Business & Services

Riviera Maya Real Estate — Ready for the Future

By Laura Zapata

While the swine flu had a “sucker punch” effect on Real Estate Sales in Mexico in 2009, the industry is in perfect form to make a comeback in 2010.

Exaggerated reports of the swine flu in Mexico devastated the economy in 2009. If not for that unfortunate global misunderstanding, the real estate industry, as well as the tourist industry, would have finished the year with very positive numbers. While the world economic situation certainly had an impact on the Mexican economy and the real estate industry, the good news is that the Mexican economy has bounced back with even more energy and adrenalin to come out swinging against other competing markets.



While the world economic situation certainly had an impact on the Mexican economy and the real estate industry, it was the “sucker punch” from reporter’s hysteria about the swine flu that caught the Mexican economy off guard and left it down for the count. The good news is that the Mexican economy has bounced back with even more energy and adrenalin to come out swinging against other competing markets and more specifically that of the U.S.

One of the things that keep the Mexican real estate market stable when compared to the U.S. market is the “cash” purchase. While mortgages are now easier to obtain and more foreigners are purchasing in Mexico this way, the preferred method of purchase is hypothecating stock or getting a second mortgage on the primary residence. Because of these “cash” purchases, the properties in Mexico are paid in full and no mortgage exists. Without a mortgage, the properties cannot be foreclosed upon. No foreclosures help maintain stable prices.

There is still much appreciation left in properties in Mexico and specifically those along the Caribbean coastline. When compared to properties in other areas such as the Virgin Islands and the Bahamas, similar properties in the Riviera Maya can be valued for as much as 40% less than those areas. The primary reason is that the Riviera Maya is a young destination. The state was created in 1974. At that time, Cancun was declared a future tourist destination by the federal government and funds were appropriated for the infrastructure.

It wasn’t until the about 2000 that the Riviera Maya began to grow – following slowly behind Cancun at first, but now in the lead. In only 10 years the number of hotel rooms in the Riviera Maya went from 5,000 to 37,800, having surpassed Cancun more than two years ago. This area is still in its infancy stage and is yet to be discovered by many people around the world. Once it matures, property prices will be playing catch-up with the rest of the world’s second home destinations.

It is easy to see the growth that the hotel industry has had not only in numbers, but in type of accommodations available. Fifteen years ago, there were many hotels on the beach that didn’t have floors – only the sand beneath your feet as you stepped out of bed (or a hammock). Now the area has some of the most luxurious hotels in the world.

The evolution in residential real estate can also be seen. While fifteen years ago, the lack of skilled labor and the lack of understanding of building standards created some interesting construction, now the area has property that can compete with any level in any country in the world. Compared to some construction in places along the U.S. Gulf coast and Atlantic coast, the structures in this area are built to better withstand the heartiest of hurricanes, (which, although they occur, are experienced infrequently here).

Besides the opportunities for investment in a monetary sense, the benefit of living in Mexico has other advantages. Healthier living in a clean air environment and a healthy sense of being encourages walking along the beach, the ever popular 5th Avenue, or almost any place in the area. Fresh fruits and vegetables abound and overall there seems to be a relaxed non-stressful attitude about life.



Come live, come explore, come feel the spirit of Mexico as only you can in the Riviera Maya.

Laura Zapata is the owner and has been the director of Seaview Properties since its inception in 1999. She has been an active member of the Mexican Real Estate Association (AMPI) since 2000 serving in various capacities on the local board and most recently serving as President of the Real Estate Board for the Riviera Maya from 2006 to 2009. During 2009 she served as a member of the National Board of Directors for AMPI and also served as its Regional Coordinator for Southeastern Mexico.

She has written many articles on Real Estate in Mexico for various magazines such as La Quinta and Enlace among others.

Laura has lived in Playa del Carmen since 1996 having moved here from the Dallas area in her native state of Texas. While she considers the Riviera Maya a unique and wonderful place to live, she believes that all of Mexico is a place to be explored and embraced.