Puerto Vallarta and The Riviera Nayarit
Located on the Mexican Pacific side at the border between the states of Jalisco and Nayarit, Puerto Vallarta is located by the Bay of Banderas (Bahia de Banderas). The area attracts a lot of tourists, snowbirds and digital nomads during the whole year thanks to the nice climate.
From a real estate point of view, a huge positive is that the area is a branded international destination, as is the Riviera Maya. Moreover, the geography means that there is a limited amount of land available to build, which should be favorable for the supply/demand balance and therefore future rental income and capital appreciation.
Puerto Vallarta
For decades, Puerto Vallarta has been a go-to vacation hotspot for Americans, Canadians, Europeans, and middle- and upper-class Mexicans. Together with the neighboring Riviera Nayarit, the city is the second most popular beach destination in Mexico, after the Riviera Maya.
It’s a hopping place, with whale watching, sport fishing, golfing, dining out, sunset cocktails on the beach, shopping, live entertainment like Broadway-style shows, jazz bands, and more. It is all the fun visitors like. There is something for every age group and type of person, which we like to see.
While the international connectivity of the airport is excellent, tourists also arrive by boat. Puerto Vallarta’s cruise ship terminal can and does handle three ships at once.
When it comes to real estate, the main areas that attract the most visitors are El Centro, Old Town and the Zona Romantica, which is the most popular. Those are also the most popular zones for expats. South of those, you will find Amapas and Conchas Chinas which are more exclusive due to their hillside location and the majestic views of the bay.
Real estate here can be quite pricey compared to most of Mexico, which does not mean that they are expensive, especially compared to the US or Canada. This is especially true for condos centrally located in town, where you are close to everything visitors want to do. There are plenty of people willing to pay top dollar as they come to Puerto Vallarta, fall in love with the lifestyle, and buy. Much of the old town, with its charming cobblestone streets, pleasant parks and plazas, historic buildings, and miles-long seaside promenade (malecon) became so hot it has been maxed out, which results in higher prices.
With a very large unleveraged average rental yield of around 10%, the rental market is very strong, which compensates for the higher prices. Buy the right piece of property and you can do even better. Also, as prices continue to rise as the area gains in popularity, significant capital gains can be had. The adjacent Riviera Nayarit (discussed below) can provide a great alternative with lower prices in spite of the strong rental market.
Puerto Vallarta
For decades, Puerto Vallarta has been a go-to vacation hotspot for Americans, Canadians, Europeans, and middle- and upper-class Mexicans. Together with the neighboring Riviera Nayarit, the city is the second most popular beach destination in Mexico, after the Riviera Maya.
It’s a hopping place, with whale watching, sport fishing, golfing, dining out, sunset cocktails on the beach, shopping, live entertainment like Broadway-style shows, jazz bands, and more. It is all the fun visitors like. There is something for every age group and type of person, which we like to see.
While the international connectivity of the airport is excellent, tourists also arrive by boat. Puerto Vallarta’s cruise ship terminal can and does handle three ships at once.
When it comes to real estate, the main areas that attract the most visitors are El Centro, Old Town and the Zona Romantica, which is the most popular. Those are also the most popular zones for expats. South of those, you will find Amapas and Conchas Chinas which are more exclusive due to their hillside location and the majestic views of the bay.
Real estate here can be quite pricey compared to most of Mexico, which does not mean that they are expensive, especially compared to the US or Canada. This is especially true for condos centrally located in town, where you are close to everything visitors want to do. There are plenty of people willing to pay top dollar as they come to Puerto Vallarta, fall in love with the lifestyle, and buy. Much of the old town, with its charming cobblestone streets, pleasant parks and plazas, historic buildings, and miles-long seaside promenade (malecon) became so hot it has been maxed out, which results in higher prices.
With a very large unleveraged average rental yield of around 10%, the rental market is very strong, which compensates for the higher prices. Buy the right piece of property and you can do even better. Also, as prices continue to rise as the area gains in popularity, significant capital gains can be had. The adjacent Riviera Nayarit (discussed below) can provide a great alternative with lower prices in spite of the strong rental market.
