Mexico real estate along the Riviera Maya beaches is quite affordable, as well as convenient when buying a home or condo in Colisio. Living in a quiet neighborhood is what attracts most long-term renters, while the lower real estate prices are attracting foreign investors from across the globe.
Colosio Neighborhood
Officially named after former PRI Mexican presidential candidate Luis Donaldo Colosio, this mainly residential is sandwiched between Highway 307 and the Caribbean Sea, This area stretches north from Avenue CTM/Calle 46 to Calle 112, with artistic charm and offers a lot more open space than the crowded Centro.
Foreign investors looking for value-add apartments in Playa del Carmen find this local neighborhood to be a very popular locale with healthy living renters, artisans, musicians, and dog owners. Properties for sale between Avenida CTM and Calle 60 that are closest to 5th Avenue are a hot commodity right now. A new building in its final construction stage on Calle 72 is also gaining popularity due to it being directly across from the access point of Playa Avenida Colosio.
History
In the late 1980s, there was nothing but woodlands beyond the north end of Playa del Carmen beyond CTM Avenue. Many native people wanted to own and live on the land, so a plan was hatched by a local community activist to take control of it.
In 1987, this group of activists and locals took part in what was known as the invasion. Using bulldozers, chainsaws, and machetes, the group tore the woods down, created roads, and divided the land into lots.
As a result of this illegal action, many of the properties in Colosio do not have title deeds. So, while buying a condo here is fairly easy, development in the area can be slow due to the lengthy process of ensuring the correct paperwork is in order.
Renting
The Colonia Colosio neighborhood is an artsy, cultural hub with colorful street art and murals. It’s also a popular area for digital nomads in Playa Del Carmen who have flocked here to work remotely during and after the Covid-19 pandemic.
The area is also a favorite for foreigners, young couples, and single travelers looking for budget-friendly, long-term rentals. Colosio does not attract many short-term renters unless they are looking for a quiet neighborhood. Those who want to live away from the hustle and bustle of downtown beaches and major Playa del Carmen hotels can find peace and quiet here.
Rental Prices
Average monthly rentals in older rental houses in Colosio range from 6,000-15,000 MXP ($300-$750). Upscale buildings and condominium complexes with deluxe facilities like rooftop pools and ocean views can typically rent for $1,000$1,600 per month.
Pros
Colonia Colosio is transforming into a denser residential area as condo buildings replace the original one-story houses. As the area grows, a range of boutique stores and restaurants started popping up between Avenida CTM and Calle 56. While technically not part of the neighborhood, the newly constructed Selecto Super Chedraui on Calle 34 and 15 Avenida is ideally located for grocery shopping needs.
Playa Del Carmen’s busy downtown area can easily be reached on foot from the south end of Colosio. A short bike ride along Quinta Avenida also offers access to the entire neighborhood.
A lovely natural beach is but a 5-to-10-minute walk from almost every house and condominium in Colosio. The long stretch of white sand beach is perfect for walking dogs, playing volleyball, or enjoying quality time with family and friends without being annoyed by big crowds.
Cons
On the downside, the infrastructure of Colonia Colosio has not yet been upgraded to match the new development progress in the area. The main sewer is currently at capacity and can overflow onto Quinta Avenida during heavy rains.
The northern areas of this neighborhood beyond Calle 52 are not as safe as those near due to there being less foot traffic. For safety reasons, families and single renters tend to buy or lease closer to CTM Ave.
Vacation rental prices are also considerably lower in Colosio than in the Playa del Carmen Centro. Property investors need to be more focused on long-term renters as once the high season is over, short-term renters can easily find cheap accommodation in the downtown area.
Many of the new buildings here do not offer off-street parking, which can be a hassle as on-street parking is limited. Some popular spots on 10 Avenida and other cross streets have metered parking just the downtown area.
Large empty tracts of land in front of the beach may be developed in the future, which could block some existing ocean views. The shoreline in this part of Playa del Carmen is also not kept as clean ones near Mamitas Beach due to a lack of high-end hotels and resorts, but many locals have been picking up the slack of late.
Property Investment
The relaxing vibe in Colonia Colosio attracts a trendy crowd of artists, musicians, and foreigners and each year, more modern development and commercial spaces are opening northward. This is creating a very similar atmosphere to the south end of downtown Playa from Avenida Benito Juarez to Calle 12 and 30 Avenida to the 307 Highway.
Real estate pricing and close proximity to the beach are pretty good throughout this entire neighborhood, but condos in the southern end of Playa are typically larger due to their expansive development lots.
Location
At present, properties anywhere in the vicinity of Avenida CTM through Calle 52 are in high demand, but there are some buildings on Calle 56, Calle 58, and Calle 60 and a few others along 10 Avenida that seem to have full occupancy from December through April.
While close to beach entrances, the area spanning from Playa Avenida Colosio (Calle 72) to Calle 110 is definitely not within a short walk to the downtown core. Owners or renters here will need to take a taxi or secure transport even when going to the nearby grocery store on Calle 34 and Avenida 15.
Amenities
When looking to invest or rent, a unit in a new building or condominium complex above the third floor will usually have good security and airflow. Owning a balcony that provides additional space, or great ocean views will increase rental rates. Building amenities such as rooftop pools, keyless entry, and 24/7 security also add extra value to a rental property.
Unit Size
Digital nomads and couples tend to rent one-bedroom apartments over a studio so they have extra space to work and relax. Two-bedroom apartments are usually let or sold to families with children or remote workers who don’t want to live on their own.
Housing Prices
Construction pre-sale prices in the Colosio neighborhood range between $110,000 for a studio and $150,000 for a one-bedroom apartment. Existing units tend to cost between $10k-$20k higher. Low-price rental properties could be based on lower-quality construction that may require more maintenance.
There isn’t much of a market for higher-end rentals or luxury units in this area. For property investment over $175,000, higher ROI units and homes can be found in tourist areas like Zacil-Ha, downtown PDC, or Playacar.