Beach destinations in Mexico have greatly benefited from increased tourism in recent years. Hotels and Riviera Maya vacation rentals experience high occupancy rates that are constantly above 70%, and are known to stay into the late 80 and 90% for most of the year. It’s this level of popularity and demand that has inspired many property investors to choose to buy a vacation rental along the Mexican Caribbean coast. But it seems that the demanding tourists have still not been abated. So if you haven’t taken the leap yet, there’s still time.
Tourism Boom Continues
Recently, it was declared that Mexican beach vacations are becoming more expensive. The reason? Despite mega resorts and luxury rentals lining the coast, the demand still outweighs the available resources. This is mainly due to Mexico’s boom in tourism over the last few years. Last year alone saw a seriously impressive 9% growth in the industry. Add to that the fact that almost 90% of leisure travellers visiting the country head to popular beach destinations such as Cancun and Riviera Maya, and you have a very profitable problem.
Currently, the inflation in cost has mainly been seen on flights. Flights to major beach destinations in Mexico such as Cancun and Riviera Maya are up 28% compared to last year. Even low-season prices are on the up. Generally, travellers during quieter months would see the time of year reflected positively in the cost of their vacation. However, those choosing to vacation in traditional low-season months such as June and September are now paying up to 45% more than in previous years.
Armando Bojorquez is the owner of Mexican travel website Viajes Bojorquez and has seen his business affected. He comments that, “Demand has increased so much this year that prices went up and there are a lot of trips from convention groups as well (as traditional vacationers).”
Riviera Maya Vacation Rentals
What does this mean for property investors of vacation rentals? Only good things! As many investors have already found out, vacation rentals in Riviera Maya are a profitable business. High demand = high occupancy rates = high return on investment. It’s ever investor’s dream.
This new increase in vacation costs should only consolidate what Riviera Maya vacation rental owners already know. Property appreciation for the area is on average 9% for Playa Del Carmen and 12% for Tulum annually. Coupled with an extra 8-10% ROI from vacation rentals, and your own personal piece of the Mexican Caribbean will also be making you a fantastic annual return for years to come. Fantastic properties with a history of vacation rentals include Villa Mar Azul in prestigious Soliman Bay, Tulum and a Playacar penthouse in the competitive Vaiven development in Playa Del Carmen.