Buying a property in Puerto Vallarta: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Puerto Vallarta's property market is included in our pack

Thinking of investing in real estate in Puerto Vallarta? You're not alone!

Many people are fascinated by Puerto Vallarta's coastal charm and dream of owning a luxury villa or a modern apartment in this city.

Does it make sense, though? Are property prices increasing in Puerto Vallarta? What is the current trend? Is it wiser to invest in Zona Romántica or Marina Vallarta? Are there any hidden fees? Which places offer rental yields exceeding 7%?

In this article, everything is sorted out for you.

At TheLatinvestor, we've really dug into this market. As a matter of fact, we've compiled all our findings in one pack. Get it now.

In the lines below, we'll share useful information and some practical tips.

How's the property market in Puerto Vallarta?

What's the current state of the property market? Data will give us the insights we need.

Types of properties

In Puerto Vallarta, you can find various types of properties for sale.

These include beachfront condos that offer stunning ocean views and easy access to the beach, charming and colorful townhouses in the heart of the city's historic district, modern and spacious homes in residential neighborhoods with amenities like pools and gyms, as well as luxurious villas nestled in the hills, providing privacy and panoramic vistas of the surrounding landscape.

Whether you're looking for a cozy vacation retreat or a permanent residence, Puerto Vallarta offers a diverse range of properties to suit different preferences and lifestyles.

Should you buy or rent?

(If you want to live there yourself and not rent it to others)

Whether you're considering settling in Puerto Vallarta or already living there, you might be thinking about the pros and cons of buying versus renting a property in this Mexican paradise.

Generally, buying is a better choice than renting in Puerto Vallarta due to the increasing property values and the potential for rental income.

In contrast, for those who seek flexibility, renting is the recommended option.

Property prices in Puerto Vallarta

On average, according to the updated data from National Institute of Statistics and Geography (INEGI), purchasing a property in Puerto Vallarta would cost you around $3,800 per square meter.

Clearly, there is a substantial range. The value of a square meter for a beachfront property in Puerto Vallarta might differ from an apartment in Marina Vallarta. You'll get a more detailed in our pack for buying property in Puerto Vallarta and in Mexico.

To give you some context, it means that, instead of buying an apartment in New York, you can get almost 4 properties in Puerto Vallarta.

Also, housing prices in Puerto Vallarta are 10% cheaper than in Cabo San Lucas.

The most expensive neighbourhoods in Puerto Vallarta are probably Conchas Chinas, Mismaloya and Alta Vista, while the cheapest ones are probably El Pitillal, Las Juntas and Gaviotas.

Trends

First and foremost, we have to acknowledge that Mexico is, today, a relatively stable country. The last Fragile State Index that has been reported for this place is 70.3.

It is something to have in mind when wondering whether it's a good investment to buy a property in Puerto Vallarta.

Also, according to the International Monetary Fund (IMF), Mexico's economy is expected to soar by 8.3% in the coming 5 years, resulting in an average GDP growth rate of 1.7%.

If you intend to invest in real estate in Puerto Vallarta it's a good thing because when the economy grows, people often experience an increase in wealth, it typically translates to a surge in housing costs.

Also, in Mexico, the average GDP per capita has changed by -3.6% over the last 5 years. It's not a good number.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Mexico right now.

Buying property in Puerto Vallarta

Buying real estate in Puerto Vallarta can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Puerto Vallarta and in Mexico.

Buying process

Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.

Now, we're providing you with a simplified version.

This is the step-by-step process to purchase a property in Puerto Vallarta:

1. Research properties and determine your budget.
2. Hire a local real estate agent familiar with Puerto Vallarta's market.
3. Visit properties to find the right one; ensure they have a valid "Ejido" or "Fideicomiso" title if in restricted zones.
4. Make an offer and negotiate the price; draft a "Contrato de Compraventa" (purchase agreement) with the help of your agent.
5. Sign a "Letter of Intent" and provide an "Arras" deposit (earnest money).
6. Conduct due diligence on the property, including checking for liens and encumbrances.
7. Obtain a "No Objection Certificate" if buying near the coast to verify non-foreign investment restriction compliance.
8. Secure financing or explore payment options; consider opening a local bank account.
9. Perform the final walkthrough and inspect the property's condition.
10. Close the transaction before a "Notario Publico" (public notary) who oversees legal formalities and title transfer.
11. Transfer funds to the seller and pay associated taxes and fees.
12. Register the property with the Public Property Registry to complete the acquisition legally.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Mexico.

