Tulum, Mexico has become a sizzling hot spot for tourists and investors alike. However, behind its stunning beaches and promise of luxury living lies a tale of deceit, corruption, and lost millions. According to an investigation by Bloomberg, a series of real estate projects launched by Akela Development Group under the Solemn brand have turned out to be nothing more than a scheme of fraud.
The group promised investors luxurious condos with infinity pools, outdoor gyms, and avant-garde designs at prices approaching $200,000 or about 4 million pesos. However, when buyers came to view their future properties, they found vacant lots and unfinished construction. Investors not only lost their money but also any chance of recouping their investment.
The scandal took a deadly turn when one of the partners of Akela Development Group was found dead on a beach, while another allegedly committed suicide, and the third fled the country. This left hundreds of buyers without answers or legal options to recover their money.
Lawyers interviewed by Bloomberg stated that there are more than 70 properties sold in Tulum in pre-sale that were never delivered. In some cases, buyers were never even given property titles, leaving them in limbo. Furthermore, lawsuits against the developers have moved at a snail’s pace due to the lack of digitalization in Quintana Roo’s courts.
The affected buyers are mostly middle-class foreigners who invested their savings in relatively affordable vacation homes near the beach, lured by promises of luxury and added value. For example, Erin Norris, a U.S. citizen, invested $191,000 in an apartment with Akela Development Group but was left without investment or property after discovering that the company did not legally own the land where the condominium would be built.
The case highlights a broader issue in Mexico’s real estate market: the lack of effective regulation and transparency. The Tulum case is just one example of hundreds more similar cases in the region, with developers failing to deliver on their promises or selling property on disputed land.
To avoid falling prey to real estate fraud in Tulum, experts recommend doing thorough research on the developer, verifying ownership of the land, avoiding pre-sales without guarantees, and exercising extreme caution when investing.
In conclusion, the Dark Side of Tulum’s Real Estate Boom serves as a warning for investors considering buying properties in Mexico. It highlights the importance of due diligence and the need for effective regulation to prevent similar cases of fraud from occurring in the future.
Source: El Financiero
