Are the Developers Meeting Demand or Overbuilding? 

A Critical Look at the Market Forces in the Riviera Maya   

By J.P. Money 

Everywhere you turn in Playa del Carmen, the new city in the heart of the Riviera Maya, you see tremendous construction.  Construction on the street, new roads, new homes, condos, shopping malls, and so much more.  You would think that this place was expecting a flood of new tourism and residents.  And frankly, you’d probably be right!  Or would you? 

To the outsider looking in, one would think the laws of supply and demand are at play.  So are they?  Are we overbuilding?  Or are we meeting future demand?

This very important and serious question has billions of dollars on the line.   The local government and developers clearly see the future and are building fast and furious to establish themselves in the marketplace where a consistent 30% annual appreciation rate has rewarded the daring with ridiculous profits.  So much money has been made that more and more developers want to get into to this monopoly game of serious cash profit. 

But are they getting in too late?  Well, this writer is on the street and has been talking to residents and local professionals to get a real handle on what’s really going on there.

The old time residents, those that have been here between 5 to 15 years seem to say that they developers are overbuilding.  That while demand is solid and growing, growth is completely out of control and very soon, the supply of condos and shopping centers will simply outweigh demand.  Some even call for a recession within the next 12 months.

The newbies, those that have been here less than 5 years paint a much rosier picture.  They see Playa del Carmen and the greater Riviera Maya as an undeveloped competitor to those world class resorts just sitting off shore in the Cayman Islands and the Bahamas where prices are least double while the market here has only just begun.

These gamblers on the future see the Riviera Maya as a bustling development on one of the most beautiful stretch of beaches left in this hemisphere.  So much so that they are building like crazy and making bags of money on investors who feel the same as they do. It's speculation built on future value.

I have personally talked to very sincere real estate professionals who say with great tenacity that while demand is solid and growing, actual future demand is and will be created. 

They cite that world wide recognition of the Riviera Maya is just beginning to get traction. 

For example, having the Pro Golfers Association (PGA) come down to hold a world wide event at Mayakoba this coming February is one sign that the old Riviera Maya and the sleeping village of Playa del Carmen are a distant memory and that what’s emerging is a new styled Las Vegas without the casinos that is on the beach.  A place where dreams come true and paradise is realized. 

Now, you may have noticed that I was unable to quote one single person in this article.  Its’ not that I don’t want to.  Of course, I do.  I can’t.  Every person who I have spoken with gave me their comments off the record.  They don’t want their names mentioned at all for fear of repercussions.  From who?  Well, the market, that’s who!

You see the stakes are so big and the play is so huge that any thing said to upset the play may cost billions.  And while this writer understands the fear, I tend to strongly side with the future investors and will make the same bet that the future of the Riviera Maya is not in the past but with the future.  Yes, there will probably be some market hiccups and events worldwide affect the economies of the target market investors.  However, to me, those seem like small rocks in a wide open road.

And finally, if you’ve ever taken a stroll on the beach here and frolicked on the sand, you might agree that demand will probably be created as more and more found out about this area of the world and that the developers, from an investment point of view, were right to build so much so fast and thus were rewarded with even more profits.

Agree?  Disagee?  

Okay, it's your turn.  I invite all of you who have read this story to offer your comments and feedback.  We have a forum on this site where you can express your views.  And yes, you can log in as a guest, just in case you don’t want your name mentioned. 

In closing, I say Welcome to the Riviera Maya Real Estate News………no more sugarcoating folks!  It’s time to place your bets!  I say we just "Passed Go" and now it's time to collect our $ 200!  Oh and for those of you who don't get that phrase, well, it means I am bullish on the future!  I am buying!

J.P. Money is a syndicated writer and host of Let's Talk Real Estate, the podcast featured here on Riviera Maya Real Estate News and MLS 4 Riviera Maya.  He is NOT associated with any real estate broker, agent, or project in the RIviera Maya.   He can be reached via email at This email address is being protected from spam bots, you need Javascript enabled to view it