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Yes, the analysis of Cabo San Lucas' property market is included in our pack
Cabo San Lucas property prices in 2025 average MXN 70,555 per square meter for condos and MXN 79,246 per square meter for houses, with significant variations based on location and amenities. Premium beachfront properties in areas like Pedregal and Palmilla command much higher rates, while emerging neighborhoods like El Tezal offer 30-40% lower prices with strong growth potential.
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As of September 2025, Cabo San Lucas residential property averages $727,000 USD with condos at $4,000 USD per square meter and houses at $4,500 USD per square meter.
Market trends show 25% year-over-year sales growth with strong international buyer demand driving 5-7% annual appreciation in prime locations through 2027.
| Property Type | Average Price per m² | Typical Size Range | Average Total Price |
|---|---|---|---|
| Condos | MXN 70,555 (~$4,000 USD) | 70-200 m² | $571,000 USD |
| Houses | MXN 79,246 (~$4,500 USD) | 200-800 m² | $1.32M USD |
| Premium Beachfront | MXN 125,000+ (~$7,000+ USD) | 300-1,200 m² | $2.25M+ USD |
| Emerging Areas | MXN 49,000 (~$2,800 USD) | 150-600 m² | $400,000-800,000 USD |
| Land Parcels | MXN 35,000-70,000 | 450-2,000 m² | $250,000-1M USD |
| Ultra-Luxury Estates | MXN 175,000+ (~$10,000+ USD) | 800-3,000 m² | $5M-28M USD |
What type of property should you consider in Cabo San Lucas?
Cabo San Lucas offers three main property types: condos, houses, and land parcels, each serving different investment and lifestyle goals.
Condos represent the most popular choice for both investors and lifestyle buyers, typically ranging from 70 to 200 square meters with prices averaging $571,000 USD as of September 2025. These properties appeal to turnkey buyers seeking immediate occupancy and often generate rental yields between 6-10% annually.
Houses provide privacy and luxury potential, ranging from 200 to 800 square meters with an average price of $1.32 million USD. Premium houses in areas like Pedregal and Palmilla may exceed 1,200 square meters and command prices reaching $5-28 million for ultra-luxury estates.
Land parcels attract custom builders and long-term investors, with typical lots starting at 450 square meters up to several thousand square meters in hillside or exclusive communities. Raw land offers the greatest appreciation potential but requires significant development investment.
Which neighborhoods offer the best value in Cabo San Lucas?
Cabo San Lucas neighborhoods vary dramatically in pricing, with premium areas commanding 2-3 times higher prices than emerging zones.
Premium areas include Pedregal, Medano Beach, Palmilla, and select Pacific beachfront locations, dominated by luxury estates and commanding the highest per-square-meter prices. These established neighborhoods offer immediate prestige and proven resale value.
Emerging value areas like El Tezal, Cabo Corridor, and inland neighborhoods provide 30-40% lower prices compared to prime locations while benefiting from ongoing infrastructure improvements and strong growth potential. These areas represent the best opportunities for buyers seeking appreciation potential.
Downtown and Tourist Corridor areas offer a mix of condos and houses with quick access to beaches and marina, typically priced between premium and emerging neighborhoods. These locations provide excellent rental income potential due to tourist proximity.
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How does property size affect pricing per square meter?
Property size significantly impacts per-square-meter pricing in Cabo San Lucas, with larger properties often offering better value per unit area.
| Property Type | Typical Size Range | Price Range per m² | Total Price Range |
|---|---|---|---|
| Studio/1BR Condos | 40-70 m² | MXN 80,000-100,000 | $180,000-400,000 |
| 2-3BR Condos | 70-150 m² | MXN 70,000-90,000 | $280,000-750,000 |
| Luxury Condos | 150-300 m² | MXN 90,000-140,000 | $750,000-2.5M |
| Standard Houses | 200-400 m² | MXN 65,000-85,000 | $750,000-2M |
| Luxury Houses | 400-800 m² | MXN 75,000-120,000 | $1.7M-5.5M |
| Estate Properties | 800+ m² | MXN 100,000-200,000 | $4.5M-28M |
What should you expect to pay for properties in different conditions?
