Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of Playa del Carmen's property market is included in our pack
Playa del Carmen's Airbnb market offers compelling opportunities for investors seeking rental income in Mexico's Caribbean coast. The city attracts millions of tourists annually, creating consistent demand for short-term rentals, particularly in prime locations near 5th Avenue and the beach. However, profitability depends heavily on property location, seasonality management, and understanding the local regulatory environment.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Playa del Carmen's Airbnb market generates average gross yields of 7-10% annually, with net yields typically ranging from 4-7% after all expenses. Properties in Centro and Playacar neighborhoods perform best, earning $79 median nightly rates with 41-59% average occupancy rates throughout the year.
Seasonality significantly impacts profitability, with peak months (January-March) generating up to $2,371 monthly revenue compared to low season periods (June, September) earning around $1,120 monthly.
| Property Type | Average Monthly Gross Revenue | Net Yield Range |
|---|---|---|
| Studio/1BR (Centro) | $900 - $1,200 | 4-6% |
| 2BR (Prime Location) | $1,300 - $1,900 | 5-7% |
| 3BR+ Luxury | $2,000 - $3,600 | 6-8% |
| High Season Peak | Up to $2,371 | Variable |
| Low Season | Around $1,120 | Variable |
| Top 10% Properties | $3,604+ | 8-10% |
| Annual Average | Varies by size | 4-7% |
What types of properties generate the highest demand for Airbnb in Playa del Carmen?
Centrally located apartments and condos within walking distance to the beach or 5th Avenue consistently attract the most bookings in Playa del Carmen's Airbnb market.
Studio units and one-bedroom condos perform exceptionally well due to their appeal to couples and solo travelers who represent a significant portion of visitors. These properties typically offer the best occupancy rates when equipped with modern amenities like strong WiFi, air conditioning, and contemporary furnishings.
Upscale houses and luxury condos in gated communities like Playacar also generate strong demand, particularly from families and larger groups seeking privacy and premium amenities. Properties featuring pools, multiple bedrooms, and full kitchens command higher nightly rates and attract guests staying for extended periods.
Digital nomad-friendly properties with dedicated workspaces have emerged as a growing segment, especially those offering high-speed internet and quiet environments conducive to remote work. Family-oriented properties with multiple beds, cribs, and child-safe features also maintain consistent demand throughout the year.
Properties with unique features like rooftop terraces, ocean views, or proximity to cenotes can command premium rates and achieve higher occupancy levels compared to standard units.
Which neighborhoods deliver the best performance for short-term rentals?
Centro and downtown Playa del Carmen consistently deliver the highest returns for Airbnb investors due to proximity to 5th Avenue's restaurants, shops, and nightlife.
Playacar Phase 1 represents the luxury segment, attracting upscale guests willing to pay premium rates for gated community security, direct beach access, and resort-style amenities. Properties in this area typically achieve occupancy rates 10-15% higher than the city average.
Cozumel Street appeals to younger travelers and party-seekers, generating strong weekend bookings and during peak party seasons. This area sees higher turnover but also commands competitive nightly rates due to its vibrant atmosphere and beach proximity.
Tulum Avenue has developed into a bohemian hub attracting digital nomads and younger travelers seeking trendy cafes, boutiques, and co-working spaces. Properties here maintain steady occupancy with guests typically staying longer than the city average.
It's something we develop in our Mexico property pack.
How much do properties actually earn per night based on size and location?
The median nightly rate across all Playa del Carmen Airbnb properties stands at $79 as of September 2025, though earnings vary significantly by property size and neighborhood.
| Property Category | Average Nightly Rate | Location Premium |
|---|---|---|
| Entry-level properties | $50/night | Outskirt locations |
| Standard 1BR Centro | $79/night | Central areas |
| 2BR prime locations | $120-140/night | Beach/5th Ave proximity |
| Top 25% properties | $137+/night | Premium locations |
| Top 10% luxury units | $245+/night | Playacar/beachfront |
| 3BR+ luxury houses | $300-500/night | Gated communities |
| Penthouse/unique properties | $500+/night | Exclusive locations |
What occupancy rates can investors realistically expect throughout the year?
Annual average occupancy rates for Playa del Carmen Airbnb properties range from 41% to 59%, with successful properties typically achieving around 215 occupied nights per year (59% occupancy).
High season months from January through March deliver occupancy rates between 58% and 62%, representing peak performance periods when properties can achieve maximum revenue potential. January typically records the highest occupancy at 61.5% with corresponding revenue peaks up to $2,371 monthly.
