The Puerto Vallarta real estate market is nothing short of impressive. Located in the middle of Banderas Bay, it has developed a reputation for golden-sand beaches, great weather, and even better food. It is worth noting, however, that such features have given way to one of the hottest beach real estate markets, especially in Mexico.
Puerto Vallarta real estate trends have been very favorable, even in a post-pandemic world. It has become a highly desirable location, for both commercial and residential aspirations, especially with the growing acceptance of remote work. There are many reasons for buyers, sellers, and investors to be interested in this market, which begs the question: Is Puerto Vallarta real estate a good investment? Better yet, is it a good time to buy real estate in Puerto Vallarta?
Below we’ll cover highlights from the Puerto Vallarta real estate market report, the latest market trends, our favorite neighborhoods, as well as some great pre-construction sales you may be interested in.
COVID vs. Puerto Vallarta’s 2020 Real Estate Market
In 2020 COVID-19 challenged the world and it was no different for Puerto Vallarta and the Riviera Nayarit. The hospitality, restaurant, and bar industries were hit hard and the Puerto Vallarta real estate market was no exception. The year finished down ~17% over 2019, and slightly under the total sales volume of 2018.
Most real estate sales happen a month or so prior to the actual closing date, which means many of the sales recorded in Q1 2020 were actually “sold” in 2019. Q2 sales dropped a whopping 50%, and then another 25% in Q3. Q4 was more optimistic and rebounded 23%, as possible containment hopes and the release of a vaccine raised everyone’s hopes.
Interest in tourism real estate remained strong for American and Canadian buyers, even though for much of the year it was difficult for anyone to physically view properties, or at times, to even get to Puerto Vallarta.
You need to listen to what the market is saying in the wake of the pandemic.
Real Estate Prices In Puerto Vallarta
The most popular range is between $100,000-$250,000 with over 80% of sales for condos under $500,000.
The average sales price of a condominium has gone up substantially and consistently over the past five years ($260,000 in 2016, $340,000 in 2020), appreciating by more than 30% over this five-year period. You still see significant savings on pre-construction deals.
Supply
The condo market makes up at least 66% of all sales, and 2-bedroom units account for nearly 50% of all condo sales.
Studio units are becoming more popular. The probable reason for this is rising prices. Real estate developers resort to offering more studio condos that utilize space efficiently to offer lower-priced units.
Buyers
Current Puerto Vallarta real estate trends show a large demand from baby boomers looking for a great place to retire (or at least spend a portion of the year). The months they are not here, they rent them out. The grandchildren are in school and this age group is looking to find a fun spot to vacation and to invest. They want new activities and opportunities in a safe area where living costs are lower and good healthcare is accessible. With Puerto Vallarta’s renovated International airport it’s easier than ever to catch direct flights from major US cities, European, and Canadian destinations. This makes visits from family & friends very easy and affordable.
Domestic buyers have also increased since international travel almost came to a halt in 2020. The fact that Mexicans could purchase real estate in US dollars and lock their investment into a “more secure currency” was also a great incentive.
Investment Appreciation
The graph below shows how the real estate market has appreciated over the past five years. 1 and 2-bedroom units have seen prices rise consistently by ~20% over the past years. In 2020, studio condo prices spiked while 4 bedroom plus units dropped, as people became more conservative during a year full of unknowns and fear.
Neighborhoods & Nearby Cities
There are five that have traditionally been the most popular in Puerto Vallarta:
- Romantic Zone
- Central South
- South Shore
- Hotel Zone
- Marina Vallarta
Real estate is going where the land and the nicer beaches are, and investors have been flocking to the Riviera Nayarit:
- Nuevo Vallarta/Flamingos
- Bucerias
- La Cruz
- Punta Mita
- Sayulita
- San Pancho
Bucerias, Sayulita, and San Pancho attract many with their beach town vibes. The new road is a major force that has helped the Riviera Nayarit grow in popularity.
Other Factors
Real estate investors in Puerto Vallarta are still very bullish, especially due to:
- The new four-lane highway from Guadalajara, decreasing travel time by 25%.
- $150 million dollar investment into Punta de Mita 4 Season resort and 1500 acre planned development
- The Parks by Vidanta, a huge Cirque du Soleil theme parks development with immersive rides, attractions, and interactive performances… coming soon!
New Developments
While property values are climbing and the real estate market in Puerto Vallarta is healthy, there are still deals waiting to be swooped up.
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