Demand for vacation rental accommodations in Tulum has dropped by 15 to 28 percent amidst a surge in the supply of apartments and condominiums built in recent years, according to Juan Chiriboga, director of the real estate firm Riviera Colibrí.
The specialist explained that the market for vertical developments is currently facing an oversupply, a situation that has led to heightened competition among property owners and investors vying for a similar pool of visitors.
This dynamic has affected occupancy rates and projected revenues for those who invested in this business model.
“There is an oversupplied market in the vertical sector; that is definitely a fact. We are talking about apartments and condominiums,” noted Chiriboga, pointing out that Tulum at one point had over 11,000 active units on vacation rental platforms—a figure that ultimately outpaced the growth rate of tourism demand.
Despite the decline in bookings, the businessman stated that there is no widespread drop in property values.
He explained that prices remain relatively stable, although some developers and real estate agencies have begun implementing sales incentives, offering discounts ranging from 5 to 15 percent depending on the project.
Chiriboga views the situation as a natural market adjustment following several years of rapid expansion in condominium construction aimed at investors.
He added that the sector’s main challenge will be absorbing existing inventory and recovering the demand levels that drove the destination’s real estate boom, all while facing increasingly intense competition to attract guests and buyers.
Source: quintanaroohoy
