Statistics on the development of Mexico's Banderas Bay (Puerto Vallarta - Riviera Nayarit) Real Estate market.

1. Bahía de Banderas
! Real Estate Investment Market ¡
o
¿Retire in Paradise?
By Carlos Lemmus

2. • Until a few years ago the real estate market of Vallarta was
a small and exclusive segment in process at a pace rather
slow in the area of Conchas Chinas, and the centre in the
area known as Gringo Gulch. A few foreigners, Americans
mostly, after discovering the climatic virtues and kindness
of the people among other factors, decided invest in
holiday properties or retirement in the 70's and the 80´s
principles.
• Afterwards, in 1985, began the construction of MARINA
VALLARTA, detonating of real estate growth in the Bahía de
Banderas (Banderas Bay). This mega development gave the
pattern of growth to a sleepy Puerto Vallarta in the real
estate sector, and the municipality of Bahía de Banderas
that was barely born, both destinations waking suddenly to
a real estate development, without parallel in any other
tourist destination in Mexico.
• .

3. • Large real estate and hotel developments were built and
sold, putting Vallarta and the Bahía de Banderas in the eyes
of small and large investors, national and foreign, bringing
more developers and buyers, both for purposes of
investment and retirement.
• Natural growth occurred towards the North of the
Banderas Bay, across the Ameca River into Nuevo Vallarta,
Bucerias, La Cruz de Huanacaxtle and Punta Mita.
• Today Bahia de Banderas is a mature destination that offers
jointly and alternatively with Vallarta endless opportunities
to real estate investors, who are looking for a place of
retirement, vacation or a financial business opportunity;
there will always be an opportunity available depending on
your interest and budget in Mexico. The range of products,
prices and services is so wide that we are certain you will
find what best suits your needs and preferences.

4. • For your better understanding, I present to you the statistics of recent
years in such form that you will be able to have valid parameters to help
you in your decision-making. Knowing the past will allow us to evaluate
the present and make a valid forecast, of what may come.
• What is an undeniable reality is that Vallarta and the Bahía de Banderas,
have far exceeded the economic test that we have suffered for the last
three years, due to the global financial crisis, which has seriously affected
countless markets in the world. And even when investments and values
around the world have collapsed, Puerto Vallarta and Riviera Nayarit have
maintained and increased its value, in such way that those buyers who
invested in pre construction properties until 2008, can today sell at a profit
between 15% to 30% over the value of the property, this without
considering the benefits of use or income that it may have already
generated.

5. HISTORICAL SALES IN VALLARTA & RIVIERA NAYARIT ZONE
2005 - 2011
$720,000 1200
$700,000 1000
$680,000 800
PRICE PER UNIT $660,000 600 UNITS
$640,000 400
$620,000 200
$600,000 0
2005 2006 2007 2008 2009 2010 2011
$ PROM X UNIT $654,545 $636,364 $663,636 $666,667 $683,333 $708,333 $683,333
UNITS SOLD 700 920 1050 800 730 635 780
700 apartments were sold over $270,000 usd in 2007; the sales were down from 9% to 24% every
year since 2007 to 2010. In 2011 there was an increase in sales to a level of 780 units of Residential
Plus Level.

6. PRICES PER UNIT IN VALLARTA & RIVIERA NAYARIT
2005 - 2011
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
PRICES
USD
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
2005 2006 2007 2008 2009 2010 2011
MINIMUM $300,000 $300,000 $300,000 $275,000 $275,000 $275,000 $275,000
$ AVERAGE X UNIT $636,364 $636,364 $727,273 $708,333 $666,667 $666,667 $683,333
MAXIMUM $1,272,727 $1,363,636 $2,090,909 $3,833,333 $3,833,333 $3,833,333 $3,833,333
The average price per unit was reduced about 14% between 2005 & 2011.

7. PRICES PER M2 IN VALLARTA & RIVIERA NAYARIT (2005 -2011)
$12,000
$10,000
$8,000
PRICES X M2 $6,000
$4,000
$2,000
$-
2005 2006 2007 2008 2009 2010 2011
MINIMUM $1,555 $1,555 $1,555 $1,425 $1,425 $1,425 $1,425
$ ANNUAL AVERAGE $1,555 $1,750 $2,200 $2,700 $3,000 $2,700 $2,400
MAXIMUM $7,909 $7,818 $7,727 $10,833 $10,667 $10,583 $10,500
The average values per m2 decreased approximately 18% from 2009 to 2011.

8. TOTAL PROJECTED UNITS & DEVELOPING BY ZONE
6,000
5,000 5,113
4,651
4,000
3,000
2,000
2,095
1,652
1,000
0
RIVIERA NAYARIT PUERTO VALLARTA
TOTAL PROJECTED UNITS TOTAL UNITS DEVELOPING
In Vallarta & Riviera Nayarit there are currently developing approximately 3,700
apartments over $250,000 usd. Is estimated that 69 projects in the area developed is
expected soon, in the case more than 9,700 units would be developed.

9. TOTAL PROJECTED UNITS AND DEVELOPING BY PRICE RANGE IN USD
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
FROM $220,000 TO $380,000 FROM $381,000 TO $550,000 FROM $551,000 TO $780,000 MORE THAN $781,000
TOTAL PROJECTED UNITS TOTAL UNITS DEVELOPING
36% units fluctuate between $220,000 and $380,000 usd.

10. So we can say that the municipalities of Puerto
Vallarta and Bahía de Banderas are:
PARADISES FOR YOUR REAL ESTATE INVESTMENT
AND ALSO RETIREMENT ALL IN ONE
¡!WELCOME ¡¡
(Nota:Due to the variables in the market, it is recommended that you check these
figure with your trusted real estate professional).