Puerto Vallarta, Mexico - Mexico’s Pacific Coast has been a playground for North American snowbirds for decades. Although it stretches for more than 2,000 miles, only a few enclaves have attracted the luxury market. One of them is the Riviera Nayarit (named after the state of Nayarit, just north of Jalisco, the state that is home to Puerto Vallarta.)

For years, Punta Mita has been the anchor of the region’s luxury segment. (See our earlier story on luxury real estate in Punta Mita.) Ever since that development put the area on the map, however, upscale vacation and retirement real estate projects have been inching their way northward up the lush coast. Now, the area is set to get another boost: the new superhighway linking Guadalajara, Mexico’s second largest city, to the beaches of Puerto Vallarta and the Bay of Banderas. It will run through Nayarit.

Even before the government’s latest routing decision, nature contrived to make the Riviera Nayarit one of the most beautiful seaside locations in Mexico. “There are only a limited number of places where jungle-covered mountains run all the way down to white sand beaches,” says Fred Feibel, a veteran local real estate agent. “This phenomenon is limited to the area between Higuera Blanca and Lo de Marcos; south of Puerto Vallarta, the climate gets drier, and the roads tougher.”

Prices Leveling, After 10X Appreciation

According to Feibel, an American who has been selling real estate for 13 years, “The land along this stretch of coast is possibly the most expensive in the country. Property has appreciated 10 times in 10 years since 1998. Since the economic downturn, prices have already hit bottom, and are coming back. Growth will not be as steep as in the past, but this is still paradise at a good price. You can still expect appreciation. And you can get land plus a house.”

San Pancho, Nayarit

One of the most popular destinations for expats in this Pacific Coast region is San Pancho, a small fishing village officially named San Francisco, about 40 minutes north of the Puerto Vallarta International Airport.

“San Pancho is a family-oriented town,” says Jordi Ferrara, a prominent real estate agent with a Ferrara Realty office on the main street. “We sell quality of life as much as actual property; there is a small town feel here. There is no McDonald’s, no high-rises; plans are to keep development down and preserve a green belt: no selling of jungle to build golf courses.”

“It’s not for everyone,” he adds. “But people come here after seeing Puerto Vallarta and Punta Mita, looking for the real Mexico.”

While many of the town’s streets remain unpaved, there are two neighborhoods with good roads. Las Olas is a beachfront gated community of single-family homes that is walking distance to downtown. As a gauge for prices, oceanfront (not beachfront) lots go for approximately $1.2 million; 4,000 square meters of beachfront property can cost twice that amount.

Nayarit Selva Azul

Wending its way up adjacent verdant hillsides is Selva Azul, whose developer sell lots on which to build (although some completed homes can be found for sale by their owners). Much of the flattest land here has been sold to Armonia, a condominium development still in its pre-construction phase.

Other Nayarit Coastal Developments

Up and down the Riviera Nayarit are several extremely ambitious projects in various stages of development, from residences that are already occupied to those “still on the drawing board.” From south to north, starting at the Bay of Banderas, where the state of Nayarit begins:

Marival Residences and World Spa in Nuevo Vallarta is a fully functioning condominium-hotel complex selling apartments and villas in a resort environment. Units range from one-, two- and three-bedroom condominiums to four-bedroom penthouses to villas – actually 2-storey duplexes - with private pools. In-house financing is available, and the first three years of maintenance are included in the price; additionally, owners may elect to place their residences in a rental pool. Boat owners will especially appreciate Marival’s world-class marina: the Marina Riviera Nayarit at La Cruz offers 340 slips for rent or purchase and contains a 200-ton travel lift capable of handling large yachts.

Nahui is an ambitious project encompassing 2,100 acres of beaches, hills and coves along three miles of coastline. While its centerpiece is TAU Resorts, a time-share community consisting of 128 two-bedroom units, three distinct residential complexes are also under development: Destiladeras View, 89 hillside ocean-view home sites (from $127,000), with the option of building a custom residence or purchasing one of a selection of villas designed and built by the developer (from $365,000); Playa Blanca, offering three-bedroom beachfront condominiums from $448,000; and Condominios Nahui, perched above Playa Blanca, where condominiums start at only $166,000. Planned recreational amenities include a golf course, mountain biking trails and a self-contained commercial and entertainment village. In-house financing is available for five years.

As a resort, Punta Mita’s Imanta, the “lowest density development on the Pacific Coast,” has been enjoying rave reviews, including on this very website: see our review of Imanta. But as Fred Feibel points out, with only seven units available for temporary guests, Imanta is “primarily a real estate play.” Lots of 2.5 to 4.5 acres are not cheap, starting at $2 million just for the land, but it is only half that if you agree to build in one year. And, he says, “Prices have come down since 2007.”

Feibel also considers Punta Sayulita a “quality product.” On the 39-acre Sayulita Peninsula near the town of the same name (famed for its surfing community), ecologically minded developers have parceled 39 acres into 62 plots of land, extending from beachfront to hilltop, designated for “family residences.” Owners may purchase (one of only seven) “estate lots” or choose from a variety of deluxe homes built to the company’s specifications: all residences – whether three-bedroom casitas, three-bedroom plus flex-room casas, or four-bedroom casonas – have at least 3.5 bathrooms, two terraces, a private swimming pool and both indoor and outdoor whirlpool spas. A limited number of casitas and casas allow for the construction of detached one-bedroom bungalows.

The largest new Riviera Nayarit project in the pipeline is for those with no plans to take possession of a Mexican residence anytime soon. Well-funded Rasaland Capital Investments (one of its institutional partners is Goldman Sachs) has begun infrastructure work on its 320-hectare La Mandarina project. The master plan calls for two hotels, a golf course, a marina, dozens of villas and hundreds of condominiums.

While there is no shortage of affordable condos of a similar style facing the water in Puerto Vallarta and Nuevo Vallarta, those can’t rival the nature-meets-ocean environment and pristine beaches found from the Punta de Mita peninsula heading north. For your dream home in a postcard-perfect setting, the Riviera Nayarit is a prime choice — and one with an international airport less than an hour away from your doorstep.