All Forum Posts by: Sebastian Papworth

I am the owner of Jungle Realtor a boutique agency with licensed buyers representatives in the state of Quintana Roo (where Tulum, Playa del Carmen, and Cancun are located).
I wouldn't suggest contacting the listing agents directly mainly because:

You’re not going to get a better deal by going directly to the listing agent, they represent the seller and are just trying to get the seller the best price & terms and some can only sell their exclusive listings so they will offer a biased opinion. I would suggest getting a local bilingual licensed buyers agent you trust that has access to the entire market & can share the best options for your needs/wants.

I shared more reasons for why working with a buyers agent in this thread:
https://www.biggerpockets.com/...

Safe investing!

0 Votes

Atlanta, Georgia

Hello @Dennis Kraft

Just found this article about this sargassum processor to recover beaches and found it relevant to share in this conversation.

All the best

https://www.riviera-maya-news....

0 Votes

Hello @Ryan Mattis

I am a broker/owner of a buyers agency based out of Playa del Carmen & Tulum. I know you have already received an answer to most of your questions however I can add some info, I hope it will come in handy.

Has anyone here from Canada purchased in Playa Del Carmen? Is this a terribly challenging process or can it be fairly straightforward?

Most of our clients are from US & Canada, actually, one of our best advisors is from Vancouver, he has invested in multiple properties here and he used to be a realtor in Vancouver as well.

Are there local realtors/lawyers that you trust? (I find this part initially challenging, is there somewhere I can vet people out, outside of google reviews)

I am a licensed real estate agent so it's pretty obvious I am going to talk about the benefits of working with a trustworthy realtor let me give you some key points:

1. NO MLS: Since there is no official multiple listing service in the area it's hard to know very important stats that really help you out in picking the best investment property and making sure your offer and negotiation get you the best deal. We have an internal MLS with historic purchases in the area and useful stats.

2. Off Market properties: Some agencies have access to listings that are not public and are not available to all investors.

3. Developer track record: You might see a presale project you like with amazing renders and good prices however we have been in the area for over 8 years so we know which developers have a good reputation, have delivered projects on time, and with good quality finishes.

4. Buyer's agent cost: The cost of a buyer's agent is paid by the seller so this service doesn't cost you anything, and it can save you a lot of money and problems if you get a good reputable licensed realtor.

5. Buyers agent vs sellers agent: If you go directly to the developer they most likely will have an in-house agent that works with the developer, so his opinion will most likely be biased because most likely he can't sell anything else, plus in the negotiation, you wouldn't have anyone working on your side.

6. Reputable realtor with a long term vision: I agree there are a lot of new real estate agents that are not licensed and might not have a lot of experience and information and only have their commission in mind and not your needs / wants and best interests, however, you can't judge all agents like this. There are very reputable agents with tons of experience in the area, I would ask anyone you decide to work with some basic questions: If they have a license if they are a part of a real estate association like AMMI, AMPI, or CANACO, if they have invested in real estate in this state, and how long have they been in business in the area. For a reputable realtor & owner of a brokerage firm, it's all about long term vision, we are able to close so much more business if a client is happy, most of our business is based on referrals and repeat customers so it doesn't matter how high the commission if I am going to risk my reputation which can bring me so many more referrals and the peace of mind of walking on 5th av. with my family.

7. Contacts: As we know who the best developers and deals are we also have the best contacts for: Real Estate Law firms, financing companies, Premium bank reps to open Mexican bank accounts fast, Notaries, Inspectors, Builders, Accountants, Property Managers, photographers, furniture stores, carpenters, handyman & maintenance people, etc.

8. Bilingual realtor: Make sure your agent speaks really good Spanish, remember that you are in Mexico and all the agreements and important paperwork you will sign are in Spanish, some are translated however it's important to keep in mind that the Spanish version will prevail. We always advise you to get a lawyer that represents you, he will take care of all the legal clauses, however, there are commercial clauses that some attorneys don't know that can be negotiated or don't know what amounts can be negotiated, like penalties, transfer of rights, etc.

Any reputable property managers in the area? Obviously, I won't be able to tend to things from Canada:

I know a very reputable property manager in PDC, he is also from Canada so I am sure you will be happy with him, I'll send you his contact via DM.

If you are already working with a buyer's agent, great if not we can help out by sending you comparable properties, sending you a very useful buyer's guide.

Safe investing!

2 Votes

Hello @Denise Ausderau

I have worked with a couple of property managers in the area both as an investor and as a buyers agent. In my experience, there are always pros and cons about each one, there are multiple options in Tulum and PDC. I can share the ones we have used and know they are trustworthy. Will send you a DM.

0 Votes

Hello @Deisy P.

Congratulations on investing in Tulum, and almost getting your unit!
I am Sebastian Papworth a buyers agent at Jungle Realtor, we haven`t closed any properties on iiK, however, I liked the style of the project since I saw it, I am excited to see it finished, we have closed a couple of units on another project from the same developer CEREN in PDC, I know the person who runs the sales and marketing of both projects we are both colleagues in the Mexican Association of Realtors, I am sure they can help you out.
If it's in the promissory agreement signed by the developer they have to honor it, it's good that you haven't paid off the remaining balance until you reach an agreement.

