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 Riviera Maya Developers Seeing Green Dinero in Graying Baby Boomers
Developers say it's all about attitude. At least that's what today's makers of residential, hospitality and retail space here in the Riviera Maya of Mexico say. Developers have discovered this interesting fact from the 77
million Baby Boomers in various stages of life's play.
The checklist shows that Baby Boomers are healthier, wealthier, freer-spending and
more adventurous than retiring generations of yesteryear.
The
"psychographics," the buzz word for Boomers' demographics, show that
they think they're special, demand immediate gratification, are time
deprived, want a good deal and will pay for luxury, convenience and
expertise. All that translates into "gray is green" for developers
"Developers follow the demographic trends and what you're looking at is
where people want to live, vacation, and play," Shawn Bandick at One
Stop Real Estate in Playa del Carmen, tells Riviera Maya Real Estate
News. "I believe that people generally want to be near some amenity.
Whether it's a resort or an beach front condo, the Boomers are looking
to get far more out of retirement than their forefathers. And here in the Riviera Maya, we are open for Baby Boomer business".
"The Riviera Maya historically has been for young vacationers," Bandick says. "But, recently we are seeing the new boomers coming into the market and developers appear to be ready for the future demand. Development has increased, availability has increased and the capability of the Internet has provided the flexibility that you can be anywhere and still feel connected thus giving boomers a home away from home."
Thanks to Internet capabilities, traditional retirement hotspots now are in competition for more exotic foreign properties. "I believe the trend is for people to have split primary residences," Prescott says, adding it's creating synergies for condo hotels, fractionals, timeshares and the emerging concept of ownership pools for percentage buy-ins of former single-family properties.
In a poll of U.S. Baby Boomers, two-thirds of the generation wants to be near the ocean, a lake or river. Another 39% of the respondents wanted to be near a recreation or sporting amenity; 38% preferred vacation hotspots or resorts; and 31% favored mountains or other natural attractions. But regardless of where they want to be, 82% say Internet access is a must-have!
Baby Boomers also are not waiting until retirement to pick up second and third homes. The poll shows that 40% want single-family properties; 22% are looking for cabins and cottages; 21% are leaning toward condos in buildings with five or more units; 5% are opting for mobile homes; and 6% are buying timeshares.
"Hospitality development could be the biggest winner from the aging generation. Boomers' health, wealth and sense of adventure from growing up in the '60s have them crossing borders, spending months abroad and sizing up exotic vacation locations from Mexico's eco-tours to Alaska's dog-sledding with an attitude that travel is a necessity and no longer a luxury". says Bjoern Koch, Director of Sales at The Tides of Playa
del Carmen.
Bandick says the new hype is "uberluxury," the full experience from the minute the plane lands until the trip's over. "It starts before you arrive at the property," he says. "It's a concept for a sixth star hotel." The demand to be pampered means more development of condo hotels, timeshares and fractionals.
With less than 3% of the US households as timeshare owners, the development door clearly is standing wide open. Redington cautions, though, that it can be risky: resales, identifying the right spots and managing marketing costs are at the top of the list. Similar concerns exist for the condo hotel sector. He says "linked contracts" between the unit owner and hotel owner can create problems on the resale end. "There's a risk you'll run afoul of the local law so you'll need to have the contract very well structured," he stresses. "Making sure you don't create a white elephant is the challenge."
The hotspots of the past remain the favorite playgrounds of today although there is an increasing number of Boomers testing waters to live or play in less crowded US markets, Canada and Mexico.
In Mexico, the King of the Retirement for Americans and Canadians has historically been in the Lake Chapala area outside of Guadalajara. And while this market is still growing, the retirement market in Mexico has expanded to include places like San Miguel de Allende just north of Mexico City and Cuernavaca. But now, we are including the fun playgrounds of the ocean resorts like Puerto Vallarta with the Riviera Maya being the # 1 beach resort destination for all the obvious reasons e.g. white sandy beaches, aqua waters, and land to grow and grow.
"Some developers are still looking to where traditional growth has been for the last 10 years," Judi Shaw of Remax-Playa says, "and that's the Sunbelt states in the USA however, that trend is changing and we are seeing that change here in the Riviera Maya. While the USA is descending into a stagnant, some say recession market, the Riviera Maya is still growing without an end in sight. Bring on the Baby Boomers, we're open for business".
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