Changes in The Isla Mujeres rental market

Recently, Isla Mujeres property rentals have declined. However, top-quality Isla Mujeres rentals have fared far better than the average properties. The decline in rentals is not just here; it is also prevalent across Europe. We have projects in Spain and Portugal, and although we are not involved in the rental market in these countries, we have observed a decline, particularly in Spain. Of course, tourism in Spain has not been helped by locals telling tourists to go home, sometimes going onto beaches with placards and harassing tourists.

Of course, they didn't go home, they went instead to Greece and Turkey and found that in many cases it was less expensive and more welcoming. Those protesting failed to take into account that their employment generally came from tourism and many of them found themselves out of a job; a good example of unintended consequences and, to be careful what you wish for.

,There is still a good market here for Isla Mujeres luxury homes, and for those living here and renting their property, it's still a good deal, because just renting in the high season can cover all the expenses for the year. For those who want to live here and rent out at times other than high season need to do their calculations more carefully, because the permissions are very expensive nowadays, and every year they add new requirements.

We paid per property in 2024, 49,000 pesos, not including the fee to the accountant who arranges the permissions. Add that to all the other expenses and it comes to a lot of money. We could probably do it less expensively by paying a lower fee, but our priority is to do it right; there have been so many cases where those responsible for arranging the permissions have made mistakes and that has resulted in the property being "Clausulado". This is where the government put tape around a property and nobody can enter or leave the property, which is a disaster if the property is rented. The local government often sends inspectors out, who look for areas where the property owner is not complying. We have learnt how to deal with them over the years.

Overall, for those who live on the Island and also want to rent, the best option seems to be to give priority to their Isla Mujeres property rentals, and live in the property when it is not rented. Doing it the other way around may not be viable, at least until such time as the rental market picks up.