The shops, restaurants, beautiful plaza and Malecon (boardwalk) have made it a very attractive place to not only visit but also to buy a home. Obviously this popularity has created a high demand for real estate and this demand has driven the housing prices up considerably, especially in the village (Ajijic downtown).
To give you an idea of the state of real estate in Ajijic let me give you a real life example. A 2 bedroom condo with no view, no pool, no yard, no parking, no clubhouse in downtown Ajijic sold for $190,000USD (195,000USD asking price). This price is based 100% on location (walking distance to everything). Now, one town over (only a mile away) in San Antonio Tlayacapan you can get a 4 bedroom condo with a pool, yard, patio, view of the mountain, partial view of the lake, beautiful clubhouse and parking for 3 cars for an asking price of only $229,000USD! That’s heck of a lot more house for not a lot more money!
In light of the example above, it looks as though San Antonio Tlayacapan may become the next “hotspot” and not just because of the price. San Antonio has a brand new plaza and Malecon and the government is upgrading infrastructure (sewers etc.) and fiber optic internet is being installed as we speak. It wont be long before San Antonio’s real estate market reaches the same levels as Ajijic. There are nice restaurants in the area (Adelita Bar & Grill, Tony’s, and La Pacena, just to name a few) that are all walking distance from the center of town. You also have Walmart and the new San Antonio Hospital nearby and plenty of local shops. The main attractions of Ajijic are now being found next door in San Antonio and at a fraction of the price.
That’s a good question and the answer is I doubt it, at least in the near future. Ajijic real estate values will likely rise even higher as there becomes more demand and less options (simple economics). There are only so many places for sale in downtown Ajijic and for this reason the real estate market will likely hold its own, at least for now.