Why Tulum’s Next Great Opportunity May Be Homes, Not Condos

In this episode of Notes From the Field, Ronan McMahon shares why he believes Tulum remains one of the strongest opportunities on his beat—and why the next major phase of upside may come from a very specific kind of product.

Drawing on the track record of earlier gains in Tao Tulum, Akumal, and Grand Tulum, Ronan explains why this new opportunity stands out: detached homes designed around privacy, nature, livability, and broad appeal in a market where those qualities are becoming harder to find.

Episode Description

Broadcasting before heading back to Tulum, Ronan opens this dispatch by putting the current Riviera Maya opportunity into context. Recent deals have already produced the kind of strong gains that define the RETA model: early access to top-tier inventory at prices significantly below what the wider retail market is paying.

But for Ronan, the real story now is not just that Tulum is working—it is how it is working.

He explains that while premium penthouses and top-end units can often post the biggest paper gains, the smartest long-term play is frequently a more broadly appealing product: well-designed two-bedroom inventory in the right kind of community, at a price point that remains highly liquid for both resale and rental demand. That is exactly why this new homes opportunity has captured his attention.

What sets it apart, in Ronan’s view, is the developer’s design philosophy. Rather than building another dense, concrete-heavy project, this team is creating a community built around nature, privacy, tranquility, and a much more thoughtful living experience. The homes are detached, carefully oriented, and designed to feel cocooned within the jungle while still remaining highly accessible to everything that makes Tulum so desirable.

Ronan sees this as especially important at this stage in Tulum’s evolution. As the town becomes busier and more built-out, demand is growing for a different kind of product—something quieter, greener, more private, and more livable, but still close enough to enjoy all the beaches, restaurants, wellness offerings, ruins, and attractions of the Riviera Maya.

He also notes that the pricing is unusually compelling. In a market where small studios can command surprisingly high prices, these homes are entering at a level that he believes leaves significant room for appreciation as the market catches up.

For Ronan, this is the essence of the current Tulum opportunity: buying standout inventory at a deep discount to comparable retail product, in a market that is still evolving, still improving, and still far from finished.

In This Episode

Ronan covers:

• Why earlier Tulum and Akumal opportunities have produced such strong gains
• The importance of buying broad-appeal inventory in top-tier communities
• Why detached homes may now be one of the most compelling product types in Tulum
• How this developer’s design approach differs from typical Riviera Maya projects
• Why privacy, nature, and livability are becoming more valuable in Tulum
• The appeal of longer-term renters and lower-headache rental strategies
• How this type of home fits both vacation and extended-stay demand
• Why Tulum is still in a powerful phase of growth despite infrastructure lag
• Why other destinations are not necessarily “the next Tulum”
• How pricing on this opportunity compares to much smaller and less distinctive inventory nearby

Key Takeaway

Tulum’s story is no longer just about being early. It is now about being selective. The best opportunities are the ones that combine standout design, strong broad-market appeal, and pricing that still leaves plenty of room for the market to catch up.

