Yes, the analysis of Cabo San Lucas' property market is included in our pack
The question of 'the best neighborhood to buy a property in Cabo San Lucas' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At TheLatinvestor, when we write a blog post or when we update our our property pack for Mexico, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Cabo San Lucas into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
Make a profitable investment in Cabo San Lucas
Better information leads to better decisions. Save time and money. Download our guide.
How is the real estate market in Cabo San Lucas?
The real estate market in Cabo San Lucas is currently thriving, attracting a diverse range of buyers, particularly foreigners, drawn by the unique blend of attractions and amenities this city offers.
Cabo San Lucas, a gem on the southern tip of Mexico's Baja California Peninsula, is known for its stunning natural beauty, including pristine beaches, crystal-clear waters, and a remarkable desert landscape. This blend of beach and desert is rare and provides a unique backdrop for properties.
One of the key strengths of Cabo San Lucas is its exclusivity and luxury appeal. The city is home to world-class golf courses, luxury resorts, and high-end dining and shopping experiences, which are not commonly found in such a harmonious blend elsewhere.
These features make it a sought-after destination for affluent buyers who are looking for vacation homes or investment properties. The presence of a sophisticated infrastructure catering to a luxury lifestyle is a significant draw.
The interest from foreign buyers, especially from the United States and Canada, is high due to the proximity to these countries and the comparative affordability of luxury here.
The ease of travel, combined with the favorable climate and the laid-back yet upscale lifestyle, makes it an ideal location for those seeking a second home or a retirement haven.
The dynamism of the real estate market in Cabo San Lucas can be exemplified by one notable data point: the steady increase in property values over recent years. This trend is fueled by the city's growing popularity and the continuous development of high-end properties and amenities.
A unique aspect of properties in Cabo San Lucas is their integration with the natural landscape. Many homes are designed to offer unobstructed views of the ocean and the desert, blending indoor and outdoor living spaces seamlessly.
This architectural harmony with nature is not only aesthetically pleasing but also enhances the overall living experience, a characteristic quite specific to this region.
Looking ahead, the value of properties in Cabo San Lucas is poised to continue rising.
The ongoing development of luxury amenities, coupled with the city's growing reputation as a premium tourist and expatriate destination, will keep driving demand.
Additionally, the city's commitment to sustainable development ensures that growth does not compromise its natural beauty, further adding to its appeal.
Top neighborhoods in Cabo San Lucas to consider for living
Areas in Cabo San Lucas that are budget-friendly
If you're looking to buy property in Cabo San Lucas on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Type of Properties | Average Price per Sqm | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Lienzo Charro | Single-family homes, apartments | Lower than central areas | Local residents, expatriates | Lower cost, local culture | Far from attractions, beaches |
| El Tezal | Condos, townhouses, single-family homes | Moderate | Families, professionals | Potential for appreciation, growing community | Lack of some amenities, distance from beach |
| Aurora | Single-family homes, small apartments | Among the lowest in the region | Mostly locals | Affordability, peaceful environment | Limited high-end amenities, far from tourist spots |
Lienzo Charro
Lienzo Charro is known for being a more budget-friendly area in Cabo San Lucas.
Properties in Lienzo Charro tend to be cheaper due to its distance from the main tourist zones and the beach. However, this distance also suggests potential for growth in property values as the city expands. Housing options mainly include modest single-family homes and some apartment complexes.
The average price per square meter in Lienzo Charro is typically lower than in more central areas. The community is a mix of local residents and some expatriates, creating a diverse but close-knit environment.
The strengths of Lienzo Charro are its lower cost of living and authentic local culture, while the drawbacks include being farther from popular attractions and beaches.
El Tezal
El Tezal is a developing neighborhood that offers more affordable housing compared to the luxury areas closer to the coast.
The affordability comes from its status as a growing area, with ongoing development. This also means property values are likely to increase as more amenities and infrastructure are added. El Tezal has a variety of properties, including condos, townhouses, and single-family homes.
The average price per square meter in El Tezal is moderate, making it accessible for middle-income buyers. The area is popular among families and working professionals.
Its strengths include the potential for appreciation and a growing community, while its weaknesses are the current lack of some amenities and distance from the beach.
Aurora
Aurora is another affordable option, appealing to those looking for a quieter lifestyle away from the tourist hustle.
It's less expensive because it's not a prime tourist location, but as Cabo San Lucas expands, properties in Aurora might see an increase in value. The neighborhood primarily features single-family homes and small apartment buildings.
The average price per square meter in Aurora is among the lowest in the region, catering to budget-conscious buyers. The residents are mostly locals, which provides an authentic Mexican living experience.
The main advantages of Aurora are its affordability and peaceful environment, whereas its disadvantages include limited access to high-end amenities and a greater distance from major tourist attractions.
