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Buying real estate in the Colosio area of ​​Playa del Carmen, is it a good investment?



We wanted to visit Colosio again, as many of our readers have asked about different condo buildings that are being built in the area. We wrote about Colosio a few years ago, and while our article is still accurate and informative, we wanted to update everyone on what’s happening in the Colosio area right now. This article can help people looking to buy, rent or buy and move to the area. Therefore, depending on your situation, we hope you find this article useful.

degree: We do not sell real estate on our website. We just like to provide good information to our readers about different local areas. On our website we refer people to good services, such as people recommended to work in real estate based on readers ’experiences and local reputation.

What is considered the Colossus area?

Colosio is considered the area north of CTM Avenue (also known as 46th Street) between the beach and 30th Avenue and up to 112th Street. This area is large, but when you look at the area that is being developed now and what areas people rent and buy, it’s a much smaller part of Colosio. In the map below we show the large area of ​​Colosio and the orange area is the area that people usually look for when buying real estate. We also added 4 red markers to show access points to the beach.

Brief history of the Colosio neighborhood

Colosio has a unique history in Playa del Carmen and it is important to know how it came about. In the 1980s Playa was just beginning to grow. Beyond CTM Avenue, at the northern end of Playa, was all forest. There was nothing. Locals had begun to feel pressure to have places to live and land. A community activist drew up the plan to take over what would be the Colossus area. In 1987, activists and locals took part in what was called the “invasion”. People came with machetes, chainsaws and excavators to cut roads and divide the land.

This caused the land to be divided into plots. Depending on which part you believe in and which part of the government you listen to, it was considered legal or illegal. Regardless of the legality, the end result is that many properties do not have a title to Colosio. This has made it difficult to buy and has slowed down the development of the area.

This means that anyone looking at a property in this area will need to do some extra due diligence when consulting the documentation.

Who and what prices people pay to rent in Colosio?

Colosio has been the area for single or young couples to rent cheaper places. It is an artistic area not only for the murals, but for the (foreigners) who rent there. Before Covid-19 we were getting digital nomads in Playa del Carmen, but since many could work online during Covid-19, we saw that digital nomads tripled in Playa del Carmen. Colosio has got a lot more people looking for long term rentals.

Prices start at about 6,000 pesos (about 300 USD |) and reach about 15,000 pesos (750 USD) for monthly rentals. Since most of the tourists who come for a week want to access central things to Playa, this area is not so desirable for short term rentals. We never recommend this area for short stays when readers ask to book something in Colosio. Not worth your time and the level of most accommodations in this area. However, Colosio is much better than a long-term rental situation.

Knowing the current demand and prices, this means that if you are looking for an investment property and want to have the rent as part of the ROI, you should temper your expectations and also not over-invest in a property. which the current rental market will not like. .

Positive and negative points about Colossus

Let’s take a look at some of the factors that affect the value and potential of the Colosio District.

Positive points to consider

  • More and more condominium buildings are being built, this is starting to transform this one-story home neighborhood into a denser residential area.
  • Boutique shops are starting to occupy part of 5th Avenue.
  • The new grocery store being built on 34th Street and 10th Avenue will have a positive impact on Colosio. Although it is not located in the neighborhood, it does allow access to a large grocery store much closer than the other grocery stores in the city center.
  • The southern end of Colosio is within easy walking distance to the center of Playa del Carmen. The entire Colosio is cycleable.
  • Prices per square meter are cheaper in this area.
  • Colosio is close to the beach, although access is limited and the beach is more natural. Since there are no hotels or businesses in front of the beach, it is not cleaned so much.
Colosio Playa del Carmen

A new boutique store in the Colosio area of ​​Playa del Carmen.

