North Central Zone: Boom and Growth Expectations

Alfonso Dávalos, real estate agent at Tropicasa Realty, shares his outlook and the growth he envisions for Puerto Vallarta’s north central zone, which includes the 5 de Diciembre, El Cerro, El Centro, Caloso and Canoas neighborhoods.

From Monterrey, Nuevo León, Alfonso Dávalos (“Poncho” to those close to him) first came to Puerto Vallarta in 2008, to apply his degree in Tourism to the hospitality industry. A year later, he took a job as concierge with the Luxury Beach team, a vacation rental agency managing the Península condominiums. This began his organic path into real estate, as he became familiar with not only buildings and houses, but also the destination’s various residential areas. Eventually, he switched to vacation rentals with the same company. Within a few months, familiar with how they worked and having the necessary contacts, he went out on his own for a time.

In 2012, Wayne Franklin and Jorge Guillén gave him the opportunity to work with Tropicasa Realty on the Artesanías project, a real estate development within the El Tigre Golf Club in Nuevo Vallarta. After a few months and showing good results, he began his career as a real estate agent.

“My area of expertise is the condominiums in Puerto Vallarta’s north and south central areas, as well as homes for sale in Gaviotas, Aralias and Independencia (in El Pitillal). Most of my work has been in those areas, and in that order,” he says.

When asked about the prospects he sees for this sector, as well as his expectations for growth, Dávalos says that although development in the central area will continue, “the north central area specifically (5 de Diciembre, El Cerro, El Centro, Caloso and Canoas) is going to experience a real estate boom over the next five years. Currently, the Romantic Zone is experiencing incredible growth and will continue to do so, but the proximity of these neighborhoods to the beach and the entertainment offered in this area lead me to foresee a considerable increase in housing construction in that part of the city,” he explains.

Regarding that growth, he predicts that development will include condominiums and small buildings ranging between about 3,300 and 4,400 square feet. “Personally, I have a special affection for 5 de Diciembre, because that was where I lived when I first arrived in Puerto Vallarta. However, beyond that, I see a lot of potential there. It is a perfect mix of modernity, proximity to the Malecón, sea, mountains and jungle and the destination’s ‘Mexican-ness.’ On the same block, you find a traditional house of yesteryear next to a contemporary house that costs $400,000 USD or more. The Caloso and Canoas neighborhoods have this same charm,” he notes.

“The destination’s main challenge for the real estate industry to remain strong is creating infrastructure to resolve the issue of vehicular traffic, especially in El Centro and the Romantic Zone.”

Other destination characteristics that foreigners consider when moving to Mexico are the climate, food, culture and traditions. “In fact, lately I have been hearing from clients who want to buy their apartment to spend three or six months a year here in Vallarta · Nayarit because they want to come to learn Spanish. They want to do it out of respect for our country, and that convinces them to choose our destination as the location for their second or third property.”

Alfonso Dávalos has been affiliated with AMPI (the Mexican Association of Real Estate Professionals) since 2013 and emphasizes that the training provided by AMPI is indispensable. “I recommend to all those who want to dedicate themselves to real estate that they participate in constant training. There is always something new, and we cannot say we already know everything. For example, Rafael Valdez’s course is incredible, as he reviews and reinforces each of the steps that must be taken during the buying and selling process. The whole level of education provided by AMPI is very important. Information is power, and it always helps to stay on top of what is happening in the real estate industry.”

For the last quarter of this year, Dávalos expects a lot of work and activity, not only for his colleagues, agents and agencies that make up the local real estate industry, but also for the destination’s entire workforce. “A great period for work is coming, and it is very encouraging to see people walking on the Malecón all year round. There is no longer a high and low season, but rather summer and winter seasons. In the past eight years, we have not seen or anticipated as much activity as we are about to experience in the remainder of 2017,” he concludes.