After a successful 2021 for everyone involved in the booming real estate industry of Puerto Vallarta and Riviera Nayarit, the editorial team of Vallarta Real Estate Guide approached four prominent real estate agents in our destination to ask their opinions regarding how they think the market will behave during this year that is just beginning and what is contributing to the current success.
The protagonists of this special article are Wayne Franklin, president of Tropicasa Realty; Mike de Mucha, partner of NuHome Realty Company; Victoria Pratt, manager of the North Shore division of Timothy Real Estate Group; and Pilar Roth, master broker of VISTA NATURA, who offer very encouraging prospects for this 2022.
The Perfect Storm
Franklin began by detailing the circumstances that have caused this recovery in the destination’s real estate, as well as the outlook he sees for this year:
“The market remains strong at this start of 2022, even stronger than during the last quarter of 2021. Unless there is some other unpredictable global catastrophic event, I see this as a trend that will continue until the end of this year. Of course, keep in mind the factors that have created the ‘perfect storm’ conditions for this robust market continue:
To all of the above can be added the ability for people to work remotely and, as has been seen in the United States, a significant early retirement (partial or total), as well as people reassessing their employment situations to consider living elsewhere for at least part of the year.
The pandemic has brought about a change in the way people relate to their work and home environment. For many, this will be a permanent change.”
In addition to detailing the new normal we live in, De Mucha mentions what other markets have benefited from the current bonanza in real estate:
“The pandemic is ongoing, it’s not over, and we don’t know when or how it will dissipate; however, we can observe a new reality that has now been established in an untimely manner.
Even for people with greater economic resources, moving away from urban centers and getting a ‘holiday escape’ have become increasingly difficult. Thus, while the most populated urban centers experience the hardest part of the pandemic, suburban areas and tourist destinations like ours are benefiting in new ways. The unusual movement to new areas has even resulted in greater surplus value in a very short turnaround time for our clients’ properties.
Additionally, for many who are attentive to the inflationary increase that is being experienced worldwide, real estate is a natural place to invest money for the protection of their net worth.
In short, what we have seen in the last year and a half is an increase in surplus value, an increase in demand for both mid- and high-end properties, and customers with greater purchasing power. In fact, other real estate markets in the area have also benefited from this trend, such as medium- and low-range housing, as there is a natural migration of nationals looking for better job opportunities.
Everything indicates that this positive trend will continue in our real estate market in Puerto Vallarta and Riviera Nayarit, perhaps even long after the global pandemic finally fades.”
Pratt points out that there is currently a balance of buyers who want to venture into the destination and shares a new type of investor in Vallarta · Nayarit:
“2021 has been a more than solid year for the real estate industry in our destination, and everything indicates that it will continue to be intense in 2022.
Our three main customer bases—Mexican, American and Canadian—are performing at the same pace, something that hasn’t happened in nearly 15 years, when one or the other was suffering from the hills and valleys of some crisis.
Likewise, our buyer demographics are expanding to include younger, dual-income buyers who successfully enter the financial market, want to get second homes earlier in life, and can finance low- to mid-range condos. This market segment is looking for income-generating investments to market through Airbnb and other rental platforms, a concept that’s part of their vernacular.
In addition to the possibilities of remote work that make people more mobile, there’s been a leap in buyers’ acceptance of using the Internet to preview properties and to attend showings virtually and to complete the purchase process without even having set foot on the property.
On the other hand, wealthier people have had substantial successes in their businesses and have more disposable income, as well as desires to diversify their assets or simply add real estate investments to their lifestyle.
With so many positive factors and influences, I see a brilliant 2022 ahead.”
Reconfiguration in the Way of Investing
Roth concludes by pointing out the needs of properties that exist and shares the demand that is perceived for these following months:
“People have reconfigured the way they invest. Puerto Vallarta and Riviera Nayarit are privileged destinations that, during 2021, were able to capitalize on the demand for medium- and low-density real estate projects, where very clean, very green and open spaces stand out. These traits adapt to the current needs for making both work and distance education comfortable.
Although last year we had historical sales prices, without a doubt this 2022 brings with it a much more saturated inventory, with a wide range of projects against a demand that is perceived to be moderate.
Particularly, I believe that the current availabilities in the mortgage sector can be a great tool to continue closing real estate sales successfully.”