Hip, trendy, vibrant… Those three words sum up Playa del Carmen, Mexico. This is a boomtown, plain and simple.
Over the past 20 years, the population has exploded. Fifth Avenue, the main shopping and entertainment drag, is described locally as the longest pedestrianized street in the Americas.
Each time I visit—that’s every month for the last three months now—it feels like new blocks have sprung up and fashionable restaurants and boutiques have opened their doors.
The rental market is red-hot—in all forms: short-term; long-term; by the night, week, or year; you name it you can make money from it here. I’m staying in a condo building a short stroll from Fifth Avenue.
Members of my Real Estate Trend Alert service bought condos in Playa the year before last. Right now their little condos rent from $250 per night ($350 for a two-bedroom place). The entry price point here was low, at $139,000, yet values still rose by as much as $40,000 since I first told them of this opportunity. The neighbors are vacationers, mobile businesspeople, retirees, young professionals, and executives who work in this city. There’s a lot of money here—and plenty of deep-pocketed renters.
Tourists and their spending power are the big driver of the market. But, Playa has a vibrant economy in itself. Now it’s attracting more and more mobile entrepreneurs and business people.
Mexico is serious about tourism. And the tourism promotion body FONATUR is the most successful on earth. Back in the early 1970s, Cancun was an almost uninhabited sandy spit of land. Air travel was just taking off for the U.S.’s middle classes.
FONATUR honed in on Cancun as a locale with potential. They backed it, not with an advertising campaign in inflight magazines, or some trade shows; they went all the way. They provided the infrastructure to facilitate the development of a world-class tourism industry.
Cancun has been a roaring success. Its hotels are always packed. Condos sold and values soared. So while FONATUR backed Cancun, those who backed Cancun made a killing.
And you could make a killing, too, by following the development of this coast.
After Cancun, the path of progress rolled down the coast to Playa del Carmen. That’s when Playa was transformed into a hip beach town. Resorts that offered million-dollar-plus condos popped up on the beaches just outside town.
Despite a hiccup when the global real estate market took a downturn in recent years, downtown Playa grew—both as a place to live and as an entertainment destination.
In response to the demand for accommodation, a friend came up with a unique concept. (He’s the developer behind the luxury condo building where I’m staying as I write this.)
He proposed building small, luxury condos a short stroll from Fifth Avenue. This development would offer five-star, hotel-type amenities with functional living and a low price point.
It would be a place where you could enjoy city and beach living all in one; where you could comfortably live and spend time without a car. It would be a great little pied-a-terre…or rental.
He had recently renovated a luxury hotel nearby. He saw how strong the hotel market is in Playa del Carmen and knew that he could easily provide overflow rentals.
So, he locked down a small number of prime downtown plots. Perfect to build a little condo building. Plots like these are a scarce commodity—and, because of that, the price of plots like the one he locked down have gone through the roof.
That’s in large part thanks to the success of this building where I’m staying. Competing developers want to copy his concept. They will. But, thanks to how much land values have risen, the price for his competitors’ condos will be much higher.
When he first had his idea I told members of Real Estate Trend Alert about it. Those who got in when I advised them to did well. The little condo where I’m staying could generate an income of $4,000 this month alone. And, it’s worth $40,000 more than it was.
The window of opportunity is definitely closing in Playa del Carmen…but before it does, we could have a second, and maybe final bite, of the cherry…
This same developer is planning another condo building nearby. I’m here to check out this opportunity. I’m impressed. Excited. He’s willing to set his prices low for the first 27 members of my Real Estate Trend Alert to act. The prices are so low I think we might see a repeat of our earlier success.
Values will rise strongly and quickly. Owners will have a strong rental income on completion. I don’t expect another opportunity like this in Playa again.
There’s only one way to take advantage of this low pricing and that’s to be a member of Real Estate Trend Alert. Details of how you can join are here.
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