A look at the Tulum real estate market
The Tulum real estate market is booming right now. If you have not been to Tulum recently you will be very surprised to see what seems like an entire city being built. Whole neighborhoods and sections of Tulum are being developed. The master plans in effect have made the Tulum real estate market huge and very active. If you have been looking to invest in the Riviera Maya it is important to look at both Playa Del Carmen real estate and Tulum since these two large markets are linked and in some ways overlap.
We recently spent a lot of time in Tulum visiting construction sites, touring new condos and talking to residents and realtors to get a pulse of the Tulum real estate market. Since many of our readers have asked us about investing in the area we wanted to show you from the ground here what is happening. Below you will find our video showing just how much development is going on and how this is effecting real estate in Tulum.
Our video of what is going on in Tulum now
In this video we packed a lot of information. It is long but we hope you find it informative. Here is just a sample of some of the topics we cover:
- Who is buying in Tulum?
- Why the real estate market is growing so fast.
- What are the areas where people are buying?
- What is Aldea Zama like?
- How is the ROI and occupancy rates.
- What is going on with infrastructure in Tulum?
Why is Tulum such a hot spot for real estate now?
Mention Tulum to anyone and people automatically think of the ruins and beautiful beaches. Then there are cenotes and lots of eco chic hotels that you probably have seen in photos especially on instagram. Tulum is a naturally beautiful place that has been attracting people for some time now. See our guide on the best things to see around Tulum.
In recent years Tulum has gone upscale as more people have discovered it and Tulum’s reputation as a beautiful spot has grown. What once was a backpackers beach with cabins is now a playground for celebrities and people searching for that perfect vibe of Caribbean mixed with bohemian chic.
Compared to other places on the Riviera Maya in Mexico, Tulum has been fairly small and not as developed. There are no large hotels along the beachfront and many parts of the area are nature reserves and national parks. The supply and demand made the beach area or “hotel zone” very popular and more exclusive. It also made the downtown start to infill with higher end condos and boutique hotels.
The demand of people coming to Tulum has increased exponentially in the past few years. Not only are the tourism numbers up, so is the income level of people coming. The upscale tourist market is booming in Tulum and these future residents and tourists are looking for luxury “Tulum chic” places to stay. With plans for development already for the next half decade, word is out that Tulum is still becoming a top destination. This is all pushing the Tulum real estate market.
What are new condos in Tulum like?
We went around Tulum to look at new condos. There is definitely a Tulum style evolving. See if you notice in our video.
What areas of Tulum are being developed?
We can divide Tulum into five parts. These are:
- The downtown of Tulum
- Beach zone
- La Veleta
- Aldea Zama
- Road leading to Coba from Tulum (109)
Lets break these five areas down and talk about the real estate market in each one.
Downtown Tulum real estate market
The downtown of Tulum is more the business area concentrated along the 307 Highway. This area has seen a boom in small hotels, hostels, restaurants and shops in the past few years. Since there is limited options for shopping and dinning along the beach road, the downtown is the next stop for a lot of people staying in Tulum at the beach. It is also a place for people to stay since it is in general a more affordable area for visitors.
The west side of downtown is more residential for locals. There is a need for more affordable housing as the construction boom has brought in workers from the surrounding areas. All of these workers need housing. This has bumped up rents in Tulum. Although there is demand for more affordable housing, the bulk of new construction is for the upscale rental market and that is not happening much on the western side of the highway.
The beach zone
There are no residential projects at the beach in Tulum. It is strictly from smaller hotels and small shops and restaurants. So the real estate market here is not really for most people looking to invest in Tulum.
La Veleta area of Tulum
This is the southern end of the downtown of Tulum. Just in the past few years this area has opened up to development. If you visit now you will see a very mixed bag of high end houses, condo buildings, dirt streets, jungle, and local houses. This is kind of the wild west of the Tulum real estate market. Here you can find more affordable lots and space for stand alone house but you do need to have a vision of what this area will look like in a few years. You also might not have full access to services because of lack of infrastructure ion this area.
The majority of new development is now going on in this area. Aldea Zama is a large area of newly opened land for development. It is being divided up between developers which is interconnected with planned roads and services.
