Los Cabos Real Estate
Market Report 2025

Baja California Sur  ·  Annual Performance & Year-Over-Year Analysis

The 2025 Baja Sur real estate market showed solid growth compared to 2024, with total sales reaching $1.59 billion, up 12%. Home sales led the market with 639 transactions totaling $918 million, reflecting strong demand and price appreciation.

Land sales declined year over year, signaling a clear shift toward finished residences. Rising home prices and steady buyer activity highlight a resilient and maturing market across Baja Sur.

Los Cabos operates within a unique, largely cash-driven real estate market, allowing owners to hold property long term without financing pressure while paying low annual property taxes. Over the past five years, more than $10 billion USD has been invested in the region, creating sustained momentum for buyers seeking both lifestyle and long-term investment value.

In some segments the market can feel like a buyer's market — but this is highly product- and location-specific. A large number of condominiums priced under $1 million have recently been delivered in select areas, creating higher inventory and more choice in those submarkets. In contrast, luxury single-family homes with ocean views remain extremely limited.

Construction costs commonly range between $500–$1,000 per square foot or more. As high-quality land becomes harder to acquire, scarcity places additional upward pressure on replacement costs and supports resale values for existing homes and condominiums.

Homes priced in line with current sold comparative market data and positioned competitively are selling — while aspirational pricing is leading to longer days on market. Buyer demand remains active, but decisions today are driven by value, lifestyle, and pricing accuracy.

There is double the inventory in the market compared with two years ago, and today's buyers are informed and selective — comparing real sold data, value per square foot, condition, and lifestyle offering. It's a strategy-driven market.

Amenity-rich luxury communities continue to outperform when priced and presented correctly. Extended days on market often signal a pricing or positioning mismatch — not a lack of interest.

Los Cabos Real Estate
Market Report 2024

Baja California Sur  ·  Annual Performance & Year-Over-Year Analysis

The 2024 Baja Sur real estate market closed with total sales of $1.42 billion across 1,854 properties, reflecting a 15.5% decline in volume from 2023 — yet average sale prices rose 13%, reaching $768,554. House sales led price appreciation with a 26% increase in average sale price to $1.32 million.

San Jose del Cabo was the top-performing region at $572.6M in total volume, while Cabo San Lucas drove strong luxury demand. A mid-year slowdown driven by election uncertainty and limited move-in-ready inventory gave way to renewed momentum as new turn-key communities came to market.

Los Cabos operates within a unique, largely cash-driven real estate market, allowing owners to hold property long term without financing pressure while paying low annual property taxes. Over the past five years, more than $10 billion USD has been invested in the region, creating sustained momentum for buyers seeking both lifestyle and long-term investment value.

Building costs have risen sharply, with luxury construction now ranging from $500–$675 per square foot, and high-end custom homes exceeding $1,000 per square foot. This is driving motivated sellers to list move-in-ready homes, creating a surge in turn-key inventory and fresh opportunities for buyers.

Buyer intent remained strong throughout 2024 — the question was never whether to buy in Los Cabos, but how much to invest. Conversations consistently revealed that the region's appeal as a premier destination for luxury living and smart investment never wavered.

Despite the year-over-year volume dip, homes priced in line with current sold comparative market data and positioned competitively are selling — while aspirational pricing led to longer days on market. Buyer demand remained active, driven by value, lifestyle, and pricing accuracy.

New community developments offering golf courses, beach clubs, and strong lifestyle amenities attracted buyers upgrading from older properties. This inventory shift created both challenges and opportunities for sellers across all price segments.

Amenity-rich luxury communities continue to outperform when priced and presented correctly. Extended days on market often signal a pricing or positioning mismatch — not a lack of interest.

Los Cabos Real Estate
Market Report 2023

Baja California Sur  ·  Annual Performance & Year-Over-Year Analysis

The 2023 Baja Sur real estate market reached $1.68 billion in total sales across 2,425 closed properties — a 12% increase over 2022 and a new high watermark for the region. Condos led by transaction volume with 1,114 units sold, while homes and land rounded out a balanced, high-demand market.

Los Cabos continues to be the most active and highly demanded real estate market in Mexico, proving why expats and international buyers are choosing to make the move. With the luxury segment stabilizing after 30–40% appreciation in prior years, 2023 demonstrated consistent, sustainable growth momentum entering 2024.

The market in Baja California Sur continues to grow, reassuring investors and giving them the confidence to keep building an even greater community for full-time residents and vacationers alike. After seeing appreciation of 30–40% or more over the prior years depending on amenities and community, the market has reached a healthy stabilization point — a sign of maturity, not slowdown.

What real estate investors love about Cabo is its close proximity to the US, exceptional weather, safety, and the fact that it operates primarily as a cash market with low annual property taxes. Limited inventory continues to drive momentum, with more people discovering Los Cabos than ever before.

Those who want to sell are largely looking to move up — investing into bigger properties or new communities with greater amenities. Strong and consistent growth, combined with a world-class lifestyle offering, continues to attract buyers seeking both a place to retire and a smart long-term investment.

With the luxury market stabilizing after years of rapid appreciation, sellers in 2023 found success by pricing competitively against current sold comparables. Buyers have become more discerning, comparing value per square foot, condition, and lifestyle offering — making accurate pricing and strong presentation essential.

Demand for move-in-ready homes in amenity-rich communities remained robust throughout the year. Sellers who positioned their properties within these communities — particularly those offering golf, beach clubs, and strong lifestyle infrastructure — saw the strongest results.

The question for buyers was never whether to invest in Los Cabos — it was how much to invest and where. That confidence in the region remains one of its greatest strengths heading into 2024.