Property condition significantly affects pricing in Cabo San Lucas, with newly built and recently renovated properties commanding premium rates.
New construction properties built in 2024-2025 carry the highest premiums, often 15-25% above average market rates due to modern amenities, warranties, and contemporary design features. These properties attract buyers seeking move-in ready luxury without renovation concerns.
Recently renovated properties typically command 10-15% premiums over comparable unrenovated homes, especially in luxury areas like Pedregal where high-end finishes and modern systems significantly enhance market appeal and reduce buyer risk.
Properties requiring cosmetic updates or system improvements often trade at 10-20% discounts to market averages, providing opportunities for buyers willing to invest in improvements. However, renovation costs in Cabo San Lucas can be substantial due to material transportation and skilled labor premiums.
Turnkey properties with recent renovations generally sell faster and attract both international buyers and investors seeking immediate rental income potential without construction delays.
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Which amenities impact property values the most?
Premium amenities significantly increase property values and marketability in Cabo San Lucas' competitive market.
Ocean views represent the highest value amenity, often adding 25-50% to property prices depending on view quality and proximity to water. Direct beach access commands even higher premiums, particularly for houses with private beach frontage.
Private or community pools add substantial value, especially important in Cabo's desert climate. Properties with resort-style amenities including landscaped pool areas, outdoor kitchens, and entertainment spaces attract premium pricing and rental income.
Security features including gated access, 24-hour security services, and surveillance systems are essential for international buyers and significantly impact resale values. Most competitive properties include these features as standard.
Covered parking or garage space, while basic in many markets, represents significant value in Cabo due to intense sun exposure and occasional weather events. Properties without adequate parking often struggle to achieve market rates.
How does location proximity affect pricing?
Proximity to beaches, marina, and downtown areas creates dramatic pricing variations across Cabo San Lucas neighborhoods.
Beachfront and premium zones within 0.1-1 kilometer of sand or marina command the highest per-square-meter rates, often 50-100% above inland properties. These locations offer walk-to-beach convenience highly valued by both residents and rental guests.
Properties within the Tourist Corridor provide quick access to beaches, restaurants, and shopping while maintaining reasonable pricing, typically 20-30% below premium beachfront but 15-25% above emerging neighborhoods.
Emerging neighborhoods located 2-5 kilometers from beach and downtown offer the best value proposition, requiring short drives to amenities but providing safer, quieter living environments with strong appreciation potential.
Hillside properties with ocean views but requiring drives to beaches often provide excellent value, combining scenic beauty with lower per-square-meter costs while maintaining strong resale appeal.
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How does construction year impact property values?
Construction year significantly affects property pricing in Cabo San Lucas, with newer properties commanding substantial premiums over older homes.
Properties built in 2020-2025 feature modern construction standards, hurricane-resistant design, and contemporary amenities, typically selling for 15-30% premiums over comparable older properties. These homes often include smart home technology, energy-efficient systems, and modern architectural styles.
Properties constructed between 2010-2019 represent solid value with established neighborhoods and proven construction quality, generally priced at market averages with good appreciation potential through strategic renovations.
Homes built in the early 2000s or before often require system updates and modernization but can provide excellent value for buyers willing to invest in improvements. These properties sometimes occupy prime lots developed before current density restrictions.
Many top areas feature renovated houses from various eras that have been updated with modern amenities, achieving market rates comparable to newer construction while offering unique architectural character and established landscaping.
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What are the current market trends for price per square meter?
Cabo San Lucas property market trends in 2025 show robust growth with strong international demand driving price appreciation across all segments.
Sales volume increased 25% year-over-year in Q2 2025, demonstrating continued international buyer confidence despite global economic uncertainties. This growth rate exceeds most other Mexican resort markets and indicates sustained demand momentum.
Average price per square meter currently reaches MXN 70,555 for apartments and MXN 79,246 for houses, representing 8-12% increases from 2024 levels. Premium locations show even stronger appreciation with some neighborhoods experiencing 15-20% annual growth.