Don't lose money on your property in Cabo San Lucas
100% of people who have lost money in Mexico have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Areas in Cabo San Lucas that are popular and upscale
When looking to buy property in Cabo San Lucas, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price per sqm | Resident Profile | Strengths | Weaknesses |
|---|---|---|---|---|
| Pedregal | High | Affluent locals and expats | Privacy, ocean views | Cost of living, terrain |
| Cabo del Sol | High | Wealthy tourists, professionals | Golf courses, resort-style living | Less cultural experience |
| Palmilla | Very High | Celebrities, high-net-worth individuals | Security, luxury amenities | Cost of living, isolation |
Pedregal
Pedregal is synonymous with luxury in Cabo San Lucas.
In Pedregal, the properties are pricier because they offer stunning ocean views and exclusivity. It's an area where you'll find high-end villas and lavish estates. The average price per square meter in Pedregal can be quite steep, reflecting the area's opulence.
It's a neighborhood that will likely maintain its hype due to its unique positioning on a hillside overlooking the marina. Residents in Pedregal are typically affluent, including both locals and expatriates.
The main strength of Pedregal is its privacy and spectacular scenery. However, the cost of living is high, and the terrain might be challenging for some, with steep roads and limited access.
Cabo del Sol
This is a golfer's paradise.
Known for its world-class golf courses, Cabo del Sol attracts those who appreciate the sporty yet luxurious lifestyle. Properties in Cabo del Sol are expensive, often featuring modern amenities and beautiful landscapes. The average price per square meter in Cabo del Sol is high but justified by the quality of life and amenities.
This neighborhood's popularity is enduring, especially among golf enthusiasts and those seeking a resort-style living. Residents are a mix of wealthy tourists and high-income professionals.
Its strength lies in its recreational facilities and beautiful golf courses. On the downside, it might not appeal to those looking for a more authentic Mexican cultural experience.
Palmilla
Palmilla is another upscale area, famous for its luxurious resort and exclusive residential community.
The properties in Palmilla are among the most expensive in Cabo San Lucas, with prices per square meter reflecting the luxury and prestige associated with the area. It's likely to remain a highly sought-after location due to its reputation and the high quality of services and amenities available.
The neighborhood is popular with celebrities and high-net-worth individuals seeking privacy and exclusivity.
Its strengths include top-notch security, exceptional facilities, and stunning beaches. However, the cost of living is very high, and it might feel isolated from the local culture.
Make sure you understand the real estate market in Cabo San Lucas
Don't rush into buying the wrong property in Mexico. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Cabo San Lucas that emerge as new hotspots
Let's explore these emerging neighborhoods in Cabo San Lucas that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Current Prices | Future Price Trend | Resident Profile | Strengths | Weaknesses |
|---|---|---|---|---|---|
| El Tezal | Affordable | Rising | Young professionals, families | Modern infrastructure, community | Lacks exclusive charm |
| Santa Carmela | Lower than upscale areas | Gradual rise | Middle-income families, expats | Cultural authenticity, community | May lack high-end amenities |
| Costa Brava | More affordable | Upward trend | Retirees, young families | Natural beauty, tranquility | Less convenient location |
El Tezal
Initially a more subdued residential area, El Tezal is now gaining traction as an emerging hotspot.
Its recent development includes modern housing complexes and amenities that cater to a growing population. Prices in El Tezal are more affordable compared to the traditional upscale areas, but they are increasing as the neighborhood gains popularity. Over the next few years, expect the prices to rise steadily.
El Tezal could continue gaining popularity due to its blend of modern living and proximity to the city center. It attracts a diverse mix of residents, including young professionals and families.
The strengths of El Tezal include its modern infrastructure and community feel, but it might lack the exclusive charm of more established areas.
Santa Carmela
Once overlooked, Santa Carmela is now being recognized for its potential.
It offers a more authentic living experience with a blend of traditional Mexican architecture and modern facilities. The prices in Santa Carmela are currently lower than in more established areas, making it an attractive option for property buyers.
In the coming years, as it develops further, prices are expected to rise, although not as sharply as in the more upscale neighborhoods. Its growing popularity stems from its authentic charm and community atmosphere.
Santa Carmela attracts a mix of middle-income families and expatriates. Its strengths are its cultural authenticity and sense of community, but it may lack some of the high-end amenities found in more luxurious areas.
Costa Brava
Costa Brava is a coastal neighborhood that's starting to catch the eye of investors and homebuyers.
Initially a quieter area, it's now evolving with new developments and amenities. The property prices in Costa Brava are more affordable compared to the prime locations but are on an upward trend due to the increasing interest.
It's expected that Costa Brava will continue to grow in popularity, especially among those who value beachside living without the hefty price tag of more central areas. The neighborhood is attractive to both retirees and young families.
Its main strengths are its natural beauty and tranquil environment, but it may lack the convenience of being close to the city's main attractions.
Make a profitable investment in Cabo San Lucas
Better information leads to better decisions. Save time and money. Download our guide.
