The real estate sector in Mexico has grown significantly in the last decade, becoming profitable for investors. Especially in Yucatán, Cancun real estate became the market in Mexico with the highest capital gain. It is a place worth investing in, but what makes the city this profitable? Here we are going through the different advantages that Cancun has.

Attractive Housing Area 

Around the country, Cancun has shown to be the area with the biggest growth of those last years. With an increase of price in the real estate sector, in the most alluring areas, the capital gains can go up to 50% (officially 52.4 % in 2017) ( Houghton, Investment Properties Mexico). This great capital gain is one of the advantages that Cancun real estate has. From houses, condo to residency and hotel, the city offer a lot of opportunities. The city benefits from high-level infrastructure (hotels, big malls, …), and offer a comfortable lifestyle with a lower cost of living than most Europe, Canada, and the U.S, due to the Pesos value. With an investment in any area, the gross annual return on investment is between 8% and 14% in the long run.

Privileged Location

15 years ago, the government of Mexico was looking for a city to invest in, and one of the major reasons the decision settle on Cancun was for its location. A city by the sea, with its white-sand beaches and all years round good weather. Located in the Caribbean, Cancun is on a 1h30 flight from Florida (United States of America). Built in 1974, the International airport of Cancun is the second biggest airport in the country behind Mexico city. It creates an easy way for foreigners around the world to access the city. In 2020, the airport has welcomed more than 12 million tourists.

Touristic Destination

Cancun is THE tourist destination of Mexico, welcoming around 2 million visitors each year, and generating alone ¼ of the country's tourism revenue. Cancun is one of the 100 most visited cities in the world (study from Euromonitor International), the first holidays' destination in Mexico (from Mexican and Foreign), and this year (2021), Cancun is currently the favorite destination for travel from Mexican (with the Mayan Riviera). Naturally, it is worth investing in Cancun, primarily in the touristic area, participating in this industry is where the highest capital gain comes. The city is known for its nightlife (bar, restaurant, club,…), its Luxurious experience (Malls, prestigious hotels,…), and other touristic areas (Isla Mujeres, beaches,…). This makes Cancun the perfect place to start a vacation rental (80% to 90% occupancy rate) or invest in a business related to touristic activities.

Constant Development

Even with the notoriety of the city and investments of the last years, specialists still think that Cancun real estate is an underestimated area. With Covid-19, the city didn’t lose its attractiveness and has drawn investors even through the pandemic. The state where Cancun is from, Quintana Roo, received 91 million dollars in Foreign Direct Investment in the first quarter of this year (2021) (Yucatan Times ), which will be invested in real estate, among other things. Cancun hasn’t finished its growth and has new projects on its way. The more anticipated is Puerto Cancun, a new quarter at the seaside and next to the hotel zone. There are also selling of land or properties pushing in the jungle. The goal is to make those areas urban and/or touristic in the future, in 20 or 30 years. It is an investment in the long term. This could increase the number of profitable places in Cancun real estate.

Cancun is the perfect combination of location, attractiveness, investment, and growth that makes it the profitable place that it is. And by the look of today, it seems that the city is not going to decrease in its capital gains.

What do you think makes Cancun the place with the best capital gain? Do you want to invest? Do you think the profitability is going to increase in the Future? Comment Below!