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Yes, the analysis of Cabo San Lucas' property market is included in our pack
Cabo San Lucas property market is experiencing strong momentum with average prices reaching $727,000 USD as of mid-2025.
Property values have surged dramatically with sales volumes increasing 70% in early 2025, while luxury segments show exceptional growth particularly in Pacific and Cabo Corridor neighborhoods. International buyers, especially Americans and Canadians, continue driving demand for both vacation homes and investment properties, creating a robust market environment with rental yields ranging from 6-10% annually.
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 property market shows strong appreciation with luxury homes averaging $1.32 million and condos at $792,840, driven by international demand and limited beachfront inventory.
Short-term forecasts predict 3-7% annual growth while medium to long-term projections suggest sustained 5-7% appreciation, with Pacific, Cabo Corridor, and Tezal neighborhoods leading growth prospects.
| Property Type | Average Price (2025) | Annual Growth Rate |
|---|---|---|
| Luxury Houses | $1.32 million | 13% (Pacific region) |
| Condos | $792,840 | 9.9% |
| Median Houses | $450,000 | 3-7% |
| Mid-range Homes | $200,000-$500,000 | 5-7% |
| Tezal Condos | $571,000 | 21% |
| San José Condos | $729,000 | 54% (land) |
| Cabo Corridor Land | Variable | 192% |
What's the current average property price in Cabo San Lucas by property type and neighborhood?
As of September 2025, the overall average property price in Cabo San Lucas stands at $727,000 USD.
Luxury houses command the highest prices with an average of $1.32 million, while the Pacific region leads all neighborhoods with an average of $2.25 million. Condos average $792,840 across the market, with significant variation by location.
The median house price sits at $450,000 USD, making it more accessible for many buyers. Mid-range homes typically fall between $200,000 and $500,000, showing steady appreciation patterns. Townhomes and inland properties offer 30-40% lower prices compared to beachfront locations.
Neighborhood pricing varies dramatically, with Pacific commanding $2.25 million average and experiencing 13% annual increases. San José del Cabo houses average $1.38 million while condos reach $729,000. Tezal offers more affordable condos at $571,000 with strong 21% year-over-year growth.
The Cabo Corridor has seen exceptional land appreciation of 192%, making it one of the fastest-growing areas for property values.
How have property prices changed in the past 12 months compared to the past 3 years?
The past 12 months have shown explosive growth in Cabo San Lucas property market with sales volume surging 70% from Q4 2024 to Q1 2025.
Some areas experienced dramatic 107% increases in average house prices during this period. Condos demonstrated more moderate but still substantial 9.9% price appreciation, while overall sales volume grew 25% year-over-year. This represents acceleration compared to historical patterns.
Over the past three years, the market has maintained a compound annual growth rate (CAGR) of 3-7% for most well-located properties. This sustained growth reflects consistent demand from luxury buyers and limited inventory constraints. Premium neighborhoods like Cabo Corridor and Pacific have exceeded 100% cumulative price increases since 2022.
The recent acceleration suggests market momentum is building rather than slowing, driven by international migration trends and infrastructure improvements.
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What is the short-term (next 6–12 months) forecast for property prices in Cabo San Lucas?
Property prices in Cabo San Lucas are anticipated to appreciate 3-7% over the next 6-12 months.
This forecast reflects continued international buying pressure, low supply conditions, and an ongoing tourism surge. Premium new developments entering the market are supporting higher price points rather than creating downward pressure.
The luxury and ocean-view property segments remain particularly active, with sustained demand from American and Canadian buyers. Infrastructure improvements and resort developments are creating positive market sentiment that supports price growth expectations.
Market fundamentals suggest this appreciation rate is sustainable given current demand patterns and inventory constraints in desirable locations.
What is the medium-term (1–3 years) forecast for property prices in Cabo San Lucas?
Medium-term projections indicate annual growth of approximately 5-7% for Cabo San Lucas properties over the next 1-3 years.
Luxury and premium community segments are expected to lead this appreciation trend. Infrastructure improvements including airport expansions and highway developments provide fundamental support for sustained growth. International migration patterns, particularly remote workers and retirees, create ongoing demand pressure.
The medium-term outlook benefits from Cabo San Lucas' position as a preferred second-home destination for North American buyers. Limited developable beachfront land constrains supply while demand continues expanding through demographic and lifestyle trends.
Market conditions suggest this growth rate is conservative given underlying demand drivers and supply limitations.
What is the long-term (3–10 years) forecast for property prices in Cabo San Lucas?
Long-term appreciation prospects remain strong for Cabo San Lucas properties over the next 3-10 years.
The luxury segment is expected to continue outperforming with new high-end resorts, infrastructure developments, and competitive lifestyle amenities supporting sustained demand. International buyer appeal shows no signs of diminishing, particularly from North American markets seeking vacation and investment properties.
Limited buildable beachfront land creates natural supply constraints that support upward price trajectories. However, long-term risks include potential global economic uncertainty and possible regulatory changes affecting rental properties.
Despite these risks, the fundamental appeal of Cabo San Lucas as a luxury destination and investment location suggests continued appreciation, though at potentially more moderate rates than recent years.
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Which neighborhoods are expected to see the highest growth in the next few years?
