Puerto Vallarta

*All prices in US dollars

Inside México: What percentage of your clients are Americans? Canadians? Mexicans?

Darryl Bowie: Mexicans and Americans are about 40 percent each; 20 percent are Canadian.

IM: Are they buying second homes, or primary residence?

DB: The majority are looking at second homes. Those looking for retirement are seeing more products and we expect higher numbers in the future. One thing to remember is the “Dream”—a place in the sun where family and friends can reunite and rejuvenate, and this dream is not going away; it is simply on hold.

IM: What price range are they looking in?

DB: Those wanting it all under $250,000 find prices are much higher. The market under $400,000 is strong. The soft range is $500,000-$1 million: choices are fantastic but a ‘wait-and-see’ mentality is affecting this sector. This is where the best deals can be made. After $1 million we see sophisticated investors looking long-term.

IM: What kind of amenities are they requesting?

DB: Condo buyers want it all: concierge services, spa, business center, restaurant, water sports, children’s area, and more. Properties are branding themselves in unique ways. ICON Vallarta has the brand power of Philippe Starck. San Pancho bills itself as a cultural center, while Tahemia and Sensara, with on-site medical concierge, target active retirees. Luma is adults-only. Home buyers want colonial architecture; high-end condos are going modular, with separate living, sleeping, and entertaining areas.

IM: What distinguishes the area from other coastal communities in Mexico?

DB: People are friendly, helpful, and happy. Arts and music are a vibrant part of the community; the variety of dining is world-class. The climate is consistently pleasant. The annual whale migration is a major tourist attraction. All the golf gurus are building here; Nicklaus, Weiskopf, Norman. It is accessible from every major airport in North America within a four-hour flight time.

IM: Do your clients feel like they’re moving to a foreign country?

DB: This is a foreign country and you feel it, you like it, you want to understand it, yet there are enough English-speaking nationals to make yourself understood. Folks here are very accommodating.

IM: Is access to medical care a consideration?

DB: Puerto Vallarta has some of the best [care] in Mexico. There is the San Javier Marine Hospital and a new AmeriMed hospital under construction, and a new oncology facility. North Americans come for dental work and elective surgery: it’s faster, better, and costs less. Not to mention a very nice place to recover

IM: What other major lifestyle considerations do your clients take into account?

DB: Activities: [residents can] golf, hike, fish, surf, sail, dive, and more. The other question is ‘How can I contribute to the community?’ Expats are very active in the community with volunteer work and philanthropy.

IM: Has the market been affected by the real estate turmoil in the US?

DB: [Buyers] are more cautious, shopping for the perfect property and in some categories we are seeing prices drop, but it is not a wholesale reaction to the US situation, and Canadians are buying.

IM: What is your forecast for home prices in Puerto Vallarta for the rest of 2008?

DB: [Prices] remained mostly flat for the past six months and are now trending downward. Once another winter hits the North and the election has been decided, we believe the market will tick upwards slightly in the first quarter [of 2009].

IM: Which area do you think represents a “bargain” for buyers from the US?

DB: New condo construction that has recently come to market, with an owner/speculator leveraged in the $500,000-$700,000 range. The other area is single-family homes in good neighborhoods in the low- to mid- $400,000 range. Anything oceanfront around $1.5 million is primed for price reduction. These areas are Conchas Chinas/Amapas, Old Town, Las Glorias, and Nuevo Vallarta.

Darryl K. Bowie is the assistant general manager of Coldwell Banker, La Costa Realty: www.cblacosta.com.