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Yes, the analysis of Cabo San Lucas' property market is included in our pack
Real estate prices in Cabo San Lucas vary dramatically, with entry-level condos starting around $250,000 and luxury ocean-view villas reaching $5 million or more.
As of September 2025, the Cabo San Lucas property market shows clear price tiers across different neighborhoods and property types. Condos average $106 per square foot for resale units but can reach $566 per square foot for new luxury listings. Houses typically cost around $385 per square foot, while luxury villas command $500-$675 per square foot on average, with premium properties reaching $1,300-$1,400 per square foot.
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 real estate prices range from $250,000 entry-level condos to $28 million luxury villas, with mid-range properties averaging $792,840 as of 2025.
Marina and beachfront locations command 30-40% premiums over inland areas, while annual property taxes remain low at 0.1-0.2% of assessed value.
| Property Type | Price Range (USD) | Price per Sq Ft |
|---|---|---|
| Entry-level Condos | $250,000 - $350,000 | $106 - $200 |
| Mid-range Condos | $400,000 - $800,000 | $250 - $400 |
| Luxury Condos | $1M - $3M+ | $400 - $566 |
| Standard Houses | $450,000 - $1.32M | $300 - $500 |
| Luxury Villas | $1.32M - $28M | $500 - $1,400 |
| Beachfront Premium | +30-40% above inland | Varies by location |
| Marina Area Premium | +30-40% above inland | Varies by location |
What's the average price per square foot for condos, houses, and luxury villas in Cabo San Lucas right now?
As of September 2025, Cabo San Lucas property prices per square foot vary significantly based on property type and location.
Condos average $106 per square foot for resale units, but new luxury listings can reach $566 per square foot. Standard houses typically cost around $385 per square foot based on median values of approximately MXN 6,567 per square foot at current exchange rates.
Luxury villas command the highest prices, with new builds and top-tier properties often reaching $1,300-$1,400 per square foot. However, the majority of luxury sales average between $500-$675 per square foot. Ocean-view and beachfront properties consistently price at the upper end of these ranges.
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Location significantly impacts pricing, with marina and beachfront properties commanding premiums of 30-40% over inland areas.
How much do entry-level condos cost compared to mid-range and high-end units?
| Condo Category | Price Range (USD) | Typical Locations |
|---|---|---|
| Entry-level | $250,000 - $350,000 | Inland areas, older buildings |
| Mid-range | $400,000 - $800,000 | El Tezal, marina views |
| High-end/Luxury | $1M - $3M+ | Beachfront, Pedregal, Medano Beach |
| Ultra-luxury Penthouses | $3M+ | Prime beachfront locations |
| 2025 Average Sale | $792,840 | All categories combined |
What's the typical price range for a two-bedroom condo in the city center versus the beachfront?
Two-bedroom condos in Cabo San Lucas show substantial price differences between city center and beachfront locations.
City center two-bedroom condos typically range from $225,000 to $350,000 for entry-level units. Mid-range city center and marina-view properties cost between $400,000 and $800,000, offering better finishes and amenities.
Beachfront two-bedroom condos command significantly higher prices, with top listings ranging from $675,000 to $1.5 million. Ultra-luxury beachfront units with premium amenities and direct ocean access can exceed $1.5 million.
The price differential reflects the premium buyers pay for ocean views, beach access, and prime tourist rental potential in beachfront locations.
How much would I expect to pay for a three-bedroom house in a gated community compared to a similar house outside?
Three-bedroom houses in Cabo San Lucas show clear pricing distinctions between gated and non-gated communities.
Gated community houses, particularly in desirable areas like El Tezal, range from $450,000 to $1.32 million depending on exclusivity level and finish quality. Premium gated communities with golf courses, security, and luxury amenities command the highest prices in this range.
Houses outside gated communities have a median price of around $450,000, but non-gated inland properties can cost up to 40% less than ocean-view or luxury gated community properties. The savings come from reduced amenities, less security, and often more inland locations.
The price premium for gated communities reflects added security, shared amenities like pools and golf courses, and typically better maintenance standards.
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What's the median cost of a luxury ocean-view villa, and how large are they on average?
Luxury ocean-view villas in Cabo San Lucas represent the premium segment of the residential market with substantial variation in pricing and size.
The median price for luxury villas is $1.32 million as of 2025, though Pacific region properties average $2.25 million. Super-luxury villas range from $5 million to $28 million for the most exclusive oceanfront properties with premium locations and amenities.
Average villa sizes typically range from 3,000 to 3,700 square feet for standard luxury properties. Premium homes often exceed 5,000 square feet, particularly those in the highest price brackets with multiple bedrooms, entertainment areas, and outdoor living spaces.
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The size and price correlation reflects the emphasis on outdoor living spaces, pools, terraces, and panoramic ocean views that define luxury properties in this coastal market.
How much higher are prices in the marina area compared to inland neighborhoods?
Marina area properties in Cabo San Lucas command significant premiums over inland neighborhoods due to location advantages and amenities.
Marina-area condos and homes cost 30-40% more than comparable inland properties. Beachfront and marina views create sharp price premiums over communities like El Tezal, Cabo Bello, and outer residential areas.
Downtown and inner city properties, particularly older listings, can cost up to 40% less than premium beach and marina units. This price differential reflects proximity to restaurants, nightlife, tourist activities, and water access.
