What is the average price of a condo in Tulum?

Here are some general price guidelines for the average prices of condos in Tulum for 2024. We will say that even though there is no MLS, (multiple listing service) developers price things fairly consistent with similar properties in Tulum. The factors that decide the upper and lower estimates are:

• Which area of Tulum is the property and proximity to the beach. 
• What floor the condo is on. 
• What services are included in the building makes a difference for the price. 
• Finishes like better quality countertops or appliances included. Or is there a private pool or something that adds to the space. 

Note: It is important to note that just looking at prices for condos will not give you the whole story. People may look at prices over the past few years and think they have not changed much. However, the size of condos has changed. Newer condos are often smaller but have efficient design. Cost of materials has also gone up 20%-25% in the past few years. This has added pressure to sales prices and even made some preexisting condos (resales) more attractive because they were built when it was cheaper. 

The average prices of studios in Tulum

• starting at about $120,000 USD. for studios that are a garden or penthouse you can add about 15% to 20% onto the price. The reason is these units are more desirable and also rent better. 

Average prices of one-bedroom condos in Tulum

• Starting at $199,000 USD

Two-bedroom condos in Tulum

• Starting at 270,000 USD. 

Three-bedroom units in Tulum

• starting around $370,000 USD. 

Average price for villas and or house (3 bedrooms)

• Starting at about $399,000 USD

Average price for 4-bedroom units in Tulum

• $450,000USD and up

Beachfront properties in Tulum

• Condos start at around $450,000 USD. There is a very limited supply of actual beachfront property in Tulum. The Hotel Zone is limited to small boutique hotels and is more cost effective to operate a business there. But there is some good news, there are a few bays and parts of the beach around Tulum where you can live beachfront. See our article and video about beachfront real estate here. 

A look at a Condo project underway in Tulum

If you have already watched our video above, you have seen the new development of Sebastian. This condo project is just breaking ground in Region 8 of Tulum. This is one of the reasons we like talking to Sebastian because he is a realtor, investor and developer in the area. With such a well-rounded experience, he is able to guide people through the process and explain things in detail. It was exciting to visit the site of this condo project and literally start rising out of the ground. 

Oniric Condos is a project with 27 units with a special cenote pool in the center. We have an article with more details about the Oniric project and if you would like more details, Sebastian can email all the latest information. We will say that this project is very attractive for several reason. For one, it is in a new area of Tulum that is popular for its proximity to the beach. The project is also financially stable, has well-known local architectural firms design plus is a low-density project.  

Is Tulum Mexico a good place to invest?

For those looking to buy in Tulum, whether you are looking to live or buy a unit more as a rental, the investment aspect of Tulum comes into play. The best time to have started to invest in Tulum was around 2010. This is when the first wave of investors came, seeing the potential and future of Tulum, they started land banking (the process of buying up land to resell later).  Personally, it seemed crazy to buy land that was not close to anything. Tulum was nothing like what it is now. What happened? Well, friends and people personally known that bought back then quintupled their investments. So, we missed that boat sort of speaking as a time to invest in Tulum. 

From 2017-2020 the rental market was booming, and people made very good ROI (even outpacing places like Playa Del Carmen). This was mainly because the demand was greater than the supply of units and renting was very easy. Nowadays the rental market is tighter, and the less desirable condos are empty at times. This means that selecting units is more important if you have plans to rent it out as well.

What is the current ROI on condos in Tulum?

Currently, owners experience on average 4-6% ROI on basic condos. For penthouse and larger units, owners currently make about 5%-10%. Then there are exceptional properties like beachfront condos/houses or other spectacular properties with great location that make 12%-18% return on the investment. In general, the more you spend, the better the return because there is a lot less competition. 

Owners and investors that have bought in Tulum usually gain more with the rental income compared to a rise in the resale price of the property. This means if you buy as an investor, you will make more on the rental income compared to the gain in price when you go to sell. If you are buying to live in Tulum, you will have a solid investment, but your return will be more your happiness and quality of life. 

How is Tulum for investments now?

In the past few years, Tulum was known for the hot rental market. Even during covid when other countries were closed, people looked for a place to ride out the pandemic and many chose Tulum. The area filled with digital nomads, which helped keep occupancy up and returns as well. Since other countries have opened for tourism (ex. Portugal, Bali, Indonesia), there have been less people in Tulum. This has meant that tourism in Tulum was slower in 2023. Even though the beaches were in good shape this year and we had some of the lowest amounts of seaweed arriving on the beaches, tourists missed out. However, we are seeing trends that signal a good year for tourism in 2024 for Tulum mainly from the new infrastructure projects. 

So as mentioned above in the segment about current ROI, we expect ROI to remain at current levels with a good chance of ticking slightly higher in 2024. 

What properties give the best returns in Tulum?

Usually, the larger units with more bedrooms have less competition because there are fewer available (3-5bedroom units). Groups and families look for larger units to rent because it saves money compared to staying in hotels. Many people look for special features like private pool or garden space. There are many other factors that figure into the ROI in Tulum. This can be how the property is managed, where it is, how your condo is set up, and how it is advertised just to mention a few. 

To get the best returns, it is good to work with a realtor that knows the Tulum real estate market well. This way you can think about future projects that will affect the value of areas and know what projects are coming online. In addition to this, it is good to design your interior to make it stand out from the rest. This can impact your ROI by being comfortable, trendy, and photogenic. 

Is there a property bubble in Tulum?

With so much development in Tulum, is there a growing property bubble? Unlike most places, much of the real estate in Tulum (and most of the areas where foreigners buy in Mexico) is done so in cash. Getting loans in Mexico is often not an option because of the high interest rates. Some buyers do get home equity loans or other types of loans in their home county to buy in Tulum. The other option that can be found in Tulum for property is a downpayment, and one or two more payments, with final payment when the unit is complete and ready for delivery. See our article about the home buying process in Mexico. 

So, there are a few financial options for financing real estate in Tulum, but in general, buyers come prepared with cash. This means when there is a downturn like the pandemic, nobody rushed to sell, because everything is paid for.  The real estate market in Tulum and Mexico can be described as a slow-moving freight train. Prices don’t jump up fast, but they do steadily move upward. Mainly because the market is solid, most condos are paid for, and there is demand (national and international). That doesn’t mean that there will slower years and less demand at times, just that overall, the market moves steadily forward. 

Is it a good time to buy in Tulum now? What is our opinion?