Get to know the Riviera Maya! Cancun, Playa del Carmen and Tulum

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Real Estate Tulum Investing in the Riviera Maya Tulum Condos

Investing in anything can be overwhelming, wether its stocks, bonds or in this case real estate. Finding concise, straight forward and simple information can be challenging to say the least. The point of the following blog, is that reading the following entries should help you answer the most basic investment questions.

Why should I invest in the Riviera Maya?

-What can I expect out of my investment?

-Is the Riviera Maya market for me? (It might not be)

HISTORY:

I don’t want to start by telling you how much the Riviera has grown from a little touristic strip on the side of Cancun to a shopping, tourism and entertainment mecca that runs all the way from Cancun down to Tulum, because lets face it you already know this. You have all heard “the pitch”.

The Riviera Maya is where over 30% of foreign currency is spent in Mexico. The Riviera Maya is the fastest growing tourism industry and real estate. Tulum, the most beautiful beaches in the world.

These are just a few points of what I like to call “the pitch” they are what any agent will tell you to get you interested in this market.

Now, for a more elaborate principle that drives the investment interests of the area.DEMAND & SUPPLY:

Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy.

Demand: refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. 

Supply: represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.

So that we don’t stretch this point any longer than necessary and so that I don’t lose your attention, I just want to explain the current situation of the Demand & Supply in the Riviera Maya.

In the Riviera Maya we have – Excess demand – it is created when price is set below the equilibrium price. Because the price is so low, too many consumers want the good while producers are not making enough of it.

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