Negative points to consider about Colossus

  • Infrastructure has not improved much in recent years. The main problem is the capacity of the sewer and what happens when it rains a lot. Sewers often overflow on 5th Avenue.
  • Parking in the most popular parts of Colosio is now priced. Since most new buildings do not have parking due to their smaller size, parking on the street can be a nuisance.
  • Rents are considerably lower than in the center. This means that if you are looking for an investment property, you should keep in mind that it is not as popular with short term rentals. Long-term rentals are more popular in this area, but that means less rental income per month.
  • The big factor for Colosio is what will happen to the big empty field in front of the beach. If it remains empty, it does not add any value to the area. It is built, it could block many views of current units.

What is our view on Colossus and what does that view?

There is no doubt that Colosio is changing, growing and adding more apartments to the area. Colosio is becoming a downtown dormitory community, and more foreigners are renting in this area.

While some like Colosio’s artistic drag, it’s also an area of ​​friction between locals and short-term tenants coming to the area. Often, in such areas, opportunity crimes such as theft are more common. The farther north you go in this area (80th Street and above), some single women or men may feel a little incomplete at night.

We do not consider this a great area to live in person. The only three things that make it a good area are the proximity to the center, the current ocean views (which is not guaranteed) and the lowest price. It’s not so much a cohesive community as some of the other back areas in Playa. Access to grocery stores is currently limited and it would be more of a hassle to place daily orders.

We also consider that all of our recommended real estate agents to whom we refer readers, none of them have invested in Colosio. The main reason is that there are other areas that have better rentals and are better places to live. As the saying goes “the more you invest, the more you earn”. This is quite true in the real estate market in Playa del Carmen. Cheaper properties get cheaper customers and you often have more maintenance because it is a cheaper construction. It really only works if you have been charged an out-of-market price in the center of Playa or other areas and want something close to the beach and the city center.

Investing in Colossus

In terms of investment, Colosio is similar to the area at the southern end of the city center (the area from Avenida Juárez to Calle 12 and from Avenida 30 to Highway 307. Both prices are more affordable than the privileged real estate area of ​​the center). .The main differences are the possible views and the proximity to Colosio beach is better. In general, condominiums at the southern end of Playa are larger.

Given these factors, this is what we do would buy others don’t buy:

  • We wouldn’t buy anything on the first two floors of a Colosseum building. Partly for security and views.
  • Nothing without views or a good flow of air.
  • There should be a small rooftop pool.
  • We wouldn’t buy anything beyond 70th Street. Beyond 70th Street, you get too far to walk or bike and it becomes less desirable the further north you go to Colosio.
  • Nothing more than a two bedroom unit. Larger apartments are for families or groups and Colosio is not the best place to accommodate families with younger children. So cheaper + group rentals equals problems. Probably a study or a bedroom would be better.
  • We wouldn’t buy anything above $ 180,000. The reason is that the rental market does not support high-end rentals and for almost the same maximum price, you have many more options, even Tulum.
  • If you buy something as a personal unit to live in, it should be at least one bedroom. The studios are too small for everyday life.

Who would we try to buy something from Colosio?

We would only work with a real estate agent who is a buying agent, that is, we do not deal directly with the developer. Having a good real estate agent and a buying agent means that they work just for you and will research the developer and finances.

True, you can remove the middleman (a real estate agent) and buy from a developer with internal sales. There are still sellers, but sometimes they can offer better deals or include something. However, there is a much greater risk of doing this. They will only work to sell you their product, offer you no other options and have no external expert voice on whether it is a good buy or not.

Because many of the lots are smaller in Colosio, there are smaller, newer developers doing projects in this area. This means that extra attention is needed to research the developer and look at their reputation and funding. Just walking through Colosio you can see evidence of projects that were started and then stopped and others that were not built properly and are abandoned.


Thanks for reading our second article on the Colosio neighborhood in Playa del Carmen. We hope you find it useful and informative. We have a lot more information about Playa del Carmen real estate in our guide here. There is also a real estate guide and videos for Tulum on our website, as this market is similar to Playa and many are also investing in this area.

Colosio Building, Playa del Carmen


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