All Forum Posts by: Bruno Demarco Quiroz

I'm an independent and licensed real estate broker in Tulum, and after analyzing the performance of numerous properties, I can confirm what Mike is saying. Achieving a 15% yearly ROI in Tulum's real estate market is exceptionally rare.

When clients approach me wanting to invest in Tulum solely for high returns, I advise them to reconsider—unless they’re comfortable with a more realistic 5% return. While returns could improve over time, this is the current market reality. Some properties are yielding decent returns, but most of these are not listed for sale.

Tulum is an incredible destination for those who truly understand its charm and would enjoy having a second home or living here. With the market currently calm and a significant amount of inventory available, now could be a good time to buy. However, without an MLS in the area, determining the right price to pay can be challenging.

This lack of records makes our job more demanding but also gives me unique opportunities to help clients pay the right price. By consistently researching the market and recording both my own and my colleagues’ transactions, I’ve built a substantial database of closed deals, which I use to guide my clients effectively.

I cannot tell. Some people mention Bacalar and Mahahual. In my opinion they aren't, and there isn't another Tulum in Quintana Roo. Perhaps there is one somewhere in Mexico, but I do not know.

Hi Fawaz. I hope you're doing great.

As a licensed real estate broker in Tulum, I would like to share my opinion on this area with you. If you're planning to invest less than $400-500k USD, the properties you could find within that budget will not stand out in the market, and you'll face high competition in the STR (Short-Term Rental) market. Unfortunately, in recent years, Tulum has been overbuilt in the small properties segment, leading to a huge supply of them. If you are looking to invest over $500k, you might be able to find more unique properties with less competition.

Due to the current market conditions, many owners are deciding to sell, so today it is possible to find properties at great prices. However, it is not easy, as there is no MLS, and most people in this industry will try to sell preconstruction properties at any price.

I hope you find this information useful!

Hi Joaquin,

I agree with some of the points Mike mentioned. 

I am a licensed and independent real estate broker who actually lives in Tulum, so I have firsthand experience with some of these aspects.

There has been an increase in the supply, which is making the rental market more competitive. However, this increase in supply is also leading to some price reductions. It can be challenging to find these reduced prices as many industry professionals are primarily focused on selling pre-sales due to higher commissions and less work involved. But if you search for available homes, you'll find many properties where owners are offering great prices.

Regarding ROI, have you established your expected return on investment? While there are some properties offering returns over 10%, they might not be currently available for sale. Additionally, achieving a good ROI requires a great property manager, so it's not solely about having the right property in a good location. If you're aiming for a double-digit return, Tulum might not be the ideal market for your investment. However, if you're comfortable with a lower ROI, then yes, Tulum could be suitable.

The airport is located 40km (25 miles) south of downtown Tulum, while Cancun Airport is 120km (75 miles) to the north. I've traveled to both airports multiple times. From my home, which is located between La Veleta and Downtown, it has taken me between 27 to 40 minutes to reach Tulum Airport, whereas it has taken me between 90 minutes to 3 hours to reach Cancun Airport.

I believe the opening of Tulum Airport will attract more tourists, but we may not see a significant difference for a couple of years. Additionally, we're uncertain about the impact on the supply. I hope the growth will slow down, and indeed, I've noticed a reduction in the launch of new projects. However, I agree that there is currently an oversupply relative to the existing demand.

I hope this information is helpful!

@Kevin Stewart

I completely agree with Mike.

I am a licensed and independent real estate broker in Tulum. Residing here allows me to witness the current market dynamics. In brief, there's a surplus of offerings. If your primary goal is returns, my suggestion would be to explore alternative locations or consider a different unit within Tulum. Tulum, as a destination, has undergone a significant transformation. Once a tranquil small town, it has evolved into a bustling tourist hotspot. Given this shift, there are individuals seeking to recover their investments, making it possible to purchase now available homes (not presales) at very fair prices.

You can do it without being a resident in Mexico, but Airbnb will retain 20% of your income. This money is sent directly from Airbnb to the SAT (Mexican Tax Administration Service). If you are a resident, Airbnb will retain a lower amount. Depending on your tax regime, you will need to make monthly or yearly (or both) tax declarations. 

If you do it through a property management company, it will depend on their strategy.

Feel free to write to me if you need more details.

Hi @Danny Menendez,

I hope you can make your dream of owning property in this paradise come true. I am a licensed and independent real estate agent based in Tulum. In my experience, cash transactions are prevalent in this area.

Currently, I am assisting a client who is in the process of securing Mexican credit based on their Canadian income. While the interest rates may be higher than what he's accustomed to, it still works for him. Down payments typically require around 20%.

Furthermore, it's a favorable moment to buy as there has been a considerable increase in the inventory, leading to new opportunities emerging. Please feel free to reach out to me if you have any questions.

I wholeheartedly agree with @Mike Lambert. The SHF index doesn't accurately reflect the reality of the entire real estate market in Tulum. Only a few properties are sold in Tulum with mortgages.

Hello Terrence,

I'm an independent and licensed real estate agent in Tulum, and I have been living here since 2017. I can certainly provide some insights regarding your last question

What are some things to be cautious of when buying properties here?

1. If your primary objective is investment, it's crucial to carefully analyze the ROI that developers or agents might offer you.
2. While there is an international airport under construction and a train project set to connect the entire peninsula, I remain skeptical about the projected growth in tourism that some people promise due to these developments.
3. It's advisable to consider investing in an available home, as the inventory is expanding, and there are opportunities worth exploring. Keep in mind that presales may appear enticing, but they often come with delays and other potential issues.
4. Have a buyer's agent, who possesses in-depth knowledge of the market and the area, working on your side.

I hope this information proves helpful to you.

Best regards,

Bruno

Tulum, Quintana Roo, Mexico

https://www.brunorealestate.com.mx/my-properties/ikal-bungal...

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