While international buyers scramble for properties in established neighborhoods like La Punta and Zicatela beachfront, a quieter transformation is taking place just blocks inland. Los Tamarindos, nestled in the Brisas de Zicatela area near the vibrant Zicatela Market, is emerging as one of Puerto Escondido’s most compelling opportunities for investors seeking value and growth potential. This comprehensive guide explores why this transitional neighborhood deserves serious consideration in your Puerto Escondido real estate strategy.
Understanding Los Tamarindos: Location and Character
Los Tamarindos occupies a strategic position within Santa María Colotepec municipality, situated in the hillside area that extends inland from Playa Zicatela. The neighborhood takes its name from the tamarind trees that once dotted this coastal landscape, reflecting Puerto Escondido’s agricultural past before the tourism boom transformed the region.
Located approximately 2-4 blocks from Playa Zicatela, Los Tamarindos bridges the gap between the high-priced beachfront zone and the more residential hillside communities. This positioning gives residents easy walking access to the beach, surf breaks, and Zicatela’s restaurant scene while maintaining a quieter, more residential atmosphere that appeals to both long-term residents and vacation rental investors.
According to recent data from INEGI (Mexico’s National Institute of Statistics and Geography), Puerto Escondido’s population has grown dramatically in recent years, jumping from less than 30,000 residents in 2020 to nearly 47,000 in 2025. This explosive 57% population increase has driven infrastructure improvements throughout neighborhoods like Los Tamarindos, including upgraded water systems, electricity reliability, and road paving projects that enhance property values.
Current Market Dynamics in Los Tamarindos
Los Tamarindos presents one of Puerto Escondido’s most attractive value propositions for 2025 and beyond. Properties in this neighborhood currently trade at significant discounts compared to Zicatela beachfront or La Punta, yet they offer many of the same location advantages with only a short walk to the beach.
Property Types and Pricing
The Los Tamarindos real estate landscape includes a diverse mix of property types catering to different investment strategies and budgets:
| Property Type | Typical Size | Price Range (USD) | Best For |
|---|---|---|---|
| Vacant Lots | 300-1,650 m² | $80,000 – $450,000 | Custom development, future appreciation |
| Houses | 100-200 m² construction | $150,000 – $350,000 | Long-term rentals, permanent residence |
| New Condominiums | 60-120 m² | $180,000 – $380,000 | Vacation rentals, turnkey investment |
| Multi-unit Properties | 200-400 m² | $300,000 – $600,000 | Mixed-use, multiple rental units |
These prices represent a 30-50% discount compared to comparable properties in established neighborhoods, while offering proximity to the same beaches, restaurants, and surf breaks that make Puerto Escondido attractive. Recent market analysis shows that Los Tamarindos properties have appreciated approximately 15-20% annually between 2023 and 2025, slightly below the 18-22% appreciation in central Zicatela but with significantly lower entry costs.
New Development Projects Signal Market Maturation
The neighborhood is experiencing a development boom that signals its transition from emerging to established status. Several boutique condominium projects have launched in Los Tamarindos recently, including contemporary residential developments near the Zicatela Market that sold out quickly upon completion.
According to CONAVI (Mexico’s National Housing Commission), improved transportation infrastructure historically correlates with 15-25% property value increases within the first two years of implementation. Los Tamarindos is benefiting from the 2024 completion of the Barranca Larga-Ventanilla superhighway, which reduced travel time from Oaxaca City to Puerto Escondido to just 2.5 hours, making weekend property visits feasible for Mexico City investors and facilitating construction logistics.
Investment Advantages of Los Tamarindos
Vacation Rental Potential
Los Tamarindos properties are proving increasingly popular with vacation rental investors who recognize the arbitrage opportunity. Properties positioned 2-3 blocks from Playa Zicatela can achieve 70-85% occupancy rates during high season (November through April) while commanding nightly rates only 15-20% below beachfront properties.
A typical 2-bedroom property in Los Tamarindos might rent for $120-180 per night during peak season, compared to $150-250 for equivalent beachfront properties. However, the significantly lower acquisition cost (often $150,000-250,000 for Los Tamarindos versus $300,000-500,000 beachfront) creates superior returns on investment.
| Investment Metric | Los Tamarindos | Zicatela Beachfront |
|---|---|---|
| Average Purchase Price | $200,000 | $400,000 |
| Annual Gross Rental Income | $24,000 – $32,000 | $40,000 – $55,000 |
| Gross Rental Yield | 12-16% | 10-14% |
| 5-Year Appreciation Projection | 35-50% | 25-35% |
Long-Term Rental Market
Beyond vacation rentals, Los Tamarindos is attracting attention from long-term rental investors. The neighborhood’s proximity to Zicatela Market, local services, and the beach makes it ideal for digital nomads, seasonal workers, and expatriates seeking affordable longer-term accommodations.
