Mexican Southeast Ready for a Post-COVID-19 World

Q: What differentiates your properties from other real estate offers in the Yucatan peninsula region?

A: One of SIMCA Desarrollos’ strengths in the real estate market is that we have been developing properties around the Mexican southeast for more than 15 years. We have had the opportunity to segment our market according to the different needs of the real estate industry in Mexico.

The Mexican southeast is very focused on the tourism real estate market, mainly second homes for retirees from the US and Canada who decided to come to live in Mexico. For this reason, over the years, SIMCA’s goal has been to solve all our clients’ doubts and complete all transactions through a single person who is trained in all areas. Our employees are trained to talk about residential property in a gated community with a golf course in Merida, an investment property in Playa de Carmen with hotel operations, a specific ultra-luxury condominium in Tulum or even a low-cost property in the second-home sector of the Riviera Maya.

We cover all the markets in demand in the real estate sector today and all budgets, from $15,000 to $1.5 million in Merida, Cancun, Playa del Carmen and Tulum. We cover the real estate investment market, the luxury real estate market and the second-home market with very attractive returns through our vacation rental program.

Q: What is the profile of your potential clients?

A: Our clients are international but we also have a strong national presence. It depends on the market we are targeting, which is why sometimes we have a higher percentage of Mexican clients. For instance, the residential lots or the apartments that we have just launched in Merida are focused on the national market. Ninety percent of the public there is national and 10 percent are foreigners, mainly Canadians and Americans. However, we have products like our developments in Siempre Playa in the center of Playa del Carmen on Avenida 38. Those properties are focused on the second-home market.

Some people use these properties as a second home and others buy them because the returns are up to 7 percent in net value. There are also those who are even taking advantage of the leasing plan that we offer, which is very opportune for moments of crisis like what we are experiencing with COVID-19 since it provides a return of 4 percent minimum guaranteed from the first day of occupation. After a 12-month cycle, an expense-income relationship is created and the entire balance in favor is paid to the client.

This program has been very successful as it guarantees clients a successful investment and to date, we have covered 65 to 70 percent of the international market that is looking for an opportunity in Mexico to diversify its equity and enjoy the country’s favorite tourist destination. Recently, Preferred Hotels & Resorts conducted a survey among its clients in the loyalty program to find out what their preferences would be once they got the chance to travel after COVID-19 measures are lifted and Mexico ranked in the Top 10 most-desirable destinations in the world.

Q: What is your forecast for the real estate sector in the southeast after COVID-19?

A: There are two important factors that will influence tourists’ decisions. Buying real estate in the Mexican southeast is not only about buying property; this is a demographically important area with a lot of added value. The region has had a population growth of 410 percent in the last 16 years. In 2014, Playa del Carmen was the fastest-growing city in the world and in 2016, Tulum became the fastest-growing city in the world. This demographic growth has allowed the Riviera Maya to offer real estate products with great added value.

In a year and a half, the Riviera Maya went from 18 million annually to 29 million tourist arrivals. Of those 29 million tourists, 24 percent are traveling for the second or third time to this destination. It is an area that generates loyalty among tourists.

SIMCA Desarrollos is a real estate developer with properties in Tulum, Playa del Carmen and Merida. Its properties are high-end apartments that are targeted to investors from Mexico and abroad