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As of September 2025, the average condo price in Cabo San Lucas reaches $727,000 USD, making it one of Mexico's most expensive resort markets.
Cabo San Lucas condo prices vary dramatically by location, from $150,000 for inland units to over $5 million for beachfront luxury properties. The market has experienced remarkable growth with 50-108% price increases over the past five years, driven by strong demand from U.S. buyers and limited inventory in prime locations.
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The Cabo San Lucas condo market offers opportunities from $150,000 starter units to $10+ million luxury penthouses, with average prices now at $727,000 USD.
Beachfront and marina areas command premium prices while emerging neighborhoods like El Tezal offer the strongest appreciation potential at more accessible price points.
| Area | Price Range (USD) | Key Features |
|---|---|---|
| Beachfront | $600,000 - $5,000,000+ | Ocean views, resort amenities, premium locations |
| Marina | $400,000 - $1,200,000 | Water views, nightlife access, modern facilities |
| Downtown | $200,000 - $450,000 | Local lifestyle, walkable, smaller units |
| El Tezal/Inland | $150,000 - $600,000 | Best value, modern developments, strong growth |
| Ultra-Luxury | $1,000,000 - $10,000,000+ | Celebrity enclaves, exclusive amenities |
What's the current average purchase price for a condo in Cabo San Lucas, including all fees and taxes?
The average condo price in Cabo San Lucas reached $727,000 USD as of September 2025.
When you add all required fees and taxes, expect to pay an additional 8-11% on top of the purchase price. This includes the 3% property acquisition tax that applies to all real estate transactions in Mexico, plus closing costs ranging from 5-8% of the sale price.
Closing costs cover essential expenses like legal fees, fideicomiso trust setup (required for foreign buyers), title insurance, and transfer fees. The fideicomiso itself costs approximately $2,000 to establish and requires annual maintenance fees of $500-600.
Entry-level condos start around $150,000 USD in inland areas like El Tezal, while premium beachfront properties can exceed $1,000,000 USD. Ultra-luxury penthouses in exclusive developments like Pedregal or Four Seasons command prices above $5,000,000 USD.
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How do average condo prices differ between beachfront, marina, downtown, and inland areas?
Location dramatically impacts condo pricing in Cabo San Lucas, with beachfront properties commanding the highest premiums.
Beachfront condos range from $600,000 to over $5,000,000, offering direct ocean access, resort-style amenities, and the highest rental yields. These properties typically feature private beach clubs, concierge services, and spectacular ocean views that justify their premium pricing.
Marina area condos cost between $400,000 and $1,200,000, providing water views and proximity to Cabo's vibrant nightlife district. The marina location offers excellent walkability to restaurants, bars, and entertainment venues, making these properties popular with both residents and short-term rental investors.
Downtown condos represent the most affordable option at $200,000-$450,000, offering authentic local lifestyle experiences in smaller, more traditional units. These properties appeal to buyers seeking Mexican culture and community integration rather than resort amenities.
Inland areas like El Tezal and the Corridor provide the best value proposition at $150,000-$600,000, featuring modern developments with strong appreciation potential as infrastructure continues expanding.
What are the typical price ranges for condos based on size and number of bedrooms?
| Bedrooms | Square Feet | Price Range (USD) | Best For |
|---|---|---|---|
| Studio/1-bed | 400-800 | $150,000 - $350,000 | Rental investment, starter homes |
| 2-bedroom | 800-1,200 | $325,000 - $650,000 | Best ROI, vacation homes |
| 3-bedroom | 1,200-1,800 | $500,000 - $850,000 | Family living, luxury rentals |
| 4+ bedrooms | 2,000+ | $850,000 - $2,000,000+ | Luxury market, penthouses |
| Penthouse | 2,500+ | $1,500,000 - $10,000,000+ | Ultra-luxury, investment |
What are some recent real-world examples of condo sales across different price brackets?
Recent condo sales in Cabo San Lucas demonstrate the market's diverse price spectrum and strong activity levels.
In the budget segment, Monte Sion near the Marina has sold brand-new 2-bedroom units for $167,000-$220,000 USD, offering modern amenities and excellent value for first-time buyers or rental investors. These properties represent some of the best entry-level opportunities in desirable locations.
Mid-market sales include a 3-bedroom unit in the Tezal Corridor that sold for $530,000 USD, featuring panoramic views and modern finishes. Club Campestre sold a 3-bedroom condo for $749,000 USD, including golf and beach club access that adds significant lifestyle value.