Make a profitable investment in Puerto Vallarta

Better information leads to better decisions. Save time and money. Download our guide.

Download Now

Where to find a property

Explore these websites to find properties in Puerto Vallarta:

• Mexico Real Estate Group - A multilingual real estate brokerage specializing in luxury properties in Mexico, catering to international buyers and investors.
• Top Mexico Real Estate - A professional real estate agency dedicated to helping American and Canadian buyers find their dream homes in Mexico.
• Bay Realty Mexico - A local real estate agency with over 15 years of experience in the Puerto Vallarta and Riviera Nayarit real estate market.
• Cochran Real Estate - A boutique real estate agency specialized in assisting buyers and sellers in Jalisco and Nayarit, Mexico.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Mexico.

What properties?

As mentioned before, the average price per sqm in Puerto Vallarta is $3,800. A 1-bedroom property with 60 square meters would cost approximately $228,000, and a 2-bedroom property with 85 square meters would cost approximately $323,000.

However, the amount you pay for a property can be different based on its characteristics and where it's found.

Housing prices in the top areas of Puerto Vallarta are usually at a premium. A condominium in Conchas Chinas might cost you about $440,000, while a condominium in Amapas could be around $400,000.

However, some places are cheaper. You may find a residence in Las Juntas for $380,000, or you could locate one in Ixtapa priced at only $240,000.

We give a more detailed pricing list in our full pack for buying property in Mexico.

Common mistakes

Here are the main pitfalls when buying property in Puerto Vallarta, Mexico:

• Ejido land issues: Be cautious of properties on ejido land, which may have unresolved ownership claims and limited rights.
• Fideicomiso complexities: As a foreigner, you'll need a bank trust (fideicomiso) for coastal property, making the process more intricate.
• Permit and regulation changes: Stay updated on local regulations that can affect property usage and investment plans.
• Mexican Notary process: Choose a reputable notary to handle property transactions and avoid legal complications.
• Hidden liens and debts: Conduct a thorough title search to identify any outstanding debts or liens on the property.
• Cultural differences: Understand the local customs and language barriers during negotiations and paperwork procedures.
• Coastal hazards: Consider the property's vulnerability to hurricanes, flooding, and other coastal risks.
• Property tax discrepancies: Clarify the property's assessed value and tax obligations, as they can vary among regions in Mexico.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Mexico Property Pack

Living in Puerto Vallarta

Puerto Vallarta is a vibrant and beautiful city with a tropical climate and a laid-back atmosphere, making it an ideal place for those looking to purchase property.

Cost of living

The cost of living in Puerto Vallarta is generally lower than in many other cities in North America, making it an attractive destination for retirees and expatriates. Depending on the lifestyle, it is possible to live comfortably on a budget in Puerto Vallarta.

Here are some examples to better understand the cost of living in Puerto Vallarta, Mexico:

• Piña colada at a beachside bar: $5.
• Rent for a one-bedroom apartment in the Romantic Zone: $800/month.
• Tacos de mariscos (seafood tacos) for two at a local taqueria: $15.
• 1.5-liter bottle of Jarritos (Mexican soda): $1 at a supermarket.
• Electricity bill for an 85m² apartment using CFE (Federal Electricity Commission): $70/month.
• Monthly membership at Fluvial Fitness gym: $60.
• Ticket to a Mexican film at Cinepolis in Galerias Vallarta: $8.
• Cup of Mexican coffee at a café on the Malecón: $3.

