The Cabo real estate market in 2025 remains a dynamic and attractive destination for luxury properties, vacation homes, and investment opportunities, particularly in Los Cabos, encompassing Cabo San Lucas, San José del Cabo, and the Corridor. Here’s a concise overview based on current trends and insights:
Market Overview
• Buyer’s Market: As of Q1 2025, the Los Cabos real estate market is characterized as a buyer’s market due to a high inventory of 2,122 houses and condos, valued at $2.616 billion USD ($1.613B in houses, $1.003B in condos). Days on Market (DOM) for properties over $2M range from 200–300 days, indicating slower sales for high-end listings.
• Sales Trends: Sales in 2024 dropped by 35% compared to 2023, influenced by election-year uncertainties in the U.S. and Mexico, high interest rates, and a stronger Mexican peso. However, luxury properties above $1M accounted for 77% of market volume, with notable sales including a $28M property and six sales above $10M totaling $95.1M.
• Luxury Focus: Demand for luxury homes, particularly oceanfront and golf-course properties, remains strong. Sub-markets like Palmilla maintain stable pricing due to desirable lifestyle features.
• Construction Costs: Building costs have risen significantly, with basic construction at $225–$250/sqft and luxury builds ranging from $500–$1,000+/sqft, reflecting high-end community standards.
Popular Areas and Property Types
• Cabo San Lucas: Known for vibrant nightlife, beach access, and luxury communities like Pedregal (often called the “Beverly Hills of Cabo”). Properties range from beachfront condos to hillside villas with panoramic views.
• San José del Cabo: Offers a charming historic district, luxury resorts, and exclusive gated communities. Developments like Puerto Los Cabos feature oceanfront homes and marinas.
• The Corridor: Includes areas like El Tezal, with an 18-month absorption rate, indicating a slower market but opportunities for negotiation.
• East Cape: Emerging as a development hotspot with pristine beaches, offering more affordable land and homes for those seeking serenity.
• Property Types: Options include luxury villas, beachfront condos, custom homes in golf communities (e.g., Diamante, Palmilla), and land for bespoke construction. Prices range from under $250,000 for condos to multi-million-dollar estates.
Recent Listings
• New Listings: Websites like caborealestateservices.com highlight properties listed within the last 30 days, often featuring ocean-view homes and condos.
• Examples:
• Casa Harmony (San José del Cabo): A 3-bed, 3-bath turnkey home in Casa Mexicana with rooftop views.
• Villa Solara (Diamante, Cabo San Lucas): A 5-bedroom, 8,000+ sqft pre-construction estate, move-in ready by fall 2024.
• Casa Kash (East Cape): A 3-bedroom oceanfront estate with a separate casita and infinity pool, including an adjacent 2500m² lot.
• Price Ranges: Affordable homes/condos start at $250,000–$500,000 in developments like Ventanas or Misiones, while luxury properties in communities like Club Campestre or Puerto Los Cabos range from $1M to over $10M.
Investment and Buying Considerations
• Foreign Ownership: Foreigners can buy property through a Fideicomiso (bank trust), granting full rights for 50 years, renewable. Working with experienced agents and lawyers is recommended to navigate regulations.
• Investment Potential: High demand for vacation rentals and luxury properties makes Los Cabos appealing for investors. The region’s tourism-driven economy and safety enhance its attractiveness.
• Challenges: Buyers face limited move-in-ready homes, pushing interest toward custom builds. Election-related hesitancy and currency fluctuations may affect pricing, but the market’s long-term appeal remains strong.