Even as the health contingency continues to develop, Puerto Vallarta is seen as an attractive destination for those looking to invest in real estate. The reason? A city that has managed to capture the attention of Mexicans convinced of the advantages it offers.
The pandemic did not close the doors for real estate investment in Puerto Vallarta. On the contrary, it has surprisingly increased the demand for properties by a market that figured little in the portfolio of buyers in this destination15 years ago.
Mainly originating from Mexico City, Guadalajara, Monterrey, León, Aguascalientes and Querétaro, the Mexican investor has found a niche of opportunity in Vallarta · Nayarit, helping the local real estate sector buffer the global effects of the pandemic.
“With the pandemic, our sales dropped by 30 percent, which was less than expected during the month of March 2020. We were actually expecting a bigger drop, but, surprisingly, the market became much more dynamic in April,” commented Claudio Leone, general director of Domus Fine Real Estate.
This has caused both buying and selling intentions to be reactivated. For Leone, this is due to two factors: first, because people see Puerto Vallarta as a safe, pleasant and desirable destination, and second, because they decide to invest in a secure asset located in one of the country’s most important tourist destinations.
“Mexicans are more willing to invest their money, as well as to take out loans to help pay for their properties. They are negotiating less, and sales prices are less aggressive. The reality is that they are seeing Puerto Vallarta as an aspirational and highly desirable place.”
For Domus Fine Real Estate, the Mexican market represented 50 percent until the health contingency, a percentage that grew to 60 percent during recent months.
According to Leone, there are three types of buyers in the Puerto Vallarta real estate market:
“This type of unit is sold with financial projections that indicate what their return on investment will be when renting it out, which is estimated according to the historical rental income of the area.”
Although more and more young people see in real estate investment a great opportunity to obtain a reliable patrimony and/or something that pays off in the short and medium term, the profile of the average investor in Vallarta · Nayarit continues to range between 45 and 60 years old, in a position of senior executive or business owner, with studies and postgraduate degrees abroad, many with jobs that have to do with internationality and/or foreign clients.
“He is a very educated type of client, to whom you can’t offer anything but hard, concrete facts. You have to convince them with solid financial projections.”
However, the director of the real estate firm also present in Guadalajara pointed out that the diversification of this market has led to the development of projects that are adaptable to each type of client. He shared that in the Nuevo Vallarta area, a large number of projects are being generated with products ranging from 100,000 USD.
“These are apartments with not very large areas that are being acquired by the young generations, who use mortgages to finish paying them off. Generally, all these developments have a payment plan that consists of a 25 percent down payment and 75 percent on delivery.”
For Leone, Vallarta · Nayarit enchants by being a Mexican town that over the years has become a tourist destination that captivates due to its combination of sea and mountains, as well as the warmth of its people and the great cultural and recreational offerings that converge in the bay.