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
What do the latest numbers reveal about Cabo San Lucas’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Cabo San Lucas, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.

1) Homes in Cabo San Lucas took 15.1% longer to sell in September 2024, showing a slower sales cycle
The average days on market for homes in Cabo San Lucas increased by 15.1% in September 2024, indicating a slower sales cycle.
In September 2023, homes typically stayed on the market for 245 days. Fast forward to September 2024, and that number jumped to 282 days. This means homes are taking longer to sell, hinting at a more sluggish market pace.
This shift might be due to several reasons, like changes in buyer interest or broader economic factors impacting people's ability to buy homes. When homes linger on the market, it often signals a drop in buyer activity or a more cautious stance from potential buyers.
For instance, economic uncertainties or shifts in local employment rates could be making buyers more hesitant. Additionally, interest rate fluctuations might be affecting affordability, causing potential buyers to pause.
Moreover, the local real estate market might be experiencing a saturation point, where more properties are available than there are buyers. This can lead to longer selling times as buyers have more options to choose from.
Sources: Cabo Properties, Cabo Real Estate Services
2) Condo prices in Cabo San Lucas rose by 9.91% in September 2024, reaching $792,840
The average sales price for condos in Cabo San Lucas jumped by 9.91% in September 2024, reaching $792,840.
In contrast, the number of condo sales plummeted by 67%, dropping from 86 sales in 2023 to just 28 in 2024. Despite this sharp decline in transactions, the condos that did sell commanded higher prices, indicating a shift in market dynamics.
This trend suggests that buyers are willing to pay more for the limited units available, possibly due to strong demand or favorable market conditions. Even with fewer sales, the market seems to be thriving, with buyers prioritizing quality over quantity.
Such a scenario might reflect a growing interest in Cabo San Lucas as a desirable location, where the allure of the area outweighs the reduced number of transactions. The market's resilience is evident as it continues to attract buyers who are ready to invest in premium properties.
For potential buyers, this could mean that investing in a condo here might be a wise decision, given the current market appreciation. The increase in average sales price highlights the area's potential for future growth and value retention.
Sources: Los Cabos Market Summary for September 2024

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.
3) Demand for properties in gated communities in Cabo San Lucas is expected to rise by 10% by 2025, attracting retirees and security-seeking buyers
Gated communities in Cabo San Lucas are becoming a top choice for retirees and buyers seeking a secure lifestyle.
In recent years, Los Cabos has emerged as a popular retirement spot, especially in 2023 and 2024. The area's stunning landscapes and relaxed vibe draw people globally. These communities offer not just safety but also luxurious amenities and stunning views.
For those looking for both security and social activities, these features are a big draw. Demand for properties in these communities is expected to rise by 10% by 2025.
Living in a gated community here means enjoying a blend of privacy and community. Residents benefit from world-class facilities like golf courses, spas, and private beaches, making everyday life feel like a vacation.
Moreover, the sense of community is strong, with organized events and activities that foster social connections. This makes it an ideal choice for those who value both security and an active social life.
With the growing interest, property values in these areas are likely to increase, making it a smart investment for future buyers. The combination of safety, luxury, and community is hard to resist.
Sources: CB Riveras
4) Well-located vacation rentals in Cabo San Lucas are projected to see a 25% increase in rental income in 2024
In 2023, the real estate market in Cabo San Lucas was buzzing with potential for vacation rentals.
Travelers increasingly chose private accommodations like condos and villas over hotels, boosting demand significantly. This shift in preference was a major factor in the market's growth.
Looking ahead to 2024, well-located vacation rentals are expected to see a 25% increase in rental income. This surge is driven by the growing trend of travelers seeking more personalized and private stays.
Investing in these properties is becoming more attractive due to the appreciation in property values, especially in luxury and beachfront areas. These locations are highly sought after, adding to their investment appeal.
The limited supply of prime properties in Cabo San Lucas further intensifies demand, making them a lucrative opportunity for investors. This scarcity in prime spots is a key factor in the market's dynamics.
With these factors in play, the market for vacation rentals in Cabo San Lucas is poised for growth, offering significant potential returns for those investing wisely. The combination of rising demand and limited supply creates a promising landscape for property buyers.
