Real estate business opportunities in Cancun

Real estate business opportunities in Cancun

Although Blue World City offers investment opportunities, in recent years the real estate sector has benefited from foreign investments, with world-class projects from prestigious companies seeking to expand to respective lands.

Real estate growth in Mexico is at its best despite the health crisis caused by COVID-19, and this is due to the good management of the pandemic in the country, as well as the generalized financial growth after the economic reactivation.

Of the states in the country, those located in the southeast are those with the highest rates of real estate growth, due to the excellent opportunities to buy land, open businesses and even establish permanent residence.

In this article we will talk about the business opportunities of the real estate sector in the southeast of the country, especially Cancun, a young city with a lot of potential, as well as the different options that exist to generate income in this area with real estate.

Real estate business ideas

With the new modality of working from home and the migration of many products and services to the digital world, the real estate industry has also had to adapt, however, this did not mean that new opportunities did not arise for this sector.

The growth of the real estate market is on the right track towards 2022, since in the first half of 2021 the sale of properties has increased at a good pace, especially in the southeast of the country.

Cancun is a city that stands out for its many tourists and economic attractions, which is why it is currently ideal for investments in real estate.

Here is a list of business ideas that you can carry out by buying a high-value land in Cancun.

1. Buy land to sell again

This is one of the best-known ways to make money, but it is still effective. This business model is the beginning for a larger one if that is what you are looking for, since starting with one or two plots of land can lead you to have your own developer.

This modality allows you to start a business without the need to have construction knowledge, as it is limited to obtaining good land at reasonable prices that provide a high profit margin; and for this Cancun is the perfect area.

Cancun is an area of ​​high added value that continues to expand because it is a young city with just 50 years of foundation, therefore the opportunities to buy land at a good price are higher.

The advantage of Cancún is that, thanks to the high profitability levels in its lots, you don’t have to wait so many years —more than five— to be able to sell again, especially if you buy a pre-sale lot.

2. Buying land for lease

A wise decision if you take into consideration the number one point, is to lease the property while waiting the appropriate time to be able to sell it and obtain a return on investment.

In our blog you will find two articles where we talk about how to make money renting land and renting land for franchises, which turns out to be an excellent option to obtain large profits without investing too much, since companies are the ones that build on the land.

Also, unlike businesses whose average life span is 5 years – about 95% of them – franchises have a longer period that is good for long-term income.

Another interesting option is the rental of the land for parking, placing commercial fences, social events such as weddings, baptisms and XV years, among others. In this case, it would be necessary to offer the service through a marketing strategy, affiliate programs and social networks.

3. Start a commercial or corporate business

Starting a business will always be the best way to obtain a wealth for the future and become independent. With the high tourist influx of Cancun, it is feasible to acquire a commercial lot to offer a product or service whose unmet need can be covered by your venture.

There are various national and international market groups towards which you can direct your business, or in any case to a specific market niche, for example, a vegan food place or equipment rental for aquatic activities.

Many companies take advantage of these types of opportunities to purchase multiple lots and expand their product sales throughout the city. For this reason, large companies have a presence in important cities such as Merida, Playa del Carmen and —of course— Cancun.

4. Build a vertical development

The land for vertical construction has many advantages, it can save space and developments with multiple departments, offices or commercial ideal for lease and high yields.

This type of construction is ideal for land within cities that do not have the appropriate size for horizontal development.

In the southeast of the country this modality is gaining more relevance, and more developers are innovating with avant-garde designs for business centers, and not just hotels.

5. Buy a large lot and sell in parts

As their name indicates, macro lots are large tracts of land located in strategic areas. These lands are considered within real estate plans for large-scale developments.

The macro-lots have the purpose of generating returns on themselves, this through sale, rent or subdivision. To acquire one of these lands a strong investment is necessary, however, the profits largely compensate the investment effort.

As we mentioned, these lands are used mainly for commercial, industrial or real estate development through the sale of lots. The latter is a great way to get returns without investing in construction.

Cancun is a still growing city, so a real estate development microlite is an excellent option to do successful business.

Characteristics of innovative business opportunities

Many people tend to confuse the concept of opportunity, because the fact that a market is busy or not does not determine that opportunities are found in it.

Having —for example— the tourism sector in Cancun, it can be considered a saturated market, however, it offers excellent opportunities for all those who wish to undertake in this area; The same happens with the real estate sector, which is constantly growing given the demand for housing and commercial premises.

Next, we will talk about the main characteristics of a business opportunity, to identify the correct one for your business or industry.

1. Competitive advantages

Competitive advantages are a key and unique element that allow you to adopt a superior position against the competition in a given market niche. An example of this is having a better location than the competition.

For this advantage to be sustainable it is necessary that it be reflected in the results of the company and that it is not circumstantial. One way to maintain superiority is to be difficult to imitate.

Now, with respect to earnings, an example would be to have a higher profit margin even offering lower prices, derived from having purchased at a lower price in the first place.

