Want to Sell Your Property in Tulum? A Look at Today’s Market

I’m a Licensed Real Estate Broker in Quintana Roo. Although I advise clients in Cancún and throughout the Riviera Maya, this article is especially written for those looking to sell their property in Tulum. My goal is to share a realistic view of the market to help you make clearer decisions about the future of your investment in the place where I live and work. 

If your true objective is to sell, I invite you to read with an open mind, knowing that my only intention is to help you make informed and confident decisions.

In Mexico, unfortunately, we don’t have consistent and official sources that provide key real estate data, such as how many properties are available, the real volume of transactions, or the average time it takes to sell. While a few consulting firms have started to compile numbers, their methodology and reliability are still uncertain, so I prefer not to base my conclusions solely on those figures. At times, I might sound like an amateur weather forecaster predicting rain just by looking at clouds, but the signs we see in Tulum are clear: the market is down, and it’s still going down.

This article comes from the questions and experiences I constantly hear from people trying to sell their properties in Tulum. Most already have an idea of what’s happening, but they want to understand why, and when things might change. It’s important to clarify from the start that what I share here isn’t meant to discourage you or make the situation sound worse than it is, and it’s definitely not about pushing prices down to sell faster. I’m not trying to convince you; the market is simply where it is. There’s little we can do to alter its reality, its natural cycles, or the unexpected circumstances that make it behave unpredictably.

You might ask, “So, are there no buyers left in Tulum?” There are. This adjustment is attracting a more solid and intentional type of buyer, people who understand the real value of the Mexican Caribbean, who seek quality of life, and who can recognize genuine opportunities even amid uncertainty. They are the ones who can give new momentum to the market, and who will be willing to consider properties that truly stand out.

A Real Estate Market with a Damaged Reputation

Talking about Tulum’s real estate market means acknowledging its most questioned side.

In recent years, this destination has grown at a remarkable pace, but that same growth has sparked criticism and concern that directly affect how potential buyers and developers perceive it. Tulum still holds a strong appeal thanks to its location and lifestyle, yet the truth is that the reputation of its real estate sector has been seriously compromised.

Part of this reputation problem comes from poor urban planning. Many projects are built in areas without guaranteed basic services, and infrastructure—streets, drainage, lighting, and water supply—often lags far behind construction speed. This results in a landscape and an experience that have lost much of their original charm. You can see developments under construction, others that look abandoned (or actually are), and alongside that, the pollution this process brings: noise, waste, debris, heavy machinery, and deforestation.

To make things worse, many buyers were told that services, paved roads, and neighborhood improvements would be ready “soon.” Years later, those promises remain unfulfilled, leaving a deep sense of disappointment and mistrust toward what was once presented as a guaranteed opportunity.

Negative buyer stories are everywhere. Some describe projects delivered late, or never delivered at all. Others were victims of outright fraud, having paid for developments that were never built or lacked legal certainty, with developers who simply disappeared without completing the work or compensating those affected. 

There are also buyers who did receive their units but found something very different from what was promised, often facing issues of quality, finishing, or ongoing maintenance. And many others bought under the illusion of easy returns and ever-growing appreciation, only to discover that managing a property here demands far more time, effort, and local support than expected, and that the projected profits never materialized.

In short, expectations were built much higher than reality could deliver.

Understanding the Causes

Even before the pandemic, Tulum’s growth was already on the horizon, driven mainly by foreign buyers who dreamed of living in a small Mexican town that seemed to have it all: stunning beaches, the exclusivity of the still undiscovered, spectacular beachfront Mayan ruins, proximity to a well-connected international airport in Cancún, a bohemian lifestyle, and that special touch of magic that comes from Mayan culture and the desire to live closer to nature. Not to mention, it was marketed as “the next Cancún or Playa del Carmen.”

Then came the pandemic, and with it, the boom. Everything was about Tulum. The Mexican government announced major infrastructure projects to boost the region: the airport, the Mayan Train, and the Jaguar Park. Added to that were promises of unbeatable returns and skyrocketing appreciation that would deliver big profits in two years or less, supported by rental income projections based on Airbnb performance. The narrative was almost perfect, but reality turned out differently. Those projects didn’t transform or boost Tulum to the extent expected, and the wave of massive interest quickly faded once the world reopened and people had again more options to travel, invest, and live.

It’s also important to acknowledge a difficult truth: the lack of responsibility shown by many developers, agencies, and real estate promoters who fueled the boom in Tulum. For years, sales conversations were built on unrealistic promises and incoherent arguments that inflated expectations, leading to frustration, disappointment, and in some cases, a feeling of having been misled.

From the well-known “5 or 10 minutes to the beach” —an inaccurate claim, given that Tulum, unlike other destinations, doesn’t stretch along the shoreline— to financial projections guaranteeing returns above 15%, or assumptions that the new airport would instantly trigger massive demand. Even the idea that buying a 30 m² studio was the fastest path to wealth was presented as fact. All of this contributed to distorting the true nature of the market and, over time, eroded the trust of those who invested based on promises that never materialized.

