Bahía de Banderas ! Real Estate Investment Market ¡ o ¿Retire in Paradise? By Carlos Lemmus
• Until a few years ago the real estate market of Vallarta was a small and exclusive segment in process at a pace rather slow in the area of Conchas Chinas, and the centre in the area known as Gringo Gulch. A few foreigners, Americans mostly, after discovering the climatic virtues and kindness of the people among other factors, decided invest in holiday properties or retirement in the 70s and the 80´s principles.• Afterwards, in 1985, began the construction of MARINA VALLARTA, detonating of real estate growth in the Bahía de Banderas (Banderas Bay). This mega development gave the pattern of growth to a sleepy Puerto Vallarta in the real estate sector, and the municipality of Bahía de Banderas that was barely born, both destinations waking suddenly to a real estate development, without parallel in any other tourist destination in Mexico.• .
• Large real estate and hotel developments were built and sold, putting Vallarta and the Bahía de Banderas in the eyes of small and large investors, national and foreign, bringing more developers and buyers, both for purposes of investment and retirement.• Natural growth occurred towards the North of the Banderas Bay, across the Ameca River into Nuevo Vallarta, Bucerias, La Cruz de Huanacaxtle and Punta Mita.• Today Bahia de Banderas is a mature destination that offers jointly and alternatively with Vallarta endless opportunities to real estate investors, who are looking for a place of retirement, vacation or a financial business opportunity; there will always be an opportunity available depending on your interest and budget in Mexico. The range of products, prices and services is so wide that we are certain you will find what best suits your needs and preferences.
• For your better understanding, I present to you the statistics of recent years in such form that you will be able to have valid parameters to help you in your decision-making. Knowing the past will allow us to evaluate the present and make a valid forecast, of what may come.• What is an undeniable reality is that Vallarta and the Bahía de Banderas, have far exceeded the economic test that we have suffered for the last three years, due to the global financial crisis, which has seriously affected countless markets in the world. And even when investments and values around the world have collapsed, Puerto Vallarta and Riviera Nayarit have maintained and increased its value, in such way that those buyers who invested in pre construction properties until 2008, can today sell at a profit between 15% to 30% over the value of the property, this without considering the benefits of use or income that it may have already generated.
HISTORICAL SALES IN VALLARTA & RIVIERA NAYARIT ZONE 2005 - 2011 $720,000 1200 $700,000 1000 $680,000 800PRICE PER UNIT $660,000 600 UNITS $640,000 400 $620,000 200 $600,000 0 2005 2006 2007 2008 2009 2010 2011 $ PROM X UNIT $654,545 $636,364 $663,636 $666,667 $683,333 $708,333 $683,333 UNITS SOLD 700 920 1050 800 730 635 780 700 apartments were sold over $270,000 usd in 2007; the sales were down from 9% to 24% every year since 2007 to 2010. In 2011 there was an increase in sales to a level of 780 units of Residential Plus Level.
PRICES PER UNIT IN VALLARTA & RIVIERA NAYARIT 2005 - 2011 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000PRICES USD $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2005 2006 2007 2008 2009 2010 2011 MINIMUM $300,000 $300,000 $300,000 $275,000 $275,000 $275,000 $275,000 $ AVERAGE X UNIT $636,364 $636,364 $727,273 $708,333 $666,667 $666,667 $683,333 MAXIMUM $1,272,727 $1,363,636 $2,090,909 $3,833,333 $3,833,333 $3,833,333 $3,833,333 The average price per unit was reduced about 14% between 2005 & 2011.
PRICES PER M2 IN VALLARTA & RIVIERA NAYARIT (2005 -2011) $12,000 $10,000 $8,000PRICES X M2 $6,000 $4,000 $2,000 $- 2005 2006 2007 2008 2009 2010 2011 MINIMUM $1,555 $1,555 $1,555 $1,425 $1,425 $1,425 $1,425 $ ANNUAL AVERAGE $1,555 $1,750 $2,200 $2,700 $3,000 $2,700 $2,400 MAXIMUM $7,909 $7,818 $7,727 $10,833 $10,667 $10,583 $10,500 The average values per m2 decreased approximately 18% from 2009 to 2011.
TOTAL PROJECTED UNITS & DEVELOPING BY ZONE 6,000 5,000 5,113 4,651 4,000 3,000 2,000 2,095 1,652 1,000 0 RIVIERA NAYARIT PUERTO VALLARTA TOTAL PROJECTED UNITS TOTAL UNITS DEVELOPINGIn Vallarta & Riviera Nayarit there are currently developing approximately 3,700apartments over $250,000 usd. Is estimated that 69 projects in the area developed isexpected soon, in the case more than 9,700 units would be developed.
TOTAL PROJECTED UNITS AND DEVELOPING BY PRICE RANGE IN USD4,5004,0003,5003,0002,5002,0001,5001,000 500 0 FROM $220,000 TO $380,000 FROM $381,000 TO $550,000 FROM $551,000 TO $780,000 MORE THAN $781,000 TOTAL PROJECTED UNITS TOTAL UNITS DEVELOPING 36% units fluctuate between $220,000 and $380,000 usd.
So we can say that the municipalities of Puerto Vallarta and Bahía de Banderas are: PARADISES FOR YOUR REAL ESTATE INVESTMENT AND ALSO RETIREMENT ALL IN ONE ¡!WELCOME ¡¡(Nota:Due to the variables in the market, it is recommended that you check these figure with your trusted real estate professional).