The Puerto Vallarta and Riviera Nayarit real estate market faced a challenging 2024, marked by an uncertain global political and economic landscape. However, opportunities also arose, encouraging the development of more adaptive strategies. Several indicators point to a more promising outlook for 2025.
In this first part of a special series, the Vallarta Real Estate Guide editorial team presents the perspectives and experiences of nine prominent Vallarta · Nayarit real estate professionals: Aaron Fisher, co-founder of MexHome; Claudia Rodríguez, CEO of Claudia Rodríguez Real Estate and master broker of V Bucerias & V Boulevard; Jonathon Smart and Wally López, co-founders of Riviera Partners Realty; Priscila Gutiérrez, executive director and Victoria Pratt, director of the North Shore division at Timothy Real Estate Group; Wayne Franklin, president of Tropicasa Realty; Alexis Silva, director of SB Realtors; and Ricardo Del Muro, director of DMHG Desarrollo. These experts reflect on the key events of past year and the lessons learned from these challenges.
GLOBAL AND LOCAL CONTEXT: THE IMPACT OF ELECTIONS AND THE ECONOMY
For Victoria Pratt, director of the North Shore division at Timothy Real Estate Group, the performance of the first three quarters of 2024 was generally perceived as slow, continuing the deceleration seen in 2023. “Additionally, the unprecedented sales activity we experienced post-COVID-19 wasn’t sustainable as economic consequences took hold.” Factors such as federal elections in the United States and Mexico, coupled with currency volatility and high-interest rates, impacted both buyers and developers in Puerto Vallarta and Riviera Nayarit.
Aaron Fisher, co-founder of MexHome, concurs: “Federal elections in both Mexico and the United States created a strong ‘wait-and-see’ attitude among buyers. However, following this period, we began to see a resurgence in inquiries and requests, setting the stage for a potentially fruitful season as 2025 begins.”
Wayne Franklin, president of Tropicasa Realty, noted that total sales volume in 2024 decreased by eight percent compared to 2023, with the number of units sold dropping by 16.5 percent. “The median list price remained stable, but the average sales price increased by 10 percent. This reflects not only a healthy market despite the overall decline in sales volume but also a willingness among buyers to pay slightly more for what they want. Properties are also staying on the market longer: from 231 days in 2023 to 245 days in 2024.”
Priscila Gutiérrez, executive director of Timothy Real Estate Group, explained that 2024 was a year of readjustment for the Vallarta · Nayarit real estate market: “After several years of rapid growth, our destination’s market experienced a natural slowdown, largely due to a significant increase in inventory. This included an unprecedented boom in new pre-sale developments, which expanded buyer options but also created a more competitive environment for developers.”
2024: READJUSTMENTS AND NEW DYNAMICS
The strengthening of the Mexican peso against the U.S. dollar was a key factor in 2024. Alexis Silva, director of SB Realtors, explained: “The exchange rate, perceived for the first time as less favorable for foreign buyers, prompted significant adjustments. Most developers in Bahía de Banderas began setting prices in pesos to protect themselves, which, in some cases, led U.S. buyers to perceive prices as too high for the construction stage of the projects. This caused some people to postpone their purchases.”
Wayne Franklin highlighted another factor affecting sales in 2024: “The temporary pause of certain projects in the pre-sale stage also impacted buyer confidence. Fortunately, most of these developments have since resumed construction.”
Claudia Rodríguez, CEO of Claudia Rodríguez Real Estate and master broker of V Bucerias & V Boulevard, observed growth in the supply of completed resale properties, many with adjusted prices that made them attractive to buyers. “The market also became more cautious with pre-sales; clients prioritized the track record and quality of developers as key purchasing factors.”
The co-founders of Riviera Partners Realty emphasized that 2024 was a year of moderate performance in the Vallarta · Nayarit real estate market due to the aforementioned political and social factors: “In both countries, election processes naturally diverted buyers’ attention, delaying key investment decisions,” commented Jonathon Smart.
“Despite this uncertainty, the region demonstrated resilience thanks to its established reputation as a luxury destination, attracting strategic investors who seized opportunities in a slower market,” added Wally López.
AVERAGE PROPERTY PRICES IN 2024
Aaron Fisher noted that developers faced unique challenges in 2024, with demand continuing to outpace supply until mid-year: “The strengthening of the peso drove a significant increase in condominium prices: from 412,790 USD in 2023 to 487,174 USD in 2024.”
In contrast, single-family homes told a different story. The average sales price decreased slightly from 572,653 USD in 2023 to 561,655 USD in 2024. “Many homeowners who had benefited from years of appreciation chose to lower prices, especially since they weren’t affected by the rising material costs that developers faced,” he added.
CHALLENGES AND LESSONS FROM THE YEAR
The year 2024 brought a key lesson for many industry players: the importance of adaptability. Ricardo Del Muro, director of DMHG Desarrollo, emphasized: “The Vallarta market was very accustomed to all inventory selling during the pre-construction stage; however, this year demanded adjustments. Those who made complex decisions and adapted their strategies are now seeing positive results from those efforts.”
Interest rates were another recurring topic. “Many U.S. buyers rely on financing based on their primary properties,” explained Alexis Silva. “With higher interest rates, this segment’s purchasing power was reduced, leading to lower activity in the second-home market.”
Priscila Gutiérrez expressed that despite everything, 2024 also presented opportunities: “The variety of available inventory was unparalleled, offering everything from luxurious beachfront properties to eco-friendly developments in emerging neighborhoods. For serious investors, this represented an opportunity to explore a broader range of properties and negotiate in a more balanced market.”
“2024 pushed real estate professionals to offer the best options and improve their skills to close sales. Despite all the challenges, the reality is that both Puerto Vallarta and Riviera Nayarit remain highly attractive investment destinations. Additionally, the recently completed Guadalajara-Bahía de Banderas highway has increased interest from Mexican buyers seeking beachfront properties. Combined with the foreign market’s interest in acquiring a second home or retiring here, this presents an excellent growth opportunity for our sector in the coming year,” shared Claudia Rodríguez.
PREPARING FOR 2025
The year 2024 will be remembered as one of strategic adjustments for the Puerto Vallarta and Riviera Nayarit real estate market. The insights from these prominent industry leaders highlight both the challenges and opportunities they faced, laying the groundwork for a more dynamic and promising 2025.
In the next and final installment of this series, we will explore these experts’ forecasts and strategies to address challenges and capitalize on opportunities in the year ahead.