The History of Mass Promotion in Puerto Vallarta
Much of everything began more than 50 years ago with a massive promotion that Puerto Vallarta had with a movie called: The Night of the Iguana by Director John Huston, where Richar Burton and Ava Gardner among others acted, this movie put Puerto Vallarta and the focus of American destinations for the Generation of the so-called Baby Boomers, a Generation with great purchasing power who generally had large families and they themselves passed on the tradition to their children of traveling and investing in Puerto Vallarta.
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Factors that Make Puerto Vallarta an Expensive City
Taking into account that the average flight from USA to PVR is 3 hours. It was expected that Puerto Vallarta will become the most expensive city in Latin America in terms of rents, and also in terms of price per square meter of sale, we are 1st Place with: (Romantic Zone and Punta de Mita Nayarit) , several factors have developed this situation.
Factors such as the geographical location, its people from PV, its seas, its rivers, mountains, that it is almost safe to walk down the street at any time, gay friendly. Its climate is not so much but after a few years you get used to summer and you really start to enjoy the color of the mountains in rainy and hot weather.
Gentrification in Puerto Vallarta
GENTRIFICATION, its reason: The beginning of the greatest or most recent gentrification was at the beginning of 2020 with the beginning of the Corona Virus, many companies closed their offices and dedicated themselves to home office, a way of working from home or from anywhere. place with an Internet connection, many foreigners chose to come to live in PV, renting long-term properties that generally cost them much less than renting in a city in America or Canada.
After that year, prices rose uncontrollably by 30% or more per year, (some real estate agents also influenced this price increase, promising future condo owners that they would receive income of up to 20% per year from the total cost of your property, when that is pure illusion…
Analysis of Rental Prices in Puerto Vallarta
A Study that I do every year to future owners who ask me for an Analysis of Rental Prices in Puerto Vallarta for properties in different areas of the Bay of Puerto Vallarta shows how the total annual income of a condominium-type property with purchase values between $300,000 usd to $600,000 usd in areas such as: 5 de Diciembre, Conchas Chinas, Amapas and Versalles shows approximate rental income of 8% to 15% annually of the property price (These rentals can be long-term or vacation and seasonal or combined).
Now the dilemma is what to do at the moment when it seems that the long-term rental market is stagnant, and only properties less than $1,000 USD per month are the ones that have the most movement.
Tips for Property Owners
My advice is as a property owner to adjust to the market, that means that if the market does not move enough because it reaches the point where the properties have reached their maximum cost, then the best thing would be to lower the price, I advise 10% to start. and consider going up to 25% less. What do I base this advice on, as the owner of Puerto Vallarta Property Rentals Statistics show that my page is visited by approximately more than 50% Americans and 30% Canadians and the rest from Mexico.
With this he explained that the majority of our clients are Americans, most of the prices were based on what the American could pay, now that their currency is 25% lower compared to May 2020 https://g.co/finance/USD-MXN?window=5Y It would be a good idea to lower prices to the bubble that we have all created either because we are greedy, uninformed or believing that our property is worth it.
Adjust to New Market Realities
The idea is to inform the owners that the market is going down and we have to adjust, showing them this information, asking the owners if they will pay what they ask for their property. And finally, asking customers if the price is too high for them to give us an offer. With this I hope to do my bit to improve the situation and not become known abroad as the most expensive city in Mexico. Thank you!
Ernesto Flores – Owner of Puerto Vallarta Property Rentals (15 years of experience in Rentals and Real Estate).
