TULUM, Mexico – May 27, 2025 – The once-sizzling real estate market in Tulum, a jewel of the Mexican Caribbean famed for its turquoise waters and bohemian chic, is facing a significant cooling period. A glut of new properties has flooded the market, leading to a sharp 40% drop in sales and a plunge in rental prices, a prominent industry leader has confirmed.
This dramatic shift has ignited a “price war” among developers desperate to sell their units in a market suddenly crowded with options, primarily studio, one-, and two-bedroom apartments.
Mario Antonio San Miguel Herrera, the newly inaugurated president of the Mexican Association of Real Estate Professionals (AMPI) in Tulum, acknowledged the stark reality. He explained that the current oversupply is largely a consequence of unchecked speculation and a rush of aspiring developers entering the market after the COVID-19 pandemic.
“After COVID-19, many investors came to Tulum with the dream of becoming developers,” San Miguel Herrera stated in an interview following his association’s leadership change. This wave of new entrants, combined with established developers significantly expanding their projects, created the current surplus.
“We’re experiencing this oversupply today; there are enough units to last three or four years of sales,” he revealed, painting a picture of a market saturated with inventory. Compared to the frenetic pace of previous years, “today property purchases have decreased by 40%, and rents have fallen by 80%,” the AMPI president disclosed. These figures underscore a dramatic reversal from the boom times that saw Tulum properties as must-have investments.
The rapid development was fueled by Tulum’s global appeal – including a new International airport, its pristine beaches, lush jungles, ancient Mayan ruins, and a unique eco-conscious vibe attracted tourists and investors alike. Many saw an opportunity for high returns, leading to a construction frenzy. However, demand has not kept pace with the explosion of new units.
This imbalance has forced developers into fierce competition. The “price war” San Miguel Herrera described involves significant price cuts and added incentives as sellers vie for a smaller pool of buyers. What was once a seller’s market, with properties often snapped up quickly, has now tilted in favor of cautious buyers who find themselves with more negotiating power.
Adding to the local market pressures are broader economic headwinds. San Miguel Herrera cited “macroeconomic factors, such as the current uncertainty generated by the United States government,” as contributing to the slowdown, suggesting that international buyer sentiment is also playing a role.
Despite the current downturn, the Tulum real estate sector holds onto threads of optimism, largely pinned on major infrastructure projects. AMPI members, according to San Miguel Herrera, are “hopeful that the Maya Train and the new airport will accelerate demand.” The recently inaugurated Tulum International Airport (Felipe Carrillo Puerto International Airport) and the still-expanding Maya Train network are expected to significantly boost tourist arrivals and improve accessibility to the region. The industry hopes these projects will, over time, help absorb the excess property inventory by attracting a new wave of visitors and potential residents.
For potential buyers and renters, the current market conditions can present opportunities for more affordable entry into Tulum. However, the sharp drop in prices and rents also raises concerns about the stability of investments made at the market’s peak.
Tulum’s property market is now in a necessary phase of adjustment. The allure of rapid profits has collided with the economic principle of supply and demand. While the promise of enhanced connectivity through new infrastructure offers a beacon of hope for future recovery, developers, investors, and real estate professionals are currently navigating a challenging landscape. The effectiveness of these large-scale projects in rebalancing Tulum’s oversupplied market will be closely watched in the coming months and years.
Adding To Tulum’s Woes
Compounding the pressures on the property market, Tulum is also grappling with a noticeable downturn in its vital tourism sector. Local tour operators are reporting a significant slump in visitor numbers, describing the current low season as unusually severe and hitting new lows, leaving many in the tourism-dependent economy struggling. This decline is mirrored in air connectivity; despite the initial fanfare around Tulum’s new international airport, several major airlines have recently announced reductions or even cancellations of their flights. These adjustments by carriers, impacting the accessibility that was hoped to bolster the region, suggest rising concerns about wavering demand and the destination’s current appeal, potentially stemming from a combination of factors including Tulum’s high costs, seasonal sargassum seaweed challenges, and evolving safety perceptions, further complicating the path to recovery.
↓ Join Our Cancun Sun Community of Over 14,000 Members↓
The Cancun Sun Community FB group has all the latest travel news, conversations and tourism Q&A’s for the Mexican Caribbean
Subscribe to our Latest Posts
Enter your email address to subscribe to The Cancun Sun’s latest breaking news affecting travelers, straight to your inbox.