Top neighborhoods in Cabo San Lucas to invest in property
Areas in Cabo San Lucas with a strong rental demand
If you're considering buying real estate in Cabo San Lucas for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Type of Tenants | Type of Properties | Average Rental Income | Rental Yield | Tips for Higher Income | Weaknesses |
|---|---|---|---|---|---|---|
| El Médano Beach | Tourists, short-term visitors | Beachfront condos, luxury villas | $500-$700/night (villa) | 5-7% | Closest to beach, unique features | High competition, pricey |
| Pedregal | Affluent tourists, long-term | Luxury villas, apartments | Over $1000/night (villa) | 4-6% | Luxury amenities, exclusivity | High initial investment |
| Cabo San Lucas Downtown | Tourists, locals | Apartments, small houses | $150-$300/night | 6-8% | Comfort, convenience, location | Less appealing to beach seekers |
El Médano Beach
El Médano Beach is a hotspot for rental demand due to its stunning beachfront and vibrant nightlife, attracting a mix of tourists and short-term visitors.
Properties in El Médano Beach, especially beachfront condos and luxury villas, are in high demand. Tenants usually seek amenities like pools, ocean views, and proximity to restaurants and bars.
Rental incomes in El Médano Beach can be quite lucrative, with beachfront properties earning significantly more. For a high-end villa, expect rental incomes of around $500-$700 per night. The rental yield in this area can be around 5-7%, driven by high occupancy rates and premium pricing.
To optimize rental income, focus on properties with unique features or those closest to the beach. However, the competition is fierce, and properties can be pricey, which could mean higher initial investments.
Pedregal
Pedregal, known for its luxury and exclusivity, attracts a wealthier tenant base, including long-term renters and affluent tourists.
The demand in Pedregal is for high-end villas and apartments with features like privacy, security, and panoramic ocean views. Rental incomes in Pedregal can vary greatly, but a luxury villa can fetch upwards of $1000 per night.
The rental yield typically in Pedregal ranges from 4-6%. Investing in properties with unique luxury amenities can increase rental appeal.
The area's high real estate prices and maintenance costs are downsides, but the potential for consistent, high-end rental income is a strong draw.
Cabo San Lucas Downtown
The downtown area is popular for its accessibility and urban offerings, attracting both tourists and locals looking for short to medium-term rentals.
Apartments and small houses are in demand in Cabo San Lucas Downtown, especially those close to local attractions and services. Rental income in Cabo San Lucas Downtown can range from $150-$300 per night for well-located properties.
The rental yield in Cabo San Lucas Downtown is around 6-8%, buoyed by the area's year-round appeal and lower property prices compared to beachfront areas. Properties that offer a blend of comfort, convenience, and proximity to key attractions tend to perform best.
However, the urban setting might not appeal to those seeking a quiet, beachfront experience, which can limit some rental opportunities.
Don't lose money on your property in Cabo San Lucas
100% of people who have lost money in Mexico have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Areas in Cabo San Lucas where property prices might increase in the future
In these areas in in Cabo San Lucas you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Type of Tenants | Type of Properties | Average Price/Night | Tips for Higher Income | Weaknesses |
|---|---|---|---|---|---|
| Marina | Tourists, vacationers | Modern condos, apartments | $200-$400 | Waterfront views, unique amenities | Seasonal fluctuations, competition |
| San José del Cabo | Families, culture seekers | Villas, condos | $150-$300 | Proximity to culture, local design | Quieter, less vibrant |
| Corridor | High-end travelers, honeymooners | Luxury villas, condos | $300-$600 | Near luxury resorts, exclusive amenities | High investment, luxury resort competition |
Marina
The Marina area is a prime location for short-term rentals due to its scenic views, proximity to boats and water activities, and vibrant nightlife.
This area attracts tourists and short-term vacationers looking for convenience and luxury. Properties like modern condos or apartments with amenities like pools, balconies, and close access to dining and shopping in Marina are in high demand.
Average prices for one night in Marina can range from $200-$400. To maximize rental income, focus on properties with waterfront views or unique amenities.
The main challenge in Marina is managing seasonal fluctuations in tourist traffic and competing with numerous high-quality rental options.
San José del Cabo
San José del Cabo offers a more authentic Mexican experience and is ideal for those seeking a blend of culture and relaxation.
This area is popular among families and travelers who prefer a quieter environment. Rental properties such as family-friendly villas and condos with amenities like kitchens and communal spaces in San José del Cabo are sought after.
Nightly rates in San José del Cabo can range from $150-$300. Properties close to local cultural attractions or with unique local design elements can command higher rents.
The quieter nature of this area, however, might limit appeal to those seeking a more vibrant, party-centric vacation.
Corridor
The Corridor, stretching between Cabo San Lucas and San José del Cabo, is known for its luxury resorts and stunning beaches.
It attracts high-end travelers and honeymooners. Upscale villas and resort-style condos with amenities like private beaches, spas, and golf courses in Corridor are popular.
Expect nightly rates in Corridor from $300-$600. Investing in properties within or adjacent to luxury resorts can yield high rents and occupancy.
However, the high cost of such properties and the competition from established luxury resorts are potential drawbacks.
Make sure you understand the real estate market in Cabo San Lucas
Don't rush into buying the wrong property in Mexico. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.