Rental yields remain attractive at 6-10% for well-located properties, particularly appealing to international investors seeking both appreciation and income generation. Short-term rental markets show particular strength in tourist-adjacent areas.
Market forecasts project continued 5-7% annual appreciation for prime locations through at least 2027, supported by limited developable land, infrastructure improvements, and sustained international buyer interest from North American markets.
What ongoing costs should you budget beyond purchase price?
Cabo San Lucas property ownership involves several recurring costs that significantly impact total investment returns and should be carefully budgeted.
| Cost Category | Annual Amount | Notes |
|---|---|---|
| Property Tax (Predial) | 0.1-0.25% of assessed value | $1M property pays $1,000-$2,500/year |
| Bank Trust (Fideicomiso) | $500-$1,500 | Required for foreign buyers |
| HOA Fees | $2,400-$24,000 | $200-$2,000/month in gated communities |
| Utilities | $1,200-$4,800 | Electricity, water, internet, cable |
| Municipal Services | $200-$800 | Water/sewage/street lighting fees |
| Property Management | 8-12% of rental income | If using property for rentals |
| Insurance | $800-$3,000 | Homeowner's and hurricane coverage |
How do recent comparable sales affect current pricing?
Recent comparable sales in Cabo San Lucas demonstrate strong price momentum with premium areas showing particularly robust transaction activity.
Q2 2025 comparable sales in Pedregal and Pacific regions show median house prices of MXN 79,246 per square meter in premium areas, while entry-level homes start around MXN 66,358 per square meter. These figures represent 10-15% increases from comparable 2024 transactions.
Mid-luxury homes ranging 200-400 square meters traded between $800,000-$3 million during Q2 2025, with properties featuring ocean views or premium amenities commanding the higher end of this range. Transaction volumes in this segment increased 30% year-over-year.
Ultra-premium estates exceeding $10 million sold successfully in Pedregal during 2025, demonstrating continued demand for luxury properties among high-net-worth international buyers. These sales establish pricing benchmarks for similar properties.
Emerging neighborhoods show strong comparative growth with properties appreciating 12-18% annually, often outpacing established areas as infrastructure improvements and development activity increase buyer confidence and market awareness.
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How negotiable are current asking prices?
Price negotiability in Cabo San Lucas varies significantly based on property type, location, and market positioning, with current conditions favoring selective buyer leverage.
Most properties offer some negotiation opportunity except top-tier beachfront or high-demand properties where sellers maintain firm pricing due to limited inventory and strong buyer competition. Premium properties typically see 2-5% negotiation room at most.
Current market conditions show increased inventory in 2025, providing buyers selective leverage for properties under $600,000 or non-prime locations. These segments often allow 5-10% negotiation from asking prices, particularly for properties requiring updates or lacking premium amenities.
Sellers generally expect serious, well-researched offers backed by pre-qualification documentation. Reasonable offers within 10-15% of asking prices typically prompt engagement and counter-negotiations, while low-ball offers may result in immediate rejection.
Properties needing updates, lacking prime locations, or sitting on market extended periods offer the best negotiation opportunities. Motivated sellers facing time constraints or financing pressures may accept offers 10-20% below asking prices under favorable conditions.
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 continues showing strong fundamentals with 25% sales growth and sustained international buyer interest driving 5-7% annual appreciation through 2027.
Smart buyers should focus on emerging neighborhoods offering 30-40% savings compared to premium areas while maintaining strong growth potential and infrastructure development momentum.
Sources
- The LatinVestor - Cabo San Lucas Property Analysis
- The LatinVestor - Cabo Price Forecasts
- RE/MAX Cabo Real Estate
- Engel & Völkers Cabo San Lucas
- Properstar Mexico House Prices
- Alen Fabjan - Cabo Ownership Costs
- The LatinVestor - How to Buy in Cabo
- The LatinVestor - Mexico Property Taxes
- MLS BCS Market Report
- Own in Cabo Buyer's Guide