Buying in pre-sale will be a competitive advantage, because when entering the real estate business, location and price are key factors.

2. They differ from the rest

Business opportunities are different from the rest, because in addition to providing competitive advantages, they have elements that make them unique. In the case of land, these can be the price, amenities, services in the area, accessibility, among others.

It is about standing out from the rest and thinking about the positive differences that will have to acquire a property in a certain location, whether for residential, commercial or industrial purposes.

One detail to keep in mind is that many business opportunities can be attractive, but unlike other sectors where prices can rise and create false expectations due to speculation and cause financial bubbles, the real estate sector is one of the safest.

3. Economic benefits

The main objective of an investment will always be to obtain economic benefits in the short, medium or long-term depending on the type of operation that is carried out.

The profitability of a land or the business that will be put into it will depend on the correct study of the opportunity that is being presented. If you want to start a business in a certain area, conducting a market study will be essential to ensure that you obtain economic benefits from the investment.

If you want to invest to obtain returns in a few years, the formula is the same since the capital gain of a property is linked to the factors mentioned in point number two of this list.

4. Sustainable growth

This point is related to the area in which the property is located, as many investment lands are disguised as opportunities with lots of unsupported promises, which are easy to disprove with a little research.

The sustainable growth of an area is determined by the urbanization plans, the growth projections of the city, as well as the existing amenities and of which it is known that they will exist in a certain period of time, for example shopping malls, educational centers, hospitals, among others.

Buying land at a good price but in a deserted area does not promise sustainable growth in the short or medium term.

Why invest in Cancun?

Cancun is a tourist area of ​​high added value with a strategic location on the coasts of the Mexican Caribbean. The commercial offer in this city is varied and allows you to acquire land for various purposes, from residential to business or industry.

The profitability of businesses and properties in this area exceeds the expectations of entrepreneurs and investors, which drives the growth of the real estate sector to a great extent.

There are many reasons why you should invest in Cancun, however, we will mention the five that stand out the most:

1. Privileged location

Quintana Roo is one of the southeastern Mexican states with the highest tourist influx because it has cities of international stature such as Playa del Carmen, Tulum and —of course— Cancun, which is a magnet for national and international tourism.

Its location on the Yucatan Peninsula provides an important ease of access by land, air and sea, in addition to the fact that the Cancun International Airport is the main point of arrival and departure for international flights with the main cities of the world.

The Mexican Caribbean is endowed with a great diversity of natural attractions that make it a paradise for tourism and investment.

2. Tourism

Cancun has been certified by the World Tourism Organization for being a world-famous destination and its countless attractions such as its tropical climate, white sand beaches, its impressive nightlife and its great gastronomic variety.

It is estimated that Cancun receives an income of 3.5 billion dollars a year from this sector, which has highly impacted the number of tourists who seek to acquire a vacation or permanent property in this cosmopolitan city, as well as the purchase of premises and land. For commercial purposes.

3. Infrastructure

The roads, transportation system, as well as its buildings receive constant maintenance to provide the highest quality of experience to visitors and residents.

The state government allocates large amounts for the correct optimization of buildings, streets, avenues and urbanization of urban growth areas to satisfy real estate demand.

4. Services

Cancun is an area with high quality and a variety of services, especially in the hotel and residential sector with exclusive amenities such as gyms, clubhouse, pool, green areas, as well as access to health, educational and various services such as laundries, stationeries, convenience stores, shopping malls among others.

It is very easy to acquire well located land with premium services that range from electricity, drinking water, sewerage, drainage, public lighting, and even telephone line and internet networks.

5. Price

Despite being in an area of ​​high demand, the prices of the lots are cheaper than in other parts of the country.

The square meter of land in the southeast of the country is lower, which offers the possibility of investing in more than one, allocating a part of the surplus to construction or business supplies or simply obtaining a greater profit margin with the property.

Know Parque Bazar Cancun

Parque Bazar Cancún, located in the heart of the La Joya subdivision, is the ideal option to make a profit by investing in commercial land.

This development has an area of ​​1,388.11 square meters, divided into 4 lots of approximately 300 m² each, the perfect size for various types of business thanks to the high tourist influx of the city.

This project has the following characteristics:

  • Excellent location.
  • Access from the main avenue.
  • Lots ready for construction.
  • 30% down payment.
  • From $ 2,790 MXN per square meter.
  • Financing for up to 36 months.

Land in Cancun, the best option

Now that you know the sources of business opportunity in the Mexican southeast, you can invest safely and profitably in its cities, especially Cancun, where you will find a large number of potential clients for your business to be successful.

It is possible to earn money with land well located in areas of high capital gain. If you want to know other options, we recommend you invest in Playa del Carmen or build a profitable business in Mérida.

At BMF Inversions we have more than 25 years of real estate successes, and market studies that guarantee the profitability of our developments in the best cities of the Mexican southeast .