Shoulder season periods in April, May, and November maintain moderate occupancy around 42%, providing steady income during transitional months. These periods often attract longer-stay guests and digital nomads seeking better rates while avoiding peak tourist crowds.
Low season months including June, September, and October experience occupancy drops to 32-36%, requiring strategic pricing adjustments and enhanced marketing efforts. June and September typically represent the most challenging months with occupancy falling to 31.9% and revenue declining to approximately $1,120 monthly.
Well-managed properties in prime locations can achieve occupancy rates 10-20% above market averages through optimized pricing strategies, superior guest experiences, and effective channel management across multiple booking platforms.
How significantly do high and low seasons impact rental income?
Seasonal fluctuations create dramatic income variations in Playa del Carmen's Airbnb market, with peak season generating up to 2-3 times the revenue of low season months.
Peak season from January through March delivers average monthly revenues up to $2,325, driven by both higher nightly rates and occupancy levels exceeding 60%. During these months, properties can command premium pricing while maintaining consistent bookings from North American travelers escaping winter weather.
Shoulder season periods in April-May and November generate moderate revenues around $1,617 monthly with approximately 42% occupancy rates. These months offer opportunities for longer-term bookings and attract price-sensitive travelers seeking better value.
Low season months experience significant revenue drops to around $1,213 monthly, with daily rates falling to approximately $121 and occupancy declining to 35%. Property owners must adjust pricing strategies and potentially target different guest segments like digital nomads or extended-stay visitors during these periods.
Successful investors implement dynamic pricing strategies, increasing rates during peak weeks while offering competitive pricing during slow periods to maintain cash flow consistency throughout the year.
Don't lose money on your property in Playa del Carmen
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What gross rental income can investors expect from different property sizes?
Studio and one-bedroom properties in Playa del Carmen generate approximately $900 to $1,200 in monthly gross rental income, making them attractive entry-level investments for new Airbnb operators.
Two-bedroom properties typically earn between $1,300 and $1,900 monthly, benefiting from their appeal to couples traveling together, small families, and business travelers seeking additional space. These properties often achieve higher occupancy rates due to their versatility in accommodating different guest configurations.
Three-bedroom and larger properties command $2,000 to $3,600 monthly gross revenue, representing the premium segment that attracts families, group travelers, and luxury-seeking guests. These properties require higher initial investments but can generate superior returns in prime locations.
Best-in-class properties in the top 10% performance tier can gross $3,604 or more monthly through exceptional locations, luxury amenities, professional management, and strategic marketing. These properties typically feature unique characteristics like oceanfront locations, rooftop pools, or designer interiors.
It's something we develop in our Mexico property pack.
What remains after deducting all operating expenses and fees?
Net rental income typically falls within 65-75% of gross revenue after accounting for Airbnb fees, cleaning costs, utilities, maintenance, and operational expenses.
Airbnb platform fees range from 3% to 15% of gross bookings, while cleaning costs average $30-60 per turnover depending on property size and local service rates. Utilities for typical condos cost approximately $100-250 monthly, varying based on air conditioning usage and property size.
Maintenance expenses average $75-150 monthly, covering routine repairs, property upkeep, supplies, and periodic deep cleaning. Additional costs include insurance, internet service, cable/streaming subscriptions, and restocking of guest amenities.
Property management services, when utilized, typically charge 20-25% of gross revenue, reducing net margins to 50-60% of gross income. However, professional management can improve occupancy rates and guest satisfaction, potentially offsetting the additional cost.
For example, a median-performing one-bedroom property earning $1,000 monthly gross revenue would net approximately $650-750 after all operating expenses, assuming self-management and typical cost structures.
What gross yields do investors typically achieve relative to purchase prices?
Average gross yields for Playa del Carmen Airbnb properties range from 7% to 10% annually when calculated as gross rental income divided by property purchase price.
Well-positioned properties in Centro, Playacar, or near major attractions achieve the highest yields within this range, benefiting from consistent demand and premium pricing capabilities. Properties purchased below market value or during market downturns can generate yields exceeding 10%.
Net yields after all expenses typically fall within the 4-7% range, depending on property management efficiency, vacancy rates, and expense control. Self-managed properties generally achieve higher net yields but require significant time investment from owners.
Luxury properties often generate lower percentage yields due to higher purchase prices, but provide superior absolute returns and appreciation potential. Entry-level properties may achieve higher percentage yields but face greater competition and potential market volatility.
Properties requiring significant renovations or those in emerging neighborhoods may initially show lower yields but offer potential for yield improvement through strategic upgrades and area development.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the realistic net yields after property management and tax obligations?