This is compounded by poor oversight from the authorities when issuing construction permits. The supposed urban development plan, which set densities and limits to preserve Tulum’s charm and identity, was neither respected nor properly enforced. This allowed developments that were out of context and contributed to territorial saturation, reinforcing the perception of disorder and lack of foresight in the destination’s growth.

The Vacation Rental Market

The boom in development, construction, and property sales in Tulum was largely driven by the area’s strong tourist appeal and the growing desire of people to live here. The promise of capitalizing on property appreciation and generating income through vacation rentals became the main engine behind this explosive growth.

There are certainly real success stories, but they occurred during a very specific period in Tulum’s history: a time of rapid expansion, when demand far outpaced supply and prices kept rising. Those who started vacation rental businesses back then achieved significant profits, taking advantage of a nearly untouched destination with limited lodging options.

Today, the reality is different. Several factors have negatively affected the experience of expatriates and tourists in Tulum. In addition to high costs for taxis, private transportation, bars, and restaurants, there is now a fee to access what were once public beaches through the Parque del Jaguar, a measure that has sparked dissatisfaction among locals and visitors alike. The recurring presence of sargassum and the lack of basic infrastructure, such as unpaved roads, poor lighting, power outages, drainage issues, and water supply problems, also contribute to this negative perception.

Furthermore, the urban landscape is affected by constant noise, dust, trash, and the appearance of ongoing construction—some of it abandoned—which creates a sense of disorder. To this are added reports of theft, fraud, and safety concerns circulating among residents and tourists.

Yes, tourists are still coming, but today prices and experiences are no longer validated by the market. In a place where everything revolves around tourism, when the experience falls short of expectations, the impact is immediate.

The result is an oversupply of properties aimed at the vacation rental market. Competition is fierce, occupancy rates often fall short of projections, and expected returns simply do not materialize. On top of this, new regulations have complicated operations, reducing profits through additional taxes and licensing requirements, further frustrating property owners.

In response to this situation, many owners have attempted to shift their units to long-term rentals as an alternative; however, this segment has also experienced significant price declines due to oversupply and the greater availability of options for tenants.

The Oversupply of Properties for Sale

Alongside the market’s poor reputation and the oversupply in vacation rentals, Tulum is now seeing a large number of properties for sale. According to 4S Real Estate, cited in an article by Obras Expansión (July 23, 2025), “it is estimated that there are more than 10,000 resale units in Tulum.” While these figures should be taken with caution, they make sense.

Why are so many owners looking to sell? The reasons are varied and reflect the different profiles of people who arrived in Tulum over the past years.

One significant group wants to sell because the direction Tulum has taken is very different from what they had envisioned for their lives. What initially seemed like a peaceful, alternative paradise has evolved into an environment far from the one that originally attracted them.

Another group consists of those who bought expecting quick, high, and consistent returns, as they were promised. Today, they face the reality that these supposed assets have become liabilities, generating ongoing costs for maintenance, HOA fees, and services, without rental income covering what was projected—or, in many cases, even the mortgage.

There is also a segment of owners tired of managing their properties. Many no longer live in Tulum and rarely visit the destination. Their units have been neglected, and working with management services that lack professionalism or commitment has been frustrating. This, combined with the challenges of overseeing a property from a distance, has led them to decide to sell.

Additionally, there are completed units that developers have been unable to sell. They remain in inventory, further saturating the market and putting downward pressure on prices. Despite this, new pre-sale projects continue to emerge, competing with the existing inventory through discounts, promotions, or flexible payment schemes, further fragmenting the market.

The result is a Tulum market with a supply of properties far exceeding actual demand, inevitably putting downward pressure on prices and significantly extending selling times.

The Right Price: The Key to Selling in a Buyer’s Market

Today, Tulum is a buyer’s market, which means there are fewer interested buyers, and they are the ones setting the pace and prices of transactions. Sellers need to adjust their prices quickly to attract active buyers.

In this context, the most important part of any sales strategy is having the right price. Only then will buyers see the property as a real opportunity and take action. Everything else—photos, promotion, marketing, presentation—is important, but without a price aligned with market reality, it’s highly unlikely that anyone will show interest.

Pricing above market value not only prolongs the time a property sits on the market, but it also discourages buyers, who today have enough information to compare options and easily spot where the best balance of price and value exists. In such a competitive market, properties that fail to offer a clear balance between these factors simply lose visibility against more attractive alternatives.

That’s why setting the right price from the start is the key to selling efficiently in this competitive environment. This applies to all types of properties, regardless of type, location, or design. If you’ve been trying to sell for a while without receiving offers or interest, it’s very likely that your asking price is not aligned with current market realities.

The lack of reliable data sources is a major challenge when determining the right price for a property. However, it is possible to arrive at a well-founded opinion of value based on real transactions, which requires research—because, as you know, this information is not publicly available as it is in other countries. Another challenge is that advertised prices are often far above actual closing values, and this discrepancy, combined with unsupported projections of appreciation, contributes to confusion and misinformation in the market.

