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 presents a compelling property investment opportunity in 2025, with property prices averaging $727,000 USD and annual appreciation rates of 5-8%. The market offers strong rental yields of 6-10% annually, driven by record tourism and growing remote worker demand.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cabo San Lucas, based on reliable facts and data, not opinions or rumors.
The Cabo San Lucas property market in 2025 shows robust fundamentals with luxury properties dominating 77% of sales volume, strong infrastructure investments driving growth, and emerging neighborhoods like El Tezal offering excellent value opportunities.
For investors and lifestyle buyers alike, the market presents diverse options from $150,000 inland condos to multi-million dollar beachfront villas, with reliable rental income potential and continued appreciation prospects.
| Property Type | Price Range | Best Areas | Key Features |
|---|---|---|---|
| Condos/Apartments | $150,000 - $700,000+ | El Tezal, Marina, Medano Beach | Ocean views, resort amenities, rental income |
| Single Family Homes | $300,000 - $2M+ | Pedregal, Corridor, Gated Communities | Privacy, customization, land ownership |
| Luxury Villas | $1M+ | Pedregal, Beachfront, Medano Beach | High-end finishes, premium locations |
| Townhouses | $300,000 - $600,000 | New Developments, Mid-range Areas | Family-friendly, community amenities |
| Golf Community Homes | $400,000 - $1.5M | Resort Communities | Golf access, gated security, amenities |
What types of properties are available in Cabo San Lucas in 2025 and what are their key differences?
The Cabo San Lucas property market offers five main property types, each serving different buyer needs and budgets.
Condos and apartments represent the most accessible entry point, starting from $150,000 for inland units and reaching $700,000+ for premium ocean-view properties. These turnkey units typically include resort-style amenities like pools, security, and concierge services, making them ideal for vacation homes or rental investments.
Single-family homes range from $300,000 in emerging districts to multi-million dollar estates in gated beachfront communities. These properties offer more privacy, land ownership, and customization potential compared to condos. They appeal to buyers seeking permanent residence or long-term investment appreciation.
Luxury villas command prices over $1 million and are concentrated in prestigious areas like Pedregal, Medano Beach, or direct beachfront locations. These properties feature high-end finishes, resort-style amenities, and prime locations that generate strong rental yields for investors.
Townhouses typically fall in the mid-range category between $300,000-$600,000, mostly found in newer developments. They offer a balance between privacy and community amenities, appealing to families and longer-term residents who want more space than a condo but less maintenance than a single-family home.
Is it generally better to buy or rent there right now and why?
Buying makes financial sense if you plan to spend more than three months per year in Cabo San Lucas or want to generate rental income.
The current market favors buyers due to robust annual yields of 6-10% for well-located properties and consistent price appreciation of 5-8% per year. Properties in prime locations like Marina and Medano Beach can generate $3,000-5,000 monthly rental income during peak season for a $500,000 investment.
Renting is the better choice if you're uncertain about long-term commitment, plan short-term stays, or want to explore different neighborhoods before making a purchase decision. Rental costs range from $500-1,000 monthly for one-bedroom apartments to $1,065+ for three-bedroom homes, offering flexibility without the substantial upfront investment.
As of September 2025, market fundamentals support buying for those with clear investment goals or lifestyle plans. The combination of tourism growth, infrastructure improvements, and limited beachfront supply creates favorable conditions for property appreciation. However, first-time buyers should consider renting initially to understand local neighborhoods and lifestyle preferences before committing to a purchase.
How have property prices changed over the past few years, what are they today, and what's the forecast for the next few years?
Cabo San Lucas property prices have experienced significant growth since 2022, with the market showing strong momentum through 2025.
Current average property prices stand at $727,000 USD across all property types as of September 2025. Sales volume has increased 25% year-over-year, indicating robust market demand. The luxury segment dominates with properties over $1 million accounting for 77% of total market volume.
Price appreciation has averaged 5-8% annually since 2022, driven by increased tourism, remote worker migration, and infrastructure investments including airport expansion and improved road networks. Premium areas like Pedregal and Marina show less price flexibility due to limited supply and high demand.
Market forecasts for 2025-2027 predict continued appreciation of 5-7% annually for well-located properties. Emerging neighborhoods like El Tezal and the Corridor are expected to see stronger growth as infrastructure improvements increase accessibility and desirability. Properties under $600,000 offer the strongest value propositions, while luxury markets may see more moderate appreciation due to reaching price ceilings in some segments.