Sources: Sabina Residencial
5) By 2027, 30% of new residential developments in Cabo San Lucas will use sustainable and eco-friendly building practices
In Cabo San Lucas, real estate is going green.
Developers are increasingly embracing eco-friendly practices, driven by both environmental awareness and economic benefits. They're incorporating energy-efficient appliances and solar power into new projects, making homes not just sustainable but also cost-effective. This shift is not just about saving the planet; it's about saving money too.
Using sustainable building materials is a key trend. By opting for locally sourced, renewable, and recyclable materials, developers are cutting down on carbon footprints while preserving the region's natural beauty. This approach resonates with the community's desire to maintain Cabo's unique charm.
Energy efficiency is another major focus. Homes are being designed to harness natural light and ventilation, reducing reliance on artificial lighting and air conditioning. With solar panels becoming a common sight, homeowners can tap into Los Cabos' abundant sunshine, leading to significant savings on utility bills.
By 2027, 30% of new residential developments in Cabo San Lucas will incorporate sustainable and eco-friendly building practices. This trend is not just a fad; it's a commitment to a greener future.
Sources: Living Cabos Realty, Del Mar Los Cabos, Discovering Mexico
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6) Condo sales in Cabo San Lucas dropped by 67% in September 2024, indicating reduced buyer activity or lower inventory
In September 2024, condo sales in Cabo San Lucas plummeted by 67% compared to the previous year.
This sharp decline, from 86 sales in 2023 to just 28 in 2024, might be due to fewer active buyers or a drop in available condos. The market dynamics have shifted, making it a challenging time for potential buyers.
One possible reason for this downturn is the rise in condo prices. The average list price increased by 6.58%, while the average sales price jumped by 9.91%. This price hike could have pushed condos out of reach for many, despite their faster sales.
Interestingly, condos were selling quicker, with the average days on the market dropping by 23.36%, from 304 days in 2023 to 233 days in 2024. This indicates that higher prices might have attracted a niche group of buyers who could afford them.
These buyers, likely less sensitive to price increases, snapped up the available properties, leaving fewer options for others. The market's quick turnover suggests a shift towards more affluent buyers who are less deterred by rising costs.
As a result, the combination of higher prices and reduced inventory has created a unique market environment in Cabo San Lucas, impacting overall buyer activity.
Sources: Cabo Properties
7) Demand for properties near healthcare services in Cabo San Lucas is expected to rise by 15% among retirees by 2025
Properties in Cabo San Lucas with easy access to healthcare are increasingly popular among retirees.
In recent years, particularly in 2023 and 2024, retirees have been flocking to Cabo for its affordable and high-quality healthcare. The healthcare system here offers a blend of public and private facilities, with many retirees opting for private care due to its superior quality and shorter wait times.
Healthcare costs in Mexico are generally much lower than in the U.S., making it an attractive option for those on a fixed income. This affordability is a major draw for retirees looking to stretch their retirement savings while enjoying quality medical care.
Managed care services in Mexico are tailored to provide a smooth healthcare experience for expats. Retirees can use U.S. medical insurance or benefit from Canadian health care plans, adding to the convenience. The presence of English-speaking medical staff in modern hospitals and clinics further enhances the comfort and accessibility for retirees.
By 2025, the demand for properties with easy access to healthcare in Cabo is expected to rise by 15%, reflecting the growing appeal of the area for retirees. This trend highlights the importance of healthcare accessibility in retirement planning.
Sources: Source 1, Source 2, Source 4
8) Cabo San Lucas's luxury real estate market is projected to grow by 15% in 2024, driven by high-end buyers
The luxury real estate market in Cabo San Lucas is set to grow by 15% in 2024, driven by high-end buyers.
Affluent buyers from North America and Europe are flocking to Cabo for its luxurious lifestyle and stunning natural beauty. They are particularly interested in high-end villas and condos, which are in high demand. This demand is largely due to the limited supply of prime locations, naturally pushing prices higher.
Specific areas like Chileno Bay and Palmilla Los Cabos are hot spots for high-net-worth individuals. These areas continue to attract buyers, keeping luxury real estate sales strong. The Cabo Corridor, known for its luxury investments, is also seeing robust activity with high sales volumes, indicating strong market confidence.