Transcript

SPEAKER_00 0:15

Hi, Rolan here, and welcome to your notes from the field. Two days from now I'll have boots back on the ground and on Tulum's pristine white sand beaches. Just three weeks ago, I was also back there. That's the scale of the opportunity we have right now in this section of the most pristine beach I've I've seen seen anywhere. As you've been reading, um I'm just in the process of banking a $70,000 plus gain on my Tau Tulum condo from that I bought two two years ago. Our recent Acumal Tau deal is showing, is gonna show when it goes retail in the next couple of days, paper gains of as much as $100,000, even $125,000. Our Grand Tulum opportunity, the neighbors to that are gonna sell to friends and family at prices that are 47% higher on a per foot basis than our prices. So we're on a tear, and each of these opportunities have been our classic broad appeal opportunities of two-bed, two-bath condos in a that that are that are in the high level bracket of inventory, but at the lower price range with with within that. So typically kind of higher end, higher end condos in the in the Tulume area, two bed, two baths range from you know prices are typically start in the in in the low 200s in maybe 230 to 250, and from there they go up to whatever 450. What I love about our plays, and I think why we're we're showing such strong and fast gains, is that these communities that we've bought in are in that top tier of quality, but yet we can buy at a price that's significantly lower than the entry price for retail pricing in that type of inventory. So for us to see a gain like $70,000 or $80,000 or $100,000, which in many cases will be a double or more of our of our cash invested, all that needs to happen is that the value of our condo needs to need needs to catch up to the same level that our competitors are are releasing at. And that's very, very important. You know, this is it's a kind of a frequent conundrum I have in terms of what type of what type of units to recommend, because when when the market's moving moving in your favor, it's going to be in those penthouses and those premium units that by far and away show the show the biggest appreciation. But the downside is that if you want to sell one of those units, if say you're buying a premium condo that, say, in one of our deals is a $250,000 condo, and let's say, you know, two, three years down the track it would retail for $400,000, that's a stellar gain, and you're gonna see in a strong market bigger gains on the premium units, but the downside of that is that you're reselling into a less liquid market because there are fewer buyers out there at the $400,000 plus bracket. Um, so to bring all this back to our to our latest opportunity and the opportunity you you heard about in your issue, and that I've been telling you about this week, what what excites me so much about this project is the approach the the developer has has taken. So on my last visit to to the Riviera Maya three weeks ago, I sat in the Tau corporate boardroom. And you know, first thing that's really interesting about this this corporate boardroom is that it's a glass-walled, effectively yoga studio vibe in the jungle. So we we walk in along a concrete platform, and then three three of the four walls are just glass on jungle. So straight away, you know, you're you're you're sitting with a developer who's who's got a different vibe. You know, most developers, corporate offices I go into are the they're the standard, you know, sleek, they're sleek and they're pristine, and they've got lots of LCD screens, and you know, they've nice coffee machines, but they're all pretty soulless. You know, this this boardroom has yoga mats in the corner, you know, fresh fruit juices, all that, all that type of jazz. And I was there for a presentation from the architects. So this team of architects who had flown in from Mexico City to put the finishing touches to the to to the plans, their approach is is is is pretty pretty unique. Everything they do is about harmony with nature, sensitivity to nature, and the overall living experience. This this thing of being being fully part of and connected with the with the nature all around you. Now, that somewhat sounds a bit kind of cliched, a bit developer brochuresque, until you look around and you look around what's what's happened in Tulume, and Tulum has developed in a in a number of ways in in different places. You know, first you've got those really high-end condo communities in the in the master planned areas like Aldea Zama and Tulum 101, which is coming where our Grand Tulum opportunity is. Then in the town of Tulume, you've got Higgledy-Piggledy condo buildings. Some are really high-end, others aren't. It feels higgledy-piggledy because the infrastructure thus far in Tulum Town has has lagged badly behind the development of the town. So you've got this kind of higgledy-piggledy condo development in town. Then on the edge of town, you've got a a bunch of, I guess, condo and homes communities where they've they're going for lower price points, but what you see is the complete kind of concretification of an area. They come in, clear all the wildlife, they leave loads of space for, you know, there's it's it's all about the car, it's all about parking, it's all about concrete, it's all about it's it's it could be suburbs anywhere. Um so this developers and this architectural team approach is is completely different. It it starts by cocooning, um, cocooning the the living area. Let's talk about you know the creating an oasis that you'll you'll drive through these gates from from the Coba Road, which which is a busy road, and you'll you'll enter an oasis. And the the the oasis, it's ringed by a by a walking and and and and running track at the heart is is the amenities, which are going to be made up of a of a pool in a jungle setting, yoga platforms, a gym, and everything, everything is is about being at one with with nature and in close proximity to nature. Then the homes are are designed with exactly the the same five. First of all, these are these are detached homes. So you have neighbors that'll be really, really close, but