Playa del Carmen is the birthplace of vacation rental apartments, here the idea of the Americans who bought in the 80s and 90s was born. Although not only from the people of the United States, but also the Europeans and some Mexicans. And of course the Canadians who bought very cheap, built hotels and apartments which allowed them to enjoy paradise. At the same time, demand began to grow exponentially as we all know it, so they began to rent their apartments to others, obtaining excellent income, and not only to pay the high maintenance costs but also had very high profits worked by professionals of up to 15-20%. That's how high the Return on Investment was in Playa del Carmen. Continuing with the story, the famous Condo-hotel was born at the beginning of the 20th century, since the hotels for 100 Dollars gave you a deluxe room, but the apartments offer you for the same price, much more. Imagine beautiful and large 1 and 2 bedroom condominiums fully equipped and new with kitchen, where you can enter all kinds of food and drinks. This concept of renting not only apartments but also penthouses with terraces and a private pool became a trend in Playa del Carmen. Simply spectacular.
This is how the Condohotel industry was born, which was consolidated thanks to Online Travel Agencies, such as Airbnb, reaching its peak between 2010-2018. Starting in 2019, the offer of condominiums began to grow exponentially. Arriving at the end of the year 2019 with a supply greater than the demand, which gave rise to the prices that began to fall due to a high supply.
This is how it developed throughout 2019, up to where we arrived in March 2020, which marked the tourism industry through the pandemic caused by Covid19. Today in June, the outlook looks very bleak. We all start from scratch, so the competition will be fiercer and more savage than ever, and the war, by cutting costs at ridiculous prices, will cause everyone in the hotel sector to lose. The Mexican Caribbean is on sale and is cheaper than ever, which is why the prestigious ROI, for its acronym in Return of the investment, has grown so low that it is almost non-existent, which ranges between 1% and 6 %. Annual. This is what was previously 1% Monthly, now at best it will be 6% per year on the property.
There will be many cases where homeowners only earn income from vacation rentals from their apartments to pay only for maintenance, and there will be other cases where they won't even be able to pay these costs. That is why, in this new postcovid stage, it will be for professionals and for true expert sharks and vacation rental specialists. The expert company for property search and property management is www.junglerivieramaya.com WhatsApp +529841686936, since it has more than 10 years of experience, and will be able to provide you with advice to obtain higher occupations, more income, and thus be able to compete in this increasingly uncertain market.