The best locations for Airbnb in Mexico

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Are you planning to start your profitable property rental business in Mexico? An excellent solution, as this country has both lively metropolitan areas and picturesque corners, where thousands of tourists come every year. Let’s talk about which cities in Mexico are the most successful for starting a rental business and which real estate is the best for purchase.

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Top cities to invest in Airbnb in Mexico

The picturesque country of Mexico is a natural magnet for tourists. The tourism business brings entrepreneurs about $11 billion annually. So if you want to build your own rental property business, Mexico is the perfect location. Family-friendly resorts, party and nightlife centers, outdoor activities, and ecotourism exist. Let’s look at the TOP 5 cities for buying real estate for business.

Cabo San Lucas

Cabo is a magical place where the Sea of Cortez flows into the Pacific Ocean. It is the most beautiful bay of St. Lucas, where lovers of fishing, beach holidays, and active nightlife gather. Relaxing on the hot sand of El Medano Beach is like meditation for body and soul.

Beautiful authentic restaurants, markets, pristine beaches, and a terrific atmosphere make this an ideal place for the tourist business. The most popular apartments here have one or two bedrooms, and rental houses with a pool and hot tubs are also famous. Wealthy tourists come here, so you have to make your hotel unusual and unique – this will allow you to get ahead of your competitors and receive a stable income.

  • Average Daily Rate (ADR): $5,998
  • Occupancy Rate (OR): 67%
  • Revenue: $76,074
  • Active Rentals: 5,877

Puerto Peñasco

Puerto Peñasco, also known as Rocky Point, is a stunning resort a few hours from Arizona. In the past, it was a small village on the coast of the Cortez Sea. Puerto Peñasco is a chic resort with sandy beaches, stylish hotels and shops, bars, and restaurants.

The flow of tourists is growing from year to year, which causes the rapid development of the property vacation rental business.

Usually, vacationers rent the whole house, so the idea of making a hotel with several rooms will not be very successful. Most often rent a room with two bedrooms. Also, more than half of the hosts offer their customers such amenities as a pool, parking space, and air conditioning. That is everything a guest needs for a great family vacation.

  • Average Daily Rate (ADR): $4,786
  • Occupancy Rate(OR): 50%
  • Revenue: $59,981
  • Active Rentals: 3,343

San Jose del Cabo

San José del Cabo is a city with centuries of history, an oasis of lagoons, palm trees, and clean sandy beaches. Before colonization by Europeans, this picturesque place was chosen by Indian tribes and communities. Spanish ships also came here with goods. In 1730, the city was colonized by the Jesuits. In this way, they hoped to get rid of the pirates.

Now it is a well-known tourist resort throughout Mexico.

Ancient buildings and many cultural and historical monuments are combined with picturesque nature. People come here for wine tasting, art exhibitions, music concerts, and beach holidays.

So if you are an entrepreneur dreaming of a successful rental business, San José del Cabo is a treasure trove. However, you must study these places’ colors and atmosphere properly to become genuinely successful. The ideal property option is a house with two or three bedrooms.

  • ADR: $236
  • OR: 50%
  • Revenue:$2,968
  • Active Rentals: 3,343


Tulum is a resort on the Caribbean coast of the Yucatan Peninsula.

Tulum looks like a paradise: there are pristine beaches with white sand and azure water, palm trees, and gentle sun. These natural wonders coexist with ancient Mayan ruins and state-of-the-art bars, restaurants, and discos.

People come here with families, with friends or alone. There is a holiday for every taste: from exploring archaeological antiquities to diving. The peak holiday season is from December to February. The most demanded properties for short-term rent are apartments with one or two bedrooms. Most hotels have a pool.

  • ADR: $119
  • OR: 60%
  • Revenue: $1,600
  • Active Rentals: 7,416

Puerto Vallarta

Puerto Vallarta is a unique tourist destination that has evolved from a small fishing village into a chic resort with an international name.

The tourist business development began in the 1960s when such Hollywood stars as Ava Gardner, Elizabeth Taylor, and others drew attention to the picturesque town. Puerto Vallarta is very popular among LGBTQ families – they often come here on vacation.

Puerto Vallarta is visited during cruise trips because the vacation rental business is the city’s primary income source. Also, many tourists come here by plane, including residents of the United States.

If you want to start your lucrative business here, looking for houses with 1-2 bedrooms and a swimming pool is better. And be sure to equip the apartments with air conditioners: it is boiling in Puerto Vallarta.

  • ADR: $2,741
  • OR: 67%
  • Revenue:$31,934
  • Active Rentals: 7,717


Mexico has many picturesque cities that attract many tourists every year. People come here for holidays from all over the world. Buying a property in a Mexican resort town will be an excellent investment in a vacation rental business. However, you must carefully choose a location and analyze competitors and audiences. People come here to have a good time and relax, so housing should be genuinely cozy, authentic, and comfortable. The house should have a swimming pool, jacuzzi, and other amenities. Also, update your price list regularly – prices during the peak season and at other times are very different.

Good luck! Start your business with Airbnb!


Kokou Adzo


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