Property owners today face a difficult choice: sell now, potentially accepting a small loss, or wait and risk that values continue to drop, which could mean losing more or having to wait a long time before selling (with the associated costs). Do you want to sell while prices are still falling, or wait until they’ve bottomed out? And if you choose to wait, the next inevitable question is: how long?

The most honest answer is that no one knows. Anyone claiming that “it’s just a slow season” or that “the market will recover in a year” is either being unrealistic, or outright misleading.

Better to Wait

The real estate market goes through phases: expansion, oversupply, recession, and recovery. Each phase has its own characteristics that affect prices based on demand. In the following diagram, you can see a representation of this real estate cycle. As you’ll notice, prices start to decline when supply exceeds demand, and the market enters a recession when, in addition to this, global economic factors increase pressure on the market, just like what is happening right now.

Understanding where Tulum stands in the real estate cycle helps explain the current oversupply, longer selling times, and the need for realistic pricing strategies.

Real estate cycle theory indicates that for a recovery to occur, construction needs to halt, and economic conditions must improve. Unfortunately, neither of these conditions is happening in Tulum at the moment. Ignoring the current economic context carries the risk of waiting for an ideal market that may take much longer to materialize than expected.

Global economic conditions clearly impact this region, as demand largely depends on foreign buyers, mainly from the United States, Canada, and Europe. While exact figures are not available, it is evident that global economic and political uncertainty has reduced the flow of investors. In my experience, international demand has declined, although there are still buyers who see an opportunity to acquire a second home here. However, a true market recovery will only happen when the global economic context improves.

It’s also important to remember that Tulum is not the only destination attracting investors. Established markets like Playa del Carmen and Cancún remain key players, while emerging areas such as Puerto Morelos are starting to grow strongly. All of this adds pressure to an already saturated market. For these reasons, I would be surprised to see a solid recovery in less than five years. Inventory remains high and continues to grow; new projects are being launched, others are under construction, and global economic uncertainty is not helping.

Keep in mind that this is not just about Cancún and the Riviera Maya. El Economista recently published an article (based on 4S Real Estate data) showing housing sales trends in Mexico’s major tourist destinations, including Puerto Vallarta and Los Cabos. Overall, the downward trend is consistent across all locations. The good news is that the market is not completely stagnant; the bad news is that, according to these figures, when comparing the first quarter of 2024 to the first quarter of 2025, sales in Tulum dropped by more than 50%, and the downward trend has been ongoing since 2022. 

If you really want to sell, your property must stand out from the competition: buyers are few and selective, while supply is overwhelming. 

Could an unexpected event suddenly trigger demand and make everyone want to be in Tulum? Nothing is impossible, but I see it as unlikely in the short term. As you probably know, negative news about Tulum and how “empty” it is spreads easily. While the reality is not exactly as portrayed on social media or in the press, it is undeniable that the situation is having a negative impact on the destination. It’s hard to predict how long it will take to turn this around. That’s why the strategy should be to present Tulum as it truly is: a natural paradise in development.

Let’s See What Happens…

I understand how difficult it can be to sell while accepting minimal gains or even a loss. However, the starting point for selling in this market is acknowledging that the price must be truly attractive; otherwise, the property could remain on the market for a long time.

Some owners tell me they prefer to list their property at the price they “want” just to see what happens. From my experience as a broker, this is not an effective strategy. Every listing requires time, resources, and consistent effort in promotion and follow-up. That work only makes sense if there is a real opportunity to sell: a competitive price and conditions that can attract the small group of active buyers.

I commit to selling the property, not just listing it. To achieve that, I need to focus on listings that have a genuine chance of closing. Resales are far more complex than pre-construction sales: reviewing legal certainty, negotiating terms, planning taxes, coordinating the closing, among other aspects. All of this deserves a serious and strategic approach, which in such a competitive market only makes sense when the product aligns with market reality.

Today, more than ever, Tulum’s market requires strategies grounded in reality and analysis, not past expectations. My work is based on transparency, market study, and creating sustainable value. This market should never have grown on promises of automatic returns, appreciation, or income to cover mortgages, but rather on informed decisions aligned with its stage of development.

New buyers have a different profile: they assess medium- and long-term potential, analyze numbers and fundamentals before emotions, and seek clarity rather than opportunity-driven sales pitches. Understanding how to attract them and communicate the real value of a property is key to selling in this new context.

Before dedicating myself fully to real estate, I held executive positions in multinational companies, where I developed skills in leadership, strategic planning, and project execution. My background in Engineering and an MBA allows me to bring an analytical, results-oriented perspective that goes beyond the transaction itself, focusing on the strategy behind every real estate decision.

My intention is not to offer magic formulas or absolute truths, but to help those considering investing or selling in Tulum approach it with the right expectations, avoid frustration, and make better-informed decisions. I hope this perspective serves as a starting point for looking at Tulum with a clearer, more realistic view.