Cancun and the Riviera Maya: an overview of the real estate market of the Caribbean coast of Mexico in 2025

What is the Riviera Maya?

The lands on the Yucatan Peninsula, which were occupied by the Maya before the colonization of America, for a long time, already as part of Mexico, were rather provincial and sparsely populated. The changes began around the second half of the last century.

In 1967, the Mexican government was looking for a place for a new resort and settled on the small fishing village of Cancun;(in the Maya language, a nest of snakes). In 1970, the construction of the first hotel began, and ten years later, American tourists began arriving here in droves.

In the 1990s, the turn came to the active development of coastal areas south of Cancun. The coastline stretching about 140 km from Puerto Morelos to Punta Allena is now called the Riviera Maya and is one of the top 10 global tourist destinations.

Today, the resorts of the eastern tip of Yucatan are experiencing a tourist boom and an invasion of expats from all over the world. The region already has a strong infrastructure and is actively being built up.

What attracts foreigners to the Riviera Maya?

• Year-round summer
• Developed infrastructure: airports, roads, medicine, schools, shops
• Opportunities for sports and recreation

The second largest coral reef in the world is located off the coast of Yucatan, so it is a paradise for diving and snorkeling. In addition, you can dive in cenotes and cave wells. There are thousands of them along the coast. Water sports are booming, but others are also developed, such as golf.

• Friendly and somewhat relaxed atmosphere
• A large international community. There is also a Russian-speaking community
• Investors are attracted by the prospect of receiving a rental income of 8-10% per annum.
• It is relatively easy to legalize. For example, you can apply for a temporary residence permit for financially independent people by confirming that you have an income (from about $4,000 per month in net) or have funds in your account (more than $60,000). A permanent residence permit is issued at the birth of a child. 

What are the disadvantages of the Riviera Maya region?

• It has a very humid climate, which is not suitable for everyone.
• Seasonality. July to October is the hurricane season. Usually people are warned in advance, and everyone has time to prepare. The last hurricane was last year.
• From about April to August-September, the beautiful turquoise beaches of the Riviera Maya are often attacked by sargasso algae. Municipal services are bulldozing them and fighting them, but it doesn't always help. This problem does not occur in the closed resort of Puerto Aventuras and on the islands.
• Prices for imported products are quite high.
• Real estate is already quite expensive, although cheaper than in many coastal countries. Prices have increased significantly over the past 5 years, but there is potential for further growth.
• Not all areas are safe. There are also places where foreigners should not go.

Features of construction on the Riviera Maya

"Island" building system

• In Cancun, Zona Hotelera buildings are built on a narrow sandy spit between the sea and the lagoon, which requires special technology. One of them is deep foundations (piles up to 30 m deep).
• New projects often include the creation of artificial islands (such as La Isla in Playa del Carmen).

Ecological construction

It is distributed mainly in Tulum. 

Natural materials and resource-saving technologies are used.:

• adobe walls (a mixture of clay and straw);
• palm leaf roofs;
• local limestone instead of concrete;
• total ban on multi-storey construction (maximum 3 floors);
• solar panels and rainwater harvesting systems.

Hurricane-resistant construction

The standards adopted in hurricane-prone areas are being observed.:

• windows with shockproof glass;
• roofs with a slope angle of 30 degrees
• underground utilities;
Luxury complexes have their own generators and desalination plants.

Cancun and the Riviera Maya for real estate investors and buyers

What do those who are considering buying a home need to know?

1. In Mexico, in a 50-kilometer coastal area, foreigners can purchase real estate only through a bank trust (fideicomiso) or registration as a legal entity. This process is completely legal, but requires additional costs.:

• one-time fee for registration of fideicomiso is approximately 2500 USD;
• the annual maintenance fee for the trust is usually 500-700 dollars per year.
The fee for the permit from the Ministry of Foreign Affairs (SRE permit) is approximately $1,000.

2. The demand among foreigners is high and growing. The main buyers are citizens of the USA, Canada, Europe, and Latin America. In recent years, interest from Russian-speaking clients from both Russia and other CIS countries, Europe and Israel has increased markedly.

Purchase goals:

• investments - leasing or resale;
• seasonal accommodation «wintering» in a warm climate;
• moving to live by the sea all year round;
• maintaining capital in a stable asset.

4. There are different types of real estate:apartments, penthouses, houses, villas, townhouses, land plots.

Construction is very active, especially in Tulum, Playa del Carmen, and Cancun.

5. Everything that is closer to the sea and with a view of the water is more expensive. The further away from the sea, the cheaper.The secondary market is also developed, but new buildings are often more interesting in terms of price and installment options. Foreigners usually choose apartments in a complex with infrastructure or villas in gated residences.

Real estate prices:

• studio apartments in a new building: from 130,000-140,000 dollars;
One-room apartments: from 200,000 to 250,000 dollars One-bedroom apartments: from 250,000 to 400,000 dollars villas and apartments with views of the marina or the sea: from 450,000 dollars.

6. They are optimal for permanent residence:Cancun, Playa del Carmen, Puerto Aventuras.These cities have a well-developed infrastructure, a large selection of educational institutions for children of different ages, security, many expats from different countries, and a fairly large Russian-speaking community.

