Riviera Maya Delevelopers join the Condo Hotel Race

Despite reports citing the real estate frenzy is approaching a freeze, there is a rising demographic that will continue to heat the market: The Baby Boomers worldwide.

As Baby Boomers pursue their ideal vacation or retirement home, analysts suspect that this equity-rich group of retirees will keep the momentum of the market at a steady pace. Worldwide, research indicates the number of second homes purchased between 2000 - 2004 has nearly doubled.

The value of homes doubled as well, with the average home rising 55% during these 4 years. Keunwon Chung, a statistical economist at the National Association of Realtors in the USA, says the Baby Boomers in the USA, especially those with above-average incomes, are primarily fueling the second home market.

Tax-friendly retirement U.S. States such as Florida, Arizona, and Nevada have witnessed an explosive growth in both home construction and appreciation.

Florida experienced a 25% increase in home prices last year, with one in five of those homes being a second home purchase. The U.S. Census Bureau expects this rate to steadily continue and predicts second home purchases from Baby Boomers will reach 6.4 million units by 2010.

Most U.S. Baby Boomers are seeking luxury in their second homes. According to a Coldwell Banker survey, the Boomer generation "...wants luxurious homes and wants to remain active." And this generation can afford their desires. From the accumulation of wealth through the stock market, home equity, and inheritance, Boomers have more money than any previous retiree generation.

Studies from Harvard University, NAR, and NAHB agree that Boomers will most likely use their resources to purchase multiple residences that focus on location and amenities.

Here, in the Riviera Maya and within it's largest city, Playa del Carmen, the demand is being felt and developers are resoponding.

"Condo Hotels are becoming the hottest real estate on the planet! With a great future because of demographic facts will continue to drive the demand for quality, luxury and convenience in paradise destinations of fun and sun" says Matt Schilowitz, developer and owner of Acanto Hotels and Condo Hotel in Playa del Carmen.

While condos traditionally filled this requirement, a growing number of Boomers are now turning to condo hotels.

Condo hotels appeal to Boomers because it markets luxury and location. "Why buy a condo in town that sits empty for 3/4 of a year when they can own a condo hotel, have five-star amenities available to them, be centrally located in a top vacation destination, and receive rental income?" says Steven Roszell, owner of CondoHotels.com and HotelsForSale.com.