Latin America

Property Price Growth in Playa del Carmen Rivals That of the Mighty Cancún

Playa del Carmen, a thriving resort on the Mexican Caribbean, is one of the fastest growing real estate markets in Mexico in 2023. House price growth was only slightly below that of Cancún, one of the country's most established tourist destinations.

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Solidaridad, also known as Playa del Carmen, registered one of the highest increases in property prices in Mexico in the first quarter of 2023. According to the Federal Mortgage Company (SHF), the municipality saw an annual variation of 16.8%, placing 5th in the SHF Index.

Playa del Carmen belongs to the state of Quintana Roo, which is home to other tourist hotspots such as Cancún and Tulum. House prices in the state rose by an impressive 17.1% year-on-year in the first quarter.

Within Quintana Roo, Playa del Carmen registered the second-highest increase in property prices. It was surpassed only by Benito Juárez (also known as Cancún) where values jumped by 17.3% over the year.

The State of Quintana Roo

On a national level, house prices in Mexico grew by 11.7% in Q1 2023 compared to the same period last year. The increase in the value of newly built properties was higher than that of used properties, at 12.8% compared to 10.8%, respectively.

On a state level, Quintana Roo was surpassed only by Baja California Sur which led the rankings with a 17.9% increase in property values. Both states are home to leading tourist destinations which drive demand and house price growth.

When looking at last year’s data, the state of Quintana Roo led the way with a 14.6% increase in house prices, making it the fastest-growing housing market in the country in 2022.

A Spotlight on Playa del Carmen

Playa del Carmen is a popular tourist destination in the Mexican Caribbean, offering a tropical climate, white-sand beaches, historic Mayan sites and delicious cuisine. This blissful resort has jumped to fame in recent years and now rivals other established tourist hotspots along the Riviera Maya, such as Cancún and Tulum.

Climbing visitor numbers are creating a huge demand for tourist accommodation, hospitality venues and other upscale amenities. In response, investment is pouring into Playa del Carmen and new developments are emerging across the region.

Naturally, booming tourism is attracting property investors to Playa del Carmen’s sunny shores. From 2015 to today, the market has seen a surge in both domestic and international buyers. This, combined with a wave of new, high-quality developments, has led to consistent growth in property prices which doesn’t look set to slow down any time soon.

Across Playa del Carmen, many bookings are already in place for 2024 and 2025. Meanwhile, a new international airport in Tulum—less than an hour away—will help meet growing demand and provide a welcome boost to tourism across the region.

Playa del Carmen represents a prime spot for investors looking to generate a strong rental income as the demand for holiday lets is very high. Airbnb is the most popular platform, representing 92% of the total market share.

The average price for a short-term rental ranges from $175 in January to $97 in May, although some properties command nightly rates of more than $2,000 during the high season.

With strong rental demand, rising prices, and attractive yields, it quickly becomes clear why investors are turning their attention to Playa del Carmen. As this leading Riviera Maya resort continues to entice more travellers to its shores, property owners in Playa del Carmen are set to reap the rewards.

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