Tulum Property Owners: Relax
Some words of encouragement for Tulum property owners.
Market Correction
Firstly—if you spend time in Tulum, own property there and are concerned about the current real estate market—I have one word for you, “Tranquilo.” Take a deep breath. Relax. Chill. And, remember what attracted you to the area as an investor in the first place.
What is happening in Tulum right now should come as no surprise. Tulum made a splash on the world stage—gaining attention for its beauty—and investors took note. Condos were built at a rapid pace but supply has now inevitably outgrown demand resulting in a price correction.
This is not unique. Nor is it reason to panic. Real estate is the perfect model of a free market. Scarcity creates demand, creating high prices and a seller’s market. An oversupply, of course, results in the opposite and a buyer’s market.
But, if the history of real estate is any indication, properly priced homes will sell to those forecasting better times. And, once listings reach a balanced number, prices will become more stable, values will rise once again at a predictable rate and developers will build what the market can tolerate.
Social Media
Social media channels by their very nature—more accurately by the human nature of their most regular posters—can be a global square for negativity. Sadly, people are way more likely to post about a negative experience rather than share praise for something positive. And, of course, there are the trolls and bots that constantly feed the system with ugliness and misinformation.
Many Tulum forums focus on only the negative. Tulum, like every boomtown, has its problems but one by one they get worked out. For example: taxis were long a source of frustration in Tulum with drivers charging whatever fees they deemed fit. But, with the introduction of apps like Eiby and InDrive, taxi drivers can still retain their job security, while passengers can now ensure a fair rate at the time they request a ride using the apps.
In essence, for every problem in Tulum, there is a solution and the free market always forces change when and where needed. What is a problem today (eg: an oversaturation of real estate) will be an opportunity tomorrow for savvy investors. Speaking of…
Opportunities
Tulum right now is a buyer’s market. It’s nothing to panic about if you are an owner, it’s simply how real estate works worldwide and pretty much throughout human history. Somewhere becomes popular among investors and media channels. And, as is often the case, properties get built in a “boom” and result in an oversupply.
The surplus of available housing (so often condos in these cases) causes prices to drop. That drop creates a knee-jerk reaction among owners. Then, a glut of owners listing their properties at the same time only compounds the problem. However, there is always a silver lining and a market correction to come.
Once prices drop, smart investors make their move. They buy properties at prices near, or at, what they were before the boom—and more in line with what they probably should have been all along. Also, those who wished to buy in years past—but were deterred by inflated prices—are now able to make their Tulum dream a reality.
Lastly, don’t forget to look at this as a potential opportunity for yourself as a current owner. Prices will stabilize and, in time, begin to rise once more. So—if you are already connected to Tulum with a property; you have the gained knowledge of the ins and outs of ownership in Mexico; and, you have capital and patience—now could be an incredible opportunity to expand your investment in Tulum and purchase more property for future gain.
To see some of the opportunities available for investment, visit our Listings page. Or, if you do still decide now is your time to sell, check out our Plans & Pricing.
