Is it a good time to buy a property in Tulum?

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

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

Who is the author of this content?

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 Tulum. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Mexican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tulum, Playa del Carmen, and Cancún. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How are property prices in Tulum trending right now?

Tulum property prices are experiencing a significant correction as of September 2025, with different segments showing vastly different performance.

Standard condos and small units have dropped 10-20% from their 2024 peaks due to substantial oversupply in the market. Buyer demand is down 40% compared to last year, creating downward pressure on prices for mass-market properties.

Luxury villas and beachfront properties have shown remarkable resilience during this correction. Luxury villas are up 5-8% annually, while beachfront homes are appreciating 5-12% per year. Prime locations like Aldea Zama, La Veleta, and the Hotel Zone continue to see modest gains or maintain price stability.

Eco-friendly developments command 15-25% price premiums over standard properties, reflecting growing demand for sustainable living options. These properties have maintained their value even during the broader market correction.

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

What's the current inventory like—are there many properties for sale or is supply tight?

Tulum currently faces a severe oversupply situation, particularly in the standard condo segment.

Available inventory could last 3-4 years at current sales rates, representing one of the most significant oversupply situations in the Mexican Caribbean. Developers are actively offering discounts to move units, with some providing 10-15% reductions from asking prices.

The oversupply is concentrated in studio and 1-2 bedroom condos, which were heavily developed during the 2022-2024 boom period. Many of these units are now competing for the same pool of buyers and renters.

Luxury properties and eco-luxury homes in prime areas maintain limited supply and often sell out quickly, sometimes before construction completion. These segments have avoided the oversupply issues affecting the broader market.

High-end beachfront properties and established luxury villas continue to have tight inventory, supporting their price stability and growth.

How quickly are homes selling once they're listed?

Properties in Tulum are taking significantly longer to sell compared to recent years, reflecting the current market conditions.

The typical sales cycle has stretched to 120-180 days for most properties, nearly doubling from the previous 60-90 day average. This extended timeline is most pronounced in the oversupplied condo segments where buyers have numerous options.

Prime and luxury units move considerably faster, often selling before completion or within 30-60 days of listing. These properties benefit from limited supply and continued strong demand from high-net-worth buyers.

Beachfront properties and eco-luxury developments maintain shorter selling times due to their unique positioning and limited availability. Well-priced luxury properties in desirable locations can still achieve quick sales.

Properties requiring significant price reductions or those in less desirable locations may take 6-12 months to sell, particularly if they're competing with new developer offerings at discounted rates.

What kinds of rental returns can I realistically expect from a property in Tulum?

Rental returns in Tulum vary dramatically based on property type, location, and management quality as of September 2025.

Property Type	Net Rental Yield	Key Factors
Standard Condos	0-3%	Intense competition, falling nightly rates
Luxury Villas	7-10%	Premium amenities, professional management
Beachfront Properties	8-12%	Prime location, high demand
Eco-Developments	9-13%	Sustainability premium, unique positioning
Hotel Zone Properties	6-9%	Tourist proximity, seasonal variation
Aldea Zama Units	5-8%	Established area, good amenities
La Veleta Properties	4-7%	Growing area, mixed performance

What's the current occupancy rate for short-term rentals in the area?

Short-term rental occupancy in Tulum averages 49% as of 2025, but performance varies significantly based on property quality and management.

Top-performing luxury properties achieve occupancy rates up to 70%, particularly those with premium amenities, professional management, and prime locations. These properties benefit from higher nightly rates and longer average stays.

Standard condos and mass-market properties often struggle with occupancy rates below 40% due to intense competition and numerous similar options available to guests. Many of these properties compete primarily on price, reducing overall profitability.

Seasonal variations remain significant, with peak season (December-April) seeing much higher occupancy rates across all property types, while summer months can see occupancy drop to 20-30% for average properties.

Well-managed properties with unique features, eco-friendly amenities, or exceptional locations can maintain 60-80% occupancy even during slower periods.

How stable is the local economy and job market that supports long-term demand?

Tulum's local economy remains robust but heavily dependent on tourism and international investment, creating both opportunities and vulnerabilities.

Tourism continues to drive local growth, supported by infrastructure investments like the Tulum International Airport and Maya Train connectivity. The area attracts increasing numbers of digital nomads and remote workers, creating steady rental demand.

Mexico overall is experiencing slower employment growth and slight GDP contraction in 2025, with formal job creation lagging behind previous years. However, Tulum's tourism-focused economy has shown more resilience than other regions.

The local market's heavy dependence on international buyers and tourists introduces volatility, making it susceptible to global economic changes, currency fluctuations, and travel disruptions. This dependency was highlighted during recent market corrections.

Long-term demographic trends favor continued growth, with increasing numbers of retirees and lifestyle migrants choosing Tulum as a permanent or semi-permanent residence, supporting sustained housing demand.

Are there any new infrastructure projects planned that could boost property values?

Several major infrastructure projects are actively underway or recently completed in Tulum, positioning the area for continued development.