The premium reflects not only location desirability but also rental income potential, as marina properties attract higher-paying tourists and long-term renters seeking proximity to activities and amenities.
What's the average monthly HOA fee for condos and gated communities, and how does it vary by property type?
| Property Type | Monthly HOA Range (USD) | Typical Amenities Included |
|---|---|---|
| Entry-level Condos | $150 - $350 | Basic maintenance, security |
| Mid/Luxury Condos | $400 - $2,000 | Pools, gym, concierge |
| Beachfront/Resort Condos | $800 - $2,000+ | Beach access, full resort amenities |
| Basic Gated Community | $113 - $200 | Security, basic maintenance |
| Premium Gated Community | $300 - $600 | Golf, pools, enhanced security |
| Luxury Villa Communities | $600 - $2,000+ | Full resort services, multiple amenities |
| Most Common Range | $200 - $600 | Standard condo amenities |
How much are annual property taxes for different property values in Cabo San Lucas?
Property taxes in Cabo San Lucas remain significantly lower than comparable markets in the United States and Canada.
The general tax rate ranges from 0.1% to 0.2% of assessed property value annually. Personal residences owned by residents pay approximately 1.533 per 1,000 pesos of assessed value, while second homes and investment properties pay around 3.066 per 1,000 pesos.
For practical examples, a $450,000 property pays approximately $687 per year in property taxes. A luxury $1.3 million villa typically pays between $2,000-$2,600 annually, though owner-occupied properties with early payment discounts may pay less.
Early payment discounts and owner-occupancy status can reduce these amounts, making property ownership costs relatively manageable compared to similar resort destinations.
What's the typical closing cost percentage for buyers, and what does that usually amount to in dollars?
Closing costs in Cabo San Lucas typically range from 5% to 10% of the purchase price, depending on property value and complexity.
These costs include the 3% acquisition tax, notary fees, legal fees, trust setup and maintenance for foreign buyers, and public registration. For a typical $400,000 purchase, buyers should budget $20,000 to $40,000 for total closing expenses.
Foreign buyers face additional costs for establishing the fideicomiso (trust) structure required for property ownership within the restricted zone. This includes initial setup fees and ongoing annual maintenance costs for the trust.
Working with experienced local legal counsel and notaries helps ensure all requirements are met while minimizing unnecessary expenses during the closing process.
How much do renovation costs average per square foot if I buy an older property?
Renovation costs in Cabo San Lucas vary significantly based on the scope of work and finish quality desired.
Basic updates and cosmetic improvements typically cost $120-$180 per square foot. This includes painting, flooring updates, basic kitchen and bathroom renovations, and essential repairs to bring properties to modern standards.
Luxury renovations with high-end finishes, structural modifications, and premium materials can reach $500-$675 per square foot. These costs align with new luxury construction standards and include custom features, imported materials, and sophisticated design elements.
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Labor costs remain relatively affordable compared to U.S. markets, but imported materials and luxury finishes can drive costs higher, particularly for oceanfront properties requiring specialized materials for salt air exposure.
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What's the average rental income per month for comparable properties in tourist-heavy areas?
Rental income in Cabo San Lucas varies dramatically based on property type, location, and seasonal demand patterns.
One-bedroom condos typically generate $800-$1,500 monthly, while two-bedroom condos earn $1,200-$3,000 in city and marina locations, with beachfront units reaching up to $4,000 monthly during peak seasons.
Luxury villas command the highest rental rates, generating $4,000-$15,000 monthly depending on size, amenities, season, and specific location. Prime beachfront villas with full amenities can exceed these ranges during peak winter months.
Seasonal variations significantly impact income, with winter months (December-April) generating 40-60% higher rates than summer months due to North American tourist demand and favorable weather conditions.
How have property prices changed in the last five years, and what's the average annual increase in percentage terms?
Cabo San Lucas has experienced substantial property price appreciation over the past five years, outpacing many comparable resort markets.
Condos have risen from average prices of $500,000-$600,000 in 2019 to $792,840 in 2024, representing approximately 9.9% appreciation in 2024 alone. Luxury houses have seen average prices double in premium areas, with some luxury neighborhoods experiencing 25% to 107% increases.
The typical annual market-wide increase has been 5-7% for well-located properties, with select oceanfront and golf communities experiencing up to 10% annual appreciation. This growth reflects increasing international demand, limited beachfront inventory, and Mexico's growing popularity as a second-home destination.
Market forecasts suggest continued annual appreciation of 3-7% in 2025 and beyond, though at a more moderate pace than the exceptional growth seen in recent years as the market matures.
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 diverse real estate opportunities across multiple price ranges, from entry-level condos to ultra-luxury villas.
While prices have appreciated significantly, the market continues to attract investors seeking rental income and long-term appreciation in Mexico's premier resort destination.
Sources
- The LatinVestor - Average Cost Condo Cabo San Lucas
- James Edition - Cabo San Lucas Real Estate
- Properstar - Cabo San Lucas House Prices
- Cabo4Sale - Luxury Homes
- Esperanza Real Estate - Luxury Market Report
- Oceanside Los Cabos - Market Report 2024
- The LatinVestor - Cabo Price Forecasts
- Cabo Beach Realty - Real Estate Prices
- Cabo Real Estate Services - Property Taxes
- Cabo Beach Realty - Closing Costs