Realistic net yields for well-managed Playa del Carmen Airbnb properties typically range from 4% to 6% annually after accounting for property management fees and local taxes.
Property management services charge 20-25% of gross revenue but can improve occupancy rates, guest satisfaction, and property maintenance, potentially justifying their cost through higher overall performance. Self-managed properties may achieve slightly higher net yields but require significant owner involvement.
Mexican tax obligations for foreign property owners include annual property taxes (predial) typically ranging from 0.1% to 0.3% of property value, plus income tax on rental earnings. Short-term rental income is subject to Mexican tax regulations, requiring proper registration and tax compliance.
Prime location properties in Centro or Playacar achieving strong occupancy and premium rates typically deliver net yields at the higher end of the 4-6% range. Properties in secondary locations or those requiring extensive management may fall toward the lower end.
Currency fluctuations between USD and Mexican peso can impact net yields for foreign investors, particularly those financing properties in different currencies than their rental income streams.
Would long-term rental strategies provide more stable income than Airbnb?
Long-term rental strategies offer significantly more stable and predictable cash flow compared to Airbnb short-term rentals, though typically at lower overall yield levels.
Long-term rentals in Playa del Carmen generally generate gross yields of 3-5% annually, substantially lower than Airbnb's 7-10% potential but with minimal vacancy risk and reduced management requirements. Monthly rental payments provide consistent income without seasonal fluctuations.
Airbnb short-term rentals can deliver higher annualized income but involve considerable seasonality risk, higher management demands, and income volatility that can challenge cash flow planning. The 50-100% revenue variation between peak and low seasons creates significant financial planning challenges.
Long-term rentals eliminate costs associated with frequent turnovers, cleaning services, guest supplies, and intensive marketing efforts required for short-term success. Maintenance costs are typically lower due to reduced wear and tear from constant guest turnover.
Some investors pursue hybrid strategies, operating properties as short-term rentals during peak season (January-March) while securing long-term tenants during low season periods to optimize both yield and stability.
What regulations and restrictions currently govern Airbnb operations?
As of September 2025, Playa del Carmen maintains a generally lenient regulatory environment for short-term rentals, though official registration requirements may apply to Airbnb operations.
Current enforcement appears limited, with reports indicating only about 1% of listings maintain proper licensing, suggesting authorities have not prioritized strict compliance monitoring. However, this relaxed approach could change as the market matures and local government seeks increased revenue or control.
Property owners should verify current registration requirements with local municipal authorities before beginning short-term rental operations, as regulations can evolve rapidly in popular tourist destinations. Proper licensing may become more strictly enforced as competition for tourism revenue increases.
Condominium associations may impose their own restrictions on short-term rentals, potentially limiting or prohibiting Airbnb operations regardless of municipal regulations. Investors should review HOA bylaws and building regulations before purchasing properties intended for short-term rental use.
It's something we develop in our Mexico property pack.
How do property price trends affect overall investment profitability?
Property prices in Playa del Carmen remain reasonable compared to North American markets, though heavy new construction activity is moderating appreciation rates and affecting long-term investment returns.
Robust tourism demand continues generating investor interest, supporting property values and rental demand despite increased supply from new developments. Areas near completed infrastructure projects or planned tourism developments typically experience stronger appreciation potential.
Annual appreciation rates vary significantly by neighborhood and property type, with established areas like Centro and Playacar generally maintaining more stable value growth compared to newer developments on the city periphery. Properties purchased during market downturns or below market value offer enhanced profitability potential.
Strong short-term rental performance can offset modest appreciation rates, with successful Airbnb properties generating total returns (yield plus appreciation) that exceed traditional long-term rental investments. However, investors should factor potential market saturation risks as new supply continues entering the market.
Currency exchange rates between USD and Mexican peso significantly impact total returns for foreign investors, particularly those repatriating profits to their home countries or financing properties with foreign currency loans.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Playa del Carmen's Airbnb market offers compelling opportunities for investors willing to actively manage seasonality and operational challenges.
Success requires strategic property selection in prime locations, professional management approaches, and realistic expectations about seasonal income variations.
Sources
- AirROI - Playa del Carmen Report
- Airbtics - Annual Airbnb Revenue Playa del Carmen
- Caribe Luxury Homes - Top Mexican Airbnb Markets
- Airbtics - Best Airbnb Markets Mexico
- The Wandering Investor - Playa del Carmen Investment
- The Broke Backpacker - Where to Stay Playa del Carmen
- AirROI - Data Portal Playa del Carmen
- CozyCozy - Playa del Carmen Short-term Rentals