Buying property in Cancún: is it worth it now?

Authored by the expert who managed and guided the team behind the Mexico Property Pack

Yes, the analysis of Cancún's property market is included in our pack

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cancún. If you'd like to learn more about us, you can check our presentation page.

What types of condos are available to buy in Cancún right now and how do they differ in style, size, and features?

Cancún's condo market offers three main categories as of September 2025, each serving different buyer needs and budgets.

Studios represent the most affordable entry point, typically priced under $100,000 and designed for compact living. These units are ideal for first-time international buyers or investors targeting short-term rental markets, though space limitations make them best suited for individuals or couples.

The most common segment consists of 1-2 bedroom condos ranging from $100,000 to $300,000 in established neighborhoods. These properties typically include amenities like swimming pools, fitness centers, and gated security systems. They attract small families, couples seeking holiday homes, or investors looking for balanced rental potential.

Luxury condos and penthouses dominate the high-end market in prime locations like Puerto Cancún, the Hotel Zone, and beachfront areas. These 3-4 bedroom properties feature expansive floor plans, private pools, ocean views, and premium amenities, with prices starting around $250,000 and exceeding $1 million for top-tier options.

New construction projects are building approximately 15% larger units compared to five years ago, emphasizing sustainability features, luxury finishes, and exclusive amenities to meet growing demand from international buyers.

How much do condos cost today compared to a few years ago, and what are the forecasts for the next few years?

Cancún condo prices have experienced significant appreciation, with the average condo price approaching $400,000 in mid-2025.

The market has seen remarkable growth with prices rising 13.4% from 2023 to 2024, followed by another 14% increase through 2025. Budget units now start from $146,000, while luxury beachfront properties command premiums of 30-50% above inland comparable properties.

Market forecasts indicate continued robust growth of 8-12% annually through at least 2027, driven by foreign investment, infrastructure improvements including the Maya Train project, and strong vacation rental demand. Industry analysts project that condos purchased in 2025 could appreciate 20-40% by 2030, particularly well-located or luxury developments.

Beachfront and Hotel Zone properties consistently outperform inland areas due to tourism appeal and limited supply. The pricing trajectory reflects Cancún's strengthening position as a premier international destination for both vacation home buyers and investment-focused purchasers.

It's something we develop in our Mexico property pack.

Is it cheaper and smarter to buy a condo now or to rent instead?

Buying a condo in Cancún is increasingly favored over renting due to rapid price appreciation and strong investment potential as of September 2025.

Rental costs for one-bedroom condos range from 8,000-12,000 MXN monthly ($480-$720) in city center locations, with lower rates outside central areas. While renting provides flexibility, rising rental rates and property values make long-term renting less economical.

Property ownership involves annual costs including low property taxes ($150-250), bank trust fees for foreigners ($900-1,500 annually), and closing costs of 7-10% of purchase price. Despite these expenses, ownership typically yields better financial returns through capital appreciation and rental income potential.

The smart investment case for buying strengthens with vacation rental opportunities generating up to 10% annual returns for well-managed properties. Foreign buyers benefit from strong capital gains prospects, with properties potentially appreciating 20-40% by 2030 based on current market trends.

Buying becomes particularly advantageous for buyers planning extended stays, those seeking rental income, or investors capitalizing on Cancún's growing international appeal and infrastructure development.

What are the main trends in Cancún's condo market right now and how stable is it?

Cancún's condo market demonstrates exceptional stability compared to oversupplied destinations like Tulum, with robust fundamentals driving sustained growth.

Price appreciation remains the dominant trend, fueled by foreign investment inflows, major infrastructure upgrades including the Maya Train connectivity, and consistently strong vacation rental demand. The market benefits from balanced supply and demand dynamics that prevent oversaturation.

Sustainable development and larger property sizes represent key market shifts, with new builds emphasizing eco-friendly features and premium amenities to attract international buyers. Developers focus on creating exclusive communities with enhanced security and lifestyle amenities.

Rental yields maintain strength with well-managed short-term rentals achieving up to 10% annual returns, while long-term rental demand from expats and professionals provides steady income streams. The market's stability stems from Cancún's established tourism infrastructure, international airport connectivity, and growing expat community.

Market stability indicators include consistent foreign buyer interest, ongoing infrastructure investment, and diversified demand from both lifestyle buyers and investment-focused purchasers seeking Mexico's premier Caribbean destination.

