What is Going on with the Tulum Real Estate Market in 2024?

Tulum Real Estate Market

Navigating the Tulum Real Estate Market in 2024 for Smart Investments

Embarking on a journey into the vibrant and evolving world of Tulum real estate in 2024 requires a strategic understanding of the current market forces. In our comprehensive video, “Real Estate in Tulum -How is the market for you now?” we delve into a myriad of crucial topics to equip you with valuable insights. From uncovering the latest market trends and identifying prime real estate locations in Tulum to exploring the best areas for new condominiums and developments, our video is full of information on topics our readers and buyers ask about. We examine the ongoing infrastructure projects shaping the landscape and influencing market trends, shedding light on their impact. Additionally, we delve into the details of return on investment (ROI) and rental markets, providing a nuanced perspective on the financial aspects of Tulum real estate.

For those keen on making informed decisions this article and video offer a comprehensive guide, giving you a snapshot of the multifaceted Tulum real estate market for 2024 for savvy and discerning investors.

Our video of what is going on in Tulum Real Estate

In this video we packed a lot of information. It is lengthy, but we hope you find it informative. Here is just a sample of some of the topics we cover in this video:

  • What are the market trends in Tulum right now?
  • In Tulum, what are the best locations to look for real estate?
  • What are the up-and-coming areas in Tulum for new condos and development?
  • What infrastructure projects are going on and how are they affecting the market?
  • How is the ROI and rentals in Tulum now?
  • What are the average prices for condos now in Tulum?

 

If after watching this video you would like more information about Tulum, properties for sale and the buying process, here is Sebastians email address for contact. He or a member of his team will get back to you quickly. As you have seen, he is very informed about what is going on in Tulum and how the market is now. We are pleased to be able to recommend good local services and people to work with. Sebastian is a bilingual and multi-cultural real estate agent/developer/investor that many of our readers have enjoyed working with.  

realtor

Tip: If you include information like what you are looking for, time frame, budget and a phone number and best time to talk, this helps them to send all pertinent information to you in a timely fashion. 

 

What infrastructure projects are new and how will they affect real estate prices?

There are three large infrastructure projects that are changing Tulum and the accessibility to the area. These are the Tulum International Airport (TQO), the Tren Maya, and the Jaguar Park. There are also several other smaller projects happening in Tulum that we will mention at the end of this segment. 

Tulum Airport

Let’s start first with the Tulum Airport or as it is officially named, Fellipe Carrillo Puerto International Airport. This airport was inaugurated on December 1. 2023. After years of rumors and even one false start, this airport was built and delivered on time. It is expected to accommodate 5.5 million people a year. The airport is south of Tulum, and it takes about 40-45 minutes to get to from downtown Tulum. In general, the airport looks good and offers a modern and efficient access to Tulum and areas south. The airport is also connected to the Tren Maya project which will connect it to downtown Tulum, points north like Playa Del Carmen and south to places like Bacalar. 
Tulum Airport
The new Tulum Airport is open and already bringing flights direct to Tulum.

Tren Maya stations in Tulum

The Tren Maya has already started travel on the first route to be opened (Cancun to Campeche). The segment of the Riviera Maya has been delayed because the Tren Maya project was changed from running along the 307 Highway to further inland. It is expected to be completed by February 2024. This project has been and investment of 3 billion USD. 

Jaguar Park

The Jaguar Park is a project on the north end of Tulum that will change a lot of how Tulum is visited. This park will connect the Tulum Tren Maya station via electric busses to Tulum Ruins and all the features of this park. This will create one of the largest urban parks in the Americas and give greater public access to the beach. 
Jaguar Park Tulum
The Jaguar Park in Tulum is a big deal! This is reorganizing the entire north end of Tulum and will open new areas for investment and affect real estate prices in the area.

Other smaller projects slated for Tulum

The Hotel Zone in Tulum has been a victim of its own success. A small two-lane road passes through the boutique hotels and palm trees as it heads south. As the area has gained in popularity, parking, traffic, and how to get everything there has become an issue. The amount of people biking and walking along the beach road has also contributed to congestion. A new parallel road will act as a service road for the Hotel Zone. This should free up some space and make it more relaxing to visit. This is a project that will change the Hotel Zone of Tulum a lot and hopefully for the better. 

The Green School will be opening in Tulum in 2025. This well-known school blossoms creativity and presents children with another form of learning. 

Avenida Coba is getting a makeover. This is the main route to the beach which was the only one for a while. Now on the other end of Tulum there is a second access road to the Hotel Zone, Avenida Kulkukan. Because Avenida Coba is so busy and growing, it is necessary to reorganize it a little. This will include bike lanes on both sides and a more organized road to facilitate traffic getting to the beach and hotels.  

So how will these projects affect Tulum?

How will these current and future projects affect the real estate market in Tulum? Well, in general it is acting as a catalyst for the real estate market in 2024.  The last year was slower in Tulum as different factors dampened sales. The new projects, however, are spurring interesting in Tulum again because of the attractive investment it is.

