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Yes, the analysis of Cabo San Lucas' property market is included in our pack
As we reach mid-2025, Cabo San Lucas continues to experience remarkable property price growth, with some areas seeing dramatic increases exceeding 100% in average sale prices.
The luxury resort destination has become one of Mexico's hottest real estate markets, driven by unprecedented demand from international buyers, limited inventory, and substantial infrastructure investments that are transforming the region into a world-class destination.
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.
Property prices in Cabo San Lucas are rising significantly in 2025, with Q1 sales jumping 70% year-over-year and luxury properties leading market growth.
The market shows strong momentum with average prices reaching $727,000 USD and condos averaging $792,840, driven by international demand and limited supply.
| Market Metric | Current Value (2025) | Year-over-Year Change |
|---|---|---|
| Average Property Price | $727,000 USD | +25% sales volume increase |
| Average Condo Price | $792,840 USD | +9.91% price appreciation |
| Q1 2025 Sales Volume | $559 million USD | +70% from Q4 2024 |
| Luxury Market Share | 77% of total dollar volume | Properties over $1M dominating |
| Cabo San Lucas Houses | $1.32 million average | +107% increase in some areas |
| San José del Cabo Land | Premium pricing | +54% price increase |
| Market Forecast 2025-2026 | 3-7% annual appreciation | Continued upward trajectory |
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.
How much have property prices increased in Cabo San Lucas in 2025?
Cabo San Lucas property prices have surged dramatically in 2025, with Q1 sales volume reaching $559 million USD, representing a staggering 70% increase from Q4 2024.
The most striking increases occurred in the luxury house market, where Cabo San Lucas saw average sale prices jump by 107% in certain premium areas. This extraordinary growth reflects the intense demand for high-end properties and the limited supply of prime real estate.
Condo prices have also appreciated significantly, with the average condo sale price reaching $792,840 USD as of September 2024, marking a 9.91% increase year-over-year. Even more telling, despite a 67% drop in the number of condo transactions, the properties that did sell commanded premium prices, indicating buyers are prioritizing quality over quantity.
The luxury segment now dominates the market completely, with properties over $1 million representing 77% of total dollar volume in Q1 2025. This concentration in high-end real estate has fundamentally shifted the market dynamics.
Overall market momentum remains exceptionally strong, with Q1 2025 becoming the second-highest quarter in Los Cabos real estate history, surpassed only by Q1 2022.
Which neighborhoods in Cabo San Lucas saw the biggest price increases in 2025?
The Pacific region leads all areas with the most dramatic price appreciation, recording a 13% increase and the highest average sale price at $2.25 million USD.
San José del Cabo outperformed all other submarkets, with an average sale price reaching $1.38 million USD and condo prices increasing by 10%. Land prices in this area surged by an impressive 54%, reflecting the premium value placed on limited developable parcels.
The Cabo Corridor experienced explosive growth in land sales, with volume increasing by 177% and prices surging by 192%. This area has become particularly attractive for luxury developments and high-end residential projects.
Tezal neighborhood showed strong resilience with condo sales up 21% year-over-year, maintaining an average sale price of $571,000 USD. This area represents excellent value compared to beachfront locations while still offering substantial appreciation potential.
Ultra-luxury communities including Chileno Bay, Maravilla, Montage, Cove Club, Four Seasons, and El Dorado continue experiencing exceptional activity, with Chileno Bay alone recording over $230 million USD in sales since November 2024.
What property types are seeing the fastest price growth in Cabo San Lucas?
| Property Type | Price Trend (2024-2025) | Key Characteristics |
|---|---|---|
| Luxury Houses | +56% to 107% average increase | Oceanfront and golf-course properties with highest demand |
| Condominiums | +9.91% annual appreciation | Turnkey, resort-style amenities highly sought after |
| Mid-range Homes | +10% price increase | $200,000-$500,000 price point showing steady growth |
| Beachfront Villas | Significant luxury segment growth | Limited inventory driving premium pricing |
| Land Parcels | -16% to -24% price decline | Decreased demand as buyers prefer finished properties |
| Golf Community Homes | Strong appreciation trend | Properties in developments like Cabo del Sol gaining traction |
| Eco-friendly Developments | Premium pricing emerging | Sustainability-conscious buyers driving demand |
What are the current average property prices in Cabo San Lucas in 2025?
The overall average sale price for residential properties in Cabo San Lucas stands at approximately $727,000 USD as of mid-2025.
Condominiums command higher average prices at $792,840 USD, reflecting the strong demand for turnkey properties with resort-style amenities. In specific neighborhoods, prices vary significantly: Tezal condos average $571,000 USD, while San José del Cabo condos reach $729,000 USD.
The luxury house market averages $1.32 million USD, with the Pacific region commanding the highest prices at $2.25 million USD average. Properties in ultra-high-end communities can reach $10-28 million USD, with six sales totaling $95.1 million occurring above the $10 million mark in Q1 2025 alone.