Long-term rental rates in Los Tamarindos typically range from $600-1,200 USD per month for furnished 1-2 bedroom properties, providing steady income with less management intensity than vacation rentals. These yields can support 8-10% annual returns while awaiting long-term appreciation.
Development Opportunity
For investors with construction experience or developer partners, Los Tamarindos offers some of Puerto Escondido’s last accessible vacant lots near the beach. Lots ranging from 300-600 square meters trade at $4,500-7,000 MXN per square meter ($260-400 USD per m²), compared to $12,000-18,000 MXN per square meter in La Punta or beachfront Zicatela.
Building costs in Puerto Escondido currently average $12,000-18,000 MXN per square meter ($700-1,050 USD per m²) for quality construction, meaning investors can develop custom properties with total costs still significantly below comparable existing properties in established neighborhoods.
Infrastructure and Amenities
Los Tamarindos benefits from its location near the Zicatela Market (Mercado Zicatela), one of Puerto Escondido’s most important local amenities. This daily market provides fresh produce, seafood, meats, prepared foods, and local services, creating authentic neighborhood character that appeals to both residents and visitors seeking genuine Mexican coastal living.
Current Infrastructure Status
- Water and Electricity: Most properties have reliable connections to municipal water and CFE electricity, though some lots may require new installations
- Internet Connectivity: High-speed fiber optic internet from multiple providers (Telmex, Izzi, Totalplay) is increasingly available, crucial for the digital nomad market
- Road Access: Primary streets are paved, though some secondary roads remain unpaved dirt or gravel during the rainy season
- Drainage: Municipal drainage connections exist on main streets, with ongoing expansion to secondary roads
Planned Improvements
Santa María Colotepec municipality has announced infrastructure improvement plans for 2025-2026, including water system upgrades, additional road paving, and enhanced drainage systems throughout Brisas de Zicatela neighborhoods like Los Tamarindos. These improvements typically drive 10-15% property appreciation within 12-18 months of completion.
Accessibility and Transportation
Los Tamarindos enjoys convenient access to Puerto Escondido’s key locations:
- Playa Zicatela: 5-10 minute walk (2-4 blocks)
- Zicatela Market: 2-5 minute walk
- La Punta restaurants and nightlife: 10-15 minute walk, 5-minute drive
- Playa Principal (Adoquín tourist zone): 15-minute drive
- Puerto Escondido International Airport: 15-20 minute drive
The neighborhood is easily accessible by taxi (typically 40-60 MXN from central areas) or via personal vehicle. Many residents bike or walk to daily destinations, taking advantage of the compact, walkable neighborhood layout.
Legal Considerations for Foreign Buyers
As with all coastal property in Puerto Escondido, Los Tamarindos falls within Mexico’s restricted zone (50 kilometers from the coastline), requiring foreign buyers to establish a fideicomiso (bank trust) for property ownership. This legal structure costs approximately $2,000-2,500 USD to establish plus $500-1,000 USD annually in trust maintenance fees.
Working with experienced local real estate professionals is particularly important in emerging neighborhoods like Los Tamarindos, where property titles may require additional verification and some lots may still be in the process of completing municipal registration. Always verify that properties have clear title through the Public Property Registry (Registro Público de la Propiedad) before proceeding with purchase.
Risks and Considerations
While Los Tamarindos offers compelling value, potential investors should understand the risks associated with emerging neighborhoods:
Infrastructure Completion Risk
Some streets still require paving, and drainage systems continue expanding. Properties on unpaved roads may face accessibility challenges during Puerto Escondido’s rainy season (June through October). Budget for potential infrastructure assessments if the municipality implements future improvement projects.
Market Liquidity
Properties in Los Tamarindos typically take longer to sell than comparable properties in La Punta or central Zicatela. Plan for holding periods of 5-10 years to maximize appreciation and ensure adequate liquidity. The neighborhood’s increasing popularity is improving this dynamic, but liquidity remains lower than in established areas.
Construction and Development Quality
Rapid development has brought varying construction quality to the neighborhood. Some new projects meet high standards while others cut corners. Thorough property inspections are essential, and hiring independent architects or engineers for pre-purchase evaluations is strongly recommended, especially for new construction.