The Pacific region leads growth expectations with current 13% annual increases and premium positioning at $2.25 million average prices.
Cabo Corridor demonstrates exceptional momentum with 192% land appreciation, making it a prime growth area. Tezal offers the best value proposition for price appreciation, currently 30-40% below beachfront prices but showing strong upward trends. El Tezal specifically provides the highest upside potential among emerging areas.
Ultra-luxury developments including Chileno Bay, Four Seasons, Montage, Maravilla, Cove Club, and El Dorado represent the premium growth segment. These master-planned communities benefit from resort amenities and exclusive positioning.
Growth prospects favor neighborhoods with ocean access, golf amenities, and proximity to new infrastructure developments. Areas positioned between established luxury zones and emerging districts offer optimal appreciation potential.
Which property types are in highest demand right now, and which are oversupplied?
| Demand Level | Property Type | Price Range |
|---|---|---|
| Highest Demand | Luxury oceanfront houses | $1M - $3M+ |
| Highest Demand | Resort amenity condos | $300K - $800K |
| Highest Demand | Golf community homes | $500K - $2M |
| Rising Interest | Eco-friendly properties | $400K - $1.5M |
| Rising Interest | Smart-home properties | $350K - $1M |
| Undersupplied | Beachfront condos | $800K - $2M |
| Oversupplied | Land parcels | Variable |
What's the current rental yield in Cabo San Lucas by property type and neighborhood?
Vacation rental properties in prime locations generate 6-10% gross annual yields through Airbnb and VRBO platforms.
The highest-performing areas include Medano Beach, Marina, Pedregal, and Downtown with occupancy rates ranging from 46-73% during peak seasons. Standard units average $1,800 monthly while premium ocean-view properties command $500-$1,000+ per night.
Long-term rental yields typically range 4-6% annually. Snowbird winter rentals in desirable locations can achieve $2,000-$4,000 monthly rates, providing strong seasonal income opportunities.
Tezal, Medano Beach, Pedregal, Marina, and Downtown consistently rank as the best-performing areas for rental yields. Properties with ocean views, resort amenities, and walkable locations to dining and entertainment generate premium rental rates.
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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.
How is buyer demand trending right now for locals, second-home buyers, and investors?
Local buyers face significant challenges accessing the luxury market segments due to price appreciation outpacing local income growth.
However, locals remain active in inland and emerging neighborhoods where prices remain more accessible. Second-home buyers, particularly Americans and Canadians, show exceptionally strong demand targeting the $300,000-$1.5 million range for resort condos and homes.
Investor demand focuses heavily on short-term rental potential and luxury segment properties. Investment buyers are particularly interested in new developments and properties with peak rental yield potential around Medano Beach and Marina areas.
Growing interest in eco-friendly and golf community developments suggests buyer preferences are evolving toward lifestyle-oriented properties with amenities and sustainable features.
What is the recommended budget range to get the best value depending on use case?
For local living needs, budgets of $150,000-$300,000 provide access to inland, Tezal, and Corridor properties.
Luxury living requires $700,000-$3 million+ focusing on Pedregal, Pacific, and Chileno Bay areas. Investment properties targeting rental income perform best in the $300,000-$800,000 range in Tezal, Marina, and Downtown locations.
Short-term resale profit opportunities exist in two categories: emerging neighborhoods at $400,000-$700,000 and luxury pre-sales at $1-$2 million. El Tezal and Corridor properties offer emerging market potential while Pacific and select pre-sales provide luxury appreciation opportunities.
The $300,000-$800,000 range represents the optimal "sweet spot" for both value and rental yield potential according to current market conditions.
Where are the best opportunities to buy now for short-term resale profit versus long-term appreciation?
Short-term resale profit opportunities center on pre-sale developments offering 10-20% discounts and emerging neighborhoods like El Tezal and Corridor.
Properties with ocean views or walkable access to amenities provide the best short-term appreciation potential. Pre-construction purchases in established developers' projects offer immediate equity potential upon completion.
Long-term appreciation strategies should focus on luxury oceanfront or golf homes in ultra-luxury neighborhoods. Well-located condos near new infrastructure and amenities provide stable long-term growth prospects. The Pacific region and established resort communities offer the most reliable long-term appreciation.
Value strategies include purchasing in growth areas just before infrastructure completion and targeting properties with unique features like views, amenities, or walkable nightlife access.
It's something we develop in our Mexico property pack.
What risks or market factors could affect property prices in Cabo San Lucas in the near future?
Supply constraints represent both an opportunity and risk, with limited beachfront and marina properties supporting prices but potentially creating affordability issues.
- Potential regulation changes affecting short-term rental laws could impact investment property values, though current regulations remain minimal
- Political or economic uncertainty in buyer home countries, particularly the United States and Canada, could reduce international demand
- Seasonal occupancy fluctuations may reduce rental yields during off-peak periods, affecting investment returns
- The market's luxury focus may create oversupply in less-prime areas while squeezing entry-level buyers out of the market
- Global economic conditions and interest rate changes could affect international buyer purchasing power and financing availability
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 property market demonstrates exceptional strength with luxury segments leading appreciation and international demand sustaining growth momentum.
Investment opportunities exist across price ranges, with rental yields of 6-10% supporting both lifestyle and financial objectives for property buyers.