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5 good reasons to invest in a beach property

Text by: Diego Bañuelos • Photos: Danilo Rottigni from Homes & Living

In these times of economic turbulence, evaluating profitable investment options can be a difficult task. Historically, the real estate industry has always set itself up as a secure investment mechanism.

Real Estate Beach Properties S
Five good reasons to invest in Beach property in Puerto Vallarta

However, there are properties that have a much higher return on investment: beach properties. Following, we mention the five factors that have the greatest influence in consolidating this niche.

  1. Limited offer. One characteristic that distinguishes a beach property from other real estates, is the fact that the amount of ocean-front land is extremely limited: less than 1% of the total area of the country is located at the ocean. For example, Cancun has run out of areas for construction of new residential developments and the same thing is happening in the Riviera Maya and Puerto Vallarta, whose growth gave birth to the Riviera Nayarit. This phenomenon, which follows the behavior of supply and demand, has allowed these assets to gain value rapidly, because the lower the supply, the higher the price.
    Even in these times, prices for Mexican properties at or close to the beach are extremely affordable compared to places like Florida (Miami) or California, but it is possible that in some years they will catch up.
    • Strategic location. Mexico has a privileged geographical location. Practically all the beach destinations have 12 months of good weather each year. In addition, Mexico is between 2 and 5 hours away from the major U.S. cities and even Canada, whose airports offer direct flights to the country’s main tourist destinations.
    • Capital gain. The type of developments with the highest boom and the best profitability are represented by luxury properties in exclusive areas, which are at the same level as any world-class development. A beach residence or apartment as an investment not only provides an opportunity to enjoy a few months of sun, but also offers a good profit and an optimum capital gain due to high demand, climate, view, location, ambiance, and services. Additionally, many owners rent their property during certain periods of the year, thus receiving an income from these assets.
    • A market in Dollars. The profitability of all types of properties in tourist destinations is excellent because the Mexican real estate market is one of the most “dollarized” markets in the country, which guarantees investors that their properties will not lose value based on fluctuations in the exchange rate. This results in a much shorter ROI compared to other investments.
    • First class amenities. Mexico has a vast array of amenities: wonderful attractions such as Mayan, Aztecs and Olmecs ruins, tourist infrastructure offering modern airports, shopping areas, dining facilities and world-class entertainment, hundreds of highly competitive golf courses with breathtaking views, great natural beauty such as stunning beaches and transparent blue waters, and all kinds of water activities.

    Beach Property in Puerto Vallarta 
     Beach Property in Puerto Vallarta

    All these reasons have contributed that the real estate market at Mexican beach destinations constitutes one of the best investment options worldwide. At Costa Realty Mexico, we are always eager to show you our country’s best investment options.

    Versión en Español

    Versión en Español