It's something we develop in our Mexico property pack.
What are the main real estate market trends in Cabo San Lucas in 2025?
Four major trends are shaping the Cabo San Lucas real estate market in 2025, each creating distinct investment opportunities.
Record tourism levels combined with the growing remote worker population are driving unprecedented demand for both short-term and long-term rentals. The destination attracted over 3 million visitors in 2024, with many converting to property buyers after extended stays.
Infrastructure growth represents the most significant catalyst for property value increases. The expanded Los Cabos International Airport, improved highway connections, and new utility systems are particularly benefiting previously underserved areas like El Tezal and the Corridor, making them more attractive to both residents and investors.
Emerging neighborhoods are capturing increasing market share as buyers seek value alternatives to premium beachfront properties. El Tezal and Corridor developments offer modern amenities at 30-40% lower prices than Marina or Pedregal locations while maintaining strong appreciation potential.
The market maintains a high-end focus with luxury properties over $1 million dominating sales volume, but strong opportunities exist in the entry and mid-market segments under $600,000. This trend creates a two-tier market where both luxury investors and value-conscious buyers can find suitable opportunities.
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.
What's the exact step-by-step process to buy a property there as a foreigner?
Foreign buyers can legally purchase property in Cabo San Lucas through a structured 10-step process that ensures legal compliance and protection.
First, work with a certified real estate agent familiar with foreign purchases, as they understand the specific legal requirements and can guide you through restricted zone regulations. Second, select your property and verify it's located on privatized land rather than ejido (communal) land, which requires additional legal steps for foreign ownership.
Third, make an offer and negotiate terms including price, closing timeline, and contingencies. Fourth, establish a fideicomiso (bank trust) for coastal or restricted zone properties, which costs approximately $2,000 for setup and $500-600 annually for maintenance. This trust structure allows foreigners to effectively own property within 50 kilometers of the coast.
Fifth, conduct thorough due diligence including title verification, lien searches, tax status checks, boundary surveys, and HOA debt verification. Sixth, sign the purchase contract with all terms clearly defined. Seventh, transfer funds through proper banking channels and establish escrow if appropriate.
Eighth, have a notary public (notario) finalize and register the deed transfer. Ninth, pay all closing costs including 5-7% of purchase price in fees, property taxes of 0.1-0.3% annually, and acquisition tax of 3%. Finally, receive your keys and official ownership documents.
Where can I find reliable real estate agencies or platforms to search for properties in Cabo San Lucas?
Five established agencies dominate the Cabo San Lucas market, each offering specialized services for different buyer needs.
Remax Cabo Real Estate provides comprehensive MLS access and has extensive experience with foreign buyers, offering both English and Spanish language services. The Agency Baja specializes in luxury properties over $1 million and maintains strong relationships with high-end developers.
Cabo Properties focuses on mid-range to luxury segments with particular expertise in Marina and Pedregal areas. Century 21 Legendary Realty offers full-service support including financing assistance and property management services. Homes of Cabo specializes in investment properties and rental management for absentee owners.
When selecting an agent, verify their credentials through local real estate associations and seek references from recent foreign buyers. Experienced agents should demonstrate knowledge of fideicomiso requirements, tax implications, and local market conditions. Local expat forums and real estate groups provide valuable insights into agent performance and market conditions.
It's something we develop in our Mexico property pack.
What kind of properties can I expect within different budget ranges?
| Budget Range | Property Type | Location Options | Key Features |
|---|---|---|---|
| $150,000 - $300,000 | Studio to 2BR Condo | Inland areas, El Tezal, outskirts | Basic amenities, possible renovations needed |
| $300,000 - $500,000 | 2-3BR Condo/Townhouse | El Tezal, Corridor, emerging areas | Pool access, partial ocean views, modern amenities |
| $500,000 - $700,000 | 3BR Condo/Small Home | Marina area, mid-tier developments | Full ocean views, resort amenities, security |
| $700,000 - $1,000,000 | Luxury Condo/Home | Pedregal, Marina, beachfront | Premium finishes, direct beach access, concierge |
| $1,000,000+ | Luxury Villa/Estate | Pedregal, Medano Beach, exclusive areas | Private pools, multiple bedrooms, prestigious locations |
What are the most common mistakes people make when buying property there and how can I avoid them?
Seven critical mistakes can cost buyers significant money and create legal complications in Cabo San Lucas property purchases.