The Riviera Nayarit
As Puerto Vallarta was getting maxed out, it could not expand along the coast towards the South, as the Sierra Madre meets the Pacific Ocean there. Therefore, the expansion went the other way over the border with the state of Nayarit and Nuevo Vallarta was created. The expansion is continuing northward with the support of the government through big infrastructure projects to boost tourism and further improve accessibility.
The Riviera Nayarit stretches beyond the northern part of Puerto Vallarta in the state of Nayarit over 192 miles of coastline with around 20 coastal towns. Nuevo Vallarta, Punta de Mita and Sayulita are those who attract the most visitors, especially foreigners.
Initially, Puerto Vallarta and the Riviera Nayarit were marketed together under Puerto Vallarta – Riviera Nayarit by the Mexican government. This made sense given the proximity and the common airport. Given the success of the Riviera Nayarit, it has become a destination in its own right and it is now being marketed separately. Nayarit’s new governor has even decided to rename Nuevo Vallarta Nuevo Nayarit, as Nayarit has become a recognized brand name alongside Puerto Vallarta.
The government is attracting many new luxury hotels and residential developments to position the Riviera Nayarit as a new capital of luxury in Mexico. There is already Punta Mita, the gated community of the wealthy with the Four Seasons and the St. Regis. They are creating a second such community, Costa Canuva further up north. It will house the Fairmont and the Ritz-Carlton.
Also, the new highway that will link Puerto Vallarta and Mexico’s second city Guadalajara, the region’s main source of visitors, is almost complete. It will significantly cut the travel time between the two cities. It will pass along the Riviera Nayarit and significantly increase its accessibility from Guadalajara but also by cutting the travel time to Puerto Vallarta and the airport as well.
There is clearly a path of progress that will support the rental income and capital gains in the Riviera Nayarit for years to come. This is very interesting because, aside from the luxury enclaves, the price point is generally lower than in Puerto Vallarta itself while the rental income is still there, although not as high.
The Mexican government, through its FONATUR tourism development agency, has a great track record developing little stretches of this country’s coast. Paying attention to where FONATUR is moving and investing accordingly is a great strategy that has worked and is still working throughout Mexico.
The Riviera Nayarit
As Puerto Vallarta was getting maxed out, it could not expand along the coast towards the South, as the Sierra Madre meets the Pacific Ocean there. Therefore, the expansion went the other way over the border with the state of Nayarit and Nuevo Vallarta was created. The expansion is continuing northward with the support of the government through big infrastructure projects to boost tourism and further improve accessibility.
The Riviera Nayarit stretches beyond the northern part of Puerto Vallarta in the state of Nayarit over 192 miles of coastline with around 20 coastal towns. Nuevo Vallarta, Punta de Mita and Sayulita are those who attract the most visitors, especially foreigners.
Initially, Puerto Vallarta and the Riviera Nayarit were marketed together under Puerto Vallarta – Riviera Nayarit by the Mexican government. This made sense given the proximity and the common airport. Given the success of the Riviera Nayarit, it has become a destination in its own right and it is now being marketed separately. Nayarit’s new governor has even decided to rename Nuevo Vallarta Nuevo Nayarit, as Nayarit has become a recognized brand name alongside Puerto Vallarta.
The government is attracting many new luxury hotels and residential developments to position the Riviera Nayarit as a new capital of luxury in Mexico. There is already Punta Mita, the gated community of the wealthy with the Four Seasons and the St. Regis. They are creating a second such community, Costa Canuva further up north. It will house the Fairmont and the Ritz-Carlton.
Also, the new highway that will link Puerto Vallarta and Mexico’s second city Guadalajara, the region’s main source of visitors, is almost complete. It will significantly cut the travel time between the two cities. It will pass along the Riviera Nayarit and significantly increase its accessibility from Guadalajara but also by cutting the travel time to Puerto Vallarta and the airport as well.
There is clearly a path of progress that will support the rental income and capital gains in the Riviera Nayarit for years to come. This is very interesting because, aside from the luxury enclaves, the price point is generally lower than in Puerto Vallarta itself while the rental income is still there, although not as high.
The Mexican government, through its FONATUR tourism development agency, has a great track record developing little stretches of this country’s coast. Paying attention to where FONATUR is moving and investing accordingly is a great strategy that has worked and is still working throughout Mexico.
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