you you have your own walls, so they're a they're a real own detached house. And the the key the key design feature of these homes is just to create through the use of glass and through the the the use of glass terraces and then plunge pool options opening into into into jungle just gives you that sense of of privacy and space. So the ground floor is is going to be a comfortable kitchen living area which will open straight to you straight to your deck, which will then in front there'd be an optional plunge pool or or pool you can you you can put in, and then jungle. So you're you're cocooned in privacy, and it's gonna have this like super high-end almost four seasons, almost four seasons feel. And um by by that I mean the type of the type of cocooning experience super high-end hotels um give people in in their suites, you know, the type of things I I see cab in Cabo here in the the hotel suites that rent for five grand a night. You you you have even though the unit might only be a thousand or fifteen hundred square feet, you have this sense of absolute privacy. And that's where the likes of the Jennifer Anistons and all these people come and cocoon themselves in in the premium in the premium resort communities. So downstairs you'll have living, cooking, you'll have a deck where you can where where you you can also grill, you'll have space where where you can put you can put a pool, and this will feel like a very, very protected and private and zen space. Then upstairs, upstairs you'll have the the the second that the master bedroom, you'll have one bedroom downstairs, upstairs will be the master bedroom, which again will have that kind of luxury suite feel to it, because you'll have a big spacious master bedroom that opens up onto onto a terrace that will be perched, you know, just above tree line. So you're you're you're gonna be, you know, if you're you're gonna be able to see see the tree the treetops, but you know, crouch down and your your head is gonna be at mid-jungle level. And this is where you'll be able to see the birds perch in the morning, play, flirt, beautiful yellow, blue, green birds darting all over the place. I I know what it's gonna look like because I've stayed in in similar dimension suites in in this type of this type of nature setting. And it's absolutely wonderful to to wake up in the morning and to have your your morning coffee, you know, looking out to that and just being surrounded and cocooned and wrapped in this this this tranquil setting. So this opportunity and this this community is very much about what really sets it apart is is these homes. You know, there's there's nothing like them in in Tulum. In Tulum you have some areas of much bigger, more expensive homes, and then you've got other other homes in what I call the concrete communities um where they're going to be in, you know, maybe our price for these homes is 100 is from $149,000. You have other town home communities in Tulume where pricing is in the range of $180 to $195,000, but those are in the concretification communities. So here we can buy something special, unique, standout, and we're buying at a price that's at this big discount to what the the poor relations are charging and paying. And the the timing is perfect for for this inventory type because you know Tulum has this kind has this critical mass of visitors and repeat visitors and and folks who come for for tranquility, for quiet, for for peace, for nature. And town is just getting busier and busier and busier, and aldeyazama and these other communities are becoming busier and busier and busier. So for the for the the the true nature lover, for the person who's looking for a more tranquil, tranquil, peaceful experience, they're just crying out for this type of this type of home. You know, it's it's very interesting. I have a home near near Acumal that right now I'm renting to a European lady for on a three-month basis, and she's been coming to Tulum for years and years and years. And this is the first year she rented out at Tulum. But she's still back in Tulum every other day for various yoga and wellness experiences, and that's where her circle of friends are, but it just got too busy for her, it just got too busy and noisy. So we're talking about our tau is going to create this type of of Oasis experience just on the just on the edge of just on the edge of town. So the the rental potential of of this is is strong because again, down to the fact that you've you've limited you've limited competition. So homes like this will be of great appeal for you know European families who come in the who come in the summer. Um in the winter it'll be perfect for North American snowbirds and and vacationers. And a home like this, you know, it it makes for the perfect base for for touring the Riviera Maya. You know, you can be up the road to Playa in 40 minutes, you can be in the Mayan ruins in in Tulum in seven or eight minutes, you can be in the Mayan ruins in Koba in maybe, I guess it's maybe 35 minutes, you can be in Chichenica within a couple of hours, and so on and so on and so on. They're they're these homes are the the perfect base and the perfect type of home if if you're touring, if you're touring, touring the region. So uh so demand for this will will grow. And and also they're the type of home which appeals to the the longer-term renter, which you know is becoming a niche that I'm finding more and more attractive. And by that I mean renting to someone for a two, a three, or a six-month basis. And that way you don't have to deal with the the uncertainty or the headaches around tenants changing over. And it's it's interesting that I seem to be navigating in the direction of taking that approach with with my properties here in Calabo. When I leave my my condo on the 1st of April, I'm going to rent it for six months. I'm looking for one tenant for the whole period in the Riviera Maya. I've got tenancies of two, two and two and two and three month range. So it's a it's a very it's a very attractive niche if you don't want to be actively managing your managing your properties, which kind of is is where I'm at at the moment. You know, I've