Buying ejido land without proper privatization represents the most expensive mistake. Ejido properties cannot be legally owned by foreigners without conversion to private ownership, a process that can take years and cost tens of thousands of dollars. Always verify land status through official records before making offers.
Skipping title insurance and comprehensive due diligence exposes buyers to liens, unpaid taxes, and ownership disputes. Mexican property records can be complex, making professional title searches essential for identifying potential problems before purchase.
Failing to verify HOA debts and property tax status can result in unexpected liabilities. Previous owners' unpaid fees become the new owner's responsibility, potentially adding thousands to purchase costs. Request detailed financial statements and tax records during due diligence.
Rushing property selection without adequate area research leads to poor investment decisions. Each Cabo neighborhood has distinct characteristics, appreciation potential, and rental markets. Spend time exploring different areas and understanding local market dynamics before committing.
Choosing inexperienced or unqualified agents creates unnecessary risks and complications. Verify agent credentials, request client references, and ensure they understand foreign buyer requirements and fideicomiso processes.
What's the cost of living in Cabo San Lucas compared to similar destinations?
Cabo San Lucas cost of living falls between budget Mexican destinations and premium US coastal cities, offering value for the lifestyle and amenities provided.
Housing costs range from $500-1,000 monthly for one-bedroom apartments to $800-1,500 for two-bedroom units, and $1,065+ for three-bedroom homes. These prices are 40-60% lower than comparable US beach destinations like San Diego or Miami but higher than inland Mexican cities.
Daily expenses vary significantly based on lifestyle choices. Local markets and Mexican restaurants offer affordable dining options, while imported goods and upscale establishments command premium prices similar to US coastal cities. Utilities including electricity, water, and internet typically cost $150-300 monthly for average households.
Transportation costs remain reasonable with local taxis, ride-sharing services, and car rentals readily available. Healthcare represents excellent value with quality private medical care costing 50-70% less than US equivalents while maintaining high standards.
Compared to similar beach destinations like Costa Rica's Guanacaste or Puerto Rico, Cabo San Lucas offers superior infrastructure, direct US flight connections, and established expat communities, justifying moderately higher costs for significantly better convenience and services.
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.
Which areas are considered the most affordable, which are up-and-coming, and which are upscale — and what are the strengths and weaknesses of each?
| Area Type | Specific Locations | Strengths | Weaknesses |
|---|---|---|---|
| Most Affordable | El Tezal, Corridor inland areas | Value pricing, growth potential, modern development | Inland location, less prestige, limited walkability |
| Up-and-Coming | El Tezal expansion, Corridor beachfront | Infrastructure improvements, appreciation potential, new amenities | Construction activity, unproven rental markets |
| Upscale Established | Pedregal, Medano Beach, Marina | Prestige locations, proven rental income, luxury amenities | High purchase prices, lower yields, limited growth potential |
| Premium Luxury | Beachfront Pedregal, exclusive resorts | Ultimate prestige, direct beach access, high-end finishes | Very expensive, exclusive market, maintenance costs |
| Mixed Use | Downtown Cabo, near Marina | Walkability, dining/entertainment, rental demand | Busy environment, noise, higher density |
What is life like as an expat in Cabo San Lucas day-to-day?
Expat life in Cabo San Lucas centers around an active outdoor lifestyle with strong international community connections and modern conveniences.
Daily routines typically begin early to take advantage of cooler morning temperatures for activities like beach walks, golf, or hiking in the surrounding desert landscapes. The year-round sunshine and average temperatures of 75-85°F enable consistent outdoor activities including water sports, fishing, and beach recreation.
The expat community is well-established and welcoming, with regular social events, dining groups, and activity clubs that help newcomers integrate quickly. English is widely spoken in expat-heavy areas like Marina and Pedregal, though basic Spanish knowledge enhances daily interactions and local connections.
Healthcare quality is excellent with modern private hospitals and clinics staffed by US-trained physicians. Many expats maintain health insurance that covers both Mexican and US medical care, providing peace of mind and comprehensive coverage options.
Shopping and dining offer both local Mexican culture and international options. Local markets provide fresh produce and authentic experiences, while modern shopping centers and upscale restaurants cater to international tastes. Most expats live in gated communities or secure condominiums that provide resort-style amenities and security services.
If I want to rent out long term, which areas should I target, what type of tenants can I expect, what do they look for, and how much income and yield can I realistically get?
