Balacar , Mexico - has anyone looked in to it?
Member since 2020 · 2 posts · 1 vote
Hey everyone , I’m new to the forum , very excited to network and gain some ideas.
My question is has anyone looked in to Balacar Mexico ? I’m interested in finding a new upcoming area with rental potential as an investment and to vacation . I’ve been interested in Tulum but I think that ship has sailed .. so looking for some new areas .. thanks!
I'm also investing in upcoming holiday destinations with big short-term rental potential. In this context, I have been offered to buy land in Bacalar a while ago and I declined.
I agree with you that Tulum's ship has now sailed. People who still buy in Tulum today are hoping that Tulum will become another Playa del Carmen but that is very unlikely to happen for several reasons, the main ones being:
1) Unlike in Playa del Carmen, it's impossible to buy a property close to the beach and certainly not at a decent price;
2) Given Tulum's current and upcoming urban planning, it'll never have anything close to the 5th Avenue that made Playa del Carmen world famous;
3) There is hardly any land still available for development in the area where visitors want to be in Playa del Carmen. Land costs a fortune there so they have to go into the retail prices of any future development, which is a protection against overbuilding putting pressure on price and short-term rental rates and a protection against competition for property owners. Contrast that with Tulum, which has plenty of land available for development.
4. In spite of 1), 2) and 3), prices in Tulum are often already higher than in Playa del Carmen, which makes no sense.
Now, is Bacalar the next Playa del Carmen or Tulum?
The thesis goes as follows: Bacalar is the next stop along the Costa Maya, and a planned train route will make it more accessible to Cancun airport. This is the Maya Train, nearly 1,000 miles of track traversing the Yucatan and linking it to Chiapas.
But here's several reasons why Bacalar is not the next Playa del Carmen or Tulum:
1. As beautiful as the lagoon is, there's no beach and Bacalar isn't that close to the sea. This is huge. The beach is what first attracted tourists and expats to the area. Moreover, there is no close beach by the Caribbean Sea.
2. Bacalar is far from Cancun airport, a good four-hour drive. Playa del Carmen is 45 minutes and Tulum is an-hour-and-20 minutes from Cancun on an excellent highway. Tulum is the last stop along a rapid and profound Path of Progress. It's the last stop for development on the Riviera Maya—one of the world's most popular tourist destinations. The Path of Progress doesn't stretch down to Bacalar...
3. The promised Mayan train route is an election promise from a populist leader. He doesn't have the money to do it. It's highly unlikely it will happen, at least in its current form. If it does happen, it will be years out, and schedules will be irregular. A typical arrival will still be a good seven hours plus from touchdown in Cancun airport to arrival in Bacalar between customs, waiting for the train, and train travel time. It's very far to have broad appeal. (And if the train does happen, Playa del Carmen and Tulum will be much closer by train, plus you also have car and bus travel options.)
4. Apart from the lagoon, there's not much else to do there.
That's not to say Bacalar won't develop. It will but, at a modest pace and it will appeal to the more adventuresome type of traveler. The problem is that real estate prices have already increased hugely there and that development is already factored in. The train is factored in too, in spite of the fact that it might never come.
I'm also investing in upcoming holiday destinations with big short-term rental potential. In this context, I have been offered to buy land in Bacalar a while ago and I declined.
I agree with you that Tulum's ship has now sailed. People who still buy in Tulum today are hoping that Tulum will become another Playa del Carmen but that is very unlikely to happen for several reasons, the main ones being:
1) Unlike in Playa del Carmen, it's impossible to buy a property close to the beach and certainly not at a decent price;
2) Given Tulum's current and upcoming urban planning, it'll never have anything close to the 5th Avenue that made Playa del Carmen world famous;
3) There is hardly any land still available for development in the area where visitors want to be in Playa del Carmen. Land costs a fortune there so they have to go into the retail prices of any future development, which is a protection against overbuilding putting pressure on price and short-term rental rates and a protection against competition for property owners. Contrast that with Tulum, which has plenty of land available for development.
4. In spite of 1), 2) and 3), prices in Tulum are often already higher than in Playa del Carmen, which makes no sense.
Now, is Bacalar the next Playa del Carmen or Tulum?
The thesis goes as follows: Bacalar is the next stop along the Costa Maya, and a planned train route will make it more accessible to Cancun airport. This is the Maya Train, nearly 1,000 miles of track traversing the Yucatan and linking it to Chiapas.
But here's several reasons why Bacalar is not the next Playa del Carmen or Tulum:
1. As beautiful as the lagoon is, there's no beach and Bacalar isn't that close to the sea. This is huge. The beach is what first attracted tourists and expats to the area. Moreover, there is no close beach by the Caribbean Sea.
2. Bacalar is far from Cancun airport, a good four-hour drive. Playa del Carmen is 45 minutes and Tulum is an-hour-and-20 minutes from Cancun on an excellent highway. Tulum is the last stop along a rapid and profound Path of Progress. It's the last stop for development on the Riviera Maya—one of the world's most popular tourist destinations. The Path of Progress doesn't stretch down to Bacalar...
3. The promised Mayan train route is an election promise from a populist leader. He doesn't have the money to do it. It's highly unlikely it will happen, at least in its current form. If it does happen, it will be years out, and schedules will be irregular. A typical arrival will still be a good seven hours plus from touchdown in Cancun airport to arrival in Bacalar between customs, waiting for the train, and train travel time. It's very far to have broad appeal. (And if the train does happen, Playa del Carmen and Tulum will be much closer by train, plus you also have car and bus travel options.)
4. Apart from the lagoon, there's not much else to do there.
That's not to say Bacalar won't develop. It will but, at a modest pace and it will appeal to the more adventuresome type of traveler. The problem is that real estate prices have already increased hugely there and that development is already factored in. The train is factored in too, in spite of the fact that it might never come.
Very good assessment! Really appreciate the detailed info .. the search continues!
Any time. Happy I was able to help.
@Mike Lambert Thank you for always sharing such thorough and insightful knowledge with this community. I truly appreciate reading your posts!
That being said re: Tulum and Bacalar, what areas DO you like right now for an investment in this category?
@Paul Jover Hi! Did you end up investing yet? If so, mind sharing where? Thanks!
@Janis E Borroto you're welcome. It's always great to hear that the time spent to formulate replies that make sense really help people!
General opinion: you're way too late for both.
Tulum has had a krach. Too much construction and they're not done. I like to invest in places where there's a lot of demand and not enough supply. Places in Europe, where I'm focusing at the moment like Spain's Costa del Sol or Portugal. Second, in Mexico, certain areas of Puerto Vallarta / Riviera Nayarit, Cabo or the Oaxaca Coast. In Tulum, there's already too much construction and there's plenty more jungle that can be built.
However, if you're looking at a lifestyle purchase because you like Tulum, if you buy smart, you should be able to cover your costs.
As to Bacalar, I've heard for years people selling it with a vested interest say it's the next Tulum. I suggest people use their common sense. Apart from going there on a yoga retreat, how long would you stay there? Personally, I'd just go for a day from Tulum or maybe a weekend with friends and then it'd be "been there done that" and I assume I wouldn't be the only one. If you were the first there and had a big house, I imagine that you could have retreats there and be successful but people have been speculating about Bacalar for years.
Hope this helps!
I agree, Tulum is great if you love being here and are buying primarily for lifestyle. Because of the current oversupply, it’s possible to buy at fair prices today. I would recommend avoiding condos and focusing on single-family homes. Many HOAs are not properly consolidated, and when owners don’t pay their fees, it often results in poor maintenance of the common areas.