Puerto Vallarta is looming as an attractive destination for those looking to invest in real estate. The reason? Our city that has managed to capture the attention of Mexicans across the country with the outdoor attractions and cultural amenities this beautiful destination offers.
The health crisis derived from the pandemic did not close the doors for real estate investment in our destination. On the contrary, the market has experienced a surprising increase in the demand for properties by a market that only 15 years ago had very little presence in the portfolio of buyers of this city.
Coming from cities such as Guadalajara, CDMX, Monterrey, León, Aguascalientes, Querétaro and more recently from states such as Tamaulipas and Baja California, Mexican investors have found a niche of purchasing opportunity in Puerto Vallarta, which in turn is helping the local real estate sector to remain strong and stable in spite of the pandemic.
Among other reasons, the fact that both the purchase intention and the final sales have remained strong during this time is mainly due to two factors. The first is because people see Puerto Vallarta as a safe, pleasant and desirable destination. The second reason is because they decide to invest in this market because they can attain a safe asset in one of the most important tourist destinations in the country.
“Mexicans are more willing to invest their money, as well as to take out mortgage loans that help pay for these properties. They are negotiating less, and the selling prices are less aggressive. The reality is that they are seeing Puerto Vallarta as an aspirational and highly desirable place to own a second home or investment property,” says Claudio Leone, CEO of Domus Fine Real Estate.
In the Puerto Vallarta real estate market during the past year, we have seen three types of Mexican buyers:
“These types of units are sold with financial projections. A buyer can have an estimation, which is estimated according to the rental history of the area, that will indicate what the return on investment will be when renting out the property,” he explains.
Although more and more young people see real estate investment as an opportunity to gain trustworthy equity and/or return in the short- and medium-term, the profile of the average investor in Puerto Vallarta continues to be someone between 45 and 60 years old, who holds a position of senior executive or company owner, with studies and postgraduate degrees from outside the country, and many of them with jobs that have to do with internationality and/or with foreign clients.
“He is a very educated type of client, to whom you cannot offer more than hard and concrete data. You have to convince them with solid financial projections,” adds Leone.
Advantages of Properties Listed in Pesos and with Convenient Location
Oliver Martínez, partner of Urban Developers, the company in charge of building the Origen Versalles development, has identified that the tendency of Mexican investors is to buy modern properties, listed in pesos and with a very convenient location, since they are people who already know the destination and want a property close to the amenities and entertainment that the city offers.
In relation to this, the architect Eduardo Gómez, director of the Distrito Coral project, explains that national buyers who have previously visited Puerto Vallarta, already identify some of the areas that in the short term will be fully consolidated, which will help to increase the capital gain on the investment.
Payment / Financing Plans
Mostly, Mexican investors are taking advantage of pre-construction financing granted by developers. Some are offering payment plans based on giving a down payment of approximately 30 percent, while the remaining 70 percent is settled in scheduled payments during the construction stage.