Comparison with Other Puerto Escondido Neighborhoods
| Neighborhood | Average Price/m² | Beach Distance | Investment Profile |
|---|---|---|---|
| Los Tamarindos | $1,800 – $2,500 | 2-4 blocks | Value + growth potential |
| Zicatela Beachfront | $3,500 – $5,000 | Oceanfront | Established + high yields |
| La Punta | $3,000 – $4,500 | 1-3 blocks | Premium + stability |
| Bacocho | $2,200 – $3,200 | 1-2 blocks | Family-oriented + security |
| Barra de Colotepec | $1,500 – $2,200 | Varies | Emerging + highest appreciation potential |
Investment Strategy Recommendations
For Vacation Rental Investors
Focus on properties within 3 blocks of Playa Zicatela with reliable infrastructure. Look for 2-bedroom configurations that maximize rental income while keeping purchase prices under $250,000 USD. Prioritize properties with outdoor spaces (terraces, rooftops, small gardens) that enhance guest appeal without significantly increasing price.
For Long-Term Appreciation
Consider vacant lots or older properties suitable for renovation on streets slated for infrastructure improvements. Properties closer to the Zicatela Market offer the strongest appreciation potential as the neighborhood continues attracting restaurants, cafes, and retail development. Plan for 7-10 year holding periods to capture maximum appreciation.
For Developers
Larger lots (500+ m²) near the market or on paved streets present opportunities for small multi-unit projects. Contemporary design with sustainable features appeals to the environmentally conscious buyers increasingly drawn to Puerto Escondido. Work with architects familiar with local building regulations and coastal construction requirements.
The 5-Year Outlook for Los Tamarindos
Based on current market dynamics and broader Puerto Escondido trends, Los Tamarindos appears positioned for significant continued appreciation through 2030. Key factors supporting this outlook include:
- Puerto Escondido’s designation as a World Surfing Reserve in 2025, bringing international recognition
- The completed superhighway and ongoing airport expansion improving accessibility
- 35% tourism growth in 2024 creating sustained vacation rental demand
- Limited remaining developable land near the beach increasing scarcity value
- Infrastructure improvements enhancing neighborhood livability
Conservative projections suggest Los Tamarindos properties could appreciate 35-50% over the next five years under base case scenarios, with potential for 60-80% gains if Puerto Escondido’s transformation accelerates as expected. These returns would still leave Los Tamarindos properties trading at discounts to La Punta and central Zicatela, suggesting room for continued value appreciation.
Who Should Consider Los Tamarindos?
This neighborhood is ideal for:
- Value-oriented investors: Those seeking Puerto Escondido exposure at accessible price points with strong upside potential
- Long-term vacation rental operators: Investors willing to actively manage properties for 5+ years to capture both rental income and appreciation
- Developers: Experienced builders looking for the last affordable lots near Zicatela’s surf breaks
- First-time Mexico buyers: Foreign buyers seeking entry into the Puerto Escondido market without over-extending budgets
- Permanent residents: Those prioritizing authentic neighborhood living over tourist-oriented beachfront zones
Los Tamarindos may not suit buyers seeking turnkey luxury properties, those requiring immediate high liquidity, or investors uncomfortable with emerging market dynamics and infrastructure development timelines.
Conclusion: Timing the Los Tamarindos Opportunity
Los Tamarindos represents a classic emerging neighborhood opportunity—the fundamentals are strengthening, infrastructure is improving, and prices remain significantly below established comparable areas. However, the window for entry at current valuations may be limited. As Puerto Escondido continues its transformation from surf town to internationally recognized destination, neighborhoods within walking distance of premier beaches will command increasing premiums.
The next 2-3 years likely represent the optimal entry period for Los Tamarindos investments. Early adopters who purchase now can benefit from continued infrastructure improvements, neighborhood maturation, and the broader appreciation trends affecting all of Puerto Escondido’s coastal properties. Those who wait for complete infrastructure maturity will pay correspondingly higher prices, reducing overall return potential.
For investors seeking the right balance of value, location, and growth potential in Puerto Escondido’s dynamic real estate market, Los Tamarindos deserves serious consideration. The neighborhood’s evolution from emerging to established is underway—the question is whether you’ll participate at the beginning of this value creation cycle or watch from the sidelines as prices converge with more established areas.
Ready to explore Los Tamarindos properties? Our team specializes in Puerto Escondido’s emerging neighborhoods and can help you identify opportunities that match your investment criteria. Browse our current listings or contact us for a personalized consultation about investing in this dynamic coastal community.