Buying property in Tulum: is it worth it now?

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.

What types of condos can I find in Tulum right now?

Tulum's condo market offers six main categories of properties as of September 2025.

Studios start at around $120,000 USD and are compact units perfect for solo buyers or investors targeting short-term rentals. These properties typically range from 400-600 square feet and often feature Murphy beds or space-saving designs.

1-bedroom condos begin at $199,000 USD and provide distinct living and sleeping areas, making them ideal for couples or small families. These units offer balanced investment potential with high rental demand from both tourists and long-term residents.

2-bedroom condos range from $250,000 to $400,000 USD and are popular among families and small groups. They offer extra functionality and better rental appeal, particularly for week-long stays and digital nomad families.

Larger units include 3-bedroom condos starting at $370,000 USD and 4-bedroom units from $450,000 USD, often featuring penthouse layouts with private pools and premium amenities. Beachfront condos and luxury penthouses command premiums, frequently exceeding $500,000 USD.

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

Should I buy a condo or rent one instead?

The decision between buying and renting in Tulum depends primarily on your timeline and investment goals.

Renting is generally the smarter financial choice if your plans are short-term, meaning less than 2 years. High transaction costs in Mexico, including notary fees, taxes, and trust setup costs, can easily reach 8-12% of the purchase price. These costs make it difficult to break even on property appreciation within a short timeframe.

Buying becomes advantageous for longer stays, frequent visits, or investment purposes focused on rental income or long-term appreciation. Tulum has shown strong historical property value growth, with many areas experiencing double-digit annual appreciation over the past decade.

Current market trends show supply challenges and moderate appreciation in 2025, but prime locations like Aldea Zama and beachfront properties continue to perform well. For committed investors planning to hold properties for 3+ years, buying remains promising despite the recent market correction.

The rental market in Tulum generates yields between 8-15% annually, which often outperforms many traditional investment vehicles and justifies ownership for income-focused buyers.

How much did condos cost before, what do they cost now, and what's expected?

Tulum condo prices have experienced significant changes over the past few years, with recent corrections affecting different market segments.

Historical prices show that studios and small units were selling below $150,000 USD just a few years ago, with many quality 1-bedroom units available under $200,000 USD. The market experienced rapid appreciation as international attention and infrastructure development increased.

Current average prices as of September 2025 show studios starting around $120,000 USD, 1-bedroom units from $199,000 USD, and 2-bedroom condos typically ranging from $250,000 to $400,000 USD. Mid-market new construction 2-bedroom units average $250,000-$300,000 USD, while 3-bedroom units start at $370,000 USD and 4-bedroom properties begin at $450,000 USD.

Beachfront and luxury properties frequently range from $450,000 USD to well above $500,000 USD. A notable market correction occurred in 2025, with oversupply leading to studio and 2-bedroom price drops of 10-20% from 2024 peaks. However, luxury beachfront units remained stable or grew by 5-8%.

Forecast projections for 2025-2030 suggest 3-7% annual long-term appreciation in resilient areas including Aldea Zama, Hotel Zone, and La Veleta eco-projects, though moderation may occur as supply normalizes across other segments.

What are the main trends shaping Tulum's real estate market?

Tulum's real estate market has shifted from explosive growth to a more measured expansion in 2025.

The market experienced double-digit annual price growth for nearly a decade, but this trend is now easing due to oversupply and market correction in popular segments. Despite this cooling, demand remains resilient for luxury, eco-friendly, and beachfront units.

High rental yields of 8-15% continue to outperform most of Mexico and many international resort towns, attracting income-focused investors. The average unit size has become smaller, but layouts have improved, making older resale properties more attractive for buyers seeking space.

Pre-construction deals remain common throughout Tulum, though buyers must exercise careful vetting of developers and projects. The market has seen increased focus on sustainable and eco-luxury developments, particularly in areas like La Veleta.

International buyer interest remains strong, with the market primarily catering to foreign investors and residents rather than local Mexican buyers.

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How does the condo buying process work step by step?

