Reviewing market history, an investor may note that Playa del Carmen real estate went through it's boom in the middle of the decade, when buyers were flipping condos during the pre-construction period, making a considerable profit even before the property was completed.
But here's an important point to consider; while the fastest movement of this boom has past, Playa del Carmen continues to be the fastest growing community in Latin America, and presents a wide variety of new investment opportunities.
The question is not so much when to invest in Playa del Carmen, but where. The following are a few property types in which investors could see excellent potential for return in the current market:
Land purchases in newly developing areas. Playa del Carmen is expanding and new upscale residential and commercial areas are appearing away from the traditional tourist areas near the beachfront. In some of these areas, land has appreciated up to 30% over the past year.
Vacation Rental. Tourism continues to grow strongly, and with a well managed rental plan, vacation rentals can bring considerable return to investors. It is important to consider size, location and nearby services in this option.
Long-term Rental. The property type and location factors are important as well, but in a different way. Some buyers have managed to invest in one condominium, and use the long-term rental income to invest in a second.
As far as location is concerned, there are a few interesting areas to consider in Playa del Carmen real estate.
Coco Beach. The beachfront area just north of downtown, about a 10 minute walk to the main tourist area, is currently the end of all the beachfront activity. With new hotels and large-scale condo developments going in on the other side of Coco Beach, it promises to be the center pretty soon.
The "other side" of the highway. This is the area away from the beach, where land has been appreciating considerably. Other than land purchases, investors can also consider new gated "boutique communities" which offer excellent residential options, and even services that increase appeal for tourists. Nearby malls are also a real benefit.
South Downtown. This is the downtown core, which was the original village of Playa del Carmen; 15 years ago this was the entire town! For this reason, the area is full of little homes, built by some of the first to arrive to the area when tourism began to grow. The area is transforming, however. New condos are appearing; large supermarkets and shopping options exist, and Fifth Avenue (the main tourist street) and the beach are between 5 and 10 minutes away.
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