Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of Cabo San Lucas' property market is included in our pack
Cabo San Lucas offers diverse condo options ranging from $250,000 entry-level units to multi-million dollar luxury penthouses, with mid-range properties averaging around $792,840 as of mid-2025.
The market has shown consistent growth with 9.9% price appreciation from 2023 to 2024, driven by limited inventory and strong international demand. Additional costs including closing fees, taxes, and HOA fees typically add 5-10% to the purchase price, while emerging neighborhoods like El Tezal and Cabo Bello offer the best investment opportunities for both rental income and capital appreciation.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Cabo San Lucas condo prices have risen significantly, with average sales reaching $792,840 in 2024.
Entry-level condos start at $250,000 while luxury penthouses exceed $1 million, with emerging neighborhoods offering the best investment potential.
| Condo Type | Price Range | Key Features |
|---|---|---|
| Entry-level | $250,000 - $350,000 | Inland locations, older buildings |
| Mid-range | $400,000 - $800,000 | El Tezal, Cabo Bello, marina views |
| Luxury | $1 million+ | Pedregal, Medano Beach, penthouses |
| Closing costs | 5-10% of price | Taxes, fees, agent commission |
| HOA fees | $200 - $2,000/month | Varies by amenities |
| Down payment | 20-30% | For foreign buyers |
| Mortgage rates | 7-12% | Terms up to 20 years |
What's the current average purchase price for a condo in Cabo San Lucas?
The average condo sales price in Cabo San Lucas reached $792,840 as of September 2024, representing a significant increase from previous years.
Entry-level condos typically start around $250,000 to $300,000 for inland or downtown properties. These units are usually older buildings or located in less desirable areas but still offer access to Cabo's amenities and lifestyle.
Mid-range condos with beach or marina views in popular neighborhoods range from $400,000 to $800,000. These properties often feature modern amenities and are located in sought-after areas like El Tezal or Cabo Bello.
Luxury penthouses and beachfront units in premium areas like Pedregal or Medano Beach can exceed $1 million, with some ultra-luxury properties reaching $3 million or more.
It's something we develop in our Mexico property pack.
How much do additional costs like taxes, closing fees, and HOA fees typically add to the total price?
Closing costs in Cabo San Lucas typically range from 5% to 10% of the purchase price, depending on various factors including agent commissions and legal fees.
The breakdown includes 2-3% in closing fees and 3% acquisition tax as of 2025. Some sources cite total costs including agent commissions and trust setup at 7-10% of the purchase price.
Annual property taxes are relatively low at 0.1-0.2% of assessed value, making Cabo attractive compared to many U.S. markets. HOA fees vary significantly from $200 to $2,000 per month depending on amenities and location.
For foreign buyers, trust setup costs include $2,000-$4,000 for initial setup and $500-$1,500 annually for maintenance. These costs are mandatory for properties within the restricted zone near the coast.
How do condo prices vary by neighborhood or zone — what are the most expensive, most affordable, and up-and-coming areas?
Pedregal stands as the most expensive area, featuring ultra-luxury condos and villas that command multi-million dollar prices due to its exclusive location and privacy.
Medano Beach represents another premium zone with beachfront high-end properties that appeal to luxury buyers seeking direct beach access and resort-style amenities.
The most affordable options are found in inland neighborhoods, some downtown areas, and emerging zones like El Tezal, which offers relative value compared to beachfront properties while maintaining good access to amenities.
Up-and-coming areas include El Tezal, Cabo Corridor, Cabo Bello, and Santa Carmela, which show strong appreciation potential due to new developments, growing rental demand, and improved infrastructure.
What's the price difference between different types of condos, like studios, one-bedrooms, and luxury penthouses?
Studios and one-bedroom condos are relatively rare in the Cabo San Lucas market, with most available units being older buildings or budget-focused developments.
| Condo Type | Price Range | Typical Features |
|---|---|---|
| Studios/1-bedroom | $200,000 - $300,000 | Rare, older buildings, basic amenities |
| 2-bedroom standard | $300,000 - $600,000 | Most common, value areas, good amenities |
| 2-bedroom premium | $600,000 - $800,000 | Prime locations, ocean views, luxury finishes |
| 3-bedroom condos | $700,000 - $1,200,000 | Spacious, family-oriented, premium locations |
| Luxury penthouses | $1,000,000 - $3,000,000+ | Large spaces, beachfront, exclusive amenities |
| Ultra-luxury penthouses | $3,000,000+ | Pedregal, Medano Beach, custom features |
Don't lose money on your property in Cabo San Lucas
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How have condo prices in Cabo San Lucas changed over the past 5 years and over the past year?
Cabo San Lucas has experienced steady appreciation over the past five years, with average condo prices rising from around $500,000-$600,000 in 2019 to over $700,000-$800,000 in 2024.
The most recent year showed particularly strong growth, with condo prices rising by approximately 9.9% from 2023 to 2024, reaching the current average of $792,840.
This growth has occurred despite a drop in sales volume, indicating that prices remain strong due to limited inventory and sustained high demand from international buyers.
The market context shows that while fewer transactions are occurring, the properties that do sell command premium prices, reflecting the ongoing desirability of Cabo San Lucas real estate.
What are the forecasted price trends for condos in Cabo over the next 1 year, 5 years, and 10 years?
As we reach mid-2025, analysts forecast continued appreciation of 3-7% for the next year, driven by ongoing supply constraints and strong international demand.
