Puerto Vallarta Real Estate | July 2009
|Mexico's Next Big Tourist Destination|
Ronan McMahon - NuWire
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July 07, 2009
While investors have been very successful with real estate investments in destinations like Cancun, Los Cabos, and Puerto Vallarta, opportunities tend to decrease as the markets mature and become increasingly crowded. Fortunately, the Mexican government is currently investing in developing new destinations to attract tourism and new investment.
|Just north of Puerto Vallarta, along a stunning stretch of coast know as The Riviera Nayarit, the Mexican government is investing $1.5 billion to improve accessibility and develop tourism infrastructure.|
The Mexican government is investing $1.5 billion in a stretch of Mexican coast. This is a real estate opportunity you could profit from.
Infrastructure improvements are one of the biggest drivers of overseas real estate values. I’m talking airports, roads, bridges, and cruise ship ports. Anything that improves the accessibility of a piece of real estate makes it more desirable.
The development of tourism infrastructure also drives values. Golf courses, hotels, man-made beaches, boutiques, restaurants, and marinas all bring visitors. Of course it helps if the infrastructure improvements happen in a place with a great climate and a short flight from major affluent population centers.
Just north of Puerto Vallarta, along a stunning stretch of coast know as The Riviera Nayarit, the Mexican government is investing $1.5 billion to improve accessibility and develop tourism infrastructure.
The section of government responsible for this is called the "National Trust Fund for Tourism Development." Founded in the 70's, its brief is to create jobs and increase foreign revenue by backing tourism resorts. They think big. These are the guys who set their sights on a coconut plantation as the site for their first major project. Only known by a few local fishermen back then, you've probably heard of it today: Cancun.
Resorts backed by this section of the Mexican government dramatically outperform other beach resorts in terms of visitor numbers, room occupancy, and appreciation in real estate values.
The Riviera Nayarit covers the Pacific coast north of Puerto Vallarta to San Blas. By 2020, the government expects 14,000 hotel beds and 1 million annual visitors.
Nayarit won’t be a carbon copy of Cancun. Although Cancun was a huge success, its development wiped out any trace of traditional Mexican charm or authenticity. In Nayarit, height restrictions, density regulations, and stricter zoning will help make the resort more sustainable than Cancun.
Many development groups make bold promises about infrastructure and amenities. But this branch of Mexico's government gets it done. They bring the tourists. Jump into their slip stream, buy early-in pre-construction, and kick back while they do the work. Before you know it, the piece of Nayarit you bought will be part of a mega and high-end resort. Hopefully you’ll be sitting on a tidy profit.
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Ronan writes International Living’s Real Estate Trend Alert and regularly contributes to International Living’s print and online publications. Ronan has travelled to 15 countries in the past 12 months alone following real estate trends with the potential for profit. Instinct, experience and an unrivalled black book of contacts give him access to the inside track to unique profit opportunities.