Just as there are many predictions these days regarding how the state of our economic situation will be during 2021, as many predictions are being made relevant to the real estate market. To learn about these predictions for our market, Vallarta Real Estate Guide approached three local real estate agents to ask their opinion regarding how they think the Vallarta · Nayarit real estate industry will behave during the remainder of this year. The responses, in addition to being encouraging, provide a variety of aspects that must be taken into account—the important elements that ensure our market will remain strong, healthy and stable.
An Overview for 2020
“The conditions of the pandemic have been surreal for all of us who are part of the metropolitan area made up of Puerto Vallarta and Riviera Nayarit. This community depends on tourism and the real estate industry. We went through great difficulties, like nearly every other region in the world,” explains Victoria Pratt, real estate agent and director of the North Shore division of Timothy Real Estate Group.
“Definitely, 2020 was an atypical year that had repercussions in our market, mainly in the way we do things. However, due to travel restrictions and concerns about physical distancing, we focused on and continue to work using video calls, virtual tours and the like. Our goal, with these new approaches, is to maintain a strong relationship with our clients and prospects,” says Jorge Guillén, sales agent for Tropicasa Realty.
“Thanks to the quick implementation of the health protocols, as well as locals and businesses adhering to the protocols, our community was able to quickly strengthen its trust between residents and visitors. Because of this, many of the different economic activities that take place in Vallarta · Nayarit resumed more quickly than in other cities in our country,” adds Allan Fletes, general director of Homia.
While embracing new technology to help overcome significant hurdles to purchasing real estate during the global pandemic when travel was severely restricted, much to the industry’s surprise, a new category of buyer entered the Vallarta · Nayarit market in 2020 bearing unexpected results.
“While the Canadian market was held captive by travel restrictions, they have a real desire to return here, and once conditions are favorable for them, it is very possible that they will continue to pursue their dream of owning a vacation home in our community,” Guillén says.
“To our surprise—and I mean it very honestly, since many of us couldn’t really believe what was happening—in the real estate industry we saw an unexpected rebound in July 2020. Many Mexican buyers were active in and investing in different price categories. Certainly, the wealthiest continued to purchase luxury properties in an exceptional array of ultra-residential complexes to serve as remote respites. On the other hand, the upper-middle income level also became very active and solidified the intention of owning a home away from the larger cities. Technology has allowed families to stay here and continue their education and/or work remotely without issue in a safe, pleasant environment. Vacation rentals in villas increased, and the exchange rate helped Mexicans make purchasing decisions, protecting the volatility of the currency with a valuable asset,” explains Pratt.
“I see that the technology we have come to embrace to a greater degree in the past year will be helpful as we move forward,” adds Fletes. “It will help us transact more real estate business in the short- and long-term future.”
The Transition to 2021
For a variety of reasons, professionals from all sectors of the real estate industry agree that the upcoming year will be one of recovery and rebound.
“We believe that this year is going to be very good for several reasons: In 2020, despite the health situation and other global unrest, we produced a fairly good volume of sales. Therefore, it makes sense that in 2021, with the first applications of the vaccine in the United States, Canada and Mexico—which are our top markets—people are going to immediately resume their plans to vacation, retire and/or buy a property here,” Guillén concludes.
“I see the diversification of our market because of the trio of nationalities that converge here, and I feel that this inertia will continue in 2021. It’s also true that Puerto Vallarta and Riviera Nayarit are appealing destinations that capture the hearts and minds of visitors. As people take into account their life dreams and goals, overcome their difficulties and seek refuge, they see in this place a paradisiacal corner of the world that meets many requirements,” concludes Pratt.
“The circumstances of 2021 will be very different from those of 2020, since the administering of the vaccine is an important advancement for the mitigation of this pandemic. In addition, the opening of new air routes and better road connectivity with major cities in Jalisco and the Bajío will be key to achieving a full recovery of the real estate market in the region. Developers and real estate agencies that fully comprehend this situation will be the ones that close out this year at the top of the market,” concludes Fletes.