Long-term rental success in Cabo San Lucas depends on targeting the right areas and understanding tenant preferences for different market segments.
El Tezal and Corridor areas offer the best long-term rental opportunities due to more affordable rents and growing demand from working professionals and families. These areas attract tenants seeking modern amenities, security, and value compared to premium beachfront locations.
Typical long-term tenants include remote workers, retirees, expatriate families, and local professionals working in tourism or real estate industries. They prioritize reliable internet, air conditioning, security features, parking, and access to shopping and healthcare facilities over beachfront proximity.
Rental yields range from 6-10% gross annually for well-located properties, with occupancy rates of 46-73% during high season. A $400,000 condo in El Tezal might generate $2,000-2,500 monthly rent, while a $600,000 property in Marina could command $3,000-3,500 monthly.
Downtown and Marina areas also provide steady demand but at higher price points. Tenants in these locations expect walkability to restaurants and entertainment, premium finishes, and resort-style amenities. Properties near the Marina typically generate higher rents but require more substantial initial investments.
It's something we develop in our Mexico property pack.
If I want to rent out short term, which areas are best, what do guests usually look for, what income and yield are possible, and what local regulations do I need to follow?
Short-term rental success requires strategic location selection and understanding vacation guest priorities for maximum occupancy and revenue.
Medano Beach, Marina, and resort zones represent the premium short-term rental locations due to proximity to beaches, restaurants, and attractions. Guests prioritize walkability to entertainment, beach access, ocean views, and resort-style amenities including pools, security, and concierge services.
Guest preferences include modern furnishings, reliable air conditioning, high-speed internet, fully equipped kitchens, and outdoor spaces with views. Properties with unique features like rooftop terraces, private pools, or direct beach access command premium rates and higher occupancy.
Revenue potential varies significantly by location and season. A well-positioned $500,000 condo in Marina or Medano Beach can generate $3,000-5,000 monthly during peak season (December-April) and $1,500-2,500 during low season. Annual gross yields of 8-12% are achievable for top-performing properties.
As of September 2025, local regulations remain minimal with no significant restrictions on vacation rentals, though property owners should stay informed about potential future changes. HOA regulations may impose restrictions, so verify community rules before purchasing. Success requires professional property management for cleaning, maintenance, and guest services to maintain high ratings and repeat bookings.
Given all of the above, is it worth buying property in Cabo San Lucas in 2025 for living in, renting out, or buying and reselling for a profit?
Cabo San Lucas property investment in 2025 offers compelling opportunities across all three strategies, with market fundamentals supporting long-term value creation.
For permanent or seasonal living, buying makes excellent sense due to lifestyle benefits, community amenities, and property appreciation potential. The combination of year-round climate, established expat community, quality healthcare, and proximity to the US creates an attractive living environment that justifies ownership costs.
Rental investment strategies show strong potential with gross yields of 6-10% annually and continued demand growth from tourism and remote workers. Properties in emerging areas like El Tezal offer the best value propositions, while established areas like Marina provide proven rental performance and stability.
Buy-and-resell strategies benefit from forecasted 5-7% annual appreciation, particularly in areas experiencing infrastructure improvements. However, this approach requires longer holding periods and higher transaction costs compared to rental strategies, making it better suited for patient investors with substantial capital.
The market's strength lies in diverse opportunities accommodating different budgets and strategies. Whether seeking a $300,000 townhouse in El Tezal or a $1 million beachfront villa in Pedregal, buyers can find properties aligned with their goals. Success requires careful due diligence, experienced local guidance, and realistic expectations about costs and timelines.
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.
The Cabo San Lucas property market in 2025 presents solid fundamentals for both lifestyle and investment buyers, with diverse options spanning from affordable emerging neighborhoods to luxury beachfront estates.
Success requires understanding local market dynamics, legal requirements, and realistic expectations about costs and returns, making professional guidance essential for optimal outcomes.
Sources
- The LatinVestor - Cabo San Lucas Property Market Analysis
- O Group - Single Family Properties Cabo
- Homes of Cabo - Top Investment Properties 2025
- Expat Exchange - Buy vs Rent Cabo San Lucas
- Cabo Real Estate Services - Market Report
- Cabo Real Estate Services - Common Buying Mistakes
- Naya Homes - Cabo Real Estate Agencies Guide
- Come to Cabo - Foreign Property Ownership
- Wanderlux - Buying House in Cabo Mexico
- Century 21 Legendary Realty - Real Estate Guide