A friend who works for one of the largest cement companies here in Quintana Roo reports that he and other management have not been paid a salary in more than 3 months. The cement trucks are returning from deliveries early in the day and are not going back out again. A year ago the trucks would return to the main plant at 10 or 11 pm, now they are all at the plant by 5 or 6 pm. Construction has slowed way, way down in the area. How soon will the rest of the economy follow?
Given the phenemonal pace of new construction in the last two years I never could foresee who was going to buy/rent all these new places. I honestly think Cancun took a major step down after Wilma, and has never really recovered. The poor state of the beaches doesn't help, the huge growth southwards neither and with the current US economic climate being what it is, it helps even less. I'm just glad I dont have all my eggs in one basket anymore.
What is puzzling about this thread (and I agree with Steve about who is going to be buying or renting all these places) is that everywhere you turn to see site work being done or new construction in progress. I guess the concrete companies are ahead of the curve downward when the developers are not selling the units and they have no money to pay the contractors. But it was a hell of a run for them that they probably thought would never end. I have no idea how it works here but in Florida the unpaid contractors can file a "mechanic's lien" and could foreclose on it and end up owning the property on which they did not get paid for doing the work. Probably too far fetched to happen similarly here.
Food for thought.... Lets say they do find buyers for the Thousands of new Condos and Apts. Where will they park and drive thier cars? Cancun's infrastructure is already lacking can you imagine Bonampak once Malecon, Table and Puerto Cancun are all finished and full :shock: it already is a nightmare!
Spin, I am still trying to deal with those thoughts about Puerto Morelos with 10,000 new hotel rooms supposedly on the way, and some of them are well on the way. A real nightmare coming in my opinion.
I never understood that Puerto Cancun project. That is why I bought at BVG in the hotel zone. I never understood who was buying all those properties over there out of the hotel zone betting on the come. Others places as well like Nova Cancun, Amara, and especially those Puerto Cancun high rises where the building is on bonopak and a good 1/2 mile from the beach. But I was actually hoping those projects did well as it would make mine worth even more. Also understand the market slowed in Cancun over 1 year ago. I was looking for my condo for nearly 1 year and prices were dropping for the entire year. There was never a lot of supply but very low demand. This is why I did not understand who would buy in Puerto Cancun when you can buy in the hotel zone for a similar price. Anyway everything goes in cycles and one day the market will recover. I still believe BVG is a great buy when you can pick up an ocean front condo for $450,000 or so with the location it has. In South Florida a similar unit is still 1.2 million plus even with our bad market and property taxes are 20,000 a year vs Cancun at $800
It also looks like existing, established commercial properties are up for sale too. One of the Ruis or both?? $450M http://homes.point2.com/MX/Quintana-Roo/Cancun-Hotel-Zone/1822282-Real-Estate.aspx "3 Resorts in Cancun One Price For All" $600M http://homes.point2.com/MX/Quintana-Roo/Cancun-Hotel-Zone/1803101-Real-Estate.aspx Hyatt R or Dreams? $80M http://homes.point2.com/MX/Quintana-Roo/Cancun-Hotel-Zone/1802999-Real-Estate.aspx "Cancun Hotel Zone Resort" $180M http://homes.point2.com/MX/Quintana-Roo/Cancun-Hotel-Zone/1802840-Real-Estate.aspx Barcelo Las Perlas $24M http://homes.point2.com/MX/Quintana-Roo/Cancun-Hotel-Zone/728904-Real-Estate.aspx A number of condo resales in the existing structures also are listed.
I know of several people who live in Cancun (locals) who are buying, or have bought, something in Puerto Cancun. The reasons I've heard for buying there include: - convenience to downtown coupled with security (the hotel zone is not convenient if your kids are in school downtown or you need to work or shop downtown) - "it will be a nice neighborhood" (they like the project plan) - speculation that prices there will go up (they think it's a good investment) - the beach there is naturally better protected than in the hotel zone (it is!!) My personal view on the over-building of condos in Cancun is that it is a sign that Cancun's hey-day as a tourist destination is weakening. If developers stop building hotel rooms and start building condos it means that the expectation for how to make the most money off a given piece of land has changed. Hotels no longer make sense to build in Cancun. So you build condos and sell them off. I was just asked my opinion on some of this in this interview: http://www.mexicorealestateinvestment.org/interview-with-rivergirl-from-cancun/00207
RiverGirl Cancun airport is predicted to become Latin America's 2nd busiest airport within 10 years second only to Mexico City. Right now #2 and 3 and in Brazil. I think a lot of American retirees are buying vacation/winter homes in Mexico and some pre-retirees buying now as well as Cancun is a lot cheaper then USA condos and cost of living is a lot cheaper. Florida will cost you triple, I live in South Florida and again a similar condo is 3-4 times the money and property taxes would be 20,000 plus a year plus HOA fees. As far as building more hotels vs condos, there is no land to build more hotels. That Puerto Cancun is not on the ocean/Caribbean but the bay. That is not very desirable to most Americans who want Caribbean property. In Florida we have a similar stretch of land in Palm Beach where I live, the condos on the ocean side will go for nearly double the price as ones on the bay side. If those who buy in Puerto Cancun think those are worth more then the hotel zone, I think they do not understand the 3 rules of real estate, location, location & location
CancunMole I do not buy what this guy Dorel Vorindan is advertising. I sincerly doubt anyone would be listing a 450 million dollar property with this guy on this site. also this listing here, the guy stole my image from my web site , the infinity pool photo http://homes.point2.com/MX/Quintana-Roo/Cancun-Hotel-Zone/1803101-Real-Estate.aspx I dealt with this guy when looking for my condo, he advertises things he does not have I inquired on his viviun listing last month for a unit in BVG for $400,000, and guess what he has none for $400,000 and cheapest one he has is $490,000 and his listings are all lies http://www.viviun.com/AD-110406/
