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 Puerto Vallarta Real Estate | June 2006 
Puerto Vallarta Mid-Year Land and Development Report
 Bryan Dragoo - PVNN
| The success of the Prudential Vallarta team has been remarkable since it formally opened in March 2004. They are the market leader in property listings and have been consistently ranked among the top 3 selling agencies in Puerto Vallarta.
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Commercial Users and Developers Look North
Puerto Vallarta - Most of the commercial interest in the past in Puerto Vallarta has been focused on the downtown and hotel zone areas. With the Wal-Mart and Sam’s Club duo establishing across from the boat dock and the new retail center planned next door, almost all of the large pieces of land are spoken for.
Due to the lack of available and reasonably priced commercial land from the Marina to the south, commercial users and developers have started to look north. The remaining commercial land either has been purchased by users/developers and are planned for development or the owners are asking unrealistic prices.
Apart from the asking prices and availability, the strong growth to the north in all housing categories, lack of retail services, and the continued congestion in the downtown area have added to the attractiveness of the North Bay.
Looking forward, we will see continued interest and strong growth north of the airport, with prices around $100-$150/m2.
Local Product Development
Many developers have neglected land if it is not beachfront. However, unfortunately it is difficult to find and hard to come by. For that reason, there are more transactions occurring off the beach for low to middle income development.
Low income housing developers from Guadalajara are here, that is obvious, but they have only dedicated their efforts to that sector leaving potential for middle income or retirement community development available.
Buyers from the United States and Canada are struggling to find the secure and modest house that allows them to spend 6 months in paradise. Many just cannot justify paying $200,000 USD for a town home in all cash rather then financing it all in the states with literally no down payment and a reasonable monthly payment.
Off the beach developments are increasing in popularity and should be given more attention. Decently priced land can still be found and the demand for middle class product only continues to grow.
Beachfront Land Update
It is obvious that the most sought after and most valued land is beachfront. The last two years of incredible growth in the Bay of Banderas has brought developers from all over the country and down from US and Canada who have purchased almost all of the beachfront in the bay.
The opportunities are far and few between and becoming more and more scarce. Developers are looking further north up to Lo de Marcos and beyond to find any beachfront land not already realizing high prices or infrastructure/access issues.
As the north experiences this intense growth and interest, some are speculating the developers and individuals will start looking in more remote areas. The South, as far as La Cruz de Loreto, are being considered because of low-priced land (as low as ($2.00/m2) and white sandy beaches.
However, there are legitimate concerns on the travel time and remoteness of the area. Will people drive that far? Is there a large enough market for remote residences and condos?
 It is my conclusion that the growth will continue to be strong in the north and a sure investment for anything beachfront. The South will follow but could be several years away.
Bryan Dragoo relocated to Puerto Vallarta from Tucson Arizona and is the youngest addition to the Prudential Vallarta Sales Team. He has worked in the real estate industry for the past 3 years and also began internships in both Appraisals and Brokerage. Bryan can be contacted at Prudential California Realty, Vallarta Division, tel: 293-3983, email: bryan@prudmex.com, website: www.prurealtypv.com |
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