Two trends are converging to drive higher sales in the real estate markets of Quintana Roo, Mexico. One is the pursuit of quality of life, brought upon by shelter in place orders around the world. The other is the competitiveness among sellers to attract more buyers.

The pandemic has actually driven record-breaking sales activity in resort markets in other parts of the world. Because people have been able to work remotely, areas like Lake Tahoe, Aspen, the Hamptons and Palm Beach have boomed between May and October.  Many people are leaving large cities in search of the quality of life that comes from beach, mountain and resort life.

As video conferencing becomes the norm, employees will be able to work virtually on an ongoing basis, and have chosen to shelter in place in paradise. This trend has not yet boomed in the Mayan Riviera. The key will be in educating buyers about the ease of obtaining a temporary residence permit. Additionally, buyers and retirees can benefit by the economic and healthcare advantages of living in Mexico.

Even while international travel has been reduced in Quintana Roo, much of the sales activity in 2020 was driven either by the strong dollar, or from purchases by Mexican nationals. Because of NAFTA, Mexico has enjoyed a steady increase in the growth of its middle class. By 2019, the middle class of Mexico was estimated to be 47% of all households, or 16 million.

By 2030, 3.8 million more households are projected to move into the middle class. Statistics show that 82% of Mexicans prefer to buy a property, as opposed to 18% that prefer renting.

Mexican nationals represent almost 50% of the buyers in areas like Playa del Carmen, Cancun and Tulum.

While most of the world’s tourism economy continues to struggle, Cancun continues to defy the odds. The tourism industry in the tropical destination continues to rebound to the point where almost every other week, news is being released of more flights, higher passengers numbers and increased hotel capacity. 

September is usually a slower month for tourism, yet Quintana Roo registered an increase of 11.3% international visitors compared to August. Occupancy levels have held steady between 40% and 45%, but is expected to rise to 60% by January 2021. Many congresses and conventions have already been booked in Cancun over the next 6 months, which will improve occupancy rates.

Medical tourism too, has shown a return to pre-pandemic travel numbers.  Baja California has experienced a 75% recovery of activity since pre-lock down.  

Many new direct flights between Cancun and the US and Canada have been announced recently. Most major cities now have direct flights on most major airlines. Today, Cancun has more than 200 incoming flights per day, bringing millions of tourists back to the area since it reopened in June.

Holiday travel is bringing many tourists to Cancun because of the limitations on travel to other destinations. Quintana Roo has strict sanitary measures that include taking temperature upon entering virtually every grocery store, restaurant or shop. Unlike other areas, Quintana Roo has been successful in bending the curve and keeping new Covid cases in decline.

According to ASUR, the Cancun international airport has already recovered 58.1% of its passenger traffic when comparing October 2020 to October 2019.

Passenger numbers have been steadily increasing since the reopening and Cancun is just beginning its high season. 

2020 Passenger Traffic at The Cancun International Airport

In May, one US dollar was equivalent to 24.69 pesos and one Canadian dollar equaled 17 pesos. This drove a lot of investments in Quintana Roo from American and Canadian buyers. The Mexican peso has climbed back up in value and is trading at 20.26 pesos to 1 US dollar and 15 pesos to 1 Canadian dollar.

Prior to the pandemic, the peso was trading at $18.62 mxn to $1 us and $14 mxn to $1 can, so international buyers will still find great values in Quintana Roo.

Many developers are offering discounts on purchases and paying closing costs, a new trend in the real estate market of the Mayan Riviera. They’ve also reduced down payments and offer better financing over time, giving buyers more time to pay the balance. Many are offering units furnished so buyers can enjoy a turnkey purchase.

With the proper marketing message, developers can capitalize on these trends and Quintana Roo should experience the same quality of life migration boom as other resort destinations. Contact us today for more information and guidance on setting your marketing strategy.