The Riviera Maya region, located on the shores of the Caribbean Sea, is a very attractive region for all real estate investors. In question: the clemency of the climate and the postcard landscapes, which remain major assets. Fabien Herman, is partner with Agence Etoile. He tells us where to invest and which real estate products win.
Which cities do you recommend for investing in Mexico?
Several attractive cities in Mexico are located on the Riviera Maya for different reasons. Let us first mention Cancun with its international airport and direct flights from France. This city represents a strong attraction for investors who wish to own a property in a denser agglomeration. We mainly have properties located south of Cancun : in Playa del Carmen, Tulum, Akumal and Mahahual. The village of Tulum is currently very popular with investors. I call it “the little Saint-Tropez of Mexico”. The prospects for real estate capital gains are really very important there and the particular architecture is breathtaking. Work on the new Maya train has just started this year 2021 in Yucatan and Quintana Roo. It will connect major tourist cities, an alternative solution to a growing need for mobility in this growing region of Mexico.
What is the average price per square meter in these cities?
The price varies between 1,500 and 3,000 euros per square meter for a luxurious habitat in presale. Prices vary depending on the quality of the finishes and the location of the project. Prices in Mexico are much cheaper compared to France and Paris where they can reach 10,000 euros per square meter. These prices are also very competitive in the international real estate market.
I offer several possible forms of investment: apartment, house, land or tailor-made project. The goods are sold in presale or existing according to the choice of the customer. This concerns both the “pure” investor who seeks to buy property, rent it and resell it with a capital gain. This also concerns families with children, who come for a few weeks a year and who wish to rent their property in their absence. But also French retirees, attracted by the affordable cost of living compared to their country of origin, who can live there very comfortably.
What quality of life can the occupants of such exceptional properties claim?
The luxury projects carried out in the region often have common areas on the top floor: swimming pool, gym, bar and jacuzzi. Tenants can enjoy exceptional comfort at home.
In Mexico, the prices of real estate and daily life are reduced to at least half compared to the cost of living in France. All nationalities intersect: Canadians, Americans, but also Europeans, Argentines and Mexicans themselves, with a relatively substantial economic heritage. The tourist region of the Riviera Maya offers many activities with sunshine all year round: heavenly beaches, archaeological sites and many more to discover.
Are there environmental specificities in Mexico?
You should know that on the Riviera Maya, temperatures are around 25 degrees all year round. Mexicans don’t know about heating! Just the air conditioning which can, if necessary, serve as heating for customers who still want it. This explains why there are no thermal regulations as developed as in Europe.
For many years in Playa del Carmen, buildings could not exceed four stories. Today, town planning rules have been relaxed and newly created buildings can offer a maximum of six floors. This means that the constructions increase in height.
In Tulum, on the contrary, the regulations impose a maximum height of three floors. Each type of construction therefore finds a buyer according to its project, its sensitivity, its preferences… In the case of individual housing, the urban plan of Tulum also imposes fairly restrictive rules. The area of the house must not exceed 40% of that of the land. A wastewater treatment system must also be put in place, in accordance with the town planning rules in force, as well as the recommended installation of solar panels. A way to preserve the environment and control urbanization. This is why I recommend Tulum to investors who want to reside in their property, and who are particularly concerned about their quality of life.
What are the steps to follow to buy an apartment or a house in presale in Mexico?
The presale asks for an amount of 5,000 dollars to reserve the property. Then, the payment of a sum of 30% of the price of the property is made to confirm the reservation (less the 5,000 dollars already paid). During the construction of the project, the client pays monthly the equivalent of 60% of the price of the property depending on the progress of the work. Photos are sent to our customers during construction sites: a dream that materializes and becomes reality. To complete the transaction, the customer will have to pay the last 10% of the price of the good. This transaction takes place during the handing over of the keys and the reception with the real estate agent and the promoter.
Even if many stages of the transaction can now be carried out remotely, it is important to be physically present when receiving the goods. A visit is indeed essential to get to know all the actors of the project. In addition, you should also know that the foreign investor will have to open an account in a Mexican bank via a “Fideicomiso”. This is a requirement of national law for foreigners who want to acquire property in Mexico. In practice, the owner remains entirely free to dispose of his property as he sees fit. He can sell it, rent it or bequeath it to his children.
If a customer from the Etoile branch network is interested in your offer, how does he get in touch with you?
Nothing’s easier. The interested party calls Agence Etoile, and in particular Eléa Melchior, Team Manager of Agence Etoile Rive Gauche. The latter then contacts me to give me the contact details of the person wishing to have more information about our offer. I always enjoy discussing in French, Spanish or English with a potential investor. I advise our clients as well as possible according to their project and their budget.
The ROI (return on investment) of our projects is between 8 and 12%, and the quality of the finishes is exceptional. Who says better ?