Tulum, Q.R. — Rental prices around the town of Tulum have seen a considerable drop due to a shortage of tenants. Both short and long-term rentals have experienced a decrease as much as 25 percent this year in an attempt to keep properties filled.
Tulum property manager Regina García says of the 20 one and two-bedroom apartments she manages, she currently has less than a 70 percent occupancy rate. She said to attract renters, many property managers have been forced to significantly reduce prices to maintain active contracts.
One bedroom apartments that rented for 9,000 pesos per month are now offered for 6,000 pesos, a 25 percent decrease. Two bedroom apartments have dropped from 12,000 pesos to 9,500 pesos, approximately 20 percent less, she said.
“It’s a complicated situation. Not only are there fewer tourists, there’s also more supply than demand for fixed-income products and that forces us to adjust prices if we want to generate revenue,” she explained.
This trend isn’t exclusive to peripheral neighborhoods. Local resident Abel Aguilar says a year ago it was difficult to find something affordable such as a two bedroom apartment for around 10,000 a month.
Today, he says, there are many central areas of Tulum such as Lakín or Mayapax, where prices have dropped and rents are more affordable. “Before it was difficult to find something affordable near the center, but now there are more options and prices have dropped a lot.”
The hotel industry worker attributes the reduction in rental prices to the slowdown in Tulum tourism which has led to a price adjustment in the Tulum real estate market.
In May, Mario Antonio San Miguel Herrera, President of the Mexican Association of Real Estate Professionals (AMPI) reported a 40 percent slowdown in the Tulum real estate market caused by an oversupply of housing units.
He said the oversupply has created an imbalance between supply and demand, adding that the excess of available units has impacted the rental market with many properties remaining vacant or reporting very low turnover.