In these prime locations, the allure of Cabo's lifestyle is undeniable. Buyers are not just purchasing properties; they are investing in a lifestyle that offers both exclusivity and natural beauty. This trend is expected to continue as more high-end buyers look for unique and luxurious living experiences.
With the market showing such promise, it's no wonder that Cabo San Lucas is becoming a top choice for luxury real estate investors. The combination of limited supply and high demand is creating a perfect storm for growth in this segment.
Sources: Sabina Residential, YouTube, Ronival

We have made this infographic to give you a quick and clear snapshot of the property market in Mexico. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Residential property insurance costs in Cabo San Lucas are expected to rise by 3% annually through 2025
In Cabo San Lucas, residential property insurance costs are on the rise.
One major factor is the area's vulnerability to natural disasters. With the threat of hurricanes and tropical storms, insurance companies are wary, often increasing premiums to cover potential claims. This means that living in such a beautiful yet risky location comes with its own set of financial considerations.
Moreover, Cabo San Lucas is experiencing a booming real estate market. The demand for properties, especially luxury ones, is high, which in turn drives up property values. As these values climb, the cost to insure them follows suit, leading to higher insurance premiums for homeowners.
Looking ahead, the average cost of residential property insurance in Cabo San Lucas is projected to increase by 3% annually through 2025. This trend reflects both the ongoing demand for real estate and the persistent environmental risks associated with the region.
For potential buyers, it's crucial to consider these factors when budgeting for a property in Cabo San Lucas. The combination of high property values and increased insurance costs can significantly impact overall expenses.
Understanding these dynamics can help you make informed decisions about purchasing property in this stunning yet complex market.
Sources: Nationwide, Allstate, Great Villas
10) Foreign buyers from the U.S. and Canada are boosting Cabo San Lucas real estate demand, with a 30% rise in foreign purchases expected in 2024
Foreign buyers from the U.S. and Canada are driving the demand for residential real estate in Cabo San Lucas.
In 2023, this trend continued, and experts predict a 30% increase in foreign purchases by 2024. The allure of Cabo's rising property values is undeniable, especially in prime locations where limited supply has pushed prices higher. This makes Cabo an attractive investment for those seeking luxury and beachfront properties.
The legal framework in Mexico is another draw. It allows foreigners to own property through a bank trust system, making it easier for U.S. and Canadian buyers to invest. This system, combined with Cabo's natural beauty and vibrant lifestyle, keeps foreign investment strong.
For many, the appeal lies in the combination of stunning landscapes and a relaxed lifestyle. Cabo offers a unique blend of luxury and tranquility, making it a top choice for those looking to invest in a second home or vacation property.
Moreover, the proximity to the U.S. and Canada adds to its attractiveness. With direct flights and a welcoming community, Cabo is not just a vacation spot but a viable option for long-term investment.
As the market continues to grow, the influence of foreign buyers is expected to remain significant, shaping the future of Cabo's real estate landscape.
Sources: Sabina Residencial, Come to Cabo
11) Mid-range properties in Cabo San Lucas are expected to see a 10% price increase in 2024
In 2024, mid-range properties in Cabo San Lucas, priced between $200,000 and $500,000, are expected to see a moderate price increase of 10%.
This rise is part of a larger trend in the real estate market, where property values are climbing due to high demand and limited supply. Cabo San Lucas is a hotspot, especially in prime locations, attracting buyers eager to invest.
While luxury and beachfront properties are seeing significant growth, mid-range homes are experiencing steady but moderate increases. This is largely due to ongoing infrastructure improvements and a consistent flow of foreign investment, which keeps demand robust in popular neighborhoods.
The real estate market in Cabo San Lucas is competitive, with about 30% fewer units going under contract compared to peak years. Sellers need to be savvy with pricing and marketing strategies to attract buyers.
Despite these challenges, the demand for vacation rentals and the allure of gated communities are bolstering the market's growth and stability. Buyers are drawn to the lifestyle and security these properties offer.
Overall, the combination of strategic pricing, appealing community features, and a stable influx of investment is driving the market forward, making mid-range properties a solid choice for potential buyers.
