Market Trends in Los Cabos: What 2024 Taught Us

After wrapping up another amazing year in Paradise, the Los Cabos real estate market continues to prove its reputation as a premier destination for luxury living and investment. As we reflect on 2024, one thing stands out was a year of transitions, opportunities, and evolving buyer preferences. The year-end data for 2024 highlights key trends and shifts across various property types, offering valuable insights for buyers and investors as we start 2025.

From July to November of 2024, the market experienced a slight slowdown. The primary driver wasn’t a lack of interest, instead it was the limited availability of move-in-ready homes to meet buyers demand. This shift pushed many buyers to consider building their dream homes, especially with the exciting new features and trends emerging in construction.

Another factor that influenced decision-making was the uncertainty surrounding elections in both the United States and Mexico. Buyers were waiting to see how changes in government might impact the market, which is a natural hesitation based on previous election cycles.

Even in this climate, conversations with potential buyers revealed an important insight which is their desire to own a home in Los Cabos never wavered. It wasn’t a question of “if” they are still going to purchase a property in Los Cabos, it was a question of how much they would invest in a vacation home. This speaks volumes about the enduring appeal of the region as a premier destination for luxury living and smart investments.

Analyzing the Market Data of 2024: Trends & Insights

In the last six months, building costs have nearly doubled, with construction prices starting at $225–$250 USD per square foot for basic construction and luxury builds to meet community standards between $500–$675 USD per square foot. In some cases, the cost for high-end, custom homes has surpassed $1,000 per square foot and more, depending on the quality, the finishes and the builder you choose.

This significant rise in building costs has motivated many homeowners to sell and upgrade into new homes that offer better lifestyle opportunities. People are upgrading as they discover new options in areas that offer enhanced lifestyle amenities, such as golf courses and beach clubs. Many new communities throughout Los Cabos offer a strong sense of community, appealing to those choosing to spend more time in Los Cabos. Additionally, the introduction of new developments is creating fresh opportunities for buyers to explore and invest in these growing neighborhoods. As a result, we have seen a surge in move-in-ready inventory in the last six months, giving buyers more immediate options to find their perfect home without the time and complexity of building.

For buyers, this is a golden moment. The availability of turn-key homes in Los Cabos is opening up opportunities to step into a home that aligns with their lifestyle while avoiding the escalating costs of construction.

2024 Year-End Market Highlights

Total Sales Volume: $1.42 billion USD in 2024, reflecting a 16% decrease from 2023. This steady activity underscores the market’s resilience.
Average Sale Price: Increased by 13%, from $678,107 in 2023 to $768,554 in 2024.
Condos: 673 condos sold, totaling $429.6 million USD, with a slight dip in average sale price by 5%.
Houses: 552 homes sold, totaling $727.3 million USD, with a significant 26% increase in average sale price to $1.32 million.
Land: 516 parcels sold, totaling $237.8 million USD, with a 26% increase in average sale price.

Regional Performance

Cabo Corridor: Strong increase in land sales volume (+177%) and price surge (+192%).
Cabo San Lucas: High demand for luxury properties led to a 107% increase in average house sale price.
San Jose del Cabo: Land prices increased by 54%, reflecting premium value for limited parcels.
Pacific Side: Houses and land remain highly sought after, driving steady demand.

Looking Ahead: The Future of Los Cabos Real Estate

As we move into 2025, Los Cabos remains one of the world’s most attractive destinations for luxury real estate. Whether you’re considering a move-in ready vacation home, an investment property, or a parcel of land to build your dream estate, now is the time to take a closer look at new possibilities.

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