Puerto Escondido

Puerto Escondido is Oaxaca's Pacific surf capital and one of Mexico's fastest-appreciating coastal markets, transformed by the Barranca Larga-Ventanilla superhighway (cutting the drive from Oaxaca City to about 2.5 hours) and an expanding international airport with new US and Canadian routes. Once a backpacker surf town, it now draws digital nomads, boutique hotels, and a wave of American and Canadian buyers. Core neighborhoods like Zicatela and La Punta saw property values jump 18-22% in 2024-2025 before moderating to a still-strong 8-12% across 2025. Beachfront homes now command USD 400,000-1,200,000, while properties two to three blocks inland run USD 200,000-450,000. Vacation-rental performance is exceptional: 75% average annual occupancy (95% in the December-March peak) drives gross yields of 8-12% for well-managed, design-forward properties. As a coastal Restricted-Zone location, foreign buyers acquire title through a fideicomiso (50-year renewable bank trust, ~USD 1,500-2,000 setup plus annual fees) or a Mexican corporation for multiple or commercial properties. Tourism arrivals grew about 35% in 2024, and the market, while cooling from explosive highs, remains one of the country's strongest growth stories.