Costa Careyes, the exclusive Mexican town where you'll find castles, casitas and waterfront villas

If you thought Byron Bay was the epitome of bohemian luxury, think again. There’s a resort town in Mexico with the heart of an artist and the wallet of a venture capitalist.

Costa Careyes, on the Pacific Coast in Jalisco, was founded by Italian banker Gian Franco Brignone in 1968 after he flew over the area and decided to buy more than 10,000 hectares of jungle forest.

He set about creating his dream home and invited other jet-setters to do the same. Today, the villas, castles, casitas and bungalows are a medley of Mediterranean and Mexican style.

Design lovers can snap up a slice of Careyes with a property inspired by the whorls and sinuous structures of the nautilus shell.

Casa Nautilus was built in 1997 and recently remodelled with a minimalist aesthetic. Highlights of the four-bedroom estate include a traditional open-sided palapa with a palm-thatched roof over the living and dining areas and the sweeping lines of an infinity-edge pool.

Christie’s International Real Estate broker Scott Davidson is handling the listing, with an asking price of $US2.9 million, or about $4.19 million.

Current market

Property prices in Jalisco are among the highest in Mexico, according to the real estate website globalpropertyguide.com. Foreign demand for homes in resort communities has buoyed the market over the past few years.

American and Canadian buyers in particular have returned after a slump caused when low oil prices and a strong US dollar pushed up prices.

Aspen-based Davidson says Mexico is a popular second-home destination for Americans because of its easy accessibility and great value.

“You can get quite a large home for less money than you would pay in other global resort destinations,” he says.

Can Australians buy in?

Yes and no. Constitutionally, foreigners aren’t permitted to buy land in “restricted zones”, including within 50 kilometres of the coast.

Recognising that foreign investment was essential to help these areas develop, the government passed a law allowing non-Mexicans to buy property through a bank trust or Mexican corporation.

Each option has different restrictions and obligations, so foreigners must seek legal advice on property transactions.

What you can buy for …

$15.88 million

Casa Millas is a six-bedroom villa in Careyes designed by Mexican architect Manolo Mestre. It features five infinity pools, a theatre, gym and staff quarters.

$5.06 million

The brilliant blue cliffside Villa Nido de Amor in Careyes has direct access to the waterfront, three ocean-view suites, roof terraces and an infinity-edge pool.

$1.15 million

Casita Coco is triple-width terraced bungalow with two bedrooms and a plunge pool in Las Casitas de Las Flores, a multi-coloured collections of homes in Careyes.