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Writer's pictureJorge Sanders
Sep 202 min read

Why Is Playa del Carmen So Expensive? Discover the Reasons

Updated: 13 hours ago


Imagine walking through Calle Corazón just off Fifth Avenue in Playa del Carmen. As you step onto the luxurious street, you’re surrounded by the subtle sounds of soft conversations and the occasional footsteps echoing off the smooth pavement. Overhead, colorful Mexican decorations like papalotes (kites) dangle gently, swaying as if forming a vibrant, festive ceiling. These floating decorations give the street an airy, cheerful feel, adding to the distinct cultural vibe. To your left and right are sophisticated shops like Soho and Steve Madden, their storefronts exuding elegance. The glass displays might not be visible to you, but you can sense the luxury as the polished floors and the cool breeze from the air-conditioned stores brush past you when the doors open. It's nighttime, and the air feels calm, yet the street holds an energy that's palpable. The entire street feels meticulously curated, almost like a boutique gallery with upscale brands and a sleek, glamorous aura. The lighting is soft and elegant, highlighting every corner of this high-end pedestrian area, making Calle Corazón just off Fifth Avenue feel like a place where luxury and tradition blend seamlessly. The contrast between the serene night air and the vibrant street energy creates a sense of excitement and anticipation, making your stroll even more enjoyable.
In Playa del Carmen, the high demand for tourism, real estate, and services, along with the recent strength of the peso, has driven up costs.

Why Is Playa del Carmen So Expensive? Playa del Carmen has become increasingly expensive due to its growing popularity as a prime tourist destination. Several factors contribute to the rising costs:


  1. Tourism Demand: With its beautiful beaches, vibrant nightlife, and cultural attractions, Playa del Carmen attracts millions of visitors every year. High demand for accommodation, dining, and activities has driven up prices.


  2. Real Estate Boom: The influx of foreign investors and expatriates purchasing property has led to a surge in real estate prices. As a result, rents and property prices have skyrocketed, raising the cost of living.


  3. Luxury Development: Many new developments cater to luxury tourism, offering high-end resorts, restaurants, and services. This focus on premium experiences pushes up the overall cost in the area.


  4. Imported Goods: Since many products are imported, especially those catering to international tastes, prices for groceries and other goods tend to be higher than in different parts of Mexico.


  5. Inflation: Like many places with rapid development, inflation drives prices up, affecting both tourists and locals.


In short, Playa del Carmen's blend of tourist appeal, real estate interest, and premium services makes it more expensive than many other destinations in the region.


Hidden Costs: Extortion and Local Business Struggles


Let's talk about the cartels and the "derecho de piso," which is simply another way of referring to extortion.


Unfortunately, extortion or the collection of "derecho de piso," essentially a "narco tax," is a sad reality for many businesses, especially those located on Fifth Avenue.


While there is no guarantee that a business will fall victim to extortion, the likelihood of this happening on Fifth Avenue is relatively high.


Any company that involves the sale of liquor almost inevitably faces the need to pay this narco tax.


This leads to price increases, as businesses are already dealing with high costs for rent, utilities, payroll, taxes, and the "derecho de piso," which is not cheap at all. Logically, this leaves business owners with few options, forcing them to raise prices.

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