Vacation Homes and Rentals in Cancun, Mexico
TripAdvisor, one of the world’s largest online sources for travel information, has named Cancun, Mexico the “Friendliest Tourist City” in its latest survey. The pristine beaches, exquisite restaurants, the hopping nightlife, and ancient Mayan ruins are all reasons why millions of tourists visit each year. Cancun, Mexico remains the top international destination for North American tourists; it is no wonder why many people are choosing to buy a vacation home or a vacation rental.
Over 3.8 million tourists visited Cancun in 2012, making it Mexico’s number 1 tourist city. The Cancun Convention and Visitors Bureau reported that 2 million visitors have already vacationed in Cancun this year, making it the most successful spring season ever! This is a major reason why real estate developers, entrepreneurs, and regular people alike, are capitalizing on this trend by buying property for sale, either to flip it, rent it out part time or full time, or to have a vacation home as a getaway retreat.
Cancun, Mexico is divided into two main sections, the Hotel Zone, which is actually part of the world’s second-longest coral reef, and the downtown or mainland area known as El Centro, which features various gardens, a colorful central market, parks and other public areas.
When comparing real estate, the difference between the Hotel Zone and the rest of Cancun is the cost of living. A two-bedroom vacation rental in the Hotel Zone costs on average from $1,500 to $3,000 US. Dollars a month, depending on the season. The rent drops in El Centro and the residential areas west of the downtown area. A two-bedroom condo or apartment rental costs around $1,000 USD, and the further west you go the lower the prices drop.
Mexico’s long-established Foreign Investment Law allows non-Mexicans to acquire coastal and border property through bank trusts that are held by a Mexican bank. This secure ownership mechanism along with cheap property has enticed investors and tourists for decades. Non-beach front vacation homes in Cancun cost on average between $35,000 to $45,000 USD for two to three-bedroom condos and apartments. Newer apartments go for as little as $100,000 US dollars to $200,000.
The variety of luxury real estate for sale in Cancun, Mexico can’t get any better for the price. From multiple story homes on the waterfront, to large villas with thousands of acres, condominiums in gated communities, all with or without amenities of your choosing such as: pools, tennis courts, fitness centers, etc. can be found!
The higher end homes, ones with 5-bedrooms/5 baths and over 12,000 square footage list on average around $5 million USD. Expect these homes to have at least 2-3 stories, multiple garages, guest cottages on site, hot tubs, pools, and built within the last five years. A home with 5,000-7,000 square feet, list for on average between $2 million to $3 million.
Economists agree that buying a vacation home or rental is generally considered a good investment. With solid capital growth and an ever increasing number of tourists traveling to the region, these trends promise strong rental yields of around 6 to 10 percent, annually. Of course the best way to decide whether to own real estate is to travel to the “Friendliest Tourist City” and see for yourself. As the adage goes you should always try before you buy.