Luxury market examples include a Pedregal Towers 4-bedroom penthouse that sold for $849,000 USD, offering 2,055 square feet and premium amenities. A 2-bedroom penthouse at Cascadas beachfront development commanded $950,000 USD for just 1,839 square feet, demonstrating the premium that oceanfront location commands.
These real sales data points confirm that location, amenities, and ocean access drive the most significant price variations across Cabo's condo market.
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Which areas have the most expensive condos, which are considered up-and-coming, and which are the most budget-friendly right now?
Cabo San Lucas real estate market clearly segments into distinct price tiers based on location and development maturity.
The most expensive condo areas include Chileno Bay, El Dorado, Maravilla, Four Seasons, St. Regis, Villas Del Mar, and Pedregal, where ultra-luxury developments attract celebrities and high-net-worth individuals. These exclusive enclaves feature world-class amenities, private beaches, and architectural excellence that justifies prices often exceeding $2,000 per square foot.
Up-and-coming areas showing the strongest growth potential include El Tezal, the Cabo Corridor, and golf communities, where new infrastructure development drives 21% annual price appreciation for condos. These areas benefit from planned improvements while maintaining more accessible entry prices for investors seeking maximum appreciation potential.
Budget-friendly options concentrate in downtown Cabo San Lucas, outer Tezal neighborhoods, and select new developments where condos start around $150,000-$250,000 USD. These areas offer excellent starter opportunities for first-time buyers or rental investment strategies targeting longer-term tenants.
Smart investors often focus on the transition zones between established and emerging areas, where properties offer proximity to luxury amenities at developing area prices.
How have condo prices in Cabo San Lucas changed compared to 5 years ago and compared to 1 year ago?
Cabo San Lucas condo market has experienced dramatic price appreciation over both short and long-term periods.
Over the past five years, condo prices have increased 50-108% depending on the segment, with the current average of $727,000 USD representing a substantial jump from the $398,000-$450,000 average in 2020. Luxury segment properties have seen the most dramatic increases, with some beachfront developments doubling in value during this period.
The past year alone brought 9.9% annual appreciation for condos, significantly outpacing transaction volume as fewer properties changed hands but at higher prices. This pattern indicates strong underlying demand despite reduced inventory availability.
Regional variations show even stronger performance, with Pacific region luxury properties up 13% year-over-year, while El Tezal condos experienced remarkable 21% annual growth. The average condo sale price increased from $720,000 in late 2024 to $792,840 by September 2025.
These appreciation rates far exceed U.S. real estate markets and reflect Cabo's unique position as a premier international resort destination with limited developable beachfront land.
What's the price forecast for condos over the next 1 year, 5 years, and 10 years?
Market experts project continued strong appreciation for Cabo San Lucas condos across all timeframes.
The one-year forecast anticipates 8-12% price growth for mid- to high-end condos, driven by sustained U.S. buyer demand and continued inventory constraints. New development approvals remain limited, supporting price stability and growth.
Five-year projections suggest 40-60% cumulative growth for prime locations, as infrastructure expansion and resort development continue attracting international buyers. Tightening inventory in established areas will likely push buyers toward emerging neighborhoods, spreading appreciation throughout the market.
Ten-year forecasts indicate potential price doubling in ultra-luxury areas, while inland and emerging areas may see the strongest percentage gains as they mature and infrastructure improvements connect them better to established resort zones.
These projections assume continued political stability, infrastructure investment, and sustained international travel patterns that drive Cabo's resort economy and real estate demand.
How do condo prices in Cabo San Lucas compare with similar resort cities internationally?
Cabo San Lucas condo pricing positions competitively within the international luxury resort market.
Compared to other Mexican destinations, Cabo commands premium pricing with its $727,000 average significantly exceeding Puerto Vallarta's $350,000-$600,000 range and Tulum/Playa del Carmen's $250,000-$500,000 typical prices. This premium reflects Cabo's established luxury resort infrastructure and U.S. proximity.
Against U.S. resort markets, Cabo offers relative value with Miami Beach averaging $800,000-$1.2 million and Palm Beach, Florida reaching $1.2-$2 million for comparable properties. Honolulu condos typically range $600,000-$950,000, making Cabo competitive for similar oceanfront access and amenities.
Cabo's luxury segment remains less expensive than established U.S. celebrity enclaves, offering international buyers access to world-class resort amenities at more accessible price points. The peso's relative stability and Mexico's favorable foreign ownership laws enhance Cabo's international appeal.
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.
