The Los Cabos real estate market is off to a powerful start in 2025, showing impressive growth across all major property categories. Compared to Q1 2024, this year’s first quarter reflects increased buyer activity, rising home values, and a thriving demand for coastal lifestyle living. Whether you’re looking for an investment, a vacation property, or a permanent home by the sea, the numbers suggest this might be the right time to make your move.
Baja California Sur continues to hold its reputation as the most desirable region in Mexico for foreign investment. Why? Year-round sunshine, world-class amenities, direct access to the U.S., and a luxury lifestyle that blends serenity and adventure. Los Cabos remains primarily a cash market—an attractive indicator of financial stability and strong equity-based purchases.
Q1 2025:
188 Condos Sold
$119,484,144 USD in Volume
Average sale price: $635,553
Q1 2024:
162 Condos Sold
$88,988,100 USD in Volume
Average sale price: $549,309
Condo sales rose 34% in volume, with unit count up 16%. These increases indicate more buyers opting for turnkey properties with resort-style amenities.
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.
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.
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.
Owning a Vacation home in Los Cabos is like a dream come true and easier than ever before, and the Oceanside Real Estate Group is happy to explain how the process works so you can feel comfortable making the next steps as choose where you want to spend your time.
Here is some information to know before purchasing your new Cabo vacation home:
1. Foreigners US/CA citizens can purchase property in Los Cabos with a Fideicomiso…
2. What is a Fideicomiso? It is a Mexican Bank Trust which allows foreign citizens to purchase coastal property within designated regions of Mexico, this is an instrument used for non-Mexican nationals, such as U.S. citizens and Canadians to purchase property in Cabo.
3.How does the Bank Trust Work? – The Mexican Government issues a permit to a Mexican Bank allowing the bank to act as the purchaser of the property.
The market in Baja California Sur continues to grow, reassuring investors and giving them the confidence to keep building an even greater community for the full-time residents and those who love to vacation here in Los Cabos. We have seen the current market stabilize after seeing an increase of 30%-40% or more over the last couple of years, depending on amenities and community. What real estate investors love about Cabo besides its close proximity, weather, safety, and that it is primarily a cash market with many great opportunities. When searching for that perfect place to retire or spend more time, we are seeing strong and consistent growth, with more and more people wanting to enjoy the lifestyle. The luxury market has stabilized, and those who want to sell are looking to move up and invest into bigger property or a new community with more amenities. We continue to see more interest in Cabo Real Estate than ever before and momentum building with limited inventory with more people discovering Los Cabos.
People are asking why is the market getting stronger? What kind of growth are we seeing? What is selling the most? One of the best ways to gain an understanding of what’s happening with the Real Estate market in Los Cabos is to take a close look at the statistics.
For several reasons the price per square foot in Los Cabos can be tough to determine, here’s why:
Our success is built on a carefully curated team of real estate advisors committed to honesty, integrity, and exceptional client service. Comprised of both local Mexicans and expatriates who have made the move to Los Cabos, our team brings years of real estate expertise to guide you through every step of the journey.