I've I've got a range of rental managers, some are really good, some start off being really good, and then they start to get complacent. And but managing a portfolio of of rentals, it it takes some time, not a huge amount of time, but that amount of time is challenging for me personally right now because of the the rate at at which I travel. So a big part of my strategy is creating the portfolio and having the portfolio in a way that it's that it's run very um it's run very very tightly um but at a minimum headache way. And then when I've more time, when my I guess my my travel and other situations, if if they were to change, then I'd flip from the the longer-term rentals into creating a very actively managed short-term rental potential. And that would that would increase the income, but it would it would become a thing I'd need to give time to and and pay attention to. So anyway, I slightly I I I digressed. But the to to to sum up this this opportunity, what it's got going for it. You know, it's got the the the Tulum opportunity that I'm extremely excited about. I think this is the this is the peak moment for for for us in Tulume this past year or this past two years, and maybe rolling into the the the next year or two. This is the moment where we we're getting in, we're getting these huge discounts on on retail pricing, and then our our completed units, our units nearing completion, are ready to be to be plugged into a super super hot market. And we're buying at prices that are just so much lower than the competition. You know, we've we've a lot of we've a lot of wiggle room for for things not to quite go according to plan. And for for me, that's really critical with with any investment opportunity. Can can things go not according to plan and and it still be okay? And that's how I feel about these opportunities here. So we've we've Tulume exploding and we've Tulum transforming. And in the next wave of Tulume development, and I'm finally starting to see this happen already, we're starting to see infrastructure improvements. You know, this hopefully the the new second road to the beach will will open this year, that will ease a lot of congestion. We're we're we're seeing efforts to improve. infrastructure which is terribly lagged development in Tulum. So once that once those infrastructure improvements come into play, you know, it'll create a platform for for the next wave of Tulume transformation. And you know in many, many ways what's happening in Tulum is rep is what happened in in Playa del Carmen. It went on these growth surges, infrastructure lagged, then infrastructure caught up, then it went off on its next growth trajectory. And this is this is really important because it feels like out in the certainly out in my world there's this mad quest for the for the next Tulum let's run to run to Bacalar, run to Hallbosch, run to all these other places. But the reality is none of them is a is is a next Tulum. I mean Bacillar is beautiful. It's a very special place to me I've been going there for 15 years. I I love it but it's not going to be another it's not going to be another Tulum. It's too far away there's no beach basically everything that Tulum has got going for it it's it's not. So Tulum is is is Tulum you know Holbosch on the northern end will will develop but that's going to develop in a in a different way mostly with boutique hotels and there's going to be some condo development there but it's going to be on lower scale and I think it's going to be beautiful and I think there's a big opportunity for for land speculation up there if you really know what you're doing because it's really complicated but again it's not going to be the the the the the next Tulume so that's why that's why that this this opportunity is is so so important because it's it's almost like a it's it's it's the first of its type that's a a developer to take a serious design and experience and architecture and livability approach to a community of of homes. So you know for for me for us to be able to get in and buy a home here for for $149,000 you know I mean that's that's extremely strong. I mean that's less than what many of the developers charge for a tiny 40 meter studio in town. Just when I was there a couple of weeks ago I visited um I visited 40 meter 400 square feet studios in the middle of town with um asking prices of $210,000. So these homes I think have the potential to appreciate fast to that kind of sweet spot or that kind of broad market pricing of you know kind of $225,000 because even at $2250 homes like this or nice homes in Tulum are still at the the the the the the entry entry price point. So again we're getting in like my experience with my with my Tau Tulum condo um the Rita price for those condos at launch was $1540 I just accepted an offer I haven't got the money yet that hasn't closed for $225,000 so I'd I'd expect to see a a similar growth trajectory um now whether whether it takes two years or four years to to see that type of type of of uplift is is is anyone's guess. Post delivery maybe maybe two and you know that's that's my prediction that's the the the conservative expectation sometimes and and as has been our experience lately these things can can happen faster than that and we see these extremely fast gains like like we're we're like we're set to see in the in the santomar community and like I saw in in in tau in Tao Tulu so thanks for your time watch your alerts and I'm extremely excited about this opportunity and I'm extremely excited about getting getting back to um getting back to Tulum and the Riviera Maya. I mean those those beaches there is just nothing like them on on my beat to have that combination that you have in Tulume of this amazing idyllic pristine Caribbean beach but then having all the the cool stuff like the eclectic mix of restaurants there's there's just so much stuff to do it's not like you're stranded on a Caribbean island that has stunning pristine beach that you can enjoy for two or three days but after that it becomes boring there is just so much to do here and that's the appeal of Tulum and that's what makes makes this such a strong opportunity