The preconstruction of condos in this market has been the largest and most active building industry for over 10 years. The unexpected popularity of condo preconstruction has brought thousands of new units on the market in Jalisco and Nayarit.
This popularity has been possible because seller financing has been given to Canadian and American buyers to acquire a second home not too far from their primary home. This second home is fun, exciting for vacations, a get-away for the owners, and a source of income. The caveats are the risk the project fails or needs more funds to finish. I was curious if we were also experiencing preconstruction homes as another product to offer to North American and National buyers.
I will share my research with you:
As of September 10, 2024, reportings in FBS Flex, 52 of 521 homes in preconstruction are available in Jalisco and Nayarit. Prices are from a high of 1,680,000 USD to a low of 210,000 USD.
Of these preC homes, there are 12 in Jalisco and 40 in Nayarit.
Where are the areas for these homes?
In Jalisco: Fluvial and Fifth of December Colonias in Vallarta offer more than one or two homes. Also, there is activity in Ixtapa, Mascota, and Pitillal.
Glamping and Tiny homes are a new concept being built in the Fifth of December. This is a 12-unit gated eco-friendly community.
Currently, Nayarit has 40 homes going up in PreC. The majority are in Los Tigres, Oceanside in Flamingos, and Paradise Village. We also see preC in San Pancho, Ikal, Jarretaderes, and Mezcales.
In Preconstruction, the typical procedure is to pay funds directly to the builder if an escrow account is not established. It is important to have an attorney and buyer agent if the property is listed, to represent the buyer.
The developer/seller needs to be checked out as well as the property or lot, and construction, if already started. This vetting should be done by the agent and the buyer’s attorney. The buyer and seller must legally agree upon the sales contract. Delivery of the property should be noted in the information, and parties should negotiate payments to pay the project’s cost.
Closing is when the legal paperwork has been completed to transfer a legal property to a buyer. Delivery is when the buyer can occupy the property. It is up to the parties to decide if they want occupancy before closing. Delivery and closing can be months apart due to the legal work of the notary office.
The Jalisco – Nayarit market needs more listed homes in all price ranges. We need more development of homes to balance the large inventory of condominiums. Cotos are gated communities with townhomes typically. We need variety in products and prices.
This article is based upon FBS available data, current practices, and my personal experiences. I recommend that each potential buyer or seller of real estate conduct his own due diligence and review.
