Puerto Vallarta 2018 Look-Back Real Estate Report

The Vallarta/Nayarit region had another record year for real estate sales, bettering 2017 by 30% with over $360 million in sales. Two-thirds of those sales were for condominiums with just under 30% for homes.
These numbers were provided by MLSVallarta and Jonathon Smart at Riviera Partners Realty, which he obtained from the MLS system of the local real estate association, (AMPI), and together provide a reasonable assessment of the local real estate market. “Reasonable” as it doesn’t include all sales – a few of real estate developments are not members of either service and therefore their sales are not included. And it seems the farther you get away from the center of Puerto Vallarta, further up the coast of Nayarit, the less sales are reported.
Punta Mita, for instance, had a great season with over $65 million in sales, but few of these were included in MLS numbers. If this region’s sales, and those of non-member developers were included, total sales would probably be somewhere in the $450-$500 million.
From what is reported, though, some interesting information can be extracted. One is that the average condominium sales price increased in 2018 by 3% to $282,00 from $275,000 in the previous year. Even more interesting, however, was that the average size of a sold condominium is getting smaller – in 2017 the average size was 1,520 f2 whereas in 2018 it was 1,415 f2 – shrinking by 8%.

Why are condominiums getting smaller?

This is currently a development, new-product driven market. It is also a market driven by a demand for less expensive units – people have less money or want to spend less on a second home. In 2007, at the top of the market, the average sales price for a condominium was $400,000 and the average size was over 2,000 f2. The average condominium sold today is nearly 30% smaller compared to ten years ago, and the average price is 30% less expensive. It seems the market is demanding cheaper product and the developers are delivering that by providing smaller units.
Further evidence that sales prices are lower is that 50% of the sales in 2018 were sold for under $250,000; nearly 90% were under $500,000, leaving just over 2% selling for over $1 million. That 2% includes both homes and condominiums.
If we consider sold information by price-per-square-foot, (or m2), however, we find that the average condominium sold for $180 f2 ($1,936 m2) in 2017, but $200 f2 ($2,152 m2) in 2018. Meaning condominiums today may seem less expensive compared to what they were in 2017, but you actually are getting less real estate for your dollar. In fact, real estate prices for condos have actually gone up 10% over the past year.
There are properties selling for over $1 million but they tend to be limited to the Punta de Mita region at the northern point of the bay in Nayarit. Nearly all the sales that took place there in 2018 were for over one million, with one property going for as high as $7 million.

Most popular regions

The most popular region, in terms of number of sales was once again Emiliano Zapata, (or also known as the Romantic Zone), in Central Vallarta, responsible for nearly 25% of sales reported in 2018, (except for those in Punta Mita). The next most popular was the Hotel Zone (20%), followed by Nuevo Vallarta and the South Shore tied at 11% each.
In short, Puerto Vallarta has become a market for very reasonably priced real estate with the number of sales taking place increasing every year over the past ten years. And it continues to be driven by developers who are building smaller units to remain competitive, primarily in the south side of downtown Vallarta. There’s development taking all around the shores of Banderas Bay, but downtown Vallarta remains the favorite, with other areas, such as Marina Vallarta and Bucerias, recently seeing a large increase in new development taking place.

Grupo Vidanta unveils “The Estates” in Nuevo Vallarta

The Rio Ameca, which runs through the middle of the Banderas Bay region and separate the states of Nayarit and Jalisco, functioning as a natural border, also has the international on one side of its banks and on the other, the largest real estate development in the area, Vidanta. And it’s about to get even bigger.
Grupo Vidanta has been primarily a timeshare development company, with limited growth into the full-time real estate market. But it seems that is about to change with the announcement of The Estates, a “one-of-its-kind luxury development” to debut at Vidanta in Nuevo Vallarta. The Estates will offer “ultra-luxury opulence thanks to high-end details, plush amenities and lavish vacation experiences. One of the key distinguishing factors of these sumptuous new units is that they offer a private sanctuary designed to honor and reflect the sweeping beauty of the natural landscapes that surround them.”
What is not clear in Vidanta’s recent press release is if The Estates will feature condominiums, single family homes, or both, just that they will be available in one-, two- and four-bedroom units, “boasting an indoor-outdoor al fresco design, thoughtfully designed with modern touches while embracing the unique cultures of both coastal destinations. Guests will enjoy spacious living and dining room spaces, elegant spa-inspired bathrooms, secluded terraces and a private outdoor pool and lounge area. Model units will be available for guests to tour later this year.”
Vidanta already includes in its offerings the renowned Norman Signature Golf Course, Almaverde farm, and Santuario entertainment plaza at Vidanta Nuevo Vallarta and the acclaimed Cirque du Soleil show, JOYÀ, The Beach Club, and Salum Beachside Eateries and Market at Vidanta Riviera Maya. The Estates, they say, will provide an exclusive paradise for those who crave personalized, curated and extravagant travel experiences.
Grupo Vidanta was founded in 1974 by Daniel Chávez Morán, and is one of Mexico’s preeminent full-service tourism developers, specializing in vacation destinations, luxury hotel brands, golf courses, real estate, tourism infrastructure and entertainment.