The five to ten-year outlook projects annual appreciation of 5-7% for well-located properties, supported by limited supply, infrastructure investment, and sustained international interest in Mexican coastal real estate.
Long-term growth is expected to be particularly strong in emerging neighborhoods and areas with new developments, as these zones benefit from expanding infrastructure and increasing recognition among investors.
The forecast assumes continued political stability, infrastructure development, and Mexico's growing appeal as a real estate investment destination for North American buyers.
If I'm buying to live full-time, what are the best areas or property types to look at today?
El Tezal emerges as an excellent choice for full-time residents due to its proximity to downtown, beaches, and essential amenities while offering good value compared to premium beachfront areas.
- El Tezal: Growing community with modern developments, good access to amenities, and reasonable prices for full-time living
- Cabo Corridor: Modern developments with golf courses and luxury living options, ideal for those seeking upscale lifestyle
- Pedregal: Ultimate privacy and luxury for those with higher budgets who prioritize exclusivity and security
- Cabo Bello: Gated community offering security and vacation rental potential, suitable for part-time or full-time residents
- Santa Carmela: Exclusive beachfront location with limited inventory and strong appreciation potential
If I want to rent it out short-term or on Airbnb, what types of condos and zones are the smartest investments right now?
Cabo Bello stands out with high occupancy rates of 56% median, offering strong rental income potential within a secure gated community environment.
Santa Carmela provides exclusive beachfront access with limited inventory, making it highly desirable for short-term rental guests seeking luxury experiences.
Ventanas Residences offers modern amenities and high demand for rentals within a gated security environment that appeals to tourists seeking safety and luxury.
Medano Beach represents the prime tourist location with direct beach access, ensuring consistent high rental yields due to its popularity with visitors.
It's something we develop in our Mexico property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
If my goal is to buy and resell at a profit later, where are the best opportunities in Cabo?
Emerging neighborhoods like El Tezal, Cabo Corridor, and new pre-construction developments offer the best value and appreciation potential for buy-and-resell strategies.
These areas provide room for significant percentage appreciation as infrastructure develops and recognition among buyers increases over time.
Premium areas like Pedregal and Medano Beach cater to high-end buyers but offer less room for percentage appreciation due to their already elevated price points.
Pre-sale discounts in new developments can offer 10-20% savings compared to completed units, providing immediate equity upon construction completion.
What are some example purchase prices for recently sold condos — budget, mid-range, and high-end?
Budget condos in the $250,000-$350,000 range typically include inland properties, older buildings, and less desirable areas but still provide access to Cabo's lifestyle.
| Price Category | Price Range | Location Examples |
|---|---|---|
| Budget | $250,000 - $350,000 | Inland areas, downtown, older buildings |
| Mid-range | $400,000 - $800,000 | El Tezal, Cabo Bello, marina views |
| High-end | $1,000,000 - $2,000,000 | Pedregal, Medano Beach, new luxury |
| Ultra-luxury | $2,000,000 - $3,000,000+ | Pedregal penthouses, beachfront premium |
| Exclusive | $3,000,000+ | Custom penthouses, ultra-prime locations |
How do Cabo San Lucas condo prices compare with other similar tourist cities like Playa del Carmen, Puerto Vallarta, or Miami?
Cabo San Lucas rental costs are higher than Cancun but significantly lower than Miami, with one-bedroom rent averaging approximately $975 in Cabo versus $660 in Cancun.
Purchase prices per square foot show Cabo at approximately $106 per square foot compared to Miami's $586 per square foot, making Cabo substantially more affordable for buyers.
Puerto Vallarta comparison reveals condo prices per square meter in Cabo at approximately 23,500 MXN versus Puerto Vallarta's central areas at 67,500 MXN per square meter.
Cabo offers relatively high prices within Mexico but remains more affordable than top U.S. destinations while being more expensive than Cancun or Playa del Carmen for both buyers and renters.
What's the typical down payment and monthly mortgage cost for foreigners buying a condo in Cabo today?
Foreign buyers typically need to provide 20-30% down payment for Mexican bank mortgages, with some cross-border lenders requiring similar or higher percentages.
Mortgage rates for foreigners range from 7-12% with terms typically extending up to 20 years, which is shorter than standard U.S. mortgage terms.
For a $500,000 condo example with 30% down payment ($150,000), 8% interest rate, and 20-year term, the principal and interest payment would be approximately $2,600 per month.
This calculation excludes additional monthly costs such as property taxes, HOA fees, and insurance, which buyers should factor into their total monthly housing expenses.
It's something we develop in our Mexico property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Cabo San Lucas represents a dynamic condo market with strong appreciation potential and diverse price points to suit various budgets and investment strategies.
Whether seeking a full-time residence, vacation rental investment, or buy-and-resell opportunity, understanding the neighborhood dynamics and cost structure is essential for making informed decisions in this competitive market.
Sources
- The Latin Investor - Cabo San Lucas Real Estate Market
- Cabo Properties - Los Cabos Market Summary September 2024
- The Latin Investor - Cabo San Lucas Property Guide
- The Latin Investor - How to Buy House in Cabo San Lucas
- Come to Cabo - Richest Neighborhood in Cabo
- Properstar - Cabo San Lucas Penthouses
- Cabo Beach Realty - Closing Costs in Mexico
- The Latin Investor - Cabo San Lucas Best Areas
- The Latin Investor - Cabo San Lucas Price Forecasts
- Goldsmith Group - Top Los Cabos Neighborhoods 2025