In addition to being one of the preferred tourist destinations in the world, the city of Puerto Vallarta and the Riviera Nayarit has become the ideal places to reside or invest, which is why the real estate sector in this paradisiacal area currently offers an excellent business opportunity for both foreigners and nationals.
The number of sales in Puerto Vallarta and Riviera Nayarit has gone from 1,137 in 2018 to 1,909 in 2021, according to the Ryan DonnerⓇ y Asociados agency. Likewise, the sales volume in recent years went from $350,759,595 USD in 2018 to $704,155,627 USD in 2021, which represents almost double the sales in less than five years.
This is due both to a greater demand in the foreign market for condominiums and to a greater demand for houses in the national market.
"Apartments in certain areas are selling at historic speeds in Puerto Vallarta," according to Ryan Donner.
The short inventory registered in Puerto Vallarta is generating a saturation and increase in prices; Therefore, many developers and retail buyers are opting for alternative areas in Riviera Nayarit -such as Bucerías, La Cruz de Huanacaxtle, Sayulita, and Rincón de Guayabitos- to have better returns in the medium and long term.
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A retail buyer is one who buys an apartment or house for personal use or to rent and wants to get the best return on their investment.
Currently, Puerto Vallarta, especially in the area near the center and the so-called Romantic Zone where the average price for a condominium in 2021 was around $394.00 USD, is a very competitive environment, since inventory is low and demand is high.
However, this has allowed other areas - such as Colonia Versalles, Fluvial, Hotel Zone, Marina in Puerto Vallarta, and in Riviera Nayarit such as Nuevo Vallarta (now Nuevo Nayarit), Bucerías, La Cruz de Huanacaxtle, Sayulita, San Pancho, Lo de Marcos and Rincón de Guayabitos- are developed, so they are expected to have a high surplus value in the medium and long term.
A property with ocean views has an average price of $1,057,205 USD. However, there are more affordable options without as much luxury.
“The short inventory is a benefit for the developers who work with us, as buyers do not want to miss the opportunity and make quick but calculated decisions, especially in the American and Canadian markets that constantly deal with transactions at these speeds and are wary of vendors; they prefer to make transactions through established agencies, it is a cultural characteristic in their way of doing business”.
“The current market in Puerto Vallarta is not for thinking, it is for acting. This is why it is important to work with an experienced agent since the main question is “is this property worth its price?”. And if so, you act immediately. In transactions at these speeds, the smallest mistake can cost a few thousand pesos”, according to Ryan Donner.
Regarding opportunities, Costa Alegre (South Coast of Jalisco), located near Manzanillo, has begun to see ultra-luxury projects such as “Four Seasons Tamarindo”.
To the north of Riviera Nayarit is Rincón de Guayabitos, where the “One & Only Mandarina Resort” and “Costa Canuva” have been established, which are developments that offer a luxury tourism experience.
However, there are also properties available for large investors and developers, such as 972 hectares in the mountains of Rincón de Guayabitos (Nayarit) for $60,000,000 USD; south of Jalisco in front of Tehuamixtle beach, 30 hectares for $36,000,000 USD and in Costa Alegre, 277 hectares for $67,000,000USD.
“All of these areas are similar to Puerto Vallarta 10, or even 15 years ago. We do not know when this area will present a real estate explosion, which will bring a great economic benefit”, according to real estate experts.
Integrating into a market like Puerto Vallarta can carry risks if you do not work with the correct advice.
Ryan DonnerⓇ y Asociados is a member agency of the Mexican Association of Real Estate Professionals (AMPI), with different national and international certifications.
Among the services they offer are market analysis, advice with contractors and suppliers, legal and tax advice on real estate, pricing strategy, immersion in the foreign market, development and implementation of real estate marketing strategies.
In addition, their clients (developers) do not invest a single peso in marketing, which represents an added value to their service. “We want our developers to focus on what they do best, which is building. We take care of everything else”.