The condo buying process in Tulum follows a structured nine-step approach that typically takes 60-90 days to complete.

First, identify your desired locations and budget, considering factors like proximity to beach, cenotes, and main roads. Second, work with an established local real estate agency, which is highly recommended due to the lack of a formal MLS system in Mexico.

Third, visit and compare listings, checking amenities, build quality, and legal status of developments. Fourth, secure financing through bank trust (fideicomiso) for foreigners, though cash purchases are preferred for speed and negotiation power.

Fifth, make an offer and negotiate terms including price, timeline, and any conditions. Sixth, sign a promissory contract and make an initial deposit, typically 10-20% of the purchase price.

Seventh, complete due diligence by verifying title, trust status, development permits, and HOA rules. Eighth, sign the official purchase contract with a notary public, who ensures legal compliance and tax payments.

Finally, transfer funds and complete registration in your name through the fideicomiso trust structure required for foreign ownership of property within the restricted zone near the coast.

Where can I find condos for sale and are agencies the best option?

Reputable real estate agencies represent the safest route for finding condos in Tulum due to their market knowledge and access to vetted listings.

Local agencies maintain relationships with developers and have exclusive access to many properties not listed on public platforms. They understand the legal requirements for foreign buyers and can guide you through the fideicomiso trust process.

Online platforms also list new developments and resale properties, though verification of legitimacy becomes more challenging without local expertise. Direct-from-developer options are common, especially for pre-construction projects, but require careful evaluation of the developer's track record and financial stability.

Established agencies can also provide comparative market analysis, helping you understand fair pricing in different neighborhoods and development phases. They typically charge 3-6% commission, which is often paid by the seller rather than the buyer.

Working with agencies also provides access to properties not yet publicly marketed and can help coordinate viewings efficiently during your visit to Tulum.

What can I afford at different budget levels?

Your budget determines both property type and location options in Tulum's diverse condo market.

What are the most common mistakes to avoid when buying?

Several critical mistakes can cost buyers significant money and create legal complications in Tulum's property market.

Rushing due diligence represents the most expensive mistake, as buyers must verify developer reputation, legal title, and proper permits before committing. Many projects have faced delays or cancellations due to permit issues or financial problems.

Ignoring resale restrictions in certain developments can make properties difficult to sell later, particularly in some resort-style communities with limited ownership transfer rights. Overestimating rental income in oversupplied areas leads to unrealistic investment expectations and cash flow problems.

Neglecting HOA fees and ongoing costs can add $200-$1,500 monthly to ownership expenses, significantly impacting investment returns. Not understanding the fideicomiso ownership trust system for foreigners can create confusion about property rights and inheritance issues.

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

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 much does it cost to live in Tulum once you own a condo?

Ongoing ownership costs in Tulum include several mandatory and optional expenses that vary significantly by property type and location.

Property tax remains minimal at less than 0.1% of property value per year, making it one of the lowest tax burdens globally. Trust fees for the required fideicomiso run $500-$700 annually and must be maintained throughout foreign ownership.

HOA and maintenance fees range from $200-$1,500 monthly depending on amenities, with luxury beachfront properties commanding the highest fees. These fees typically cover security, common area maintenance, pool upkeep, and sometimes utilities for common areas.

Utilities vary by unit size and occupancy, with electricity being the largest expense due to air conditioning needs in Tulum's tropical climate. Additional services like cleaning, private security, pool maintenance, and insurance are optional but commonly used by owners.

Budget approximately 3-5% of property value annually for total ownership costs, excluding financing payments if applicable.

Which areas offer the best buying opportunities?

Different areas in Tulum cater to various investment strategies and lifestyle preferences, each with distinct advantages and drawbacks.

What is expat life like living in Tulum condos?

Tulum has developed into a major expat destination with a vibrant international community living primarily in condo developments.

The area attracts diverse groups including young professionals, digital nomads, and retirees who appreciate the relaxed lifestyle focused on wellness, nature, and beach access. Most condo developments specifically target the foreign market with amenities and services designed for international residents.

