Buying Property in Tulum: Buyers Guide in 2024
Introduction:
Tulum has become an important medium-sized city with a fast-growing real estate development.
More and more buyers, investors, and developers are interested in buying property in Tulum for several reasons.
A few years ago, Tulum was still a small town that not many people visited. Now, It will have its own international airport to prepare to receive millions of tourists per year.
I have been an expert in Tulum real estate since 2017. I have seen how each year more new projects and developments are launching more refined properties for sale like condos, homes and residential luxury gated communities.
Tulum is attractive for buying properties because it is warm all year long, it is close to the USA and Canada, and the prices are lower compared with any beach city in North America.
Why Do Foreigners Want to Buy Properties in Tulum?
Convenience:
Tulum is well connected with the international Cancun airport and now the new Tulum airport and the main highway 307 that connects the state of Quintana Roo.
It is easy and fast for international visitors to get here.
Flight tickets are not expensive and the flight lengths are short.
Weather:
Tulum has tropical warm weather all year long. The lowest temperatures during the winter season are 10-12 celsius degrees.
You can wear short pants, short leaves, and flip flops in winter and all days are sunny, with a blue open sky.
Beach time and water activities are available any month of the year. Sunbathing, snorkeling, diving, cenotes, etc.
Cost of Living:
When you visit Tulum Mexico and use your currencies like US dollars or Euros, you profit with the exchange rates, and your money multiplies.
Of course, there are places that are cheaper and others that are more expensive, but all in all, you can purchase more things here than in your own country with the same amount of money, generally speaking.
Investment:
The majority of the people who are buying properties in Tulum do not purchase to live in.
They are interested in investing to have rental-income-generating condos or homes.
With the business model of the vacation rentals with platforms like Airb&b, and other similar ones.
The supply and demand for rental properties will experience different cycles until the market stabilizes and has a good performing balance.
Now, it seems the supply of properties is above the demand for rental properties. There are rental properties that have a poor performance and others that have a high performance and return.
Personal Pleasure:
Buyers are also enjoying the pleasure of owning a condo or a house to use in their vacation and spend quality time with their families.
Types of Properties You Can Buy in Tulum:
Buying a Condo in Tulum Mexico:
Most of the projects selling investment or vacation properties in Tulum are condominiums. They are designed for renters, so the buildings have resort-like amenities such as lobby, concierge, restaurant, commercial spaces, bar, spa, gym, etc.
For buying a condo in Tulum Mexico, most of the inventories offer smaller units like Studios and one and two-bedroom condos. There are also some projects selling larger size units with 3 and 4 bedrooms.
The largest units are usually on the ground floor which comes with a bigger exterior area for a garden or terrace and a private pool.
You can also find the big penthouses with two levels and a private rooftop with a pool.
You may think that a two-bedroom condo would be bigger logically than a one-bedroom unit, but it depends on the specific project because there are one-bedroom condos in a specific development that are much bigger than a 2 bedroom condo in another project.
In the end, the size is determined by the actual square footage and not by the number of bedrooms.
Here you can check some of the most recommended projects of condos for sale in Tulum:
Buying a House in Tulum Mexico:
Compared with the amount of projects selling condos, there are much fewer options for buying a house in Tulum Mexico.
The reason is that the developers are getting greedier and want to maximize the profits by building as much square footage in a determined piece of land.
Land prices in Tulum are increasing substantially every year, so the developers can gain more by selling a condo building than a stand-alone home on the same land.
However, there are some projects selling homes and townhomes. The smaller homes are 2 bedrooms in a lot of 160-200 m2.
There are generally also options for 3 and 4 bedrooms. More than 4 bedrooms are very scarce and rare to find unless is a unique single design or custom-made home.
The biggest homes are 6 bedrooms on a big piece of land.
Here you can check some of the most recommended projects of homes for sale in Tulum:
Buying Land in Tulum Mexico:
If you are a developer and want to build a real estate project to sell, you can buy a piece of land either in the urban area of town or outside of town in the jungle.
For buying land in Tulum Mexico, the smallest available lot size is 160 m2. for a single home, the medium size lots are between 700-2,500 m2, and the bigger lots are 1 hectare and above.
Types of Locations for Buying Property in Tulum:
Public Neighborhoods:
These are the areas that are not gated and are maintained by the municipality. The public services also depend on the municipal government.
Some of these areas are under development so they don't have paved roads and there are not yet connections with all the services like running water and sewage. They have electricity and an internet connection.
Private Gated Communities:
These are master plan residential neighborhoods that have all the services set up since the beginning.
They also have security access entrances, common green areas, and amenities like parks, clubhouses, pools, tennis courts, restaurants, spas, commercial areas, etc.
These communities have paved roads and underground utilities in place.
You can check the main neighborhoods for buying property in Tulum and their own characteristics here:
What are the Payment Options for Buying Property in Tulum?
Cash only, no financing is available.
No Mexican bank will qualify a foreign national for a mortgage loan. You have to be a permanent resident and have proof of income in Mexico.
Besides, Banks never give loans to purchase a property in preconstruction. The property has to be already built and comply with a number of requirements.
Also, the interest rates for a mortgage loan are between 10-14% depending on the credit score and the personal profile of the buyer.
Therefore, it is not possible for a foreign buyer to purchase a property in Tulum with a bank loan.
All purchases are in cash. This means that there is no financial or speculation bubble and the real estate market is strong based on real money.
Nevertheless, when buying a property in preconstruction, it means that you do not have to pay the full price at once upfront.
The advantage of the presale for the buyer is having the time of the construction period to cover the sales price in partial payments or installments.
Depending on the project that you want to buy and its delivery date, you may have from 3 up to 24 months to pay for the property.
The advantage for the developer to sell in preconstruction is that he gets funds each month to pay for the construction costs. Therefore, the developers usually offer discount options based on the initial downpayment that is paid.
What are the Legal Considerations for Foreigners Buying Property in Tulum?
All in all, foreign buyers are entitled to own real estate in Tulum. This is full ownership with all the rights to use, resell, inherit, rent, etc.
This is not a lease of anything like that. You will have the title of ownership.
However, there are some technicalities that apply only to foreigners. You must hold the property title in a bank trust in a Mexican bank.
This means in practical terms that you have to pay additional closing costs for the creation of the bank trust and pay the bank annual fees. Mexican buyers do not have to do this.
The notary public makes all this process and takes care of all the paperwork. You do not have to worry about doing it and it is a common and daily process. Keep in mind that half of the sales of properties in Tulum or more are from foreign buyers.
All in all, it is legally safe, easy, and quick to buy a property in Tulum. Click here to know more about the legal steps when buying property in Tulum.
After Buying Your Property? Property Management
After buying property in Tulum, most of the owners will need to hire a property management company because they do not actually live here. They live abroad.
There are several companies specializing in long-distance services and they offer different packages from basic management to full service.
They take care of the general maintenance and the rental program for bookings, check-ins, check-outs, repairs, marketing, customer service, etc.
So, people who buy an investment property in Tulum are covered with the assistance to run the rentals and receive the reports and the income from their home countries.
Conclusion:
Tulum will keep offering attractive options for buying properties of all kinds, sizes, and budgets.
In 2024, the new international airport and the new station of the Mayan Train will boost the arrival of tourists and renters who want to visit Tulum during their vacations.
It will be easier and quicker for people from all over the world to get here. The natural beauty and the nice weather will be the same for everybody to enjoy.
If you are interested in buying a property in Tulum, contact us today to ask all your questions and find the condo or home that you want.
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