Key Takeaways
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Pre-sale villas in Puerto Vallarta can offer higher ROI than resale properties.
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Early investors often benefit from lower prices and higher appreciation.
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Vacation rental demand is rising, especially for luxury properties.
Why Investors Are Flocking to Pre-Sale Villas
Puerto Vallarta isn’t just a beach town—it’s one of the hottest real estate markets in Mexico.
And when it comes to rental return on investment (ROI), pre-sale villas are catching serious attention.
Why?
Because buying during pre-construction often means locking in below-market prices before demand drives values up.
Think of it as getting in on the ground floor—literally.
Rental ROI: Breaking Down the Numbers
Let’s say you purchase a pre-sale villa for $300,000 USD.
In a prime area like Zona Romantica or Conchas Chinas, similar completed villas rent for $400–$600 per night.
Assuming 70% occupancy during high season (December–April) and 30% off-season:
| Season | Nights Occupied | Avg Nightly Rate | Total Revenue |
|---|---|---|---|
| High Season | 105 nights | $500 | $52,500 |
| Low Season | 55 nights | $400 | $22,000 |
| Annual Revenue | — | — | $74,500 |
Net ROI after 20% expenses = approx. $59,600/year, or 13.2% annual ROI.
That’s competitive with many U.S. rental markets—and comes with tropical views.
Pre-Sale vs. Resale: ROI Showdown
| Type | Avg Price | Nightly Rate | Occupancy | Net ROI |
|---|---|---|---|---|
| Pre-Sale Villa | $300,000 | $500 | 60–70% | 10–14% |
| Resale Villa | $600,000+ | $500 | 50–60% | 6–9% |
Pre-sale wins by offering more value per dollar, especially when timed early in the development phase.
Risks You Shouldn’t Ignore
Not everything is sunshine and margaritas.
Here’s what to watch out for:
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Developer delays can push your timeline.
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Some projects lack proper rental permits—always verify.
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ROI depends on management quality—go with experienced local rental firms.
Hot Locations for ROI
If you’re chasing rental income, location is everything.
Here are Puerto Vallarta’s top ROI zones:
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Zona Romántica – High demand for walkable nightlife and beachfront.
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Amapas & Conchas Chinas – Luxury renters pay premium rates.
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5 Diciembre – Popular with long-term snowbirds and families.
Should You Buy a Pre-Sale Villa?
If you’re aiming for long-term rental returns, buying pre-sale in Puerto Vallarta can be a smart move.
You get:
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Lower entry price
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High rental potential
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Strong resale value
Just do your homework on developers, and work with a local agent who knows the vacation rental market inside out.
FAQs
Is it legal to rent out pre-sale villas in Puerto Vallarta?
Yes, but only if the villa has the correct permits. Always verify this during due diligence.
How long does construction usually take?
Most pre-sale villas take 12–24 months. Factor this into your cash flow plan.
Can foreigners own property in Puerto Vallarta?
Absolutely. Foreigners can buy through a bank trust (fideicomiso) or a Mexican corporation.