All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Cancún's property market is included in our pack
Thinking of buying a property in Cancún? You're not alone!
Many people are intrigued by Cancún's turquoise waters and dream of owning a luxurious beachfront villa or a modern condo with sea views.
Does it make sense from a financial perspective, though? Are property prices increasing in Cancún? Is it expensive? Is it better to buy in the Hotel Zone or Playa del Carmen? Is there any hidden tax? Where can you get a yield above 7%?
We have all the answers you need.
At TheLatinvestor, we know this market like the back of our hand. As a matter of fact, we've put all our findings together in a pack. Get it now.
In the lines below, we'll share useful information and some practical tips.
How is the property market in Cancún?
Is the property market thriving or struggling? We'll find the answers through data analysis.
Property types
In Cancún, you can find various types of properties for sale.
These include beachfront condos offering stunning ocean views, cozy residential houses with tropical gardens, modern apartments in bustling city areas, and luxurious villas featuring private pools and upscale amenities.
Whether you're looking for a peaceful retreat, a vibrant urban setting, or a lavish getaway, Cancún offers a diverse range of properties to suit different preferences and lifestyles.
Buy or rent?
(In case you want it for yourself, not for rental purposes)
If Cancún has captured your heart as your city of choice, you might be considering whether it's better to buy a property or opt for renting in this vibrant Mexican beach destination.
Generally, buying is a better choice than renting in Cancún due to its strong real estate market, ideal climate, and desirable location for travelers.
However, should flexibility be your priority, renting is the best option.
Property prices in Cancún
On average, according to the updated data from National Institute of Statistics and Geography (INEGI), purchasing a property in Cancún would cost you around $4,000 per square meter.
Obviously, there are big differences. An apartment in Cancún might have a different price per square meter than a beachfront property in Playa del Carmen. We actually give you a more detailed breakdown in our pack for buying property in Cancún and in Mexico.
To put things in perspective, it means that, instead of buying an apartment in New York, you can get almost 3 properties in Cancún.
Also, housing prices in Cancún are 11% cheaper than in Tulum.
The most expensive neighbourhoods in Cancún are probably Puerto Cancún and Playa del Carmen, while the cheapest are likely to be areas further away from the city centre.
Trends
First and foremost, we have to acknowledge that Mexico is, today, a relatively stable country. The last Fragile State Index that has been reported for this place is 70.3.
This is important to remember when wondering if it's a good investment to buy a property in Cancún.
Also, according to the International Monetary Fund (IMF), Mexico's economy is expected to soar by 8.3% in the coming 5 years, resulting in an average GDP growth rate of 1.7%.
If you intend to invest in real estate in Cancún it's a good thing because a positive growth rate (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.
Also, in Mexico, the average GDP per capita has changed by -3.6% over the last 5 years. It's not a good number.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Mexico right now.
Buying property in Cancún
Buying real estate in Cancún can be difficult due to the lack of reliable and updated information available. That's why we have created the pack to buy property in Cancún and in Mexico.
Buying process
Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.
Here, we're presenting you with a more straightforward version.
This is the step-by-step process to purchase a property in Cancún:
- Research the market and choose a suitable area in Cancún, considering factors like proximity to the beach and local amenities.
- Engage a reputable local real estate agent familiar with Cancún's regulations and market.
- Review available properties and shortlist based on your preferences.
- Conduct property inspections, considering factors like hurricane protection and potential erosion issues.
- Verify the legal status and ownership history, including a check at the Public Property Registry (Registro Público de la Propiedad).
- Obtain a property appraisal from a licensed appraiser to assess the property's value.
- Negotiate the price and terms with the seller, and sign a purchase agreement (Contrato de Compraventa).
- Make a deposit (typically 10% of the property's value) into an escrow account.
- Hire a reputable local attorney (notary) to handle the closing process, ensuring all legal aspects are in order.
- Complete due diligence, including verifying the property's tax status and obtaining a non-encumbrance certificate (Certificado de Libertad de Gravamen).
- Transfer the remaining funds to a Mexican bank account to complete the purchase.
- Attend the closing meeting (Firma de Escritura) where the final contract is signed, and the property title is officially transferred to your name, registered at the Public Property Registry.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Mexico.
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Where to find a property
Explore these websites to find properties in Cancún:
- Mexico Real Estate Group - A multilingual real estate brokerage specializing in luxury properties in Mexico, catering to international buyers and investors.
- Top Mexico Real Estate - A professional real estate agency dedicated to helping American and Canadian buyers discover their dream homes in Mexico.
- Bay Realty Mexico - A local real estate agency with over 15 years of experience in the Puerto Vallarta and Riviera Nayarit real estate market.
