| | |  Puerto Vallarta Real Estate | April 2009 
Mexico Resort Real Estate Update
 John K. Glaab - The Settlement Company
| | In spite of global financial problems, Mexico seems to be one of the few countries in the world that appears to be weathering the storm without too much damage. | |
As I write this, I wonder how the sale of crystal balls are these days. Here of course I refer to the global financial "crisis."
The situation and the bailouts remind me of an earlier point in my life. At one time, I worked for the Ministry of Economic Development in Canada. One day the Minister said, "I would give anything for a one-handed economist. I hear from them, on one hand if we do this, the consequence will be... and on the other hand if we take another action, the consequence will be... So, I would give anything to speak with a one-handed economist."
U.S. President Barak Obama recently signed an Economic Stimulus plan into law. That was followed the next day by a Mortgage Relief Plan. The world financial situation is so liquid; I hesitate to make any comments or predictions.
Meanwhile, Mexico seems to be one of the few countries in the world that appears to be weathering the storm without too much damage. Yes the peso is down and unemployment up, but overall the economy seems relatively strong.
Bail Out Plans - Reactions From The Real Estate Industry: The official reaction form the National Association of Realtors was mixed. Reacting to the recovery plan of February 25th, NAR President, Charles McMillan a broker with Coldwell Banker in Dallas had this to say, "We fully agree with President Obama's emphasis that housing is the backbone of our national economy." He went on to quote the President, "When a family builds a home, workers are require to build it. Those workers spend money and open businesses. As a result, investors return. In short housing is the key to revitalizing America, and we pledge to work with him to help jumpstart our economy."
A few days later when the budget was released, NAR spoke out against the mortgage interest deduction portion of the new Budget. NAR President sent a letter to President Obama. He said, "There is never a good time to propose something that undermines the basic foundation of home ownership, but given our current our current housing crisis, this has to be the worst possible time." Charles Mc Millan went on to say, "The tax deduction of interest paid on mortgages is both a powerful incentive for home ownership and one of the simplest provisions in the tax code. It should no be targeted for change."
New B.C.S. Projects are Forging Ahead: In spite of global financial problems, work is progressing on several large developments in Baja California Sur. These are located at Loreto on the East Cape, near La Paz, the state capital and at Cabo San Lucas.
The Villas Group, operators of resorts in Los Cabos, Puerto Vallarta, Cancun and Nuevo Vallarta are developing 1,800 acres at Loreto, North of La Paz. The project will include a Reese Jones golf course, up-scale time shares and full ownership along with grand hotels.
The Governor of our state was in Madrid where he met with Luis Delso and his associates. They are developing a project in the area known to locals as "Los Cruces." It was at Los Cruces where Bing Crosby, Desi Arnez and other Hollywood types built homes. Los Cruces is on a large piece of land with only five houses and a small boutique hotel. The new project will be known as "Azul de Cortes." A 14 kilometre road has been under construction from the Port Of Pichilingue to Azul del Cortes. A reliable source tells me that work has no ben completed.
Another Spanish company headed by Juan Manuel Ferri is developing a project to be known as Coral Baja. The developers are spending $350,000,000 on the project located on the East Cape. A new road is planned that will connect Coral Baja with the international airport at San Jose del Cabo.
Work is progressing on Quivira. This is a $1.5 billion project joining together the resources the Ritz Carlton Hotel chain of hotels, Jack Nicklaus and the Pueblo Bonito Oceanfront Resorts and Spas. In January, top executives of Marriott International, parent of Ritz Carlton came to visit the future home of The Ritz Carlton Los Cabos is on 1,850 acres of rolling foothills, with three miles of pristine beaches, yet only a mile away from downtown Cabo San Lucas.
Quivira is being developed in phases with residential opportunities in each phase Phase one of the development will offer luxury living at the Residences of Ritz Carlton Cabos Quivira. Initial offering will include 44 ocean view homes on approximately 1/3 acre lots as well as 75 one-story beach front homes on approximately ½ plus acre lots. Heading up the sales team at the Residences is well known Realtor Johni Orr. She is one of the founding members of AMPI Los Cabos.
Golf Comes to La Paz: Well known international golf legend Gary Player was in La Paz to break ground for a Gary Player Signature Golf Course located at CostaBaja Resort and Marina. In addition to a golf demonstration, Mr. Player delivered an inspiration speech about his youth in South Africa, his career, his life and lessons he has learned along the way. He will compete in the Masters PGA event for the 50th time this coming April.
The ground breaking event was covered by the international media. "We are honored to have Gary Player involved with our project" says Jim Donahoe, Vice President Sales. "Our mutual dedication to sensitively developing within this delicate environment creates a strong bond between us. We are very much looking forward to the opening of the golf course along with our two newest neighborhoods - VistaMar and Las Colinas - in the summer of 2010.
