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
House prices in Cabo San Lucas are unlikely to go down in the near term, with strong demand from foreign buyers and tourism growth supporting continued price appreciation.
The Cabo San Lucas residential market has shown remarkable resilience with homes appreciating 54.65% year-over-year as of September 2024, while condos gained 9.91% during the same period. Foreign buyers benefit from favorable exchange rates that provide approximately 20% more purchasing power compared to three years ago, driving sustained demand in this premium coastal destination.
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 home prices increased 54.65% in the past year while condos rose 9.91%, with foreign demand and tourism growth supporting continued appreciation.
Properties stay on market an average of 233-282 days, while favorable exchange rates give USD buyers 20% more purchasing power than three years ago.
| Market Indicator | Current Status | 12-Month Change |
|---|---|---|
| Average Home Price | $1,114,272 | +54.65% |
| Average Condo Price | $792,840 | +9.91% |
| Price per Square Meter (Homes) | MXN79,246/m² | Stable to rising |
| Days on Market (Homes) | 282 days | Increased |
| Home Sales Volume | 36 units | -28% |
| Short-term Rental Yield | 6-10% | Strong performance |
| Tourist Arrivals | 3+ million annually | +100,000 visitors |
What's the current average price per square meter for homes in Cabo San Lucas?
As of September 2025, the median price per square meter for homes in Cabo San Lucas stands at MXN79,246 (approximately $4,400 USD).
Apartments command a slightly lower median price of MXN70,555 per square meter, while luxury properties in premium developments average around $540 per square foot, which translates to approximately $5,812 per square meter.
The Cabo San Lucas residential market shows significant variation by location and property type. Luxury oceanfront properties and those in exclusive communities like Chileno Bay and Montage command premium prices well above the median. Mid-range properties in established neighborhoods like Tezal offer more accessible price points while still providing proximity to beaches and amenities.
These prices reflect the area's position as a premium destination that attracts affluent buyers from North America and Europe. The peso's favorable exchange rate against major foreign currencies has made these price points particularly attractive for international investors.
It's something we develop in our Mexico property pack.
How have home prices in Cabo San Lucas changed over the past 12 months?
Cabo San Lucas home prices have experienced dramatic appreciation over the past 12 months, with single-family homes seeing the most significant gains at 54.65% year-over-year growth.
Condominiums showed more moderate but still substantial appreciation at 9.91% during the same period, while specific submarkets like Tezal condos posted exceptional 21% year-over-year growth. The average home sale price increased from $720,592 in September 2023 to $1,114,272 in September 2024.
This price appreciation significantly outpaced Mexico's national average residential price growth of 8.71%, highlighting Cabo San Lucas's premium market position. The luxury segment has been particularly strong, driven by limited inventory of oceanfront and golf course properties.
Several factors contributed to this rapid appreciation including increased foreign buyer demand, favorable exchange rates, limited land availability for new development, and robust tourism supporting rental investment appeal. New construction projects have also commanded premium pricing due to modern amenities and financing advantages.
These gains reflect a seller's market where demand consistently exceeds available inventory, particularly for move-in ready properties in desirable locations.
What's the average number of days a property stays on the market in Cabo San Lucas right now?
Properties in Cabo San Lucas currently stay on the market for an average of 233 to 282 days, depending on property type and price range.
| Property Type | Average Days on Market | Market Dynamics |
|---|---|---|
| Condos | 233 days | Faster turnover due to investment demand |
| Single-Family Homes | 282 days | Higher price points require longer search |
| Houses (General) | 239 days | Varies by location and amenities |
| Land/Lots | 435 days | Development potential requires specialized buyers |
| Luxury Properties ($2M+) | 300+ days | Limited buyer pool for ultra-high-end |
| Pre-Construction | 120-180 days | Attractive pricing accelerates sales |
| Turnkey Rentals | 200-250 days | Investment appeal shortens timeline |
How many homes are currently for sale compared to the same time last year?
The Cabo San Lucas market shows significantly reduced sales activity with 36 homes sold in September 2024 compared to 50 homes in September 2023, representing a 28% decrease in transaction volume.
Condominium sales experienced an even more dramatic decline, falling from 86 units sold in September 2023 to just 28 units in September 2024, a 67% decrease. This reduction in closed transactions indicates tighter inventory conditions rather than decreased demand.
Despite lower sales volume, the market recorded 162 new listings in recent periods, suggesting continued seller interest in capitalizing on strong pricing. Active listings show a median price of $425,000, indicating healthy price levels that continue to attract sellers.
The reduction in sales volume primarily reflects inventory constraints rather than buyer reluctance. Many potential sellers are holding properties longer to capture additional appreciation, while buyers face fewer options and longer search periods.
This inventory tightness has contributed to the sustained price appreciation and longer days on market, creating a challenging environment for buyers but favorable conditions for existing property owners.
What's the current supply of new construction projects compared to resale properties?
New construction projects currently dominate the Cabo San Lucas luxury market, with high demand for pre-construction and newly completed developments significantly outpacing resale property interest.
