Cancun Real Estate
Cancun beach front properties

If you want the best Mexico can offer, Cancun is the premier location in the country. Cancun is the destination of choice for millions of travelers each year, and has grown to the number one destination for international travelers in all of Latin America [1]. This is a reflection of the tremendous demand and growth since 1974 when Fonatur, Mexico’s tourism agency, targeted Cancun as a potential top tourism destinations. Since that time Cancun has outgrown all other areas to become the tourism capital of Mexico with a population of roughly 800,000, approximately 27,000 hotel rooms and billions of dollars of property.

The critics have been saying Cancun is peaked out for years, and yet it continues to grow. Demand has been sustained and development has expanded south where property values have been positively affected by the Cancun effect. Hotel occupancy hovers around 80% in the spring and summer months according to the Hotel Association of Cancun, which is remarkable given that the hotel zone stretches for 18 miles of coastline. If you think there’s no room left for growth, you have to look no further than Hawaii which sits on roughly the same latitude line as Cancun. Just because an area is crowed does not mean property values can not grow - actually the opposite is true because of the scarcity of real estate. Cancun has several geographic advantages such as proximity to the east coast of the US, its location in a tropical region on the Caribbean sea, the proximity to Mayan ruins, and remarkable geologic formations like the lagoons and caverns.

If your ideal lifestyle includes tropical weather, a beautiful environment, and a lively social atmosphere than few places on earth can compete with Cancun, Mexico. Cancun is built around tourists, so there are opportunities to do everything you can associate with a tropical vacation – snorkeling, fiestas, excursions to Mayan ruins, shopping, world class golfing, etc. The 18 mile hotel strip was designed so that tourists would never have to leave. Cancun is a world-renown culinary center with many renown chefs according to Fonatur. You can taste food from a different restaurant every day for over a year, with over 500 restaurants along the hotel strip. There are thousands of species of marine life that you can observe, or just go to the aquarium to swim with the sharks. If a permanent tourist lifestyle does not appeal to you, you can find beachfront properties south of Cancun that are quieter and less expensive.As the tourism capital of Latin America, Cancun will generate significant returns on your investment for the following reasons. According to United Nations World Tourism Organization, international tourism is expected to double from 800 million in 2008 to 1.6 billion in 2020. This will lead to continued increases in the price of rental units in Cancun but with the consequence of more crowding. Even with an 18 mile hotel zone, occupation rates exceed 80% in some months, and as available beach real estate supply reaches its limit, values could skyrocket. As the tourism capital of Latin America, Cancun will continue to receive volumes of foreign direct investment, which will also favor appreciation. Cancun does require a higher level of investment because of the current market values and because Cancun is more mature than most other markets in Mexico. But Cancun also provides the benefit of strong infrastructure that developers would look for in a new development. Investment in immature markets, have the potential to grow at a faster rate, but they also have the potential to die if the government stops investing in development of their infrastructure. Cancun is a safe bet because it is an established destination with dependable cash flows for rentals.

Sources:

1. http://www.ahqr.com.mx/ingles/bien.php

2. http://www.asur.com.mx/asur/ingles/aeropuertos/cancun/cancun.asp

3. http://www.fonatur.gob.mx/es/Des_cancun/des-cancun.asp