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A Ten Year Retrospective of Puerto Vallarta Real Estate - continued by Marla Hoover    summer-fall/99 Statistics from Multi-List Vallarta Real Estate Industry Changes Real Estate markets are cyclical. It is a matter of supply and demand. The last upswing began ten years ago with the development of Marina Vallarta. This took the stress off of the downtown area by providing a new type of residential product, the beachfront and/or golf course home. This saved the downtown core from hotel chains and condominium projects without sacrificing the colonial village image. Within six years the Marina was basically sold out, just as market demand was dwindling. By 1994, there were essentially no new developments or projects starting and the Mexican economy soon put a stop to whatever market there was. Transactions then consisted purely of re-sales, which ultimately took care of the excess supply. Prices reflected this down swing and began to moderate and in some markets, show a loss. By 1997 there began to be more of a demand for product than what was available - supply and demand again. Now at the dawn of a new millennium Puerto Vallarta is experiencing unprecedented growth. With growth come issues. The main one on the minds of realtors today is the need for more regulation within the real estate industry. AMPI was formed ten years ago to provide a professional structure for a uniform industry and to maintain a measure of congruity and ethical values. Today, many realtors agree that real estate practices need to be more closely policed. Moray Applegate explains: "Real estate practices are not regulated by the government for licensing, and, as owner of the oldest real estate office in Puerto Vallarta, it irritates me that people come in here with no real estate background or training and try to sell. This leads to unethical and unknowledgeable people selling real estate, and needs to be addressed as it effects national and local interests." Giovanna Mosqueda further states: "The biggest concern within the industry is the need for AMPI to deal with professionals who get into trouble. Suspensions, fines, or other tactics need to be imposed; there is a real need for regulation. It does not cost more to do things right." All of these ingredients lead to an increasingly progressive and professional real estate sector, one that Puerto Vallarta can proudly march into the 21st century with. A Look into the Future Local realtors agree with Brock Squire in that, "If there continues to be perceived value in the market place, and if the US economy maintains itself and lasts for another two or three years, the future of real estate in Puerto Vallarta could be very positive." Moray Applegate also says: "The market strongly depends on the economy of the United States, as well as the Mexican elections in the year 2000." Bill Taylor of Bill Taylor Real Estate declares: "The Y2K may have a local effect by people withdrawing profits from the stock market and reinvesting into resort areas. We have already seen this trend beginning. I predict because of this we will sell more real estate in the four months preceding the new millennium than we have in the last two years combined. Stock market profit takers want their money doing something, not just sitting in a bank, and see Puerto Vallarta as a more exciting investment opportunity." The Internet is also contributing to the future of real estate in Costa Vallarta. Nearly all of the local realtors maintain web sites promoting this area and their businesses. Many prospective buyers have and will continue to use this invaluable tool to research the area when choosing a foreign investment. Multi-List Vallarta, the oldest multiple listing service in Mexico, will soon be available for local realtors online. They will then be able to download specific listing information electronically to keep them informed of new property listings. New frontiers in land, properties, and acquisition have contributed to the sophistication, advancements, as well as the difficulties of a progressive real estate industry in Puerto Vallarta. All of these have been accomplished in the last ten years without losing the charm and truly Mexican feel that has attracted people to this area, not only in past decades but for decades to come. Click here to return to beginning of article...

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