Buying a property in Tulum: a complete guide

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 Tulum's property market is included in our pack

Thinking of buying a property in Tulum? You're not alone!

Many people are captivated by Tulum's bohemian atmosphere and dream of owning a beachfront property or a modern villa there.

Is it a wise investment, though? Are property prices increasing in Tulum? Is it expensive? Is it more profitable to buy in the town center or beachside? And the taxes? Where can you get a rental yield above 7%?

We've got it all sorted. No worries.

At TheLatinvestor, we've extensively researched this market; Actually, we've compiled all our findings in one pack. Get it now.

In this article, we're happy to share useful information with you.

How is the property market in Tulum?

Confused about the property market's status? Everyone has their views. As for us, we prefer stick to new data and stats for clear conclusions.

Property types

In Tulum, you can find a variety of properties for sale.

These include beachfront condos with stunning ocean views, charming villas nestled in lush greenery, modern homes with private pools, and cozy apartments in the heart of the town.

Whether you're looking for a serene escape, a luxurious retreat, or a convenient urban dwelling, Tulum offers an array of real estate options to suit your preferences and lifestyle.

Should you buy or rent?

(If you're keeping it for yourself and not renting it)

Whether you're considering settling in Tulum or already living there, you might be pondering the buy vs. rent decision in this trendy Mexican beach destination.

Usually, buying is better than renting in Tulum due to its rapidly growing popularity and real estate market.

On the flip side, renting offers greater flexibility if that's what you prefer.

Property prices in Tulum

On average, according to the updated data from National Institute of Statistics and Geography (INEGI), purchasing a property in Tulum would cost you around $4,500 per square meter.

Of course, there are notable differences. A beachfront condo in Tulum will likely have a higher price per square meter than a jungle cabin. We actually give you a more detailed breakdown in our pack for buying property in Tulum 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 Tulum.

However, housing prices in Tulum are higher (13%) than in Cancún.

The most expensive neighbourhoods in Tulum are probably Aldea Zama and La Veleta, while the cheapest are likely to be the outlying neighbourhoods of Tulum Pueblo.

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.

Keep this in view when pondering the viability of buying a property in in Tulum.

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're about to invest in real estate in Tulum it's a good thing because, as the economy grows, people's incomes (usually) increase, motivating them to invest in real estate, which causes a rise in property demand and prices.

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 Tulum

Buying real estate in Tulum can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Tulum and in Mexico.

Buying process

Within our pack, we have outlined the complete buying process. This includes the necessary documents, the applicable taxes, as well as information about where to locate properties, and more.

Here, we are providing you with a simpler version to assist you in better comprehending the information.

This is the step-by-step process to purchase a property in Tulum:

1. Research Tulum's real estate market and set a budget in Mexican pesos.
2. Engage a reputable local real estate agent with knowledge of the area.
3. Review Ejido land regulations, as some properties may be on Ejido land.
4. Conduct due diligence, including obtaining the "Dominio Pleno" certificate from the Public Property Registry.
5. Negotiate the purchase price and terms, considering "Escritura Pública" and "Contrato de Compra-Venta."
6. Hire a Mexican notary public to handle legal aspects and draft the official contract.
7. Obtain an appraisal through a certified valuador.
8. If needed, secure financing from a Mexican bank, providing necessary documents like "RFC" and proof of income.
9. Sign a formal purchase agreement and pay a deposit, typically around 10% of the property value.
10. Complete a comprehensive title search to verify property ownership and check for any liens or encumbrances.
11. Finalize all necessary paperwork with the notary public, including obtaining a "Registro Federal de Contribuyentes" (RFC) and "CURP" identification.
12. Transfer the remaining funds to complete the purchase and register the property at the Public Property Registry to receive the "Escritura" (title deed).

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.

Make a profitable investment in Tulum

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Where to find a property

Discover these websites to find properties in Tulum:

• Mexico Real Estate Group - Specializing in luxury properties in Mexico, this multilingual brokerage serves international buyers and investors.
• Top Mexico Real Estate - A professional agency dedicated to helping American and Canadian buyers find 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 specializing in 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.

Which properties for which budget?

As mentioned before, the average price per sqm in Tulum is $4,500. A 1-bedroom property of 60 square meters would cost approximately $270,000, and a 2-bedroom property of 85 square meters would cost approximately $383,000.

However, prices will differ based on the attributes of the property and its specific location.

Prime property locations in Tulum tend to come with higher price points. A residence in Aldea Zama could come to around $1,090,000, while a condominium in Region 15 might be priced at $480,000.

However, some places are cheaper. You may find a property in Francisco Uh May for $210,000, or you might encounter a property in Tumben Kuxtal priced at $170,000.

Find a more detailed price list in our full pack for buying property in Mexico.

