All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.
Yes, the analysis of Cabo San Lucas' property market is included in our pack
Thinking about buying a 3-bedroom condo in Pedregal, Cabo San Lucas? It’s a fantastic area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like El Medano or Marina where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Cabo San Lucas Property Pack.
Will property prices increase in Cabo San Lucas in 2025?
Yes, property prices in Cabo San Lucas are expected to rise in 2025, driven by a combination of high demand and limited supply in this popular tourist destination.
Backed by our fresh, in-depth market analysis, we’re confident that Cabo San Lucas remains an attractive location for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the main drivers behind Cabo San Lucas’s price growth remain strong.
The allure of its beaches, vibrant culture, and growing infrastructure continue to attract buyers, making significant price drops unlikely.
Signals pointing to a property price increase in Cabo San Lucas
Here are some factors suggesting prices could increase:
The ongoing popularity of Cabo San Lucas as a tourist destination ensures a steady demand for vacation properties, which is expected to continue into 2025, driving up property prices.
Limited availability of land for new developments in prime areas is likely to constrain supply, pushing up prices for existing properties.
The Mexican government’s investment in infrastructure improvements, such as roads and airports, is expected to enhance accessibility and attractiveness, boosting property values.
An increase in remote work opportunities is leading more people to consider living in desirable locations like Cabo San Lucas, increasing demand for residential properties.
The luxury real estate market in Cabo San Lucas continues to thrive, attracting high-net-worth individuals and driving up prices in the high-end segment.
Foreign investment in Cabo San Lucas real estate remains strong, with international buyers seeking vacation homes and investment properties, contributing to price increases.
The local economy is expected to grow, supported by tourism and real estate, which will likely have a positive impact on property prices.
Signals pointing to a property price decrease in Cabo San Lucas
Here are some factors suggesting prices could fall:
Potential increases in interest rates could make financing more expensive, potentially reducing the number of buyers able to afford properties in Cabo San Lucas.
Economic uncertainties, such as inflation, could impact consumer confidence and spending power, leading to a slowdown in property demand.
Environmental concerns, such as water scarcity and natural disasters, could affect the desirability of the area, potentially impacting property values negatively.
Get fresh and reliable information about the market in Mexico
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
If property prices go up in Cabo San Lucas, how much would they increase by?
If real estate prices in Cabo San Lucas were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in dynamic, growing markets like Cabo San Lucas appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, tourism trends, and property type.
It means that, if you spot a charming 2-bedroom beachfront condo in Medano Beach for $500,000 today, don't be surprised if it's priced between $515,000 and $535,000 this time next year.
To give you a better understanding, here is a table that shows 7 types of Cabo San Lucas real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 ($) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Beachfront Condo (100 sqm / 1,076 sqft) | $500,000 | $515,000 | $525,000 | $535,000 |
| Luxury Villa (200 sqm / 2,153 sqft) | $1,500,000 | $1,545,000 | $1,575,000 | $1,605,000 |
| Ocean View Apartment (80 sqm / 861 sqft) | $750,000 | $772,500 | $787,500 | $802,500 |
| Golf Course Home (150 sqm / 1,615 sqft) | $1,000,000 | $1,030,000 | $1,050,000 | $1,070,000 |
| Downtown Loft (60 sqm / 646 sqft) | $400,000 | $412,000 | $420,000 | $428,000 |
| Investment Property (50 sqm / 538 sqft) | $300,000 | $309,000 | $315,000 | $321,000 |
| Resort Villa (250 sqm / 2,691 sqft) | $2,000,000 | $2,060,000 | $2,100,000 | $2,140,000 |
Everything you need to know is included in our Property Pack for Cabo San Lucas
If real estate prices go up in Cabo San Lucas, which areas are likely to see the biggest increases?
Today, people who want to move to Cabo San Lucas are looking for stunning ocean views, modern amenities, and vibrant nightlife, which El Médano Beach delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Downtown Cabo has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Cabo San Lucas market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| El Médano Beach | High | Recent development of luxury beachfront properties and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Pedregal | High | Expected rise due to limited housing stock, upcoming renovations to luxury villas, and growing demand for prime properties with ocean views. |
| Downtown Cabo | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Marina | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Cabo Bello | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| San José del Cabo | Medium | Investment in local infrastructure, such as the extension of highways and renovation of historic areas, is boosting long-term value. |
| Cabo Corridor | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Tourist Corridor | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Palmilla | Medium-High | Its proximity to Cabo San Lucas, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| La Playita | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Puerto Los Cabos | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Chileno Bay | High | Upcoming restoration of natural reserves and high-profile cultural projects are driving a renewed focus on this scenic, coastal location. |
-The best areas to buy a property in Cabo San Lucas
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Cabo San Lucas?
In 2025, Cabo San Lucas real estate trends focus on luxury beachfront villas, eco-friendly resorts, properties with ocean views, and sustainable developments—all driving higher demand and prices. Here is a summary.
- Luxury Beachfront Villas:
With Cabo's stunning coastline, beachfront villas are highly sought after. These properties offer direct access to the beach and are equipped with high-end amenities, making them a prime investment for those seeking luxury and exclusivity.
- Eco-Friendly Resorts:
As sustainability becomes a priority, eco-friendly resorts that incorporate renewable energy and sustainable practices are gaining popularity. These properties attract environmentally conscious tourists and investors, driving up their value.
- Properties with Ocean Views:
In Cabo San Lucas, properties offering breathtaking ocean views are in high demand. Whether it's a condo or a villa, having a view of the Pacific Ocean or the Sea of Cortez significantly enhances the property's appeal and value.
- Sustainable Developments:
Developments that focus on sustainability and low environmental impact are becoming increasingly attractive. These properties often feature energy-efficient designs and materials, aligning with global trends towards greener living.
Make a profitable investment in Mexico
Better information leads to better decisions. Save time and money. Download our guide.