Isla Espiritu Santo Celebrates Seven Years of Being Protected. The Island, in the Bay of La Paz is known as Espiritu Santos. It is a truly wonderful place abounding in sea life and many species of including sea lions can be observed in nearby water. The area attracts divers from around the world. At one time it was a favourite of Jacques Cousteau. The Island was expropriated from an Ejido group with funds contributed by U,S. philanthropists, along with the Nature Conservancy and several Mexican civil associations among them NIPARAJA A.C., (The Natural History Society.)
President Vicente Fox officiated at a ceremony in La Paz marking the event on January 25, 2003. The decree noting the expropriation in México's Diario Oficial de la Federacion was on January 16, 2003. Now it is a protected area never to be developed but to be enjoyed by citizens and tourists alike, in perpetuity.
Manzanilla, Mazatlan, Mayan Riviera and Puerto Vallarta: In spite of the current economic situation and a sales slowdown, developers are continuing with projects in many of Mexico's popular tourist centers. Manzanillo is located on the Pacific Ocean in the state of Colima. According to the 2005 Population and Housing Census, Manzanillo had a population of 110,725. As a tourist destination, it has been increasing in popularity in recent years. Cruise ships that travel the "Mexican Riviera" route include it as a port of call. Its international shipping port is expanding and a road is being built to connect it with the Michoacan port of Lazero Cardenas.
Several major projects are being completed in Mazatlan, including the Puerto Viejo Skies condominiums. It will consist of 38 units all with balconies. America title insurance is available. Something new is coming. FONATUR is Mexico's national trust for tourism promotion. It has developed the top beach resorts of Cancun, Ixtapa, Los Cabos. Loreto and the Bays of Hualtulco. Now it is launching a mega project 80 miles south of Mazatlan and west of the Mexico Highway 15 town of Escuinapa. The 5,884 acre project has more than seven miles of beaches. Work is starting in 2009 with the first phase to be completed in 2012 and the final phase to be completed by 2025.
The Maya Riviera has been expanding since 1969. During the past ten years, $ 30 billion has been invested in the zone. Population growth registered for Play del; Carmen has been 19% per annum over the past ten years. The main developments there are Playa Mamitas, Fifth Avenue. Xcalococo, Playacar, Grand Coral and Selva Mar. The product t type here varies according to client's needs.
Puerto Vallarta continues as a successful place to invest. The area around Banderas Bay has seen substantial growth during the past fifteen years. The three AMPI (Mexican Association of Real Estate Professionals) Sections functioning in the area are very active and offer a great amount of training for real estate practitioners.
Settlement Company Seminars: As in other years, (Mexico's oldest escrow and title company is now in its 17th year of operation,) The Settlement Company has presented a number of Seminars to the real estate industry and the public in general. The first of the year was at a three day Real estate Fair in Ixtapa/Zihuatanejo. The Seminar was presented on a Monday. Tuesday was day of touring properties in the area and Wednesday was AMPI Enrichment Day. This was a series of panel discussions with panels of accountants and attorneys from the region. Linda Neil from The Settlement Company was the Moderator.
Next came an all day event in La Paz. It way billed as a "Real Estate Conference and Motivational Workshop. In the morning the Settlement company team of Alicia Parra, Quirino Parra and Linda Neil made a presentation on the legal aspects of owning property in Mexico. The team also explained the Virtual Closing process. The Settlement Company obtained the copyright for that phrase in 2008.
The afternoon session featuring Rory King of Kiza and Associates. He is an international authority on motivation. Rory, well know for his marketing successes in Los Cabos, La Paz and Todos Santos dealt with the theme, "Make the Best of Challenging Times" and "Planning for the Future." More recently the company presented the Virtual Closing system to a meeting of AMPI Los Cabos.
Mexico is Expanding Port Capacity: In spite of the current international economic situation, Mexico is expanding its port capacity. The following is from NAFTA Works (A monthly newsletter on NAFTA and related issues.) "In the current economic context of globalization, ports are a key element in the economic policy to enhance the competitiveness of Mexico. Ports promote a more efficient transport system throughout the country, encourage the growth of trade, alleviate traffic congestion on the main surface corridors and propel regional development."
The Mexican government has launched an ambitious investment plan to expand and improve infrastructure under the National Infrastructure Plan 2007-2012. The plan envisions investments of over $6.5 billion for the expansion and modernization of the country's maritime cargo and passenger capacity. The objectives include: developing five new ports, expanding or modernizing another twenty-two and building thirteen cruise docks... As a result it is expected to increase current capacity to handle containers from 4 to 7.2 million TEUS and to improve handling efficiency of specialized container operations from 68 to 75 containers per hour.
 John Glaab has been a member of NAR's International Section for over a decade. He has earned the Certified International Property Specialist designation and is a founding member of AMPI Los Cabos. He spends half the year in La Paz, Baja California Sur and the other half in Uruapan, Michoacan. For further information, contact John at John.Glaab(at)settlement-co.com. |
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