The Puerto Vallarta Banderas Bay region of Mexico has become one of the most coveted places in the world to own real estate. Moreover with new laws that make it simple and safe for non-Mexicans to own coastal property (land, homes, condominiums) in Mexico, this trend is just beginning.
Banderas Bay (Bahia de Banderas - the Bay of Flags), rests protected by the Sierra Madre mountains, as the largest natural bay in Mexico. There are over 40 miles of coastline, most of which is coral sand beachfront dotted with intimate coves and cliffs.
Puerto Vallarta International Airport is only 3 hours from Los Angeles, just 4 hours from Chicago, and about an hour and a half from Mexico City. There are direct flights from many major cities throughout North America. In fact, in the past few months new flights include budget service from Denver, Colorado and Las Vegas, Nevada.
It has never been easier to find paradise. It has never been easier to enjoy the unspoiled tropical coastline of of the bay, and the lush tropical jungles that carpet the Sierra Madre Mountains, - mountains that surround, protect and frame the many villages of Bahia de Banderas.
While ocean front properties will always command the ultimate praise of many, others are opting for choice mountain properties with breathtaking views of open ocean, bay and palm filled jungle. With such a vantage point it becomes easy to finally understand what paradise was meant to be.
It is said that years past every mountain ridge was home to the majestic jaguar, ruling over the abundant wildlife of the Sierra Madres. Today the jaguar can only be found high up in the most remote portions peaks of the mountains, but much of the pristine flora and fauna remain. A balance of ecology blends nature with the works of man to create a veritable Eden of unsurpassed beauty for a select few to live, visit and enjoy.
Banderas Bay represents Mexico’s second largest tourist destination extending from Cabo Correintes, its Southern tip, to Puerto Vallarta in its center and Punta de Mita its Northernmost point. Popular tourist villages within the bay include Nuevo Vallata, Bucerias and La Cruz de Huanacaxtle. Further north along the open ocean are the villages of Punta Negra, Higuera Blanca, Litibu, Sayulita, San Francisco (called San Pancho), and Lo de Marcos to name a few.
Unprecedented growth and development are rapidly taking place in the Northern part of the bay and beyond. Premiere developments include the world renowned Four Seasons Resort, Punta Mita; the Rosewood Resort; the Mayan Palace, Higuera Blanca/Litibu; and a recently announced mega development project of FONATUR (the Mexican tourist development bank), in Higuera Blanca/Litibu that will include several world class hotels, an 18 hole PGA golf course, hundreds of condominiums and private villas, a modern shopping facility and an extensive road expansion.
The luxury development boom has brought with it world-class quality and standards. Mexico’s best architects, builders and artisans are creating imaginative and stunning homes along the Pacific coastline, as are talents from around the world.
Many of the most exclusive and stunning projects are taking place in the areas around Punta de Mita and Higuera Blanca. Here properties tend to be larger and home density is much lower. In certain areas, density is controlled and is as low as nine bedrooms per 2.5 acres. This keeps the number of landowners down and encourages development of high-end living. The availability of larger land parcels suitable for estate lots is one of the key reasons that Punta de Mita and Higuera Blanca properties are increasing rapidly in value. Much of the land in this area was Ejido (without title and certain ownership) until the latter part of 2004. This means that this land is only recently available for purchase by most foreign investors.
Pristine beachfront property can be as much as $2 million dollars per acre. View lots around Higuera Blanca have recently sold for as much as $1,500 per square meter. This particular sale involved over 50 acres! Nevertheless, beautiful view properties are available and within reach to the average buyer -- at least for the moment.
The best and most straight forward way to understand prices and the real estate industry in general is to ask existing owners how they purchased their property, and to share their experiences. Unless you are talking to people living within exclusive develpments where it is difficult to buy apart from an agency -- very few owners will say "I used a real estate agency, and I recommend you do the same!" Buying direct is the best way to go whenever possible. Knock on some doors, ask people on the street about available properties, check the local Spanish papers and of course browse BanderasBay.com listings! When a deal presents itself, check all the details, use an attorney to double check the facts and paperwork, and move fast. Don't delay.
Think about it. Prices are increasing rapidly. If a deal is solid and the price is significantly under market value, the owner either needs cash, or is selling with last year's prices in mind. In either case the deal can slip away very quickly. Move fast but check out all the facts with an attorney. Don't do stupid things you would never do back home. Do not give a deposit without a receipt. Make sure the sellers name is on the papers as the owner. Nearly all land and property deals in this area of Mexico are above board and honest. Most sour deals involve a buyer who did not worry about the facts or the details.
Mexican, North American, Spanish, French, Italian and more recently Japanese investors have put their money into the Banderas Bay area and the Bahia de Banderas municipality. The first group of luxury home owners have typically come from California, particularly Silicon Valley and Hollywood. However there is now an influx of buyers from the Midwest and Canada as well. Land prices have increased significantly every year for the past 5, and high price increases are expected to continue for years to come.
