La Paz, Baja California Sur, Mexico - Welcome to The Settlement Company's Third Quarter Mexico Resort Real Estate Newsletter. This quarter's biggest news was sad. That was the devastating Hurricane that hit the Baja Peninsula on September 14, 2014. On the positive side, a new Global Mexico Real Estate Institute was launched.

Also this quarter the Guadalajara Section of the Mexican Association of Real Estate Professionals (AMPI) held its annual FORO Conference. We also have updates on the real estate markets in Playa del Carmen, Tulum, and Puerto Vallarta.

Hurricane Odile Deals a Devastating Blow to Baja California Sur

As I write this, a massive cleanup operation is underway in Baja California Sur. There are too many heroes to be named. Mention must be made of the Mexican armed forces. Two navy cargo ships came to Pichilingue (Port for La Paz), and the Electrical Commission (CFE) arrived with heavy equipment and transformers in a convoy of trucks.

The army and Mexico's new Gendarmerie are proving security for all and helping restore Los Cabos to its former glory... The three levels of police united to put an early end to some looting that broke out on the first day, and was quickly nipped in the bud. Later thieves would be captured as they entered La Paz with stolen goods to sell. Local police were touring the poor neighborhoods, and driving those without vehicles and took the markets for food and water.

The two airports were closed (La Paz quickly opened) for commercial traffic. The Mexican air force came into Los Cabos with aid and to evacuate the 30 or 40,000 tourist that had been stranded. In addition, American Airlines Alaska, Delta Southwest, Virgin and others got involved in both bringing supplies and the mass evacuation. I saw one photo of an Alaska plane with its seats full of bottled water rather than passengers.

Most hotels will reopen in November. Airlines are flying into La Paz, where damage was less severe and will soon be flying into Los Cabos. The recovery and clean up is underway. B.C.S. will soon be ready for the Winter tourist season.

Our sympathy is with the hotels, restaurants, merchants and citizens who lost so much, and our appreciation goes to the many organizations who have organized fund raising activities. One of these is the International Community Foundation. They have set up a special hurricane relief section. Please visit icfdn.org for details as to how you can help.

BREAKING NEWS: The international airport at San Jose del Cabo re-opened on October 3, five days ahead of schedule.

Real Estate Institute Launched in Mexico

The recently formed Global Mexico Real Estate Institute, a bi-lingual, bicultural organization dedicated to delivering international education to the Mexican real estate industry established by a group of high profile Mexican realtors, will focus on courses offered by the National Association of Realtors® (NAR), but not be limited to NAR courses. Click HERE to learn more, or HERE for a full list of courses to be offered in 2015.

2013-2014 Riviera Maya Real Estate Market Update
Source: Top Mexico Real Estate

TULUM: Development in the downtown area of Tulum was slow in 2012 due to projects being built in jungle and rural settings. This caused concern because most of these developments were built on Ejido land, in addition to a lack of infrastructure and services. But in 2014, Aldea Zama started work on a master planned community near the beach with infrastructure and full services. This development initiated a booming real estate movement in the Tulum area. Several area developers have started very interesting projects, increasing the supply of properties by 94%. Developments are increasing in size, moving from a 6-8 unit complex in average to up to 82 units on each complex. The size of the condos has also increased causing the average price of condominiums to increase from $180,000 to $210,000 USD. These new trends are making Tulum a magnet for investors and developers, and converting the area into an ideal place to buy property and expect a high financial return.

PLAYA DEL CARMEN: Playa del Carmen has had a steady development and growth for several years. The influx of tourists seeking vacation rental properties either for short or long periods continues to grow and strengthen, making of Playa del Carmen an ideal destination for investors. There have been several developments in the touristic areas of Playa del Carmen: some work with a condo-hotel scheme that allows you to enjoy your condo and make a profit the rest of the year. These are practical small units, with a lower total price, which allows a smaller investment with better returns every year. There are two trends in the Real Estate Market in Playa del Carmen. Smaller apartments are in the downtown area with bigger units on the outskirts of the city. Sales have soared, but average property prices have dropped from an average of $461,000 USD in 2013 to $356,000 USD this year.

Puerto Vallarta Market Update - 2013 versus 2014
Source: Tropicasa Realty

The real estate market in the Bay of Banderas region, to include Puerto Vallarta, Nuevo Vallarta, Bucerias and beyond, have experienced a significant increase in sales activity this year over last. Buyers in all sectors have a renewed interest in buying and a sense of urgency seems to be creeping back to the marketplace. Part of that is that some of the "best deals" are either gone or seemingly on their way out, and thus, the market seems to be turning a corner toward the better. In addition, new construction has seen a resurgence and buyers are much more confident to venture into preconstruction projects again. That said, pricing and location are critical - not just any new development will have success. Click HERE to read more.

REALTORS® Gather in Guadalajara

More than 700 attended the 23rd Annual FORO of the Guadalajara Section of the Mexican Association of Real Estate Professionals. Most of those in the audience were from the Guadalajara region. Others came from Mexican states, including Baja California Sur, Mexico City, Michoacán, Tabasco, and Zacatecas. The day was full of informative and thought-provoking presentations and a Trade Show. Click HERE to read more.

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John Glaab is Director, International Marketing at The Settlement Company, Mexico's oldest title and escrow company. A Certified International Property Specialist, he is a founding member of AMPI Los Cabos and the new Global Mexico Real Estate Institute. In 2012, John was named the International Real Estate Member of the Year by NAR. For further information, contact John at John.Glaab(at)settlement-co.com.