One of the fastest-growing vacation home markets throughout the whole of Mexico as of late has been Tulum, with the help from a lawyer from Mexico. This is because this area is much less expensive than Playa del Carmen, which is considered to be the area’s hottest market. For example, $180,000 will get you a one-bedroom apartment measuring 646 square feet located just seven blocks from the ocean. In Tulum, you can use the same amount of money to purchase a two-bedroom apartment that measures 1,292 square feet.
Markets for both resale and newer development have rebounded within the last couple of years despite the global downturn of 2008. Many developers have been focusing on Tulum, where they have been snatching up a lot of property over the past couple of years.
Approximately 80% of sales in downtown Tulum consist of newer construction. 20 new developments are currently underway, and as of November 2015, 520 out of 789 total condos and houses included in these developments have been sold. 80% of them are multiple-family units that cost an average of $235,419.
The overall focus in this town is on lower-density, eco-friendly properties that measure no more than three stories high. The beach is dominated by boutique hotels, and the few single-family oceanfront homes available start at prices around $2.5 million.
Who Purchases Properties Here?
The majority of individuals purchasing properties in Tulum are North Americans, who are said to be heavily investing in real estate, especially in condos that are used as vacation homes for for rental income. For retirees, they tend to prefer actual houses.
Foreigners are able to use what’s known as a fideicomiso to purchase property in Mexico, which essentially lets them bypass a law that forbids them from owning property in the country within 31 miles of the coastline or 62 miles of the border. These can be obtained from any Mexican bank and they will hold all legal title to the property for 50 years; however, the buyer will retain all ownership rights and privileges. Real estate transactions are completed by a government-appointed notary, and a lawyer is also recommended to help set up trusts, provide title insurance, and run title searches.
Need more help or advice about purchasing real estate in Mexico? Don’t hesitate to call us today at 512-655-2182.