What's the step-by-step process for buying a condo in Cancún as a foreigner?

Foreign buyers must follow a specific legal process to purchase condos in Cancún's restricted zones, which include most desirable beachfront and tourist areas.

Step one involves property selection through reputable local agents familiar with foreign buyer requirements. Step two requires a purchase agreement with typically 5-10% deposit to secure the property while completing due diligence.

Step three mandates hiring a Notario Público, a government-appointed official who oversees title searches, verifies tax payments, and ensures legal compliance. Step four involves obtaining SRE (Foreign Relations Ministry) permit and establishing a fideicomiso (bank trust) that allows foreign ownership in restricted zones.

Step five completes the transaction with final payment, closing cost settlement (7-10% of purchase price), and property registration through the Notario. Buyers receive the official deed after completing full due diligence procedures.

Power of attorney arrangements allow remote closing if buyers cannot be present in Mexico, though many buyers prefer attending personally to oversee the final transaction and property handover.

Which real estate agencies or platforms are the most reliable for finding condos in Cancún?

Several established agencies dominate Cancún's condo market with proven track records serving international buyers.

Puerto Realty leads luxury and Hotel Zone properties with strong reputation and proven track record serving high-end international clients. Plalla Real Estate offers versatile services with extensive listings and financing assistance for qualified buyers.

SelvaCorealty and RivieraMayaCozy provide comprehensive options including emerging areas and budget-friendly units suitable for first-time buyers or investment-focused purchasers.

Online platforms like Properstar enable broader market searches and initial property identification before engaging local agents for transactions and due diligence support.

What can you get for different budgets, from affordable to luxury condos?

Cancún's condo market accommodates diverse budgets with distinct property categories offering different lifestyle and investment opportunities.

Under $150,000 provides access to studios and compact one-bedroom units in downtown areas or emerging neighborhoods, offering authentic local experiences and potential for rapid appreciation as infrastructure develops.

The $150,000-$300,000 range delivers well-appointed 1-2 bedroom condos in established areas with amenities like pools, fitness centers, and security systems. These properties balance affordability with desirable features for both lifestyle and rental purposes.

Premium condos from $300,000-$600,000 typically feature larger spaces, better locations, enhanced amenities, and often include partial ocean views or proximity to beaches and entertainment districts.

Luxury options from $600,000-$1 million offer expansive 3-4 bedroom layouts, prime beachfront or Hotel Zone locations, private pools, concierge services, and resort-style amenities designed for discerning international buyers.

Ultra-luxury penthouses exceeding $1 million provide exclusive experiences with private elevators, rooftop terraces, panoramic ocean views, and personalized services in Cancún's most prestigious developments like Puerto Cancún and exclusive beachfront towers.

What are the common mistakes to avoid when buying a condo in Cancún?

Foreign buyers should avoid several critical mistakes that can result in financial losses or legal complications in Cancún's real estate market.

Overestimating rental returns represents a major pitfall, as developers often promise unrealistic yields without providing verified rental data. Always request actual rental performance from comparable properties and factor in management costs, vacancy periods, and seasonal fluctuations.

Purchasing pre-construction projects without developer track records carries significant risks of incomplete or delayed projects. Verify developer history, financial stability, and completion records before committing to off-plan purchases.

Avoiding proper escrow arrangements puts deposits at risk, as Mexico lacks the same buyer protections as other countries. Always use third-party escrow services and never transfer funds directly to developers or sellers without legal oversight.

Skipping professional due diligence on titles, liens, and property taxes can result in costly surprises. Engage qualified local attorneys and Notarios Públicos to verify clear title and legal compliance before finalizing purchases.

Using dual agents who represent both buyer and seller creates conflict of interest situations. Select agents who represent only your interests and provide transparent disclosure of their relationships and compensation arrangements.

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What's the cost of living like in Cancún for condo owners?

Condo ownership costs in Cancún remain significantly lower than comparable North American or European destinations, making it attractive for international buyers.

Annual property taxes range from $150-250 for most condos, representing minimal ongoing costs compared to many international markets. Foreign owners must budget $900-1,500 annually for fideicomiso (bank trust) fees required for restricted zone properties.

Utility costs including electricity, water, internet, and cable services remain moderate and substantially cheaper than US or Canadian equivalents. Air conditioning represents the largest utility expense during summer months, though modern efficient units help control costs.