7. Cities such as Akumal, Tulum, and Puerto Morelos are more suitable for life without children.

8. There is a year-round demand for rentals on the Riviera Maya due to tourism and the influx of expats.

With a sound strategy, short-term rentals give 812% per annum, and more during peak seasons. Long-term rentals are more stable, but the yield is lower, about 57%.

The most profitable investments are in new buildings with hotel management. Investors prefer mainly apartments near the sea in Tulum, Playa del Carmen, Puerto Aventuras, Cancun.

Advice to investors: not only the facility itself is of key importance, but also the management company. A good operator in this region can significantly increase profitability due to competent positioning in the rental market.

9. The main risks: the choice of an unscrupulous developer, design errors, the choice of an object without taking into account rental demand. 

We recommend contacting an experienced agency so that the deal does not become a disappointment for you! 

The cities of the Riviera Maya coast and real estate in them

Cancun A business and tourist center with a well-developed infrastructure and an active nightlife.

This metropolis has everything: an international airport, excellent roads, hospitals, international schools, shopping malls, reliable communications (unlike, say, Tulum, where this may be a problem).

Over the past ten years, a lot of modern housing has been built in Cancun, and every year new worthy projects of different price categories appear. 

Prices for apartments in good condominiums, but not on the first or second line, start from 130,000150,000, in elite complexes by the ocean about twice as expensive.

Prices for townhouses start from $250,000. 

Playa del Carmen It is a European-style city with many cafes, boutiques and a developed expat community. Safe for both tourists and permanent residents.

This is a versatile option that is ideal for both living and recreation, as well as for short- or long-term rental investments.

The city has a large selection of seaside properties priced from 120,000140,000 dollars per studio and above. Facilities on Fifth Avenue, central Street, as well as in the elite Playacar gated community with a world-class golf course and Mayan ruins right on site are in demand.

Examples: a new studio in Playa del Carmen just two blocks from Fifth Avenue and 500 m from the sea is offered for $140,000. Luxury penthouse with sea view 200 m from the beach costs 850,000 dollars.

Puerto Aventuras Mexico's first private resort complex with a marina is about 20 minutes south of Playa del Carmen and 15 minutes north of Acumal. It is a gated community built around a large artificial marina. Outsiders will not get here so easily - entry to the territory is only for residents and their guests.

In Puerto Aventuras there are schools, restaurants, cafes, boutiques, private beaches, yacht parking places.

Many apartments and individual houses have their own private marinas and private beaches.

The specifics of the rental market is that there are few short-term rentals, but there is a steady demand for long-term rentals;(from 6 months and more) from expats who are looking for just such a safe and peaceful lifestyle. If there is a literal embodiment of the expression "quiet harbor", then it is Puerto Aventuras.

Examples of real estate: A spacious apartment with 2 bedrooms and a terrace in Puaerto Aventuras can be purchased for $580,000. Apartments with 3 bedrooms and a panoramic terrace in a new complex with its own harbor are offered for $ 779,000.

Tulum is a trendy eco-hipster resort with a booming real estate market. It is the only known port city of the Maya civilization. It developed in the 12th-15th centuries and was an important trade center. The ruins of the ancient settlement have been preserved and attract travelers from all over the world.

The global trend towards sustainable development and an eco-friendly lifestyle perfectly coincided with Tulum's philosophy. This factor attracts many investors.

Most of the coastal area is occupied by a national park or nature reserve. New construction is strictly regulated, which creates a shortage of supply and supports high prices.

In 2023, the Felipe Carrillo Puerto Airport (TQO) opened here, which further added points to this location. 

In Tulum, studios cost about $120,000, and one-bedroom apartments cost about $200,000. 

Examples of real estate: A cozy studio in a hotel-type complex in Tulum is listed for $119,000.

Akumal A quiet, family-run village, the opposite of Cancun, which is bustling with tourists. Here you can swim with sea turtles (Akumal, translated from the Mayan language, is the habitat of sea turtles).

Located between Playa del Carmen and Tulum (about 30-40 minutes drive from each).

Akumal is not one large village, but rather a conglomerate of several small private estates (the so-called akumals). New construction is strictly limited and regulated by environmental regulations. This creates a shortage of supply and keeps prices high.

Akumal is chosen more often for moving than for a short vacation. Long-term rentals are in high demand here, not short-term rentals. Families with children, pensioners, diving enthusiasts and just those who are looking for a quiet life by the ocean surrounded by like-minded people often prefer this resort.

Akumala offers apartments in low-rise complexes on the first or second line, as well as spacious villas hidden in the jungle. Housing prices are among the highest in the region due to limited supply.

Real estate example: A ready-made studio with hotel management in Akumala costs $165,000.

To sum up, distant Mexico may well become close. If not in terms of distance from the motherland, then at least in spirit. This country definitely has something to offer to the traveler, the digital nomad, and the investor.

 

Thank you for your help in preparing the material:

Anna Umanskaya, an expert Caribbean Club Project

To Robert Guidi, manager GM Real Estate