PUERTO VALLARTA
PUERTO VALLARTA LUXURY THRIVES DESPITE COVID-19 CHALLENGES Although Mexico continued allowing international travelers to enter the country and to stay at its hotels and resorts in 2020, top tourist destinations still witnessed significant slowdowns due to the global coronavirus pandemic,6 with cruise ships suspending operations and international arrivals down between 40% and 60% at major airports. Puerto Vallarta’s Licenciado Gustavo Díaz Ordaz International Airport welcomed 1.6 million passengers in 2020, but that was down 51% from 2019.7 Meanwhile, to promote proper social distancing in restaurants, pools, and on beaches, Puerto Vallarta hotels operate at a maximum capacity of 75%,8 and those to the north along the Riviera Nayarit are at 50% of capacity.9 Despite the decrease in international tourism, the luxury real estate market in and around Puerto Vallarta experienced a blockbuster year. “March through June were very calm with not much business being done at all, but since July, it’s been very strong, especially in the sweet spot of our market between $900,000 to $3 million, with lots of properties selling that had been on the market for several years,” says Brock Squire of Coldwell Banker La Costa in
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Puerto Vallarta. “Last September was probably our best month ever for sales, with more than 20% of purchases being done completely remotely, without even a physical walkthrough.” Squire attributes the strength of the luxury market during the pandemic to domestic buyers, as wealthy Mexicans flee cities in the country’s interior to take refuge in resort-style living along the Pacific coast, often renting initially, but then buying in places like the exclusive planned community at Punta Mita, and farther north along the Riviera Nayarit. “They realized that they could function and work remotely, and they were comfortable investing in an asset that’s priced in dollars,” says Squire. “One year ago, 15% of unique visitors on our website were from Mexico, but now that’s up to 35%, while Canadians dropped from 25% to 5%,” observes Squire, who notes that U.S. visitors still account for 60% of traffic, and that many buyers continue coming from California and Texas. “As we emerge from this whole experience with the virus, I expect to see a real onslaught of buyers from the U.S. looking for permanent or semi-permanent living,” says Squire.
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