Playa del Carmen & Riviera Maya Market Opportunity
Latin America has emerged as a place of opportunity during the U.S. downturn. A recent report by consultancy Ernst & Young cited the region for its steady economic growth yet relative affordability when compared to the United States and Europe.
Playa del Carmen is the fastest growing city in Latin America , and the world's fastest growing town (by a rate of 26% per annum), according to the Guinness Book of Records.
The Yucatan Peninsula , which includes Playa del Carmen and the Riviera Maya, generates over 70% of Mexico 's $13 billion foreign tourism revenue.
- For the second consecutive year, condominium construction has outpaced that of hotels.
- FONATUR (Mexico 's National Tourism Board) estimates there's a NEED for 5,000 hotel keys per year. This hotel construction is not being met and therefore condo's are being rented all over to keep pace with demand.
- According to the housing consulting firm Softec Mexico, sales of tourist housing in 2007 increased 52.5% as compared to the previous year.
- The Mexican Government estimates within the next 25 years for a migration of 1,250,000 people into Quintana Roo.
- That is 50,000 people per year.
- With 4 people per household that's 12,500 homes per year
- 10% of that is luxury/upscale condos which means a 1,250 absorption rate per year
- Approximately 80% of the beachfront housing was purchased by foreigners, principally from the U.S. and Canada
- Due to the recent decline of the Dollar and the rise of the Euro, more than ever Europeans and Canadians are coming here to invest.
- Add it all up and there's a demand for rooms/residences/condo of 6,150 per year, about 3 times what is currently being built.
With such an off year in the 2008 U.S. real estate market, most would expect for the effects to be felt in the sales of real property in The Riviera Maya. This is not the case.
- Mexican nationals are investing heavily in Playa del Carmen and The Riviera Maya. According to AMPI, this year Mexican domestic investors have made up an astonishing 60% of this year's sales demographic. US investment has dipped as much as 15% in some markets in the peninsula, but enough national investment has been present to offset the dip.
- Not to mention that due to the strong Euro, the Europeans have also been investing heavily in The Riviera Maya.
According to the Mexican Association of Real Estate Professionals (AMPI in Spanish), sales of property in the states of Quintana Roo, Campeche and Yucatan (the three states comprising the Yucatan Peninsula) are actually up 20% so far over last year.