Vallarta Real Estate Fair on February 16th

Set to take place on Saturday, February 16, the 2019 Vallarta Real Estate Fair provides opportunity for buyers, sellers, and homeowners to get the important information their real estate investments.
Hosted by Timothy Real Estate Group, the 2019 Vallarta Real Estate Fair puts you in contact with Puerto Vallarta experts in the fields of real estate, interior design, taxation and immigration, health care, vacation, property managers, mortgage brokerage, and more.
For buyers, sellers and residents, the 2019 Real Estate Fair is an invaluable experience to maximize the investment potential of your real estate and enjoying the best of the Puerto Vallarta lifestyle.
Admittance is free, held from 9:00 am to 2:00 pm at the Rivera Molino Plaza, on the corner of Aquiles Serdan and Ignacio L. Vallarta in the Romantic Zone. For more information, visit VallartaRealEstateFair.com.

Vallarta Tribune Real Estate Survey Results

In a recent, very informal survey, the Vallarta Tribune asked buyers of homes throughout Banderas Bay to answer a few questions. The take-away from their responses was for anyone thinking of buying to not only take their time but to understand that the process itself takes time. While aspects of buying real estate in Banderas Bay are similar to purchasing north of the border, there are some marked differences including using a bank trust or Fideiocomiso and use of a notario publico. (See the Ask a Realtor section for more details on these two processes.)
The change in the real estate market in Banderas Bay is palpable. From lamenting the loss of ‘authenticity’ in Old Town on Facebook forums to the hushed conversations of how much their neighbors place really sold for at cocktail parties, everyone is talking about the real estate market.
When asked, “Where did you buy your property?” the responses went from Amapas to La Cruz. 33% of respondents said they bought in Bucerias. This community is increasing. Where before there were limited condo towers and mostly long established family estates, these sizeable oceanfront land parcels have been bought up and are now undergoing rapid development. It’s understandable; it’s the best beach in the bay and a sweet little town. Hopefully, it stays that way.
A close second was Old Town (20%), with its massive influx of new condos at a variety of price points, and proximity to all that Old Town offers including year-round entertainment, restaurants, and shops. From a vacation rental standpoint, Old Town makes considerable sense for investors as much as year-round residents.
When weighing all the options, sometimes choosing to be out of the hustle and bustle is the best option and the Cinco de Diciembre neighborhood is popular for just that reason, plus put yourself on the hillside, and you’ll have endless sunset views. Says one respondent, “We wanted to be relatively close to Centro and the Malecon but to be in a more traditional Mexican neighborhood… Having a view of the bay was important, and five de Diciembre’s elevation provided that.”
To see the full results of the survey, click here.

Coldwell Banker 2018 Real Estate Market Review

Coldwell Banker recently released their take on the 2018 Puerto Vallarta real estate market.
On the South Shore we have seen several high-end water-front properties up to $3M go under contract and the latest Sierra del Mar Los Arcos development ‘Arco Playa’ sell extremely well with only 2 units remaining for June 2019 delivery. At the same time our newly renovated Olas Altas Office has seen most of the 15 new buildings in the Romantic Zone that were started in 2017 completed with most virtually sold out. For the first time in over 20 years there are now 3 separate cranes over three different condominium projects under construction in the Marina.
The Flamingos extension of Nuevo Vallarta has three different waterfront condo projects including the amazing Bellarena project underway and in the process of selling well by all reports. Further North we are seeing continued strong activity out of our Punta Mita Office and our Rincon de Guayabitos Office reports that the La Mandarina Resort featuring a One And Only Resort and the El Capomo Resort just announcing the addition of a Ritz Carlton Reserve Hotel – are both well under-way.
The absorption rate – the time that it would take for the market to ‘absorb’ 100% of the market inventory of condominiums based upon the rate of sale at the end of 2018 – has also fallen from about 32 months to 20 months.
So, where do we go from here? While caution certainly seems to be the order of the day we feel that given the general strength of the world economy and the strong levels of employment that there is basis for optimism going forward – especially when it comes to our area. Stability on the world trade front and a less aggressive stance from the US Federal Reserve would definitely be a plus. The thing that won’t change is the continued desire for people in Canada, the US and other parts of Mexico to locate themselves in a picturesque, secure and thriving community in a warm mild climate right next to the sea! That will not change! You can read the full review at www.cblacosta.com

Mexico Top Country for Real Estate Affordablity

Homes.com recently posted an article, (and it was re-featured in USA Today), which looked at real estate data from 36 developed (OECD) countries and calculated the places where you get the most home for the least amount of money. And Mexico came in second place. Although for Americans and Canadians looking for a place for a second home somewhere warm, it really is in first place.

