Trends in Playa del Carmen Real Estate

Playa del Carmen real estate has for many years been a favorite with International expats and tourists. A recent study showed that about 40% of the Riviera Maya real estate sold is being lapped up by foreigners. Of these, American and Canadian citizens constitute the major group of foreign real estate investors in Mexico. Over the last couple of years, due to many global economic factors, Mexico real estate is been seen as a favorable property investment destination worldwide. Savvy investors have taken advantage of low prices of properties and are now reaping the profits.

A recent trend that has emerged is the popularity of Playa del Carmen condos. Real estate investors and as well as folks looking for a vacation home or retirement home in Playa del Carmen are increasingly buying luxury condos in Playa del Carmen. In fact, buyers book a unit even before the actual construction starts. This enables buyers to buy pre-construction condo in Playa del Carmen at lower prices. A feature of Mexico real estate market is for purchasers to buy Mexican property "off the plan", that is when the project is still in the planning stage and construction has not yet started.

There are many obvious advantages of this trend, a developer secures pre-commitments which guarantee the viability of real estate development and, in a rising market a real estate buyer can secure the attractive oceanfront luxury condo at today's prices.

The process usually requires a booking amount ranging from $5,000 up to $10,000 USD to be paid beforehand. This deposit is refundable upon request and may reserve a unit for an average of twenty days. During this period, the purchaser can verify, study and analyze the promissory contract on the Playa del Carmen property. Once all due diligence has been done, the buyer can proceed and sign a promissory contract. At this point the buyer will be required to deposit an amount ranging from 20% to 90% depending on terms and condition set by the developer or mutually agreed by both parties. There can be also construction linked payment or monthly payment plans. Once the construction completes the developer in Mexico needs to have a "condominium regime" established and registered at the local Public Registry of Property. This Condominium regime defines the private property areas, the common property areas and the rules governing the use and holding of both areas. This regime also sets up a governing association of co-owners, which makes the decision regarding the common area and administrator for carrying out the decisions and conduct daily work related to buildings and common area. The Mexico Condominium Regime gives the legal description of the private condo units and also identifies the percentage of the common property which is owned by each condo unit owner.

All these legal procedures ensure that a foreign buyer's investment is safe and sound and can enjoy his Vacation condo home in Mexico in complete bliss.

Author: Tom Budniak