Thank you Canadians

I was talking with someone from Deloitte, who does business throughout the west coast of Mexico, and he informed me that the markets are quite down in places like Puerto Peñasco and Los Cabos, compared to Vallarta’s. His reasoning? There is no established Canadian market, and there seems to be not much interest by Canadians, to own or live in these areas.I concur with that. I think (and not just because I happen to be one) that Canadians prefer places that are “more Mexican”, where the Mexican culture is more prevalent. That is certainly not the case in Cabo or Peñasco, where often times English is the primary language and the US dollar the primary currency. They are, in many respects, sort of extensions of the Southern California. 

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2 Responses to Thank you Canadians

  1. Paul says:

    Agreed on the point about Canadians not being in Puerto Penasco. Although it remains to be seen if Canadians will be interested in Penasco. Right now, the only way to get to Penasco is to drive, which I think is a larger reason for few to no Canadians in Penasco. There are plenty of Canadians in San Carlos, where it is much easier to fly into (through Guaymas) and their little town is almost devoid of any Mexican culture. Once the new Puerto Penasco international airport opens in 2009, we will see if Canadians show up or not. But hopefully they do.

    In my mind, what is really hurting Penasco is that the boom was driven by middle-income, home refinancing Arizonans who are now tapped out because of the bad Arizona real estate market. The luxury amenities (restaurants, spas, nightclubs, golf, etc.) needed to attract a more upscale crowd are still being put in and the upper income buyers are the only ones who are more resistant to the U.S. market downturn and can still buy. Penasco will recover relatively well however, as several large projects have been suspended before starting and more responsible development is expected in the future as the U.S. markets slowly recover.

  2. johnlifestyles says:

    Perhaps that’s another advantage then we may have to tide us over, although certainly not an advantage over Los Cabos, and that’s with regards to a more affluent purchaser. There is a more affluent clientele in Vallarta, although they tend to be situated, or purchasing real estate, more along the north side of the bay in Riviera Nayarit than in the state of Jalisco. And from talking to realtors on the north shore, the higher priced real estate is selling better than the lower end. (Their lower end being around $1 million). Thanks for the comments Paul, good to hear from you!

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