Neighbourhoods

Since we want to share information in a clear and reader-friendly way, we've created a summary table outlining the various neighborhoods in Puerto Vallarta. For yields, prices and rents, check our property pack.

Life in Puerto Vallarta

Puerto Vallarta is a popular tourist destination that has seen an increase in foreign investment in recent years, leading to an increase in economic development. The main industries are tourism, real estate, and fishing, but there is also a growing technology sector.

What expats usually like the most in Puerto Vallarta is the great climate and the stunning beaches, like Los Muertos Beach, that offer breathtaking views and plenty of activities to enjoy.

Regarding safety, the crime rate of Puerto Vallarta is around 35, which is average. Puerto Vallarta has a strong police presence and a zero-tolerance approach to crime, which has helped to keep the crime rate low.

A good point for a property investor - Puerto Vallarta has a public bus system known as RTP Vallarta which provides rapid transit throughout the city.

Access to healthcare in Puerto Vallarta is generally good, with several modern hospitals and a wide range of medical services available.

Don't lose money on your property in Puerto Vallarta

100% of people who have lost money in Mexico have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Download Now

Renting out in Puerto Vallarta

If your intention is to buy a property not for personal use, but to rent it out and create income, then this section is for you.

Long-term

Tenant Profiles in Puerto Vallarta

According to the data reported by Wikipedia, the home ownership rate in Mexico is 80%, which is rather high.

It is probably a bit less in Puerto Vallarta though.

If you decide to buy and rent out to long-term tenants, you should target expats, retirees, and young professionals who are looking for a more affordable lifestyle in a tropical location. For short-term rentals, you should target tourists and vacationers looking for a beach getaway.

Here is a little summary table we've made for you.

Rental yields

Nowadays, the rental yields you get in Puerto Vallarta are between 5% and 7%. There are some opportunities. So you know, a "good" rental yield is above 7%.

Properties located in the downtown area of Puerto Vallarta tend to offer the best rental yields due to their high demand from tourists and locals alike looking for short-term rentals. Additionally, properties located near the beachfront tend to have higher rental yields as well due to their desirable location.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Puerto Vallarta are taxed at 25%, which is average.

Short-term

You could also decide to rent short-term to tourists and vacationers looking to visit Puerto Vallarta for a few days or weeks. Additionally, you could target business travelers looking to stay in the city for a few days on business.

If you decide to go with that option, look for properties in downtown Puerto Vallarta near the beach, or in the hotel zone near the marina. These areas have the most demand for short-term rentals.

Currently, there are approximately 8,000 active Airbnb listings in Puerto Vallarta, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $144, which is quite high.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Puerto Vallarta can make around $1700 per month. Also, the average occupancy rate is estimated at 67%.

Is it worth buying real estate in Puerto Vallarta then?

Buying a property in Puerto Vallarta can be a fantastic idea for certain individuals but not necessarily the right move for everyone.

If you're someone looking for a stable and affordable place to call home in a beautiful coastal setting, Puerto Vallarta offers a diverse range of properties to suit your preferences and lifestyles.

With lower property prices compared to many North American cities and the potential for rental income, it's an attractive option for retirees, expatriates, and those seeking a permanent residence.

The cost of living is generally lower, and the property values have been on the rise, making it a smart investment for those prioritizing financial stability and long-term living.

However, if you value flexibility and aren't ready to commit to a long-term investment, renting might be a better choice. Renting allows you to adapt to changing circumstances and provides the freedom to move without being tied down to a property.

Additionally, while Puerto Vallarta offers affordable housing options, it's essential to research the economic trends and potential pitfalls, such as property complexities and coastal hazards, before making a decision.

In summary, buying property in Puerto Vallarta can be a wise move for those seeking stability, affordability, and long-term living in a stunning coastal city. Still, it may not be the right choice for those prioritizing flexibility and uncertain about their future plans. Careful consideration and research are vital to making an informed decision in this exciting real estate market.

Make sure you understand the real estate market in Puerto Vallarta

Don't rush into buying the wrong property in Mexico. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

Download Now

The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.