By these rankings, #1 and #3 are Turkey and Russia. I think we can take them off of the list right away as with all that is going on in Turkey, and how far away it is, it really isn’t a good option. Russia is just too cold, (amongst other reasons) as is #4, Latvia. Greece is #5, and a decent option with great weather and coastlines, but again, a long ways away for Americans and Canadians.

Next are Poland, Slovakia and Hungary, and again, too cold! Chile is #9 which also involves a very long flight from the USA and Canada. Mexico, which placed second, really is the best option when it comes to price and ease-of-reach by air from most major North American cities. The next realistic choice is staying home, with the USA at #10, but that’s a long ways down the list from Mexico for affordability.

Timothy Real Estate Group 2018 Sales Report

The Timothy Real Estate Group released its third quarter real estate report recently which contains interesting MLS statistics. Overall it shows that the real estate industry in Puerto Vallarta and Riviera Nayarit is very active and will most certainly surpass 2017, which also was an excellent year. Developer “New” sales continued to dominate the market, with downtown Vallarta seeing most of the action, as it has for the past few years now.

Timothy reports that as of October 1st there were 657 condominium and 215 home sales, for a total of 873. That’s exceptionally good as in 2017 there was only a total of 908 sales for the whole year – meaning that 3/4 of the way through this year the market has nearly already reached what it took all of last year to accomplish.

Volume for both condo and homes sales came in at $273 million, which is actually more than total volume for the full year of 2017, which came in at $269 million.

The average price for a condominium so far this year is $290,000, which is about the same as last year.

The most popular region, with regards to the number of sales that have taken place, remains the Emiliano Zapata area in downtown Puerto Vallarta, which accounted for nearly one third of all condominium sales. The next most popular region was the Hotel Zone, followed by the South Shore. For homes the most popular region was Nuevo Vallarta, followed by Bucerias.

When considering sales volume, however, for both homes and condominiums, the South Shore, followed by Nuevo Vallarta and then Punta Mita, come out on top.

Mexico Moments Photo Contest

Got a great photo you’ve taken of Puerto Vallarta? Expats in Mexico has started a photo contest this week to celebrate their 2nd anniversary. If you’re an expat in Mexico, an aspiring expat who wants to move to Mexico or someone who has visited the country, submit the photo that best captures your Mexico moment. Contest is open until mid’ October.

You could win a $300 gift certificate at Amazon! And there’s also three other prizes offered for runner-ups. To enter just go to their website at expatsinmexico.com and click on the banner promoting the event. There you’ll find a link to upload your winning photo. And while you are there, check out the website; they’ve got a lot of great information about Vallarta, and Mexico for that matter, for people living, or dreaming of living, in Mexico.

Riviera Nayarit – The Next Big “It” Destination

Riviera Nayarit is back in the news, and with the number of high-end hotels and resorts currently under construction along the coastline north of Puerto Vallarta, you’ll probably going to be hearing and reading a lot more about it. The latest article was featured in Bloomberg this week:

“You’ve likely never heard of Mexico’s next big vacation gold mine. After all, Riviera Nayarit made up its own name—and has only been using it for roughly a decade. But this 200-mile stretch of Pacific coastline, its southern tip is just a few minutes’ drive north of Puerto Vallarta, is about to burst onto the radar. Between now and 2021, here on the southern edge, One&Only, Auberge, Rosewood, and Fairmont are all bringing their A-game to what they consider the next great beach resort, with Hilton’s tech-forward Conrad hot on their ultra-luxury heels. A Cirque du Soleil theme park is in the works. And Six Senses, a leader in five-star, spa-centric hotels, is rumored to be inking a deal soon.”

You can read the whole article here.

Vallarta & MLSVallarta Featured in NY Times

In the real estate section of the New York Times this week there’s an article about the Puerto Vallarta real estate market. Local realtors Brock Squire of Coldwell Banker La Costa Realty and Wayne Franklin of Tropicasa Realty were interviewed for the article, along with Charles Tibshirani of MexLaw. Squire is quoted as saying that “60% of the foreign buyers in the region comes from the United States, with another 30% from Canada and the rest from Europe, particularly France, Britain, Italy and Germany.” Tibshirani comments that “Europeans are increasing faster in number than the Americans.” Franklin says that “most buyers are interested in newer construction, and look for proximity to towns and services, as that helps rent out homes.”

Squire says that the volume for luxury homes is “about 30% higher than it was at this time last year, while prices are 15% higher. Luxury two-bedroom condos with water views typically start at around $450,000, although units farther from the water can go for as little as $250,000. The article includes multiple links to MLSVallarta.com as a MLS service for Puerto Vallarta and Riviera Nayarit regions. The article can be read in full here.