Formerly a resident of British Columbia, Victoria Pratt migrated to the Costa Vallarta area of Mexico’s Pacific Coast ten years ago. Pratt has an extensive background in tourism, hotels and property management in both her native Canada and Mexico. After a number of years in her own property management company and as public relations director with Mexico Boutique Hotels, she entered the real estate field in 2004 as a sales associate with a top-shelf developer, attracted by the accelerating development she observed from her perspective as a resident of the area. In 2008, Pratt joined independent real estate agency Pacific Boutique Properties, allowing her to expand her services to her customers bringing them the full range of area MLS listings (homes, condos, lots) as well as her portfolio of preferred low-density development properties. She is fluent in Spanish and manages real estate transactions for both foreigners and nationals alike.

Hi Victoria. Thank you for being our guest. Puerto Vallarta is a pretty well known destination in Mexico for real estate, but many may not know of Punta Mita, Careyes, or Riviera Nayarit. Can you describe these areas and why they are good locations for real estate?

I would say diversity in product and pricing and choice of settings that capitalize on the coastal geography are the combined elements attracting buyers here. I think that variety is illustrated by the definition of the areas you mention:

Puerto Vallarta is the anchor destination, right in the middle of a greater coastal area of tourism and development that has grown to include two overlapping stretches of coastline with the destination names of Costa Vallarta and Riviera Nayarit. This extends from the Careyes area in the south, traverses North America’s second largest bay (Banderas Bay) and finishes up in San Blas to the north. It includes two states and, thus, has incredible topographic diversity, includes many ecosystems and offers plenty of recreational diversion.

Careyes, in the south, is an enclave of some of the Mexico’s most stunning architecture such as cliff-hugging homes with suspended infinity pools—the stuff of coffee table books—as well as some of the most sought-after boutique hotels. This destination has been evolving since the late 60’s and is for the buyer seeking true seclusion and a world-renowned architectural style.

Punta Mita is a master-planned gated community in the town of Punta de Mita at the northern point of Banderas Bay, positioned as a luxury community with high-end homes and condominiums, golf courses and extensive recreational amenities offering a particular lifestyle.

Both Careyes and Punta Mita are low-density areas with sophisticated services that cater to an elite lifestyle. Its important to understand that these destinations are complemented by a seemingly endless real estate offering from typical pueblos to more modern resort communities all along the greater coastal route, providing for a broad variety in product and pricing from stand-alone homes, lots on which to build and both new and established developments. All this is supported by an ever-improving infrastructure.

The real estate woes in the US have been well documented. How does the real estate environment in your area compare to what has been occurring in the US?

Since North Americans form a large majority of our clientele, we’ve seen a dramatic slow down in sales but there’s a keen nucleus of people wanting to buy and waiting for positive signs in the U.S. and an improved Canadian dollar, both of which seem to be happening and initiating some new movement.

What we don’t have is a mortgage crisis here, being that most sales in past years were cash sales. That doesn’t mean buyers didn’t borrow at home but the mortgage industry is new here and, the most long-term owners have their properties free and clear of debt.

So, while there are a few true distress sales, it’s a market of belt-tightening and very favorable price adjustments that have been brought about by low demand. I like to say to my clients of three and four years ago who couldn’t or weren’t ready to take advantage of great prices then, now’s their time!

From your vantage point, how are new home sales fairing in this environment? How much has development slowed in the Puerto Vallarta region?

Sales have been slow except for the most opportunistic of purchases, although improved stock markets and an improved Canadian dollar seems to have sparked the serious buyers to make some moves.

As to developments, many projects that were in pre-market stages have been put on the shelf. Some projects have slowed down while others with more sales on the books are progressing just fine.

We specialize in representing buyers before developers and slowed sales mean opportunities, which we help to identify and negotiate with our preferred developers. The situation has also brought about some very good resale opportunities, particularly by folks who had bought to resell and expected a more buoyant market in which to divest their property.

Why is the Puerto Vallarta area a better option for investors or retirees compared to other top Mexico destinations?

I think people want authenticity. Puerto Vallarta’s attraction as a resort destination draws and charms people for good reason. While it’s not one of Mexico’s iconic colonial towns, it has a heart and soul. It’s an old fishing village grown up and not an engineered cookie-cutter destination. Mariachi and Tequila are from this area and indigenous influences are widely felt and admired. This is expressed through a well-established art, entertainment and gastronomic scene.

As to the greater region, all of the pueblos and beach towns have maintained their appeal and originality, even with development occurring around them. A certain balance is being maintained so, while you have dynamic governments who are supporting development, they seem to be doing it in the right way. The new Marina Riviera Nayarit is an example of giving the fishing village of La Cruz a new life, energy and economy while preserving and improving on the town’s basic characteristics.

Investors will also benefit from the big injections of capital from the federal tourism development ministry and the state government on the Riviera Nayarit that is, in turn, fostering private investment. This will provide sustained appreciation potential for all property owners along the coast. The list of benefits goes on!

What are your favorite aspects of living in Mexico? Besides the weather, what would you say are the most significant differences compared to living in Canada?

While weather is a key attraction, there are differences in the effects of weather from one destination to another here. One of the most important factors in my choice of this part of the Pacific coast was not to be in constant threat of severe, damaging weather in the rainy season. As well, I enjoy the balance of heat and humidity that is more moderate than even just a few degrees north or south.

Natural and architectural beauty certainly compares to my native British Columbia but has a different aesthetic. So does the diversity of activities, but the weather changes how we enjoy them. I certainly prefer diving in warm waters!

So, the factors that are completely different are the mysteries and magic of the people and their culture and the learning curve and enjoyment that has brought me. One of my principal reasons for living here was to learn Spanish fluently and reap all that that unlocks. I love the easy access to the colonial towns and historic areas of Mexico. I can live in a resort destination but easily step into the world of colonial Mexico in places like San Miguel, Morelia and Guadalajara.

Contact Victoria Pratt at info@pacificmexicorealestate.com or visit her personal Website at www.pacificmexicorealestate.com