If you need any extra help send me a DM and we can chat directly.

All the best!

1 Vote

@Michael Donald

I have worked with a couple of property managers, in my experience, there are always pros and cons about each one, there are multiple options in Tulum. I can share the ones I have used and know they are trustworthy. Will send you a DM.

3 Votes

@Tak Ogihara

Sure thing, I hope this helps you in your decision process. I work in a very similar way to what you just shared so I hear what you say. I would say there is no perfect investment however it definitely has to make sense and feel right. I wish you the best of luck on your investment and hope you find the property that meets your needs/wants at the best possible price! Anything I can help feel free to ask.

0 Votes

@Mike Lambert

Thank you for sharing your personal opinion and interpretation of this analysis.

People compare PDC & Tulum all the time and they ask us our opinion almost on a daily basis. I base my answer on their needs/wants and expectations. As an investor in both cities, I see different pros and cons. I try to stick to data to stay as objective as possible and help investors reach their own conclusions.

Here is the source for the two million tourists: https://www.kayak.com.mx/Tulum...

"Tulum has become one of the main destinations in the Riviera Maya, a place that receives almost two million tourists each year despite the fact that its population barely reaches 20,000 inhabitants."

If indeed this article is talking about the visitors of the ruins, how many tourists do you know to stay in Tulum on average a year?

Do you really think ADRs for beachfront hotels are similar in Tulum to PDC?

How many years behind do you calculate Tulum is compared to PDC?

I have seen people in bigger pockets forums talk about the supply of properties in Tulum surpassing the demand, based on the numbers I have seen returns are very solid post-pandemic, I have made multiple projections and analyses based on our internal MLS and I am curious to hear what you think.

It's important to note that in Tulum you are able to buy clear titled properties within walking distance to the beach, not everyone knows about them and there is a very short supply, but they do exist.

Something that I like about PDC is that it's a more mature market and its geographic location makes beach access very simple, I like the walkability of the city, and since it's in the middle of two golf courses so downtown growth is limited.

I do see Tulum growing consistently, something important: services and infrastructure need to grow along with private development, parks, and green areas have to be assigned. Also, affordable housing is needed for people that work in Tulum because more and more people will move to Tulum to build the airport, train, and other projects. I have seen the urban development plan of the "new Tulum" and there are definitely big plans for the city and municipality.

1 Vote

If you are interested in investing in Tulum or Playa del Carmen we are one of the few licensed boutique brokerage firms representing buyers.

1 Vote

I just did an analysis of Playa del Carmen vs. Tulum with interesting data. (I will share all the information sources at the end of the reply). I really think this comparison will help investors.

I’m interested in sharing facts and letting investors reach their own conclusions, so I did a side-by-side number comparison:

Foundation and Population:

Playa del Carmen was founded in 1993.

Tulum was founded in 2008.

That's a 15-year difference.  

I've heard several investors and realtors say that buying in Tulum now is like buying in PDC was 10-15 years ago --I'm curious to hear what you guys think.

Population (2020 census):  

Playa del Carmen: 304,942.  

Tulum: 46,721. 

Playa has 6.5 times the population of Tulum.

However, it all depends on what your target market is, along with your renter profile: are investors looking to rent long-term to residents? Or are you looking to rent short-term to tourists?

PDC’s growth in the past 10 years:

The 2020 census numbers show a whopping 103% increase over the population numbers of 2010. In the past 6 years alone, Playa Del Carmen’s population has grown just over 63%.

According to the census count, the population of Playa Del Carmen stands at 304,942. This is a 103% increase over the 2010 census numbers for Playa, which amounted to 149,923.  

Tulum’s growth over the past 10 years:

In 2020, the population in Tulum reached 46,721 inhabitants. Compared to 2010, its population grew 65.3%.  

Key differences:  

1. Beach access  

2. Beachfront density  

3. Infrastructure  

4. Tulum is a Magic Village, which means it receives a little more public promotion and investment from the government.  

5. Upcoming private and public projects.  

Public and private infrastructure projects:

1. Mayan Train: Biggest project of the current federal administration, with an approximated cost of almost US$9.81 billion. It will span approximately 1,500 km (932 miles) and will link the states of Chiapas, Tabasco, Campeche, Yucatán, and Quintana Roo, with a total of 21 stations. Playa and Tulum will each have their own train station. Due to be completed in 2023, construction is already in progress.  

2. Tulum Airport: Set to be completed by 2023, it is projected to receive 4 million passengers.  

3. Tulum’s bypass to reduce city traffic.  

4. Formula 1 race track just 15 minutes away from PDC. 

5. Green School in Tulum.  

6. Both cities have private projects featuring new shopping malls, cinemas, and supermarkets.  

7. Extension of the highway to Bacalar.

AIRBNB, VRBO (AIRDNA) AND HOTEL COMPARISON Note: It’s hard to separate hotel occupancy rates between Tulum and Playa because the state’s Tourism Ministry lists both cities under the same category --Riviera Maya-- and the hotel comparison is made by municipality):

Playa del Carmen has 11,105 active listings.  

