Puerto Vallarta’s property market—long driven by tourism and foreign capital—has reached a turning point in 2025: a residential oversupply. This shift brings fresh challenges and opportunities for buyers, investors, and developers alike.
Below is a data-driven look at the key indicators and what they really mean for today’s marketplace.
Inventory Up, New Listings Down
In June 2025, active listings increased by 18% annually, reaching a total of 628 available properties . This growth clearly reflects that supply is outstripping current demand.
In contrast, new listings , fell 35% compared to 2024, suggesting a shift in strategy among sellers: rather than adding more units, many prefer to adjust inventory and avoid competing in a saturated environment.
A Slower Market: Sales Rise, Absorption Falls
Although sales increased by 42.9% (30 units sold in June 2025 versus 21 in 2024), the pace of absorption slowed significantly:
- It takes 27.2 months to sell the current inventory if no new buyers come in.
- The average time on the market rose to 269 days per property,reflecting a longer sales cycle and greater decision-making space for buyers.
Prices Aren’t Falling—But There’s Room to Negotiate
Despite the oversupply, precios siguen subiendo:
- Median sale price:$549,413 USD (+67% year-over-year).
- Overall average price:: $845,632 USD.
This increase is primarily due to the surge in luxury properties. However, the closing percentage against the list price dropped to 95.6%, representing a 4.4% negotiation advantage for the average buyer. In other words, high prices are still being paid, but with greater flexibility.
A Two-Track Market by Price Band
The market shows a clear divide:
- The $150,000–$300,000 USD range boasts a large volume of properties, ideal for mid-range buyers.
- The $600,000–$2,000,000 USDsegment is home to luxury sales that maintain high prices, albeit with slower processes.
This contrast creates opportunities for both buyers with tighter budgets and high-profile investors.
Looking Back: Lessons from the 2024 “Supply Tsunami”
In 2024, inventory spiked 54.7 % (to 557 active listings in August), while median price slipped 20 % to$399,900 USD.
Though short-lived, that adjustment showed how vulnerable the market can be when supply outruns demand. In 2025, the landscape is more balanced: prices hold firm, sellers face less pressure, and developers are acting more strategically.
What Does It Mean for You?
🏠 Buyers
- Bigger negotiation window
- More time to compare areas
- Lower risk of overpaying
💼 Investors
- Mid-tier band offers strong price/value and faster turnover
- Luxury band offers stability but slow absorption—mind cash flow
- Strategies like acation or long-term rentals can help maximize ROI amid oversupply
🧱 Sellers and Developers
- Product differentiation is critical (location, branding, amenities)
- Price discipline and avoiding glut are vital in a maturing market
- Re-evaluate presale tactics; double-down on personalized marketing
Bottom Line: Maturity, Not Crisis
Puerto Vallarta is in a phase of controlled saturation.Inventory is higher and sales cycles are longer, yet values remain robust and negotiation margins favor buyers without hammering asset prices.
Success now hinges on data, strategy, and vision. This is a market that rewards those who act intelligently: those who know how to read the signs, diversify their bets, and adapt to the new dynamics will be able to take advantage of the opportunities brought by this new era of real estate consolidation in one of Mexico's most coveted destinations.
Sources Consulted
Mexico Life Real Estate.. August 2024 Homes Report – Puerto Vallarta..
Mexico Life Real Estate.. Puerto Vallarta Houses Market Report – June 2025.
Casa Luxe Real Estate.. Real Estate Market Statistics – Puerto Vallarta & Banderas Bay..
Peninsula Puerto Vallarta.. Puerto Vallarta Real Estate Market 2025..
DuBois Real Estate.. Puerto Vallarta Real Estate Market Sees Mixed Signals in 2024..