Risks and pitfalls

Here are the main pitfalls when buying a property in Tulum, Mexico:

• Ejido Land Issues: Some properties are on ejido land, which can lead to uncertain ownership rights and legal complexities.
• Zoning Changes: Rapid development may lead to unexpected changes in zoning regulations affecting property usage.
• Cenote Proximity: Nearby cenotes can cause environmental risks like sinkholes that may impact property stability.
• Tourist Seasonal Fluctuations: Property income can be volatile due to Tulum's tourism-heavy economy.
• Cultural Differences: Navigating Mexican real estate processes and customs may be challenging for foreigners.
• Construction Quality: Poorly built properties can be prevalent, leading to maintenance issues and extra expenses.
• Limited Water Supply: Water scarcity in Tulum may affect property utilities and availability.
• Indigenous Community Impact: Property development can impact local Mayan communities and raise ethical considerations.

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 Tulum

Life in Tulum is a unique blend of modern luxury and laid-back Caribbean vibes, making it an ideal destination for anyone looking to purchase a property in a stunning and vibrant setting.

Cost of living

The cost of living in Tulum is generally lower than in most other parts of Mexico. It is possible to live comfortably in Tulum for a fraction of the cost of living in larger cities.

Here are some examples to better understand the cost of living in Tulum, Mexico:

• Mezcal margarita at a beachside bar in Aldea Zama: $7.
• Rent for a one-bedroom apartment in La Veleta: $800/month.
• Tacos de cochinita pibil for two at a local taqueria: $15.
• 1.5-liter bottle of Jarritos (Mexican soda): $1 at a supermarket.
• Electricity bill for an 85m² apartment using CFE (Federal Electricity Commission): $70/month.
• Monthly membership at Jungle Gym Tulum: $50.
• Ticket to a Mexican film at Cine Tulum: $8.
• Cup of freshly brewed local coffee at a café in Tulum Pueblo: $3.

Neighbourhoods and spots

Since our goal is to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Tulum. For yields, prices and rents, check our property pack.

Life in Tulum

Tulum's economy is largely driven by tourism, with many hotels, restaurants, and shops catering to visitors. There is also a growing real estate market, with many foreign investors attracted to the area's natural beauty and laid-back atmosphere.

What expats usually like the most about Tulum is its beautiful white-sand beaches and its archaeological sites such as the Tulum Ruins and Coba.

Access to healthcare in Tulum is generally good, with a variety of medical facilities and specialists available.

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Renting out in Tulum

This section is for you if you want to buy property solely for renting out and earning income.

Long-term

Tenant Profiles in Tulum

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 Tulum though.

If you decide to buy and rent out to long-term tenants, you should target young professionals, retirees, and families looking for a beachside getaway. Tulum also attracts many short-term tourists, who may be interested in renting a vacation home or booking a stay in a boutique hotel.

Here is a little summary table we've made for you.

Rental yields

Nowadays, rental yields in Tulum are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.

Tulum's beachfront homes and condos tend to give the best rental yields due to the high demand for vacation rentals in the area. Additionally, rental apartments in Tulum's downtown core can also offer good returns because of the area's growing popularity as a tourist destination.

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 Tulum are taxed at 25%, which is average.

Short-term

You could also decide to rent short-term to digital nomads, international students, and travelers who are looking for a unique and exotic experience in Tulum. Additionally, there are many seasonal workers who come to Tulum to take advantage of the booming tourism industry.

If you decide to go with that option, look for properties in Aldea Zama or the Tulum Town Center. These areas have a high demand for short-term rentals and are close to popular attractions.

Currently, there are approximately 10,000 active Airbnb listings in Tulum, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $108.

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 Tulum can make around $1200 per month. Also, the average occupancy rate is estimated at 46%.

Is it worth buying real estate in Tulum then?

Buying a property in Tulum can be a fantastic idea if you're looking for a long-term investment or a dream vacation home. Tulum's unique blend of modern luxury and a laid-back Caribbean vibe makes it an attractive destination.

Plus, the rapidly growing real estate market suggests that property values could rise, potentially offering profitable returns over time. With a lower cost of living compared to many other Mexican cities, Tulum allows you to make your money go further while enjoying a high-quality lifestyle. You can choose from a diverse range of property types, from beachfront condos to cozy apartments in the heart of town.

Additionally, if you plan to rent out your property, Tulum's tourism industry can provide a reliable source of rental income, especially for beachfront properties and condos. However, if you're seeking quick returns or are uncomfortable with potential property rights issues and cultural considerations, buying in Tulum might not be the best choice. Property values may appreciate over time, but there are no guarantees of short-term gains.

Some properties are located on Ejido land, leading to uncertain ownership rights and legal complexities. Tulum's economy relies heavily on tourism, which can result in seasonal fluctuations in rental income. It's also important to be aware of the potential impact on local Mayan communities and ethical concerns related to property development.

Lastly, poorly built properties in some areas can lead to maintenance issues and additional expenses. Therefore, careful research, due diligence, and a clear understanding of your investment goals are essential when considering whether Tulum is the right place for you to buy a property.

Make sure you understand the real estate market in Tulum

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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.