I’m on the road, scouting in southern Mexico’s Oaxaca state…
Yesterday, I traveled to an incredible beach town here—a place that ranks among my best discoveries in years. More about that in a moment.
First, though, I wanted to share an email from a reader.
Ingrid B. sent me this…
“Dear Ronan and the RETA team, I really like the weather around Puerto Vallarta, Mexico. It’s warm enough to swim in the ocean year-round (Cabo can be too chilly for me), and since it’s on the Pacific coast, it avoids the humidity and hurricanes of the Caribbean.
“I realize Puerto Vallarta is probably not a good value destination these days. But have you scouted beachfront or beach-adjacent properties to the north or south of PV?”
Thanks for the excellent email, Ingrid. I read it as I was making my way to the coast of Oaxaca and it exemplifies why my team and I spent so much time scouting each year. (Have a question? Share it here.)
There’s a few things to address in there. Let’s start by talking about the situation in and around Puerto Vallarta today…
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Puerto Vallarta, a thriving and sophisticated city of 300,000 people, sits on the Bahia de Banderas, or Bay of Flags, on Mexico’s central Pacific coast.
This vast bay, which stretches 20 miles from north to south and 26 miles from east to west, has an incredible coastline. You’ll find miles of golden-sand beaches, stunning azure waters, and the jungle-covered Sierra Madre mountain range, which slopes down to the shore.
In addition to this stunning setting, Puerto Vallarta offers lots to see and do, including excellent golf, sunset cruises, whale watching, fine dining, dance clubs, and markets, boutiques, and shopping malls offering everything from traditional crafts to jewelry to chic fashions.
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This city has drawn vacationers from the U.S. and around the world for decades. Though lately Puerto Vallarta has been booming. Last year, the city welcomed a record-shattering 6 million visitors, and this year it’s reportedly on track to break the 7-million-visitor mark.
Given its massive and longstanding popularity with tourists and expats, Puerto Vallarta’s real estate market is a mature one. Prices in the best areas tend to be high and there are ready buyers.
Puerto Vallarta’s hottest tourist district, the Zona Romántica, is maxed out. This has led merchants and restaurateurs, not to mention second homeowners and real estate investors, to seek out more affordable areas.
These folks are driving the gentrification north of Zona Romántica, which is the direction the development of Puerto Vallarta has taken over the years. To the south, the mountains come right to the water, limiting development.
In December 2022, I brought members of my Real Estate Trend Alert group an exclusive deal to own luxury two-bed ocean-view condos with a rooftop terrace with infinity pool in a community here called Tao Blue Gardens from $259,000. Since then, prices have risen. When my team checked recently, there was only one condo still available to purchase at Tao Blue Gardens and it was listed at $359,000—that’s an increase of $100,000 on the RETA-only price.
I’m always on the lookout for more options in and around Puerto Vallarta. If anything comes up, RETA members will be the first to hear about it. (To ensure you hear about all our RETA-only deals, sign up to become a member here.) But to be frank, the situation is challenging. This region has exploded in popularity and prices have risen quickly since RETA members got in two years ago.
That’s why I’m scouting in southern Mexico right now.
I’m looking at somewhere off the radar…a “next place” that offers amazing value…
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As I write, I’ve just finished traveling along a brand-new highway in Oaxaca state.
When I say “brand-new,” that’s exactly what I mean. In places, they haven’t even painted on the lane markings yet. And the toll booths have yet to open. It’s currently free to drive on this highway and it will remain so until December.
This highway connects the city of Oaxaca with the stunning beach town of Puerto Escondido. It passes through a fascinating terrain of lush cloud forest, about 8,000 feet above sea level, before descending to the coast.
This road is exactly the kind of thing I look out for when I’m scouting. It’s what I call a “Path of Progress” event…
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A Path of Progress is anything that makes a place easier to get to (say new roads, bridges, or airports), or more desirable (like a 5-star resorts in a place that previously only had cheap hostels).
An event like this can lead to a boom in real estate prices. And this highway is not the only sign of a major Path of Progress pushing toward Puerto Escondido…
At the moment, Puerto Escondido’s airport can only handle domestic flights. But an international terminal is under development. Already United Airlines has announced flights to the airport when the new terminal opens. United’s route from Houston to Puerto Escondido is due to start from April 5 next year.
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I was excited when I first scouted Puerto Escondido back in April this year…
Having driven to the town, I’m now even more convinced of its potential. Puerto Escondido (whose name means Hidden Port) has got a stunning coastline and amazing beaches. But because it’s long been inaccessible, it’s been overlooked and frontline real estate hasn’t been taken over by resorts, hotels, high-end communities, and top-class restaurants, unlike so many other places along Mexico’s Pacific and Caribbean coasts.
But now a Path of Progress is about to make this real estate more accessible. Huge numbers of new visitors will come on the new highway and through the new airport. Puerto Escondido is about to hit a whole new level.
But we have a chance to be ahead…
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That’s why I’m back in Puerto Escondido this week…to follow up in what I saw here earlier in the year and to investigate the potential for RETA-grade opportunities.
And to bring this all the way back to Ingrid’s question, this is why we put boots on the ground.
Puerto Vallarta has been discovered. Finding RETA-grade opportunities in and around the city is a big challenge. But by putting boots on the ground, I’ve found a “next place”…a destination rich with opportunity. (I can also confirm, Ingrid, that the waters here are very warm and pleasant.)
Now, I’m digging deep here for the right deal to bring to my Real Estate Trend Alert group. If something comes together, I’ll let you know…
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Ronan McMahon, Founder, Overseas Dream Home & Real Estate Trend Alert
P.S. Tomorrow I’ll share some thoughts (and a host of photos) from my time in Oaxaca city, including why I was blown away by this incredible, culture-rich destination. Tune in tomorrow for that…
And if you have any questions, comments or feedback about Oaxaca or Puerto Escondido, share them here.
