of these businesses have been there for near a decade already.
Friction between new and old
Since this area developed in the initial wave of building in Playa Del Carmen, you will find one story homes. Many of these house families or cuartos to rent. Make sure you read our article on cuartos to understand how these profitable properties stay around for a while and how they effect the price of real estate in Playa Del Carmen.
When looking at real estate in this area make sure you look at the surrounding streets. Some of them can have a stark contrast to that new condo building you are looking at. Some people that bought in this area wake up to chickens cock-a-dooing in the morning. This might be part of the charm of living in Mexico or it just might be a nightmare.
You also have to keep in mind that many locals like where they live and the idea of moving just to make money is not as attractive. Property taxes are near nothing so people can hold onto property for generations and not feel inclined to move. This makes for random development and mixed areas of new and old construction.
Access to the beach and parking
Being close to the beach is vital to residents and rentability in Playa Del Carmen. In this are you have access to the beach from Juarez to 8th Street if you walk directly down the streets. The beach is wide from Juarez to 4th Street and decent. However the more popular beach is north of this area from Constituyentes Avenue to 38th Street. This means if you are looking to rent a property here, people might prefer being on the north end of downtown. If you are looking to live in this area and are the type that likes Wah Wah Beach Club, you are close to this area so that is good.
Parking is going to get tighter will all the new construction. The streets are already narrow and full of garage entrances to houses. If you are going to be looking to live in this area definitely look at what options there is for parking at the condo.
What is being built in this area of the downtown?
In general this area is getting 70% condos being built, 20% apartments built and 10% are businesses building on to their existing structures. On the lower end of this area (10th to 15th Avenues) you will find the higher end condos with the higher prices. In the middle from 20th Avenue to 35th Avenue you find the mid range condos. From 35th Avenue to the highway you will find more apartments being built. This area has traditionally been an area close to downtown but affordable rents for people living in Playa Del Carmen working in mid level management jobs.
A look at this area of the downtown and what is here
Lets take a trip back to one of the first condo buildings in this neighborhood. It might give some insight to what is possible and what to learn from. Below you can see what was one of the first endeavors in this area on 35th Avenue. It was a modern four level condo building. It offered condos starting around $60,ooo USD when it was built. Only one problem, some of the units were no bigger then a hotel room. No closets and not much else. As time went by, the prices went up but still no one was buying.
This same developer went on to build around the corner. They have done better then this first building. The units offer more luxury then what you get in other neighborhoods but you still have the location to contend with.
Case study of The Papaya Plus Building
One building that is tucked into this area is the Papaya Plus or Papaya 15 Building. It has good design, a calm garden courtyard and rooftop pool. While you don’t have much of a view, you are close to 5th Avenue and on the north side of our map. This building has pretty much been a success when you look at rental return. One tip for you is to look on Airbnb. Look at how full the calendars are rented for and the asking prices over a year period to get a full understanding of rental potential.
This building gets good comments and reviews. Of course this building sold when it was built but it is a look at what is possible in the area.
Are you looking at Playa Del Carmen real estate? Follow along!
We love writing about what is going on in Playa Del Carmen and helping both new residents and tourist to the area. Best of all we use our unique take on things to give you a look at what is going on here. We don’t sell real estate so we don’t have an agenda. We want our readers to make good decisions and be happy here if you choose to move here. Every so often we add articles about real estate in Playa Del Carmen. Below are a few articles that you might find interesting after reading this one.
- Our BIG real estate guide for Playa Del Carmen.
- 9 misconceptions about real estate in Playa Del Carmen.
- In this article we talk about what is happening in another part of downtown Playa Del Carmen.
If you want us to write about something in particular or if you have a question feel free to give us a comment below or a personal email and we will try to best answer your questions.