CANCÚN, QRoo — Cancún, Playa del Carmen, and Tulum are losing competitiveness in the vacation rental market to destinations such as Los Cabos and Puerto Vallarta, where rates are maintained at nearly double those of the Mexican Caribbean, due to an oversupply in the region.
A study by the firm 4S Real Estate in Quintana Roo indicates that the low average rate is below the percentage found in other destinations, especially in one-bedroom units.
The study reflects that in the Cancún-Riviera Maya corridor, there is an Airbnb supply alone of 17,275 rentals with active listings. The average rates range from 141 to 165 dollars (2,638 to 3,088 pesos). Puerto Vallarta has 15,787 units and an average rate of 327 dollars (6,120 pesos) per night, demonstrating greater profitability than in the Mexican Caribbean. Los Cabos has only 3,957 units and an average rate of 295 dollars (5,521 pesos), double that of Cancún and Playa del Carmen.
"The issue of studios—small one-bedroom apartments; that is, individual units—for rent has truly experienced brutal growth in cities like Tulum," according to the 4S Real Estate analysis.
For its part, the Center for Advanced Research in Sustainable Tourism (STARC) of the Anáhuac University reported that from January to April there were 83,244 vacation rental properties in Quintana Roo. This property supply encompasses all platforms; however, in the same period only 24,582 reported at least one rental, meaning that whether active or not, the supply in the Mexican Caribbean quintuples that of Puerto Vallarta and is 21 times greater than what exists in Los Cabos.
In June, despite the global economic context, the vacation rental sector in Playa del Carmen maintained an occupancy rate above 70 percent, according to Nicole Álvarez, president of the Mexican Association of Real Estate Professionals (AMPI) in the municipality.
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