- Cochran Real Estate - A boutique real estate agency focused on assisting buyers and sellers in Jalisco and Nayarit, Mexico.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Mexico.
What you can get
As mentioned before, the average price per sqm in Cancún is $4,000. A one-bedroom property with an area of 60 square meters would cost approximately $240,000, and a two-bedroom property with an area of 85 square meters would be approximately $340,000.
However, prices will differ based on the attributes of the property and its specific location.
Prime property locations in Cancún tend to come with higher price points. For about $970,000, you could consider a residence in the Hotel Zone, but a house in Puerto Cancun might be priced at $700,000.
However, some places cost less. You may find an apartment in Leona Vicario for $130,000, or an apartment in Supermanzana 66 priced only at $110,000.
Find a more detailed breakdown in our full pack for buying property in Mexico.
Common mistakes
Here are the main pitfalls specific to buying property in Cancún, Mexico:
- Ejido Land: Be cautious of properties on ejido land, communal land with uncertain ownership rights and limited development permissions.
- Fideicomiso Process: Foreigners must use a trust (fideicomiso) for coastal properties, requiring extra fees and complex paperwork.
- Coastal Zone Restrictions: Coastal properties may have restricted building heights and distances due to environmental regulations.
- Hurricane Vulnerability: Assess the property's resilience to hurricanes and potential insurance costs.
- Water and Sewerage: Verify the property's access to reliable water and sewage systems, especially in remote areas.
- Capital Gains Tax: Understand Mexican tax laws and potential capital gains tax implications on property sales.
- Condo Rules and Fees: Review condominium rules, fees, and management structures for condos or gated communities.
- Market Speculation: Be cautious of inflated property prices driven by speculative investment trends. Conduct thorough research before buying.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Mexico Property Pack
Living in Cancún
Living in Cancún is a great way to experience the beauty of the Caribbean Sea and the unique culture of the Yucatán Peninsula.
Cost of living
The cost of living in Cancún is relatively low compared to other major cities in Mexico. It is possible to find affordable housing, groceries, transportation, and entertainment in Cancún.
Here are some examples to better understand the cost of living in Cancun, Mexico:
- Margarita cocktail at a beachside bar: $5.
- Rent for a one-bedroom apartment in the Hotel Zone: $800/month.
- Tacos al pastor for two at a local taqueria: $10.
- 1.5-liter bottle of Jarritos (Mexican soda): $1 at a supermarket.
- Electricity bill for an 85m² apartment using CFE (Federal Electricity Commission): $60/month.
- Monthly membership at Sports World gym: $70.
- Ticket to a movie at Cinepolis in Plaza Las Americas: $8.
- Cup of Mexican coffee at a café in downtown Cancun: $2.
Neighbourhoods
We want to show information in a clear and easy-to-understand way. So, we made a table that lists out the different areas in Cancún. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Zona Hotelera | Zona Hotelera is the famous hotel zone of Cancún, located along the beachfront with luxury resorts, stunning beaches, and a vibrant nightlife. | Beautiful beaches, high-end resorts, lively entertainment. | Higher prices, crowded during peak tourist seasons. |
Downtown Cancún is the city center, offering a mix of local culture, shops, restaurants, and historic landmarks. | Authentic local experience, diverse dining options, cultural attractions. | Limited beach access, some areas may be less safe at night. | |
Puerto Juárez | Puerto Juárez is a tranquil fishing village with a laid-back atmosphere, known for its ferry services to Isla Mujeres. | Peaceful ambiance, ferry access to Isla Mujeres, authentic seafood restaurants. | Limited nightlife, fewer entertainment options. |
Supermanzana 17 | Supermanzana 17 is a residential area close to the hotel zone, offering a quieter living environment with easy access to amenities. | Proximity to Zona Hotelera, peaceful neighborhood, local services. | Limited beach access, some areas may lack modern facilities. |
Supermanzana 4 | Supermanzana 4 is a central residential area with parks, schools, and various services, providing a family-friendly environment. | Community feel, parks and recreational facilities, accessible amenities. | Less touristy, some areas may be less modern. |
Alamos | Alamos is a peaceful neighborhood with a mix of residential and commercial areas, offering a more local and laid-back atmosphere. | Quiet living environment, local shops, affordable housing options. | Further from the beach, limited tourist-oriented services. |
Region 231 | Region 231 is a developing area with new residential projects, providing affordable housing options in a growing neighborhood. | Affordable properties, potential for growth, local services. | Less established infrastructure, longer commute to tourist areas. |
Region 233 | Region 233 is a residential area known for its peaceful environment and proximity to natural reserves and parks. | Natural surroundings, tranquil atmosphere, local amenities. | Limited commercial activity, longer distance to major attractions. |
Region 235 | Region 235 is a developing neighborhood with new housing projects, offering a more suburban living environment. | Potential for growth, affordable properties, quiet surroundings. | Less developed infrastructure, longer commute to tourist areas. |
Region 238 | Region 238 is a residential area with a mix of housing types, providing a laid-back living environment. | Quiet atmosphere, diverse housing options, local amenities. | Further from the beach, limited tourist-oriented services. |
Region 239 | Region 239 is a suburban neighborhood with residential areas and local services, offering a peaceful environment away from the tourist crowds. | Tranquil living environment, local amenities, potential for growth. | Less developed infrastructure, longer commute to tourist areas. |
Region 240 | Region 240 is a residential area with a mix of housing types, providing a more local and family-oriented living environment. | Quiet atmosphere, diverse housing options, local amenities. | Further from the beach, limited tourist-oriented services. |
Region 241 | Region 241 is a growing neighborhood with new housing developments, offering a more suburban living environment. | Potential for growth, affordable properties, local services. | Less developed infrastructure, longer commute to tourist areas. |
Life in Cancún
Cancún is a major tourist destination, and the tourism industry is the main economic driver of the city. Additionally, there is a growing manufacturing sector, which includes automotive, electronics, and food processing industries.