Aldea Zama is the section between the beach and the downtown of Tulum. This is a green planned section of Tulum with sidewalks, pedestrian streets and small businesses dotting this new neighborhood. If you visit this area now you might just be stricken how much it looks like an entire city is being built here.
Most of the development is condos and some boutique hotels. Most of the buildings here are three to four stories tall and match the tree line. Little by little this master plan has been unfolding for this area. There is still years of planned areas and services that are planed so it will be interesting to see how this area develops over the next half decade.
Road leading to Coba
This area has pretty much been considered “out of Tulum”. It is mostly wooded area and a few areas have divided land into lots to be sold to people looking for a natural lot. There are not too many developments on this route out of the town. This area is more for the long term investor since this area does not have many services. It is also poised to be more developed in the future and not immediately.
We will note that there have been several eco developments where lots are sold on this route. Many of these developments do not take off and are more for people that are land banking. You can see several of these “eco communities”just driving along the road. There will be an entrance with gate but not much more then that.
What are the difference in the areas being developed in Tulum?
The main areas people are going to be looking in are La Veleta and Aldea Zama. These two areas contain about 85% of the new construction in the Tulum real estate market. Of that 85% a larger bulk is in Aldea Zama.
La Veleta has been divided up into lots and streets but is further behind in development than Aldea Zama. Sewer systems and services are still being worked on in La Veleta. This area is also considered to be further out of the center of Tulum, but this can change in the future with new routes planed in the town. Because this area is less developed and further out of the center, prices tend to be lower there.
Things to keep in mind as an investor in Tulum
- Tulum is developing at a rapid pace and you will need some vision and foresight to a make a good investment.
- Since most people are looking for an investment, it is good to look at trends of what people look for in a rental and where people are renting (even within Tulum limits).
- Make sure you are investing in a sustainable project that is going to preserve the natural environment of Tulum.
- If the building you are investing is does not have a management service, finding a good property manager is key to success.
- If buying pre sale make sure the developer has an established reputation.
Infrastructure in Tulum
Since Tulum is still developing anyone looking to invest should be considering how the infrastructure is. It is still a mixed bag of what is available and services are not equal throughout Tulum. The good news is that in the newer parts of Tulum like Aldea Zama, there is a sewer system in place, underground cables and access to internet.
Water services, internet and cell services can be limited in Tulum. They are improving but each area of Tulum is different. You can always follow news and updates from the official Tulum government website.
For transportation in Tulum see our guide here for information on how to get around. This will give you some idea what infrastructure is available for residents and guest.
Tourism infrastructure of services for people coming to live or stay in Tulum
If you are going to be investing in the Tulum real estate market you will want to know what Tulum has to offer for you and visitors. Besides just infrastructure for services, what about restaurants, shopping and quality of life? Here is a little more about that.
Tulum has excelled in restaurants. It offers some of the finest chefs in Mexico and it’s beach restaurants have captivated many awards. Since the level of tourism is so high the level of restaurants has risen to match it. In fact you can find more gourmet cafes and shops then Playa Del Carmen, which is a larger city. A few years ago thinking about getting a good latte in the jungle area called Tulum was a crazy idea. Now you can get some of the best on every street.
Shopping in Tulum
Tulum offers a chic and bohemian shopping experience. Local made hammocks, baskets and things made from tropical hardwoods are all available. Guest to Tulum can enjoy small boutiques along the beach road or some of the more traditional souvenirs in Tulum town.
Financing options for real estate in Tulum
For a detailed look at financing options in Mexico, see our article here.
Getting to and from Tulum to the Cancun Airport
Access to Tulum from the Cancun Airport is pretty streamlined. See our guide on how to get from the Cancun Airport to Tulum for all the details.
Are you interested in investing in Tulum?
Anyone looking to invest in the area should do the research to make a wise investment. We hope with our articles and recommended people to work with that you get off to a good start. Since we don’t sell real estate here at our website, we do like to give a more matter of fact approach and give our honest opinions.
If you would like to talk to Sebastian who appears in this video, and is on our recommended realtors list, you can email him below. We will also be adding more Tulum realtors that come with recommendations from our readers and are doing a good job with clients.
Thank you for reading our guide to what is going on in the Tulum real estate market. If you have any questions or comments for us, let us know below in the comment section.