Sources: Sabina Residencial, Find Mexico Houses
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12) Demand for luxury villas in Cabo San Lucas is expected to rise by 20% by 2025
The luxury villas in Cabo San Lucas are in high demand, with a 20% increase expected by 2025.
In recent years, Cabo San Lucas has become a hotspot for luxury real estate. Back in 2023 and 2024, there was a noticeable surge in demand for these properties, which led to rising prices. Even as the market stabilized, interest from buyers remained strong, showing a continuous upward trend.
Investors are particularly drawn to Cabo San Lucas for its rewarding opportunities. These luxury properties not only have the potential to appreciate in value but also offer excellent returns on investment through vacation rentals. This dual benefit makes the market increasingly attractive, fueling its growth.
Looking ahead, Cabo's real estate market seems promising. Several infrastructure projects, like improved roads and expanded airport facilities, are in the works. These developments are expected to enhance accessibility and appeal, likely boosting property values further, including those of luxury villas.
Since 2016, the luxury real estate market in Los Cabos has been on an impressive growth trajectory, driven by a surge in international buyers. Economic indicators, a revitalized tourism industry, and infrastructure investments have all contributed to this growth, pushing price brackets upward. This trend suggests that the demand for luxury villas is not only high but also expected to continue increasing.
Sources: Alen Fabjan Blog, CB Riveras Blog
13) Ocean-view properties in Cabo San Lucas are expected to see a 20% sales increase in 2024
In 2024, properties with ocean views in Cabo San Lucas are in high demand.
Affluent buyers from North America and Europe are flocking to Cabo San Lucas, drawn by its stunning natural beauty and appealing lifestyle. This influx is a major driver behind the surge in interest for ocean-view properties. The allure of waking up to the Pacific Ocean is irresistible, making these homes a top choice for those seeking luxury and tranquility.
The scarcity of prime ocean-view properties is a key factor in this trend. With only a limited number available, prices are naturally rising. This scarcity not only boosts the market value but also makes these properties a sound investment. Buyers are eager to secure their slice of paradise before it's too late.
Moreover, Cabo San Lucas remains a hotspot for vacation rentals, which further fuels the demand. Many buyers see the potential for significant rental income from these properties. Owning an ocean-view home here means not just a personal retreat but also a lucrative business opportunity.
The combination of breathtaking views, investment potential, and rental income makes ocean-view properties a hot commodity. In 2024, the market is expected to see a 20% increase in sales, reflecting the growing interest and competition among buyers.
For those considering a purchase, the time is ripe. The blend of lifestyle appeal and financial benefits makes Cabo San Lucas an attractive option for property investment. This trend is particularly notable as more people seek to combine leisure with smart financial decisions.
Sources: Sabina Residencial, CB Riveras
14) Demand for vacation rentals in Cabo San Lucas is set to grow, with short-term rentals increasing by 15% in 2024
The demand for vacation rentals in Cabo San Lucas is on the rise, with a 15% increase in short-term rentals expected in 2024.
Travelers are increasingly opting for private accommodations over traditional hotels, seeking more personalized and luxurious experiences. Cabo San Lucas, with its stunning beaches and vibrant nightlife, remains a top destination, drawing vacationers who prefer the comfort and exclusivity of vacation rentals.
In 2023, Cabo San Lucas continued to attract tourists, bolstered by ongoing and planned infrastructure improvements that enhance the area's appeal. These developments not only improve the quality of life but also make the region more enticing for potential buyers and investors.
Eco-friendly developments are also gaining traction, as more people become aware of environmental issues. Properties designed to minimize their environmental impact while offering modern amenities are in demand, contributing to the growing interest in sustainable living in Cabo San Lucas.
These trends are supported by the area's commitment to sustainability, which aligns with the preferences of environmentally conscious travelers. As a result, the demand for short-term rentals is expected to continue its upward trajectory, driven by the appeal of eco-friendly and luxurious accommodations.
With Cabo San Lucas's unique blend of natural beauty and modern amenities, it's no surprise that the vacation rental market is thriving. The combination of luxurious living and environmental responsibility makes it an attractive option for both travelers and investors.
Sources: Cabo San Lucas Real Estate Market Trends: What to Expect in 2024, The 2024 Baja California Sur Real Estate Market: Trends and Insights, Short-term Rental Market Landscape | Cabo | Q1 2024
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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