Tulum has 5,422 active listings.  

That is a difference of 5,683 listings, which means Tulum has 48.82% of the listings that PDC has active.  

Playa has 285 hotels with 43,771 rooms.  

Tulum has 159 hotels with 8,390 rooms.  

That is a difference of 126 hotels and 35,381 hotel rooms, so Tulum has 19.6% of the number of rooms that PDC has. I believe this is partly because there are several large all-inclusive chain resorts in Playa featuring properties with 800+ rooms, whereas the hotels in Tulum’s hotel zone are boutique "eco-lodges" with a lower room density.

I wasn't able to get the average daily rate (ADR) for hotels in Tulum vs. hotels in Playa. Personally, I think that the median ADR of hotels is a lot higher in Tulum than in Playa, what do you think? 

PDC ADR Airbnb: 81 USD  

Tulum ADR Airbnb: 125 USD  

That's almost 65% more in Tulum.  

Median Airbnb occupancy in PDC: 58%.  

Median Airbnb occupancy in Tulum: 67%.  

Median Airbnb revenue PDC: $1,695 USD.  

Median Airbnb revenue Tulum: $889 USD.  

That's $806 USD more median revenue in Tulum. More than half.

DEMAND:

Demand in Playa: Playa Del Carmen receives some 1 million tourists a year. That amounts to about 2,740 people arriving each day.

Demand in Tulum: Tulum has become one of the main destinations on the Riviera Maya, receiving almost two million tourists a year (Kayak). That amounts to roughly 5,479 people arriving every day, meaning the approximate tourism demand is double for Tulum than for PDC, with a lower supply of rooms and Airbnb.

Upcoming Real-Estate Projects:

Without an MLS it's very hard to get this number right; we have an approximate figure, so if you'd like more info send me a DM and we can share it with you. According to our internal MLS, Tulum has close to double the presale projects that Playa currently has, and a significant number of units coming to the market in the next few years.

Suggestion: Buy something unique (do not overpay for a commodity, but pay a slight premium to get something special that will make you stand out from all the others once supply starts getting closer to demand.

FLIGHT INFORMATION:   “During the period from January to August 2021, Cancun Airport received 3.8 million foreign visitors. This was almost 4 times more than Los Cabos airport in Baja California Sur (BCS), which registered 1.07 million, and almost 3 times more than Mexico City International Airport, which received 1.4 million". "In absolute terms, Quintana Roo receives 46.5% of all foreign visitors to Mexico, making it the country’s number one generator of tourism revenue". 

Cancun airport had its second-busiest day on record on Saturday 18th of December 2021 in terms of the number of incoming and outgoing flights: a total of 648 flights touched down at or departed from Cancun airport, just 11 fewer than the all-time high of 659 flights on March 31, 2018. 

Cancun’s record was in 2018, when the airport handled 25.2 million passengers. 

As a new article with the top post-pandemic travel trends states: "While Dubai remains at the top of the list, the most notable rises include Miami, from 18th to 5th, and new on the list, Cancun (Mexico) at 2nd with 4% of the air ticket share." Cancun Airport wasn't even on the list and it’s now in second place just after Dubai. The two highest risers, Cancun and Miami, are both major leisure destinations popular with US holidaymakers.

SOCIAL MEDIA:

#Playadelcarmen has 4,300,000 Instagram posts.  

#Tulum has 7,600,000 Instagram posts.  

The younger crowds are making a lot more noise on Instagram about Tulum than about PDC.

Conclusion: My conclusion is speculative and since I don’t have a crystal ball I wouldn’t venture to post this online, and also I don’t want to help or affect one particular city over the other, since as I mentioned I honestly like both destinations. Each has its pros and cons depending on your specific goals, but if anyone is interested in knowing my point of view and what I think might happen in the medium and long term I’m happy to share it in private.

P.S:I am not an expert in statistical analysis, I hope this helps here are the sources of information:

https://www.lonelyplanet.com/articles/tulum-mexico-digital-nomads

https://everythingplayadelcarmen.com/population-of-playa-del-carmen/

https://www.airdna.co/

https://www.lajornadamaya.mx/quintana-roo/177934/tulum-encabeza-preferencias-en-zonas-arqueologicas

https://realestatemarket.com.mx/mercado-inmobiliario/32231-vision-general-de-tulum

http://sedetursys.qroo.gob.mx/ocupacion/ocupacion2018.php

https://ftnnews.com/tours/42946-forwardkeys-top-travel-trends-of-2021

https://www.estadisticas.inah.gob.mx/

http://sedetursys.qroo.gob.mx/ocupacion/

https://www.eleconomista.com.mx/estados/Quintana-Roo-registra-la-mayor-tasa-anual-de-crecimiento-poblacional-de-todo-el-pais-Censo-2020-20210127-0108.html

https://londondailypost.com/top-travel-destinations-to-visit-in-2020/