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Investment strategies

How to invest in real estate

Three proven strategies to build wealth through Mexican real estate investment.

Investment strategies

Capital gains (appreciation)

Buy at pre-sale launch price and sell at delivery. Property value appreciates 20-40% during construction in high-demand zones like Tulum and Playa del Carmen.

ROI
20-40%
Horizon
2-3 years
Risk
Medium

Residential rental

Acquire properties in areas with high long-term rental demand. Stable monthly income with 6-12 month contracts. Lower risk, lower returns but consistent cash flow.

ROI
5-8% annual
Horizon
5+ years
Risk
Low

Vacation rental (Airbnb)

Maximize income with short-term rentals in tourist destinations. Higher returns but requires active management or a property manager. Average 60-75% occupancy in Riviera Maya.

ROI
8-14% annual
Horizon
3+ years
Risk
Medium-High

ROI by construction stage

StagePotential discountRiskDeliveryIdeal for
Pre-sale20-40%âŹ†ïž24-36 monthsLong-horizon investors
Under construction10-20%âžĄïž12-24 monthsRisk-return balance
Ready to move0-5%âŹ‡ïžImmediateImmediate rental, low risk

Key metrics to evaluate

ROI

Return on Investment — total return relative to amount invested

Cap Rate

Capitalization Rate — annual net income / property price

IRR

Internal Rate of Return — annualized return considering time value of money

Cash-on-Cash

Annual cash return on actual cash invested (down payment + costs)

Start analyzing investments

Use our financial simulator to calculate ROI, Cap Rate and IRR for any property.