Daily living expenses including groceries, dining, healthcare, and entertainment offer excellent value, with many expats reporting 40-60% lower costs compared to their home countries. Local markets, restaurants, and services provide affordable options alongside international amenities.

Initial closing costs of 7-10% of purchase price represent the largest upfront expense beyond the property price, including notary fees, title insurance, taxes, and legal services required for foreign buyers.

Which areas are best for buying condos — from affordable to upcoming to upscale — and what are the pros and cons of each?

Cancún offers distinct neighborhoods catering to different buyer preferences, budgets, and investment strategies as of September 2025.

Downtown and Super Manzana districts provide the most affordable entry points with authentic local character and rapid appreciation potential. These areas offer genuine Mexican culture, proximity to local amenities, and strong long-term rental demand from residents and expats.

Avenida Huayacán represents the top emerging area with new construction projects, infrastructure improvements, and excellent appreciation prospects. This zone benefits from modern developments, improving connectivity, and growing recognition among international buyers seeking value.

The Hotel Zone delivers premium beachfront lifestyle with resort-style living, established vacation rental demand, and prestigious addresses. Properties command premium prices but offer exceptional rental potential and luxury amenities.

Puerto Cancún represents the pinnacle of luxury with gated communities, marina access, golf courses, and exclusive amenities. This area attracts affluent buyers seeking security, prestige, and top-tier investment potential.

Playa Mujeres offers quiet exclusivity with beach access, resort proximity, and growing infrastructure development. This area appeals to buyers seeking tranquil luxury away from tourist crowds while maintaining easy access to amenities.

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 is life really like for expats living in condos in Cancún?

Expats living in Cancún condos enjoy a vibrant international community with excellent quality of life and diverse cultural experiences.

The large expat population creates supportive networks for newcomers, with established communities from North America, Europe, and other Latin American countries. Most expats find easy integration through social clubs, business networks, and shared interest groups.

Daily life offers world-class beaches, rich Mayan cultural heritage, excellent restaurants, and abundant entertainment options. The tropical climate allows year-round outdoor activities, while modern amenities provide comfortable urban living.

Many expats participate in the rental market either as property investors or by renting out portions of their condos for additional income. Remote work opportunities flourish with reliable high-speed internet and favorable time zones for North American business hours.

Healthcare quality exceeds expectations with modern facilities, internationally trained doctors, and significantly lower costs than US or Canadian equivalents. Most expats maintain local health insurance or use private healthcare services.

It's something we develop in our Mexico property pack.

If you rent your condo out, what can you expect from long-term tenants and short-term guests, which areas should you target, what rental income and yields are realistic, and what short-term rental rules should you know?

Cancún's rental market offers diverse opportunities for condo owners seeking income through both long-term and short-term strategies.

Long-term tenants include expats, local professionals, and remote workers seeking stable housing in established neighborhoods like downtown areas and residential zones. These tenants provide consistent monthly income with lower management requirements and minimal vacancy periods.

Short-term vacation guests generate higher per-night rates in tourist areas like the Hotel Zone, Puerto Cancún, and beachfront properties. Well-managed vacation rentals achieve average annual revenues of $14,306 with median occupancy rates of 41% in 2025.

Target areas vary by rental strategy: Hotel Zone for maximum tourist appeal, Puerto Cancún for affluent vacationers seeking luxury, and downtown areas for long-term expat and professional tenants seeking authentic experiences.

Realistic yields reach up to 10% annually for expertly managed short-term rentals in prime tourist locations, while long-term rentals provide steady 6-8% returns with lower management intensity and consistent cash flow.

Short-term rental regulations require checking building restrictions and obtaining necessary licenses, as some developments prohibit vacation rentals while others welcome them. New local regulations may require specific permits for Airbnb and VRBO operations, making compliance research essential before investment.

It's something we develop in our Mexico property pack.

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.

Sources

1. RivieraMayaCozy - Cancun Condos Sale
2. JamesEdition - Condo Cancun Mexico
3. Puerto Realty - Departamentos en Venta Puerto Cancun
4. Plalla - Condos for Sale in Cancun
5. The Latin Investor - Cancun Real Estate Market
6. The Latin Investor - Cancun Property
7. The Latin Investor - Cancun Price Forecasts
8. The Latin Investor - Buying Condos Mexico
9. MyCasa - Cost Living Cancun 2024 Expat Budget Guide
10. The Latin Investor - Mexico Property Buying Guide