The growth in Isla Mujeres real estate over recent years has been substancial, five or six years ago some potential buyers became reluctant to invest because they thought prices had peaked,they have since regretted their decision. Today there are still some people who are talking in those terms.
What people are often failing to take into account is that there is no more available land on Isla Mujeres and that is why prices continue to rise. It is the same reason that Palm Beach prices, which people also felt had peaked, continue increase substantially; there is a shortage of prime land, and as that which is available gets bought up, the remaining property owners increase their prices and continue to find buyers.
If you examine the reason behind most property crashes it’s markets in general coupled with over development, something that cannot happen to Isla mujeres real estate.
Some worry about the US property market; fearing that if property prices should fall there, there will be a knock on effect. However if you examine the history of past property crashes, the evidence is that there are always pockets of areas where prices continue to rise. And where are those areas? Where there is a shortage of available land.
There is another factor that maintains the values of Isla Mujeres homes and that is investment return, there is a big demand for vacation rentals; our properties rent at between $350 and $600 per night depending on the time of the year.
This high rental potential has seen the arrival of a new type of buyer of Isla Mujeres luxury property, who buy purely as in investment in order to get returns not achievable in the stock market or any other investment médium. Clearly there are high returns achievable with other investments vehicles but with much greater potential risk that buying property on Isla Mujeres.
Letting a property for twenty weeks per year is not an unrealistic target; 140 nights times an average of $500 per night, which is a conservative figure for a luxury home on Isla Mujeres, is $70,000 per year. If you have bought the property as your residence, you can still benefit from rentals as many owners do; which is to let their property and go on a nice holiday with the 3,500 or so they receive in rental.