.svg){kind=small}
Tulum, a beach town along Mexico's Caribbean coast, has rapidly transformed from a tranquil fishing village to a premier destination for investors seeking a real estate investment with strong returns. This evolution is driven by a combination of escalating tourism, strategic infrastructure developments, and a growing demand for sustainable living.
This article will walk you through key considerations to help you secure a profitable real estate investment in Tulum.
For a neighborhood breakdown, see the top areas to invest in Tulum.
1. Understanding the Tulum Real Estate Market
Once a quiet fishing village, Tulum has rapidly transformed into one of Mexico’s most in-demand tourist hotspots. This shift has been fueled by its natural beauty, eco-conscious values, and growing international popularity. The real estate market in Tulum is diverse, ranging from beachfront villas to affordable condos and development land.
2. What is Driving Real Estate Demand in Tulum?
Tourism growth
Tourism is the backbone of the Riviera Maya’s economy and a key driver for its real estate investment. In 2024, the state of Quintana Roo welcomed over 21 million visitors, with Cancún, Playa del Carmen, and Tulum as its main draws. International arrivals to Cancún International Airport alone - Tulum’s main gateway - topped 19 million passengers, a 7% increase from 2023. While exact Tulum data is limited, its global appeal is clear: Expedia ranked it the #1 international destination for fall 2024. With the new Tulum International Airport already surpassing 1.2 million passengers in its first year, plus the Tren Maya improving regional connectivity, the steady influx of travelers continues to fuel rental demand and property values for well-located, high-quality developments.
This demand helps support both short- and medium-term rental markets, especially for well-located, thoughtfully designed properties.
Infrastructure developments
Enhancements in infrastructure have significantly bolstered Tulum's accessibility and appeal. The inauguration of Tulum's international airport on March 28, 2024, has streamlined travel, attracting a broader spectrum of tourists and investors. Additionally, the completion of a new train station further integrates Tulum into Mexico's transportation network, facilitating easier access.
Real estate market trends
The real estate landscape in Tulum has experienced notable shifts. As of 2024, property prices have appreciated by an average of 15% annually since 2015, with the market size reaching approximately $1.2 billion in 2023. However, it's essential to note that the market has also seen a 25% increase in vacation rental properties over the past two years, leading to concerns about oversupply and its potential impact on rental yields.
The takeaway: Tulum still holds strong potential, but smart investors are selective: prioritizing build quality, location, and long-term value.
Sustainability practices
Commitment to responsible development has made Tulum a magnet for environmentally-conscious investors and tourists. Pre-construction in Tulum that incorporates sustainable features, such as solar panels, water recycling systems, and natural building materials, is highly sought after.
Investing in eco-friendly real estate in Tulum can not only attract premium rents but also contribute to the preservation of Tulum's natural beauty.
Cultural and lifestyle appeal
Tulum's rich cultural heritage and diverse recreational activities are major draws for tourists. The town offers a unique blend of ancient Mayan history and modern amenities, appealing to a wide range of visitors and offering a diverse array of things to do and to visit. Proximity to cultural landmarks like Mayan ruins, cenotes, breathtaking lagoons and beach clubs can significantly enhance the attractiveness of your property, ensuring high occupancy rates.
3. Choosing the Right Property
Property types
Investors have a variety of property types to consider in Tulum, each offering distinct advantages:
- Condos: Condos are the most common choice for investors in Tulum. Their compact size, lower maintenance, and flexibility for short-term or seasonal rental make them a strong option, especially if well-designed. Attracting both tourists and digital nomads, condos can yield stable income when professionally managed.
- Villas: Luxury villas near the beach can generate strong nightly rates, but also come with higher upkeep and purchase costs. Entry prices typically start around $500,000 and can exceed $3 million, making them a better fit for high-capital investors focused on premium returns.
- Land: Land in emerging areas of Tulum still offers potential for appreciation, but it requires patience and often additional permitting or construction. Infrastructure in some zones is limited, so due diligence is crucial before buying raw land.
For a detailed overview, see our guide on different types of investment property in Tulum.
Amenities and features
When you buy a condo in Tulum with desirable amenities, you can significantly boost rental appeal.
Features such as swimming pools, private gardens, security systems, and proximity to attractions and restaurants can justify higher rental rates.
Eco-friendly features, like energy-efficient appliances and sustainable materials, not only attract premium rents and appeal to environmentally-conscious renters, but also decrease monthly electricity bills.
4. Management and Maintenance
- Work with a property manager: A good local property management company is essential for keeping your investment in top shape - especially if you’re not living in Tulum full-time. They’ll handle cleaning, guest communication, maintenance, and marketing.
- Stay ahead with preventive maintenance: Regular inspections and timely repairs help you avoid costly issues and protect your ROI. Well-maintained properties also attract better tenants and allow for higher nightly or monthly rates.
5. Marketing Your Property
The market of rental property in Tulum in 2024 showed the average length of stay on Airbnb was 5.3 days, with 8,002 active listings. A typical listing was booked for 51% of available nights. That’s a lot of competition.
To keep your unit booked:
- Invest in professional photos and a detailed listing.
- Use SEO-optimized descriptions on Airbnb and Booking.com.
- Gather guest reviews early and respond to feedback.
- Promote your unit through Instagram, LinkedIn, and real estate platforms.
5. Short-Term vs. Long-Term Rentals: Finding the Right Balance
Short-term rentals offer higher income per night but require hands-on management and can fluctuate with the seasons.
Long-term rentals appeal to remote workers, digital nomads, and retirees, offering lower turnover and more stability, even if the monthly rates are lower.
Many investors in Tulum use a hybrid strategy: short-term rentals during peak travel seasons and monthly leases during the quieter months. It’s about flexibility and understanding your tenant profile.
For a more detailed overview, see our analysis on rental strategies for your rental property in Tulum.
Performance of properties at 525 Tulum
At our delivered development 525 Tulum, studios achieved a 78% occupancy rate in 2023 and 2024, delivering return on investment figures of 10% and 8%, respectively. The development's functional design and premium amenities, from a rooftop infinity pool to private green spaces, make it a favorite among remote workers and tourists alike.
Final Thoughts: Is Real Estate Investment in Tulum Still Worth It?
Tulum continues to offer promising returns for investors, but it is no longer a hidden gem. The opportunities are still there, but so is the competition.
To make the most of your investment:
- Stay informed about the local market
- Choose a well-designed property in an area that offers both convenience and long-term value
- Prioritize sustainability and quality over fast gains
- Work with the right team for financing, property management, and legal guidance
If you’re planning to buy home in Tulum, focus on understanding the market dynamics and closing costs so your decision balances lifestyle and profitability. And if you are looking for a project that balances responsible design, rental potential, and financing flexibility, take a closer look at our condos for sale in Tulum at Mayab Tulum. Tell us your goals and we will help you find the right fit.