1. **Tulum International Airport Expansion**: The airport, which opened in December 2023, is undergoing capacity expansions to handle increased tourist and investor traffic.2. **Maya Train Project**: This rail connection improves transportation links between Tulum and major cities like Cancún, Mérida, and beyond, making the area more accessible.3. **New Bypass Roads**: Construction of bypass roads and beach access corridors is reducing traffic congestion and improving connectivity within Tulum.4. **Urban Infrastructure Upgrades**: Projects include street paving, a new sports complex, and modernization of municipal control centers.5. **Utility Infrastructure**: Improved water, sewerage, and electrical systems to support growing population and development.

These infrastructure improvements have already created small pricing premiums of 3-5% for nearby properties and are expected to have greater impact once the current oversupply situation normalizes by 2026-2027.

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

What are the main risks investors face in Tulum real estate today?

Tulum real estate investment carries several significant risks that affect up to 20% of transactions in tourist areas.

1. **Title and Ownership Disputes**: Legal issues and fraud affect approximately 20% of property transactions, including double sales, fake documents, and corrupt officials.2. **Ejido Land Risks**: Never purchase communal "ejido" land, as foreigners cannot legally own it, creating risk of complete investment loss.3. **Market Oversupply**: Current condo oversupply leads to price reductions, slower rental absorption, and reduced investment returns.4. **Fraud and Corruption**: Instances of double sales, fraudulent documents, and corrupt officials require careful due diligence and legal protection.5. **Environmental and Regulatory Changes**: New taxes, stricter building regulations, and environmental restrictions can impact property values and development rights.6. **Legal Resolution Times**: Property disputes often take years to resolve through the Mexican legal system, creating extended uncertainty.7. **Currency and Economic Risk**: Peso fluctuations and economic instability can affect property values and rental income for foreign investors.

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.

How easy is it for foreigners to buy and own property legally in Tulum?

Foreigners can legally purchase and own property in Tulum through established legal mechanisms, though the process requires proper guidance and documentation.

The fideicomiso (Mexican bank trust) system allows foreigners full ownership rights for residential properties within 50 kilometers of the coast. Setup costs approximately $2,000-3,000, with annual fees of $400-700.

For commercial properties, foreigners can establish a Mexican corporation to hold real estate, providing another legal ownership pathway. This option is often preferred for rental investment properties.

The complete purchase process typically takes 45-90 days when properly managed, including due diligence, legal documentation, and trust establishment. Working with experienced local attorneys and notaries is essential for smooth transactions.

Proper legal representation is crucial to avoid the significant risks present in the market, including title disputes, fraud, and ejido land issues that can result in complete loss of investment.

What are typical property taxes, closing costs, and ongoing expenses?

Buying property in Tulum involves several cost components that total 6-8% of the purchase price in closing costs.

Cost Category	Percentage/Amount	Description
Transfer Tax	2-4.5% (typically 4%)	Paid to state government
Notary/Legal Fees	2-3%	Registration and legal services
Fideicomiso Setup	$2,000-3,000	One-time trust establishment
Annual Trust Fees	$400-700	Yearly fideicomiso maintenance
Property Tax	0.2-0.5% annually	Low by US/Canadian standards
Environmental Tax	0.5% annually	New tax for beachfront properties
HOA/Maintenance	$100-500/month	Varies by property type

How do Tulum property prices compare to other beach destinations in Mexico?

Tulum remains a premium destination within Mexico's beach property market, though the gap has narrowed due to recent oversupply conditions.

At $150-225 per square foot for condos, Tulum sits in the upper tier of Mexican beach destinations, comparable to Cabo San Lucas but higher than Playa del Carmen or Cancún. However, current market conditions have made Tulum more competitive on pricing.

While some destinations like Mérida and Mazatlán offer better appreciation rates (8-12% and 6-9% respectively), Tulum's luxury and eco-luxury segments continue to command premium pricing due to their unique positioning and limited supply.

Rental yields in Tulum's premium segments (7-9%) remain competitive with other beach destinations, though mass-market properties underperform compared to alternatives like Mérida (8-10%) or Mazatlán (7-9%).

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

What's the expert outlook for Tulum's real estate market over the next few years?

Expert consensus indicates Tulum's property market will remain volatile through early 2026, with different segments experiencing varied trajectories.

The oversupply of condos will likely continue to depress prices and returns for another 12-18 months, with gradual market normalization expected by late 2026. Mass-market properties may see continued price pressure during this period.

Premium, luxury, and eco offerings are expected to hold value or experience modest growth throughout the correction period. These segments benefit from limited supply and continued demand from high-net-worth buyers and conscious consumers.

Infrastructure upgrades and sustained demand from digital nomads could trigger a fresh appreciation cycle in 2026-2027, particularly benefiting hotels, villas, and eco-luxury developments. The Maya Train and airport expansion are expected to provide additional market support.

Long-term outlook remains positive for carefully selected properties, with experts projecting renewed growth once current oversupply is absorbed and infrastructure benefits fully materialize.

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. Tulum Times - Real Estate Investment Analysis 2025
2. The LatinVestor - Tulum Price Forecasts
3. Tulum Times - Comparative Market Analysis
4. The LatinVestor - Property Investment Risks Mexico
5. The LatinVestor - Buying Condos Mexico Guide
6. Plalla - Best Investment Areas Tulum
7. Home Tulum - Market Analysis
8. Airbtics - Airbnb Revenue Analysis Tulum
9. BBVA Research - Mexico Economic Outlook 2025
10. Colibri Property - Infrastructure Development Impact