The real estate development boom in Nuevo Vallarta

The real estate development boom in Nuevo Vallarta

The growth in the entire Banderas Bay is a consolidated reality due to several factors:

1. The avalanche of buyers, both national and foreign.

2. The investment of the private sector, in the first place due to the demand of clients for the real estate product.

3. The paradisiacal environment of this destination, which is incredibly inexhaustible.

4. The investment in infrastructure such as the GDL-PVR highway, the remodeling of the Maritime Terminal for Cruise Ships “Puerto Mágico” and the expansion of the International Airport.

If we intertwine these four factors, we must talk about the fact that the destination has been transformed from the beginning by the demand of buyers, or tourists who began to see a wide range of lodging options thanks to all the platforms for renting houses and condos, and on the other hand the hotels that present a very appealing palette of services and experiences. 

Many tourists have decided to choose the destination to invest their money in vacation rental properties, or just to increase their investment due to the high capital gains of the region. 

The demand was such, that one of the most successful segments today is pre-construction. As the built inventory is becoming scarce, the price has been rising as well as the return for investors who bought in pre-construction, obtaining profits of between 40% to 100% depending on the development.

So for a potential client or tourist, it has become an incredibly attractive business, because they can enjoy it when they come to the destination to stay at their own property, while earning an additional income from vacation rentals when they do not occupy the property. As a result, the increase in their investment grows ostensibly.

This “Snowball” phenomenon, consequently, drags more developers and investors, to build products to satisfy that purchase demand and behind as always, are the municipal, state and federal governments that contribute with works as a domino effect.

That is why we speak of “reality” of a “here and now” in this inexhaustible paradise of exuberant nature, rich culture, friendly environment and now also a constant possibility of doing excellent real estate business.

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