In general, infrastructure projects have a significant impact on the real estate market in a region. Here are some effects:

  1. Increased Property Values: Improved infrastructure, such as better roads, public transportation, and amenities, enhance the overall appeal of an area. This often leads to increased property values as the location becomes more attractive to potential buyers and investors. We have already seen this and are seeing this with the second beach road that was opened. Region 15 and 8 has a lot of development now and many of the projects are selling out before completion. 
  2. Higher Demand: Better infrastructure attracts more residents and tourists, leading to an increased demand for real estate. Tulum is experiencing improved connectivity via the new airport and upcoming Tren Maya. Currently there are more domestic flights arriving at the Tulum Airport. This is already having an effect on tourism because it is making it a lot easier for nationals to arrive directly to Tulum. 
  3. New Development Opportunities: Infrastructure projects open up new areas for development. We have seen this are the second beach road added a new area of development in Tulum. This is also taking place in several areas of Tulum right now. Investors and developers are seizing these opportunities to build new residential or commercial projects, increasing the supply of real estate in the market.
  4. Job Creation: Large infrastructure projects stimulate economic growth and create job opportunities. This, in turn, contributes to a rise in population and housing demand. We have talked to several people working on projects in Tulum. Many workers came from other parts of Mexico for up to a year to work on infrastructure projects. This has pumped a lot of money into the local economy in 2023. The construction trade for just condo buildings has brought thousands of workers from other parts of Mexico, all of this has helped create bottom-up growth in the local economy.

It is our opinion that with all the new infrastructure projects in Tulum, we are expecting another rise in interest not only from tourists visiting, but from people looking to invest and live in the area. This should keep prices firm and ROI stable with a positive influence for 2024.

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
Condos for sale in the Tulum real estate market
Condos and other projects in Tulum are stretching the imagination and is an opportunity for architects to create inviting projects that are focused on immersion into nature. 

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.  

New Condos in Tulum for sale
Street view render of the Oniric Condos in Tulum.

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?

Tulum is a growing place that has some amazing projects underway and planed as well. What makes Tulum unique is the location next to the Caribbean, the eco chic design of buildings, the lifestyle in Tulum, and everything is new! When Tulum is finished, it will be a spectacular city. Tulum is different than the other towns and cities in the area. It will have some of the best schools, transportation, shopping, great restaurants and a whole lot of artists and hipsters. Buying in Tulum assures you have a place in this growing area that offers spectacular views of the ocean, and a lot of things that cannot be found in other areas. Tulum offers a high quality of living between beautiful weather and services. 
  The one thing we will mention is, if you buy now, you have to be prepared for dust, construction, traffic and an ever-changing landscape. Tulum is growing and there have been growing pains. These seem to be less painful now as much work has been done in Tulum in the past few years.  It also feels like Tulum is passing a tipping point where a lot of planning has come to fruition.  If you have a little vision, you can see what Tulum will become in the new future, and it looks pretty interesting! Plus, it comes a lower price than many comparable locations in the world. 
  We feel that it is still a good moment to contemplate Tulum and the prospect of making a purchase. The caliber of design in Tulum is truly exceptional, reflective of a town whose energy is continually on the rise, holding immense potential for tourism. While the prospect of substantial returns is within reach, it demands a discerning eye in selecting the right investment. Tulum is gradually transforming into a more communal space, drawing in families and individuals alike who seek not just a destination but a lifestyle. Witnessing a burgeoning interest in residency, Tulum is becoming an attractive place to call home. Whatever decisions lie ahead for you, we hope the information presented here helps you make a good decision and one that you are pleased with. 

Do you want more information about Tulum?

One of the reasons we like presenting these videos and talking to realtors like Sebastian, is the fact that he and his team have been spot on for predicting where the market will go and what areas are best to invest in. This is why we can recommend Sebastian and his team to our readers because of the good service they offer. If you are interested in the Tulum real estate market and would like to talk to Sebastian, below is his direct email. He can also send things mentioned in the video like current projects in Tulum and maps of development.
 
Tip: If you include information like what you are looking for, time frame, budget and a phone number for talking in person, this helps them to send all pertinent information to you in a timely fashion. 
realtor
 
 
 
Tulum Hotel Zone
This is the reason why so many people want to be in Tulum. The beaches are spectacular!

8 Comments

    • Hello, we think you did find the email link in the article. If you have not heard back from Sebastian, let us know and we will make sure to connect you.

      • Hello Mr. Yucatan.

        I have been visiting Tulum for more than 25 years. I have seen the growth. Please share your thoughts or write me an email.
        Gary

        • Hello Gary

          You certainly have a good location on the beach. I like the spaces and big bathrooms you have. The slider is nice with the photo but I was also looking for photos on the website and guess that is the only place for photos. Your property is only going to appreciate there since it is a very limited beachfront area. Someone could find your place good for turning it into a private home on the beach. We don’t sell real estate, so we don’t offer to help sell properties, but agents we know do that and we are sure you have reached out to some or have it listed somewhere.

  1. Tulum looks to be in a good place this year. I was there recently for an event and was impressed with how many people still visit and how hard it was to find a rental. We decided to go last minute not knowing there would be so many tourists at the same time visiting. I know that the market in Tulum has been going for a while, but I would like to get some more information about condos, preferably in region 8 or 15 of Tulum. I am interested in possibly buying in July of this year and plan a trip to look at properties in April. Is this a good time to come down? Do you think Sebastian would be able to show me around the Tulum area? I also like the photos of Oniric condos. Thank you.

    • Hello Tony. We will forward your message to Sebastian and his team so they can send you more information about options in Tulum in the areas you are interested in. April is the dry season, so we get lots of sunny days, it is nice, but we like when the rains start so the forest are super green, but really all year round is a nice time to visit. Aril is the end of high season after Semana Santa. So just check the date for that because during the Easter time Tulum is also packed. We expect more so this year because many nationals are booking direct flights to Tulum from other cities.

    • Hello. We will forward this message to Sebastian and his team so they can send you information about Tulum real estate and what is going on with projects. Thank you for reading our article. We have had many readers work with Sebastian and that is why we like talking to him and getting information for our readers.

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