What are the main costs to consider when buying a condo, including maintenance fees, property taxes, and insurance?
Condo ownership in Cabo San Lucas involves several ongoing costs beyond the initial purchase price.
Property acquisition tax represents 3% of the purchase price and cannot be avoided. Closing costs add another 5-8% covering transfer fees, legal representation, and fideicomiso trust establishment required for foreign buyers.
Monthly HOA or maintenance fees range from $200-$700 depending on amenities offered, with beachfront properties and luxury developments commanding higher fees for services like security, landscaping, pool maintenance, and concierge services.
Annual property taxes remain surprisingly low at approximately $200-$1,000 per year for typical condos, representing one of Mexico's advantages for property owners. Insurance costs vary from $300-$2,000 annually based on property value and coverage levels selected.
The fideicomiso trust requires annual renewal fees of $500-$600, ensuring continued legal property control for foreign owners. These ongoing costs typically total 2-4% of property value annually, making Cabo ownership relatively affordable compared to U.S. resort markets.
How much would a mortgage cost monthly for an average condo, based on typical down payment and interest rates in the area?
Financing an average Cabo San Lucas condo requires understanding both Mexican lending requirements and typical buyer patterns.
For a $727,000 average-priced condo with the standard 30% down payment ($218,100), buyers would finance approximately $508,900. Mexican banks typically offer 6-8% interest rates for qualified foreign borrowers on 25-year terms.
Monthly mortgage payments would range approximately $3,600-$3,800, not including property taxes, insurance, or HOA fees. These additional costs might add $500-$1,000 monthly depending on the specific property and coverage selected.
Many foreign buyers choose cash purchases or U.S.-based financing options that may offer better rates and terms. Mexican lending requirements often include substantial income verification, Mexican tax ID numbers, and higher down payments than U.S. buyers expect.
Alternative financing through developer programs sometimes offers more flexible terms for new construction purchases, with some developers providing bridge financing or payment plans during construction periods.
What are the smartest condo buying strategies today if your goal is to live there, rent it out short term, rent it out long term, or resell at a higher price later?
Successful Cabo San Lucas condo investment requires matching strategy with specific market segments and buyer goals.
For primary residence buyers, emerging neighborhoods like El Tezal and the Cabo Corridor offer modern amenities at lower prices with strong appreciation potential. These areas provide excellent value while benefiting from ongoing infrastructure improvements and development.
Short-term rental investors should focus on beachfront and marina areas where properties generate 6-10% gross yields and achieve 46-73% occupancy rates. Two to three-bedroom units perform best, offering families adequate space while maintaining manageable operating costs.
Long-term rental strategies work well in downtown and marina locations near employment centers, targeting stable tenants who value proximity to work and services. Studios and two-bedroom units see consistent demand from local professionals and service industry workers.
Resale-focused investors should consider presale opportunities in growing areas, often available at 10-20% discounts below market rates. These properties offer significant profit potential when construction completes and the area matures.
Which condo types and areas currently offer the best return on investment for each of those goals?
| Investment Goal | Best Areas/Types | Expected Returns | Key Success Factors |
|---|---|---|---|
| Primary Residence | El Tezal, Corridor modern units | 8-12% annual appreciation | Infrastructure growth, value pricing |
| Short-term Rental | Beachfront/Marina 2-3 bedrooms | 6-10% gross yield, $400-800/night | Ocean access, resort amenities |
| Long-term Rental | Downtown/Marina studios, 2-beds | 5-7% stable yield | Local employment, transportation |
| Resale/Appreciation | Presale units, emerging areas | 10-20% markup potential | Development timing, location growth |
| Mixed Use | Marina area 2-bedrooms | Balanced income and growth | Versatility, strong fundamentals |
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 offers exceptional condo investment opportunities across multiple price points and strategies, from $150,000 starter units to $10+ million luxury penthouses.
The market's continued appreciation, driven by limited supply and strong international demand, positions Cabo as one of Mexico's premier real estate investment destinations for both lifestyle and financial returns.
It's something we develop in our Mexico property pack.
Sources
- The LatinvestOR - Cabo San Lucas Property Analysis
- The LatinvestOR - Cabo Price Forecasts
- Baja Smart - Cabo Condos Under $200,000
- Montalvo Cabo Real Estate - Property Purchase Guide
- Cabo Real Estate - Current Listings
- Pedregal Cabo - Condos for Sale
- Cabo Beach Realty - Real Estate Prices
- Oceanside Los Cabos - Market Update Q1 2025