Have you considered diversifying your investment portfolio? Maybe you want to add global real estate to it. Even with recessions, market crashes, and the current COVID-19 pandemic, opportunities arise for growth and success.
Investing in Riviera Maya properties makes sense. Before you do that you need to do an in-depth market analysis to identify a profitable rental property.
This post covers the steps needed for an in-depth market analysis for the Riviera Maya.
Step 1
Consider your target market to assess the demand
Vacationers and Digital nomads-business travelers are top renters in the Riviera Maya. According to Statista, approximately 80.6 thousand flights arrived in Cancun in 2019, or 6.15 million foreign visitors arrived that year.
- Cancun is one of the easiest airports for air connections in the world. Europeans come in the summer, North Americans and wealthy Mexican nationals come to stay here.
- According to Travelpulse and the Riviera Maya News, airport managing company ASUR said Cancun International Airport reported the arrival of 692,686 passengers in March of 2021. This is a record for March with a five-percent increase from the same month in 2019.
Step 2
Assess Occupancy Rate
With increased demand, it’s not unusual for hotels to run at a 90% or higher occupancy rate. This is why SIMCA Real Estate has entered a new market selling hotel residencies. Not only can investors capture the vacation rental market with private condos, but they can also profit from owning a hotel and condo residence in one with a guaranteed return.
Step 3
Assess Capital Appreciation & Return on Investment (ROI) and Taxes
Consider a gross rental yield of somewhere around 15% annually for some of our projects and a 7% capital appreciation per year. To be conservative though plan on between 8%-10% annual gross rental yield. Taxes in Mexico are 0.25% of the assessed value. Who wouldn’t find that attractive for a place in paradise you can visit or rent out?
Step 4
Look at the infrastructure of the destination
- Top healthcare at hospitals in Cancun. Many of our hospitals cater to foreigners for orthopedic procedures, heart procedures, and more with state-of-the-art equipment.
- Mayan Train project to unite tourist corridor from Cancun to Tulum and 5 states. It will pass by cenotes, archaeological sites, historical monuments, and more.
- Tulum Airport to serve Playa del Carmen and Tulum developments.
- A strong and reliable internet connection in Playa del Carmen. This is the ideal situation to attract remote workers and new businesses.
Step 5
Assess Pre-construction or Immediate Delivery
SIMCA has pre-construction properties available where you can make up to 28% capital appreciation by the time the project is available for delivery. Another option is to purchase projects available for immediate delivery so you can capture passive rental income as soon as possible.
Figure out your goals, budget, financing, and when you want to have access to your property.
Conclusion
Deciding to invest in the Mexican Caribbean real estate is a big deal. Whether it’s for a second home or an investment property you want to assess all the information for it to be profitable.
SIMCA Real Estate has multiple properties available for pre-construction or immediate delivery. The question is, “What are you going to choose?” Schedule your discovery call to see how we can help you.
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