The social scene revolves around beach clubs, wellness centers, co-working spaces, and restaurants that cater to international tastes while incorporating local Mexican culture. Many developments include community areas, pools, and gyms that naturally foster social connections among residents.

Language barriers exist but are manageable, as many service providers speak English and Spanish classes are readily available. The cost of living remains lower than most comparable beach destinations in the US or Europe, though prices have increased significantly with development.

Infrastructure challenges include occasional power outages and slower internet speeds compared to major cities, though these issues are improving as the area develops.

How do long-term rentals work and what income can I expect?

Long-term rental opportunities in Tulum target a growing population of remote workers, expat families, and professionals seeking extended stays.

Best areas for long-term rentals include Aldea Zama for its established infrastructure, central Tulum for local culture access, and La Veleta eco-projects for environmentally conscious tenants. These areas attract professionals, expat families, and digital nomads willing to pay premium rents for quality accommodations.

Monthly rental income for 2-bedroom condos typically ranges from $1,000-$1,500 USD, depending on location, amenities, and finish quality. Annual yields commonly reach 8-15%, which outperforms most traditional investment markets.

Long-term rentals provide stable income with lower management requirements compared to short-term rentals, but generate less total income than well-managed vacation rentals. Lease agreements typically run 6-12 months with deposits equal to 1-2 months' rent.

Tenant screening becomes crucial given the international nature of many renters, requiring verification of income, references, and legal status in Mexico.

What about short-term rentals and vacation income potential?

Short-term vacation rentals in Tulum can generate superior returns but require active management and face evolving regulations.

Best areas for vacation rentals include beachfront properties, Hotel Zone locations, prime Aldea Zama condos, and select Region 8 developments with resort-style amenities. These areas attract tourists, couples, small groups, and luxury travelers seeking authentic Tulum experiences.

Income potential varies significantly by season, with peak months (November-April) generating 2-3 times higher rates than low season. Well-located 2-bedroom condos can earn $150-$400 per night depending on season, amenities, and booking platform performance.

Most successful short-term rentals generate yields exceeding long-term rentals, particularly properties with unique features like beachfront access, cenote proximity, or luxury amenities. However, occupancy rates fluctuate and require marketing expertise, guest management, and local support services.

Regulations continue evolving, with some areas implementing permit requirements and taxation changes that affect profitability. Check current local restrictions before purchasing for short-term rental purposes.

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

Is buying a condo in Tulum really worth it in 2025?

Buying a condo in Tulum can be worthwhile for the right buyer with appropriate expectations and timeline.

For living purposes, Tulum offers excellent lifestyle value with costs lower than most global resort towns, strong expat community, and year-round tropical climate. The area provides unique cultural experiences, wellness focus, and natural beauty that justify purchase for committed residents.

For rental investment, yields of 8-15% often exceed traditional investment returns, especially in prime areas with strong tourism demand. However, oversupply in some segments requires careful location and property selection to ensure consistent rental income.

For resale and appreciation, historical performance shows strong gains, especially in resilient neighborhoods like Aldea Zama and beachfront properties. Current market correction demands caution, but long-term prospects remain positive with 3-7% annual appreciation expected for the next 5 years.

Success factors include buying in established areas, conducting thorough due diligence, understanding ongoing costs, and having realistic timeline expectations. Renting remains superior for stays under 2 years, but committed investors with 3+ year horizons can find excellent opportunities.

The most profitable sectors continue to be luxury/eco-friendly developments and beachfront properties, while entry-level segments face more competition and slower appreciation.

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. Riviera Maya Cozy - Tulum Condos for Sale
2. Everything Playa del Carmen - Tulum Real Estate Market 2024
3. Riviera Maya Cozy - Icht Tulum Listings
4. MyCasa.mx - Luxury Condos in Tulum's Region 8
5. Tulum Times - Renting vs Buying in Riviera Maya
6. The LatinVestor - Buying Condos in Mexico
7. Tulum Times - Real Estate Boomtowns 2025
8. The LatinVestor - Tulum Price Forecasts