What expats usually like the most in Cancún is its year-round sunshine and beaches, as well as its wide variety of activities, from golfing to nightlife.
Access to healthcare in Cancún is generally good, with a range of private and public hospitals and clinics.
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Renting out in Cancún
This section is for you if you're interested in purchasing property not for personal residence, but rather for the purpose of renting it out to generate rental income.
Long-term
Tenant Profiles in Cancún
According to the data reported by Wikipedia, the home ownership rate in Mexico is 80%, which is rather high.
It is probably a bit less in Cancún though.
If you decide to buy and rent out to long-term tenants, you should target young professionals, retirees, and families looking for a more affordable place to live. Additionally, Cancún is a popular vacation destination, so you could also rent out to short-term vacationers, business travelers, and students on a budget.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Condo in Hotel Zone | Tourists, short-term renters | Beachfront, amenities | $1000 - $3000 |
Apartment in Downtown | Young professionals, expats | Urban lifestyle, convenience | $600 - $1500 |
House in Playa del Carmen | Families, retirees | Suburban living, proximity to amenities | $800 - $2000 |
Studio in Puerto Juarez | Students, budget travelers | Affordable, access to transportation | $300 - $700 |
Apartment in Cancun Centro | Locals, families | Affordable, local community | $400 - $1000 |
Condo in Playacar | Retirees, expats | Gated community, tranquility | $800 - $1800 |
Apartment in Tulum | Tourists, nature enthusiasts | Eco-friendly, close to attractions | $700 - $1500 |
Rental yields
As of today, rental yields in Cancún are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.
Properties near the beach tend to have the highest rental yields in Cancún, as they are in high demand due to their proximity to popular tourist attractions. Additionally, properties in the downtown area tend to offer good rental yields, as they are close to many restaurants, shops, and other attractions.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Cancún are taxed at 25%, which is average.
Short-term
You could also decide to rent short-term to tourists, business travelers, and seasonal vacationers who are looking to explore the city and its beaches. Additionally, you could also rent to people who are looking to attend one of Cancún's many conferences and conventions.
If you decide to go with that option, look for properties in Zona Hotelera or Downtown Cancún. These areas are popular with tourists and have a high demand for short-term rentals.
You will have some competition though - there are around 12,000 Airbnb listings in Cancún. The average daily rate stands around $84.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Cancún can make around $1200 per month. Also, the average occupancy rate is estimated at 67%.
Is it worth buying real estate in Cancún then?
Buying a property in Cancún can be a smart move for those who want to make it their permanent or long-term residence. Cancún's strong real estate market, ideal climate, and desirable beachfront location make it an attractive investment.
Compared to many international cities, property prices in Cancún are relatively affordable, allowing buyers to get more value for their money. Mexico's stable political situation and projected economic growth further enhance the appeal of investing in Cancún's real estate market.
However, buying property in Cancún may not be the right choice for everyone. If you only intend to visit Cancún occasionally for vacations or have uncertain future plans, renting may offer more flexibility and cost-effectiveness.
Speculative buying based solely on property price increases can be risky, so thorough research is essential. Additionally, legal and tax considerations, such as the use of a trust for coastal properties and potential capital gains tax, should be carefully assessed.
In conclusion, whether buying property in Cancún is worth it depends on your specific circumstances, long-term goals, and financial readiness. Careful consideration of your plans and the local market is essential to make an informed decision.
Make sure you understand the real estate market in Cancún
Don't rush into buying the wrong property in Mexico. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.