|
 Real Estate Pros Comment on the Market for August 2006
Watching the real estate market here in the Riviera Maya of Mexico with all the new building and construction, at Riviera Maya Real Estate News, we have been wondering "What is the current state of the market in the Riviera Maya?.
Well, we surveyed local professionals with a few simple market questions to get some feedback from the street. Here's what we found.
When asked "Does the current market have more buyers than sellers?", Gabriel A.Villarreal Guerra, a Real Estate Advisor at KulTur Enterprises says "In my humble opinion I strongly believe that its still a buyers market in the Riviera Maya. Basic fundamental economics - supply and demand - are showing that more and new clients are taking a closer look at Playa, Puerto Aventuras, Puerto Morelos, Tulum, Majahual, and Cancun. We are experiencing exponential growth and more tourism as time goes by, therefore the market NEEDS more supply of living area. Huge investors are considering coming in the market BIG, so is the clear example with Kor Group. If we put in an equal balance clientele or potential clientele versus new Developers and new Hotels in my opinion its still a buyers market: 65% Buyers Vs. 35% Developers/Hotels. At KulTur we have potential buyers coming in weekly in dozens, and our sales stats are growing on a constant rate. If you put in perspective how many new Developers or Hotels comes in the market versus Potential Buyers, Buyers are winning the race."
Furthermore, Mr. Villareal says "In my opinion if we continue with this accelerated growth where regulation of the market has to be standardized and if we do not stop the bribery to Local Mexican Authorities, slowly we will be killing our precious market. We need more green space, more space for entertainment, more parking space, less traffic, more accessible Spas with competitive prices and excellent quality and less condos for God's sake!
Mr. Villareal continues "We can also make our money selling retail space along main corridors, shopping centers, future parking space, restaurant, etc. We need to be careful with what we want to produce in the short medium term and negotiate a well defined master plan... hard to reach if local authorities cannot cope with such big load of work. We all have to make it happen in the best possible way for developers, agents, and buyers.
Accordingly Osvelia Morales at Costa Realty in Puerto Aventuras adds that "I think in some areas there are more sellers than buyers. Like in Playa del Carmen, I think there are so many new buildings. But in general I will say there are more sellers than buyers thus continuing our sellers market."
In response to our question "What is the average time a listing is on the market before it sells?", Osvelia Morales adds "It depends on the location and the quality of the listing. Sometimes we sell properties on the beach in less than 3 months. But sometimes, like with properties we have in Playa del Carmen, it can take more than 6 months to sell. But really, I will say that it depends on the property. Sometimes we have a good location but the property is not in good condition. That creates problems in selling fast. It comes down to location and quality.
Finally, Gabriel A.Villarreal Guerra adds that "In my opinion, I would rather think more in the lines of property selling within 3 to 6 months. Obviously it depends on location, services, amenities, price, square footage, flexibility in terms of financing, proven track record in case it has been around for a few years, among other things. That's my best estimate.
This report was prepared with the help of Gabriel A.Villarreal Guerra and Osvelia Morales.
|