The $2-5 million price segment leads the luxury market with 48 sales generating $166 million USD in volume. This price range represents the sweet spot for affluent international buyers seeking premium properties with world-class amenities.
For entry-level buyers, inland properties and emerging neighborhoods like El Tezal offer opportunities 30-40% below beachfront pricing while still providing access to the Cabo lifestyle.
How do Cabo San Lucas property prices compare to other Mexican coastal destinations in 2025?
Cabo San Lucas commands significantly higher average prices than most other Mexican coastal destinations, positioning itself as the premium luxury market.
| Destination | Median Property Price | Market Characteristics |
|---|---|---|
| Cabo San Lucas | $727,000-$792,840 USD | Strong luxury focus, 107% house price increases in premium areas |
| Puerto Vallarta | $399,900 USD | 15% price rise over 2 years, some market cooling |
| Tulum | $300,000-$400,000 USD | High per square meter pricing, rapid development phase |
| Playa del Carmen | $250,000-$350,000 USD | Popular with younger demographics, condo-focused market |
| Cancún | $200,000-$300,000 USD | Hotel zone premium, diverse price ranges available |
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What are the property price forecasts for Cabo San Lucas through 2026?
Property prices in Cabo San Lucas are expected to continue rising through 2026, with most experts forecasting annual appreciation of 3-7% for well-located properties.
The luxury segment is projected to outperform the broader market, driven by continued scarcity of prime oceanfront and marina-front properties. High-end communities like Palmilla, Querencia, and Quivira are expected to see particularly strong appreciation due to their world-class amenities and limited supply.
Emerging neighborhoods including El Tezal and the Cabo Corridor present the strongest growth potential, with prices currently 30-40% below premium areas but benefiting from ongoing infrastructure improvements. These areas could see acceleration in appreciation as development continues.
Market fundamentals supporting continued price growth include the sustained influx of US and Canadian buyers, expanding airport capacity, improved highway connections, and Cabo's position as a premier luxury destination. The weak peso also makes properties more affordable for dollar-based international buyers.
Analysts expect the $300,000-$800,000 segment to remain particularly strong, as this price range attracts both vacation home buyers and investors seeking rental income opportunities.
What factors are driving property price increases in Cabo San Lucas?
International buyer demand represents the primary driver of price increases, with American and Canadian remote workers and retirees seeking lifestyle upgrades in sunny locations.
Infrastructure improvements are fundamentally enhancing the region's appeal and accessibility. The expanded Los Cabos International Airport, improved highway connections, and ongoing development projects are attracting more visitors and potential property buyers.
Limited supply of beachfront and marina-front properties creates significant scarcity value. With finite coastline and strict development regulations, the available inventory of prime properties continues shrinking as demand grows.
The destination's reputation has elevated substantially, with major luxury resort brands opening upscale properties and celebrities choosing Cabo for second homes. This has enhanced the area's prestige and attracted high-net-worth individuals.
Record tourism numbers directly boost property demand and rental income potential, making real estate investment more attractive. The region saw unprecedented visitor arrivals in 2024, continuing into 2025.
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How has foreign buyer demand affected Cabo San Lucas property prices in 2025?
Foreign buyer demand has intensified significantly in 2025, with international purchasers driving the majority of luxury property transactions and price appreciation.
American and Canadian buyers represent the largest segment of foreign purchasers, attracted by Cabo's proximity to the United States, year-round climate, and lifestyle amenities. Many are remote workers who discovered they can maintain their careers while living in paradise.
The surge in foreign investment has created a supply-demand imbalance, particularly for turnkey properties with ocean views or beachfront access. International buyers typically prefer move-in-ready homes and condos, driving up prices in these segments.
Currency advantages have also played a role, with the stronger US dollar against the peso making properties more accessible to American buyers. This has sustained demand even as prices have risen substantially.
Foreign buyers are also willing to pay premium prices for properties in gated communities with world-class amenities, driving development of high-end projects and pushing up land values in prime locations.
What impact are remote workers having on Cabo San Lucas real estate prices?
Remote workers represent one of the most significant new buyer demographics, fundamentally reshaping demand patterns and driving price increases across multiple property segments.
The influx of US and Canadian remote workers has created sustained demand for properties with home office space, high-speed internet connectivity, and outdoor amenities. This trend accelerated during the pandemic and continued strongly through 2025.
These buyers typically seek properties in the $300,000-$800,000 range, which has become the most competitive segment of the market. They prefer condos and single-family homes that offer both lifestyle appeal and functional workspace areas.
Remote workers tend to be less price-sensitive than traditional vacation home buyers, as they can justify higher costs through potential rental income and the ability to live in the property year-round while maintaining their careers.
This demographic has also increased demand for emerging neighborhoods like El Tezal and the Cabo Corridor, where they can find better value while still accessing the Cabo lifestyle and amenities.
