Real Estate Market Report, 2017, Second Quarter, Jalisco / Nayarit
The first half of the year has flown by and we have the results from the first six months of the Puerto Vallarta and Riviera Nayarit real estate market in 2017. It has been a wonderful year so far filled with incredible weather, activities, theatre, concerts, parades and celebrations, and of course a busy real estate market.
Here is a comparison for the first half of 2017 compared with the first half of 2016.
The numbers of Condominium sales in Puerto Vallarta are up by 86% and sales volume is up by 88%. The average Condominium sales price is up by 1%.
The number of House sales in Puerto Vallarta are up by 79% and sales volume is up by 76%. The average sales price has dropped slightly by 6% due to extra inventory still on the market but representing some great opportunities to purchase at great value.
In general we had a super start to 2017 in Puerto Vallarta and the Riviera this year. In 2016 we had the obstacle of higher exchange rates for Mexican national buyers and Canadian buyers who have been looking at increases due to the exchange rates of up to 35% – 40%. Now mid year we have seen the exchange rate drop to about 18 pesos to the US dollar which is helping a bit for our National and Canadian buyers. Some that had been holding back on making their investments until exchange rates are more in line with previous levels have jumped into the market to be able to invest and protect their US dollars. Buyers have decided to go ahead and invest, but maybe in a different price range.
Additionally, an increase in visitors to Puerto Vallarta and Nayarit is impacting the hotel and rental market. The Puerto Vallarta Tourism Board reported that for the months of January through November of 2016, tourism volume increased 19% in Puerto Vallarta compared to the previous year. The constant influx of tourists arriving in Puerto Vallarta indicates a growth in demand for vacation rentals, which may also have an impact on home and condo sales as investors become more interested in maximising real estate potential in the region.
Vallarta Occupancy 2016: 70%
For Puerto Vallarta, 2016 was one of the best years in the tourist industry in the last 15 years, when it welcomed nearly four million international and national tourists, said the director of the Puerto Vallarta Tourism Trust (Fidetur ), Agustín Álvarez Valdivia.
Nayarit Occupancy 2016: 83%
Nayarit has more public and private investment of any state in Mexico, so it’s not surprising that we’re seeing rapidly increasing number of visits. Occupancy in Bahia de Banderas was 83.35% and visitors to Sayulita were up 112% from 2015 to 2016.
Vacation rental websites are strengthening property value
As you might guess, Puerto Vallarta and Nayarit have a very large short-term rental market. For this reason, vacation rental websites, such as Airbnb and VRBO, that allow property owners from around the world to capitalise on unused real estate are significantly increasing the value of properties in the region.These services are changing the way people look at property ownership, and therefore, changing the residential real estate market. Property ownership is now, more than ever, seen as an investment opportunity. Those wishing to own a vacation home in Puerto Vallarta / Nayarit can choose to rent their property when not in the country, until they decide to relocate full-time to Mexico.
Number One in Vallarta/Nayarit
Timothy Real Estate Group is happy to report that we have been the number one listing and selling agency in the Bay of Banderas for the last seven years which means we bring to the table our qualified, professional representation in all aspects of your real estate transactions. We offer talented negotiators and experts to make your experience joyful and satisfying. We have 6 sales centers across theBay of Banderas from Sayulita, Nayarit to Puerto Vallarta’s Romantic Zone. Please feel free to contact us for any questions regarding this market report.
Because the area has varying neighborhood personalities, we practice localized real estate. We believe neighborhood knowledge is a top factor in solid sales, and we know our communities well.
We believe buying or selling a home is first and foremost about people. Of course we have the latest technology, marketing tools, statistics and research, but a successful real estate transaction really comes down to people. Connecting the right buyers to sellers or investors, we structure solid transactions with successful solid outcomes. We believe in collaboration by connecting people in ways that bring satisfaction and success.
Contact us at Timothy Real Estate Group, a constant leader in Puerto Vallarta real estate.
+52 1 322.199.2704
+52 1 322.191.1888