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The sales volume for luxury homes in Mr. Squire’s office is about 30 percent higher than it was at this time last year, he said, while prices are around 15 percent higher. Luxury two-bedroom condos with water views typically start at around $450,000, he said, although units farther from the water can go for as little as $250,000.
Wayne Franklin, the broker and owner of Tropicasa Realty, in Puerto Vallarta, said most buyers are interested in newer construction, and look for proximity to towns and services, as that helps them rent out the homes.
“Villa buyers are looking for space as well as the ability to rent,” he noted, “with a focus on being in turnkey condition in prime view or oceanfront locations.”
Who Buys in Puerto Vallarta
Warm weather, sandy beaches and tropical forests draw many visitors to the area, including foreign buyers looking for vacation or retirement homes.
Mr. Squire estimated that about 60 percent of the foreign buyers in the region come from the United States, with another 30 percent from Canada and the rest from Europe, particularly France, Britain, Italy and Germany.
But “Europeans are increasing faster in numbers than the Americans,” said Charles Tibshirani, senior partner and founder of MexLaw, a law firm with offices in Mexico and Canada.
To help attract foreign buyers, the government and private developers have been investing heavily in the area, Mr. Tibshirani said, upgrading infrastructure and adding tourist attractions. The first stage of a new cruise ship terminal in Puerto Vallarta, known as Puerto Mágico, is expected to be completed by year’s end and will include a shopping center and parking area.