Here’s a well-rounded overview of the current Cabo real-estate scene:
📈 Q1 2025 Market Snapshot in Los Cabos
Sales surged—Q1 saw a 70% increase in sales volume vs Q4 2024, equating to $559 million USD in contracts and 391 units sold .
Luxury dominates—77% of this volume came from homes over $1M, with six deals over $10M (top sale $28M) .
Prices are climbing fast—average sale prices are up ~56% year-over-year.
Market Segments & Notable Areas
🏡 Houses
House sales skyrocketed: from $176M in 2024 to $304M YTD in 2025 (+71%) .
San José del Cabo Corridor saw a 128% sales increase, averaging $5.78M per home (+44%)
🛏 Condos
Condo sales rose 1% YTD in Baja Sur (~$138M), with areas like Tezal (+21%) and San José del Cabo (+37%) leading growth (avg $729K) .
🌄 Land
Land sales declined (-41%), but construction on land is picking up as the dollar strengthens, making building more affordable .
📍 Key Hotspots
Pacific-side golf communities (Quivira, Diamante, Rancho San Lucas) make up ~75% of sales.
East Cape is emerging (+79% home sales), with fewer listings but growing interest .
Major Market Trends
Buyer’s Market in Luxury Tier
High inventory: 2,122 homes/condos (~$2.6 B USD).
High-end properties (> $2M) stay on market 200–300 days—plenty of negotiation room .
Vacation Rentals Surge
Cabo now outpaces Mexico City in short-term rental revenues.
Average nightly rates: $373 in Cabo San Lucas, $402 in San José del Cabo .
Smart & Sustainable Luxury Picks Up Speed
Rising demand for eco-friendly, solar-equipped, smart-home properties in gated communities (Chileno Bay, Cove Club, Palmilla) .
Remote-Work Second Homes
With remote work’s popularity, buyers are seeking homes with office spaces and strong internet—especially in Pedregal and corridor areas .
Pre-Construction Deals Are Attractive
Pre-construction provides lower entry prices before replacement costs catch up (material costs rising funneled into resale prices) .
🔍 Investment & Buying Tips
Financing & Trusts: Non-Mexicans must use a fideicomiso (bank trust) for coastal properties—standard procedure for foreign buyers .
Work with experts: Seek licensed real estate agents (e.g., AMPI), bilingual legal counsel, and trusted developers to ensure smooth purchases and compliance.
Leverage negotiation power: Luxury inventory is high and DOM lengthy—build in flexibility for price and terms.
Evaluate rental ROI: With double-digit appreciation potential (3–7% per year forecast) and strong short‑term rental demand, income generation can accelerate payback