There’s a lot of building going on in the Puerto Vallarta real estate market these days. Hotels, resorts, and condominiums are all being constructed in anticipation of the flock of retirees from all over the world who will be taking steps to call Puerto Vallarta “home.” With the sheer amount of building in Puerto Vallarta, one has to ask whether Puerto Vallarta is being “overbuilt” and if so, what will be the effect on the market?

It’s entirely possible that Puerto Vallarta is being overbuilt. These condo projects will be finished in a short amount of time. By itself, that should lead the casual observer to conclude that the price of Puerto Vallarta real estate will stagnate or decline as developers try to sell off a massive oversupply of housing.

In reality, the population of Puerto Vallarta, which now stands at 350,000, will grow to about 600,000 in the next seven years. The increase will consist of many retirees from all over the world who are looking to retire and beat the high cost of living at the same time. Additionally, Mexican citizens will also move to Puerto Vallarta and the surrounding areas to take advantage of the steady labor demands, jobs that support the tourist economy, construction jobs and jobs created as the result of the increase in population.

If Puerto Vallarta is overbuilt, it won’t stay that way. What will happen, however, is that the availability of land on which new homes can be built will decrease. Resorts, hotels and condominiums will occupy coastal properties in Puerto Vallarta, so residential property that overlooks the ocean will be in special demand. Investors will be forced to look farther up the coast for property on which to build luxury real estate and the price of existing real estate will skyrocket.

If anything, the time to buy land around Puerto Vallarta is right now. Investors can take advantage of this temporary oversupply to get the best price on coastal real estate. Buy building a new home instead of buying existing properties, investors can take advantage of the large anticipated jump in real estate prices along the Pacific Coast.

Photo Credit: Petr Kovar

Everyone wants to own property in Puerto Vallarta these days. Baby boomers are planning for retirement and confronting the possibility that they may not have sufficient assets to cover their retirement dreams. The threat of recession along with the decline in value of traditionally safe real estate holdings and retirement accounts is making people wonder whether they can even consider retirement. The good news is that sales of luxury real estate in Puerto Vallarta are as strong as they’ve ever been.

What does luxury real estate in Puerto Vallarta have to do with retirement? A lot, if you’re trying to make up ground for recent losses or a late start on retirement savings. Select Mexico Properties is selling a small number of luxury ocean-view properties in San Pancho. The investment potential in the near- and mid-term for these properties is very high.

Puerto Vallarta has seen double-digit growth in the past ten years in property values here. That rate of appreciation is expected to continue for at least the next five. Thanks to the onset of retirement for Baby Boomers from all over the world, Puerto Vallarta is expected to nearly double in size. Condominium projects are being built here by the dozen as developers try to take advantage of the southward migration.

The best investment potentials won’t be in high-rise condominiums, though. Regardless of their location in the city, the choicest residential properties – those with the highest return potential – are located north of the city. Residential development here is sparse, and the properties are much more valuable because, quite simply, they’re nicer. When you combine this luxury real estate in Puerto Vallarta with beautiful residential design and engineering, you end up with a showplace home that’s surprisingly affordable, and far more comfortable and relaxing than a high-rise apartment-style condominium.

If living in Puerto Vallarta is your goal, then you might do well with a property inside the city, but if living comfortably while making an excellent return on your investment is what you’re aiming for, then you’ll find the highest-quality luxury real estate north of Puerto Vallarta.