We made this infographic to show you how property prices in Mexico compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Are there any regulatory changes affecting property prices in Cabo San Lucas?
As of 2025, there have been no significant changes to Mexican foreign ownership regulations that would impact property demand or pricing in Cabo San Lucas.
Foreigners continue to purchase properties through the fideicomiso (bank trust) system or Mexican corporations in restricted zones, maintaining full usage and resale rights. This stable regulatory environment has contributed to sustained international buyer confidence.
Local development regulations remain favorable for real estate investment, with municipal authorities supporting tourism and residential development projects that enhance the region's appeal as a luxury destination.
Environmental regulations have become more stringent, particularly regarding coastal development and water usage, but these have primarily affected new construction timelines rather than existing property values.
The Mexican government's continued investment in infrastructure improvements, including road and airport enhancements, demonstrates strong official support for the region's real estate development.
How do current Cabo San Lucas property prices compare to pre-pandemic levels?
Current property prices in Cabo San Lucas have substantially exceeded pre-pandemic levels, with most segments showing dramatic appreciation since 2020.
The luxury market has experienced the most significant transformation, with average house prices in premium areas like Cabo San Lucas proper increasing by over 100% since 2020. Properties that sold for $500,000-$600,000 pre-pandemic now command $1+ million.
Condo prices have shown steady but substantial growth, with current averages of $792,840 representing approximately 60-80% increases from 2020 levels, depending on location and amenities.
The pandemic accelerated existing trends toward luxury and lifestyle properties, with buyers seeking larger homes, outdoor space, and resort-style amenities. This shift permanently elevated pricing in segments that cater to these preferences.
Market dynamics have fundamentally changed, with the luxury segment now dominating transactions in a way that wasn't true pre-pandemic. The $1+ million market represents 77% of total dollar volume, compared to much lower percentages in 2019-2020.
What are the best value opportunities in Cabo San Lucas real estate in 2025?
Emerging inland neighborhoods like El Tezal and the Cabo Corridor offer the best value propositions, with properties priced 30-40% below comparable beachfront areas while benefiting from ongoing infrastructure improvements.
- Pre-sale developments - New construction projects often offer 10-20% discounts compared to completed units, providing appreciation potential as construction progresses
- El Tezal condos - Well-located properties with ocean or marina views offering strong rental potential at more accessible price points
- Golf community homes - Properties in developments like Cabo del Sol and Quivira providing luxury amenities at lower cost than beachfront locations
- Cabo Corridor properties - Strategic locations between major areas offering growth potential as infrastructure develops
- Eco-friendly developments - New sustainable projects targeting environmentally conscious buyers with competitive pricing
The $300,000-$600,000 range represents the sweet spot for value seekers, where buyers can find quality 2-3 bedroom condos or townhouses with amenities and rental income potential.
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What rental yields can property investors expect in Cabo San Lucas in 2025?
Well-located properties in Cabo San Lucas can generate impressive gross annual rental yields of 6-10% through vacation rentals, making the market highly attractive for investment purposes.
A $500,000 condo in Medano Beach or the Marina area can generate $3,000-$5,000 monthly during high season (November-April), with annual rental income potentially reaching $36,000-$60,000 for well-managed properties.
Properties with ocean views or beachfront access command the highest rental rates, often achieving $400-$800 per night during peak periods. The strong tourism demand ensures high occupancy rates for quality properties in prime locations.
Luxury properties in gated communities can achieve even higher yields, with some villas renting for $1,000-$3,000+ per night depending on size, location, and amenities. The ultra-high-end market shows particularly strong rental performance.
The key to maximizing rental yields is location, property condition, and professional management. Properties near beaches, golf courses, or major attractions consistently outperform the broader market in rental income generation.
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.
Based on comprehensive market analysis and current trends, property prices in Cabo San Lucas are rising significantly and this growth trajectory is expected to continue through 2026.
The market shows exceptional strength with Q1 2025 sales jumping 70% year-over-year, luxury properties dominating with 77% of dollar volume, and sustained international demand driving continued appreciation in this premier Mexican destination.
It's something we develop in our Mexico property pack.
**Yes a lot** - Property prices in Cabo San Lucas are rising dramatically, with some luxury areas seeing over 100% increases and continued strong growth expected through 2026.Sources
- TheLatinvestor - 14 stats for the Cabo San Lucas real estate market in 2025
- Cabo Real Estate Services - Los Cabos Residential Real Estate Market Report
- Oceanside Real Estate - Market Reports Los Cabos
- TheLatinvestor - Is it worth it buying property in Cabo San Lucas in 2025
- SJD Taxi - Investing in Cabo Real Estate 2025 Buyer's Guide
- Mexico News Daily - How the Los Cabos luxury real estate market is changing in 2025
- TheLatinvestor - Yes, property prices will rise in Cabo San Lucas in 2025
- Oceanside Real Estate - Los Cabos Real Estate Market Update Q1 2025 vs Q1 2024