Interview with Ixtapa Real Estate Expert Tim Sullivan – Part 2

Below is the second half of an interview by an international property magazine, VENTANA, talking with TOP Mexico Real Estate agents & Brokers member from the Ixtapa real estate market, Tim Sullivan. The first half of the interview and an introduction of Mr. Sullivan can also be found in our Mexico Real Estate Blog, TOPmexicorealestate.com. 

What can an interested buyer expect to pay for a new beachfront property in I-Z? How do prices differ between Ixtapa real estate market and that of  Zihuatanejo?

 

Contrary to popular belief, there really is no significant price variation between the two towns which make up the I-Z municipality.  Whether in Ixtapa or Zihuatanejo, or in any of the surrounding beaches, prices for new Mexico beachfront properties are running on average between $225 and $350 dollars per square foot of construction.

 

How have current economic conditions affected Ixtapa real estate prices in the area?

 

The present world-wide economic situation is affecting every corner of the globe.  Not one area appears to be immune to the effects of the credit meltdown and I-Z is no exception.  The volume of sales of Ixtapa homes and properties are experiencing a marked decrease compared with previous years.  In addition, some of the developments have slowed the pace of the construction and pushed back delivery dates.  Fortunately, though, prices have remained steady both in the new and resale sectors.  Moreover, some developments are still able to offer direct or Mexico mortgages financing at very competitive rates with comfortable amortizations.

 

What do you foresee will happen to current property prices?

 

Well, if I had a crystal ball, I’d be worth a fortune!  But since I do not, I am loathing any predictions in what remains a very unpredictable and volatile market.  What I hope to see is an unfreezing of the credit markets coupled with a renewed commitment to established, ethical practices on the part the people involved in the creation marketing of mortgages.  Only then, I think, can the market regain some measure of confidence thus stoking demand with sales.

 

What evidence would suggest that I-Z’s real estate will appreciate in value in the coming years?

 

I-Z is the poster child of real estate’s “Rule Number One:” LOCATION, LOCATION, and LOCATION.  I-Z is ideally situated between the azure Pacific Ocean to the west and the spectacular Sierra Madre Sur Mountains to the east.  We have world famous sportfishing, boating, championship golf courses, scuba diving, scores of miles of golden beaches, fun nightlife, shopping, history, culture, and some of the friendliest people anywhere in the globe.  Each and every one of these guarantees a bright and prosperous future.

 

What are the best things to do or see in I-Z?

 

In addition to the activities I mentioned, I can only add to the list my favorite activity: walking to Playa Palmar every morning with my yellow Labrador retriever, Suli, to greet the new day.

 

Tim Sullivan has been helping buyers and sellers in the Ixtapa Real Estate market over the past 18 years. Broker owner of TICAR offices and member of AMPI, Tim brings North American professional services to the regional market place. www.TOPmexicorealestate.com 512-879-6546