Right now the Banderas Bay attracts over 3-million tourists per year and has a population of about 325,000. According to Puerto Vallarta and Banderas Bay tourism professionals, the number of tourists in the next 20 years will exceed 6 million per year and the population will more than double in size.
The Mexican government is making the Banderas bay its priority. It hopes to keep the infrastructure growing to accommodate the ever increasing number of new homeowners. Electricity, water treatment, telecommunications, airports, and highways are just some of the areas being addressed right now. The Mexican government has also changed some of the real estate laws. Now it is easier for foreigners to buy and develop property in Mexico.
The average number of sunny days per year is 300. And with an average yearly temperature of 85 degrees, you can almost always enjoy the great out-of-doors. In fact, Banderas Bay has weather patterns very similar to those of Hawaii. Even summer temperatures which have traditionally been considered hot, are much more mild than summer highs in Chicago or New York.
The area has seven spectacular golf courses, designed by some of the world’s top architects, including Jack Nicklaus and Tom Weiskopf. Banderas Bay has already earned a reputation as a world-class golfer's destination.
With miles of coastline offering lazy days on the beach as well surfing, snorkeling, parasailing, boating, fishing, kayaking, and whale watching, and lush tropical jungles providing canopy tours, hiking, camping, horse back riding and bird watching, Banderas Bay is a destination of unsurpassed beauty and particular note.
It is precisely this quality that developers and planners work to preserve. Many luxury homebuyers gravitate to these ecologically sound and conservation friendly communities. Such eco-tourism is a fast growing industry that can bring as much as 1 billion dollars a year in revenue to the state of Nayarit alone.
The Punta de Mita - Higuera Blanca area is serene and tranquil but only a short distance away from Puerto Vallarta, which is a delightful mix of the old and the new, and provides everything you would expect in a world-class tourist destination.
As the region’s largest city, there are hundreds of restaurants offering atmospheres from casual bistros to fine dining - with chefs from all over the world. Puerto Vallarta also offers a spectacular nightlife for both alternative and general tastes. You can enjoy quiet conversation, stroll along the Malicon, catch a show, and dance till dawn.
Many artists have found inspiration in the Puerto Vallarta area. There are dozens of important art galleries to check out with works in a number of mediums. The only city in Mexico with more is the capital. Banderas Bay can be as exciting, or laidback as you like.
Savvy investors will look at properties in the Banderas bay area as lucrative investments, especially during times of global economic uncertainty. While interest rates and stock dividends dive, land appreciation continues to escalate. Taking Higuera Blanca as an example, in 2001 an acre of land with both ocean and jungle views could be purchased for $8,000 USD. In 2002 investors were lucky to find properties at $15,000 an acre. This figure increased to $30,000 in the tail end of 2003 -- months before the public announcement of the FONATUR mega development project in Higuera Blanca/Litibu. In June of 2005 the best price one could hope for was $40,000 USD per acre on a quick cash sale and more usual asking prices were closer to $60,000 USD per acre. In June of 2007, expect to pay $450,000 USD for large premium view 2.4 acre lots, or $175,000 and up for small 1,000 meter lots in neighboring Sayulita.
In 2006 the La Cruz de Huanacaxtle marina was approved and indeed construction is almost competed (June 2007). Average prices for home lots in la cruz were $200 USD per square meter in June of 2007.
Phase I of the highway expansion between La Cruz and Punta de Mita has been completed, as has the new highway between Punta de Mita and Higuera Blanca/Litibu which extends all the way to Sayulita!
The Brias Vallarta development (55 hectareas behind Punta Esmeralda) is well under way with hundreds of villas and condos under construction - as well as a beach club sporting a 300 meter long pool!
Hundreds of the expected 3,000 homes going on the outskirts of bucerias (middle income - Terralta) are completed as are dozens of comercial units for business purposes.
The world famous Real Del Mar Group has announced plans for luxury condos in La Cruz -- called La Joya Huanacaxtle. In addition, they have announed a new tourist luxury pueblo to be built in the foothills behind la cruz -- dubbed Alamar - this new luxury town is expected to be 5-star in quality.
The entire region from Punta de Mita to San Blas has been re-named as the Riviera Nayarit - The full force of the Mexican government is behind making this Mexico's premier tourist destination. Before long it could surpass Vallarta as a tourist destination. Higuera Blanca and Resort Litibu are right in middle of this new tourism corridor.
While prices continue to rise, comparable properties in other ares of the world are several times more expensive and often carry enormous property taxes as well. Just try to buy an oceanfront villa in San Diego for $750,000 USD. Thats about what you will need for your earnist money alone. And if your thinking comparing San Diego to Banderas Bay is comparing apples to very small oranges you have not been to San Diego or Banderas Bay lately! The differences are rapidly disappearing.
The investment opportunity of a lifetime... Find your place in paradise before its too late!