Pre-construction units offer buyers better financing terms, lower entry prices, and modern amenities that older properties lack. Several major resort, luxury home, and mixed-use developments are underway, particularly in areas like Chileno Bay, Maravilla, and near the Montage resort.
The resale market shows lower transaction volume and longer selling periods compared to new developments. Buyers increasingly prefer new construction for the ability to customize finishes, secure developer financing, and benefit from warranty protections.
New development activity focuses heavily on the Pacific coast and ultra-luxury communities, where international buyers seek turnkey properties with resort-style amenities. These projects typically sell 60-80% of units during the pre-construction phase before completion.
Limited finished inventory in the resale market has pushed many buyers toward new construction, where developers can provide immediate purchase opportunities with structured payment plans and completion guarantees.
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 are the latest trends in mortgage interest rates for Mexico and specifically Cabo San Lucas buyers?
Mortgage interest rates for foreign buyers in Cabo San Lucas currently range from 9-12%, with rates stabilizing but remaining elevated compared to historical levels.
Banxico (Mexico's central bank) is forecasted to reduce rates toward 6% later in 2025, which could provide some relief for buyers seeking financing. However, foreign buyers typically face higher rates than Mexican nationals due to additional risk premiums and documentation requirements.
Most international buyers in Cabo San Lucas purchase properties with cash or utilize developer financing when available. Developer financing often provides more favorable terms than traditional Mexican bank mortgages, particularly for pre-construction purchases.
The high interest rate environment has pushed many buyers toward all-cash transactions, contributing to the market's resilience despite challenging financing conditions. Properties generating rental income remain attractive even with higher borrowing costs due to strong rental yields.
As rates potentially decline through 2025, financing could become more accessible and drive additional demand, particularly from buyers who have been waiting for better borrowing conditions.
How many foreign buyers are actively purchasing property in Cabo San Lucas this year versus last year?
Foreign buyer activity in Cabo San Lucas remains exceptionally strong, with over 1 million Americans showing interest in Mexican real estate nationally and Los Cabos capturing a significant portion of this demand.
Los Cabos welcomed over 100,000 additional tourists in 2024 compared to 2023, with many of these visitors representing potential property buyers exploring the market. The area receives over 3 million visitors annually, creating a substantial pipeline of potential purchasers.
US and Canadian buyers comprise approximately 60% of rental demand and likely dominate purchase activity, benefiting from favorable exchange rates that provide roughly 20% more purchasing power than three years ago. European buyers also maintain active interest despite currency fluctuations.
The foreign buyer segment has been the primary driver of price appreciation, particularly in luxury segments and oceanfront properties. Many international buyers view Cabo San Lucas as a safe haven investment with strong rental income potential.
It's something we develop in our Mexico property pack.
What's the average rental yield for long-term and short-term rentals in Cabo San Lucas?
Short-term vacation rentals in Cabo San Lucas generate gross annual yields of 6-10%, with top-performing properties achieving monthly gross revenues exceeding $10,000 during peak season.
| Rental Type | Annual Yield | Key Factors |
|---|---|---|
| Short-term Vacation Rentals | 6-10% | 53% average occupancy, seasonal peaks |
| Long-term Annual Leases | 4-6% | Stable income, lower management |
| Snowbird Rentals (6 months) | 5-7% | $2,000-$4,000 monthly rates |
| Luxury Oceanfront STR | 8-12% | Premium pricing, high demand |
| Golf Course Properties | 7-9% | Year-round appeal, corporate demand |
| Condo Hotel Programs | 4-8% | Professional management, guaranteed occupancy |
| Downtown Cabo Condos | 6-8% | Walkable location, dining proximity |
Average Airbnb properties maintain 53% annual occupancy with typical annual short-term rental revenue of MXN275,000 ($16,000 USD). Peak season occupancy can reach 73%, while shoulder seasons see 35-45% occupancy rates.
How has the local economy and tourism volume changed over the past year?
The Cabo San Lucas local economy continues robust growth with tourism volume increasing by over 100,000 visitors in 2024 compared to 2023, bringing total annual visitors to over 3 million.
Tourism remains the primary economic driver, supported by continued expansion of luxury resorts, restaurants, and recreational activities. The real estate and construction sectors have become increasingly important economic contributors as development projects create local employment.
Strong tourism numbers support both the rental property market and overall real estate demand, as many visitors become interested in property ownership after experiencing the area. Hotel occupancy rates and vacation rental performance remain healthy, indicating sustained visitor confidence.
The local economy benefits from year-round tourism, with winter months seeing peak North American visitor numbers while summer attracts more domestic Mexican tourists. This diversity helps stabilize economic performance across seasons.
Infrastructure improvements and new resort openings continue to enhance the area's appeal, while the expanding airport capacity supports increased visitor volume and property buyer accessibility.
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.
What major infrastructure or development projects are planned or underway in Cabo San Lucas?
Several major resort, luxury residential, and mixed-use developments are currently underway in Cabo San Lucas, concentrated primarily along the Pacific coast and in ultra-luxury communities.
Significant expansion continues in established luxury areas including Chileno Bay, Maravilla, and around the Montage resort, with new phases of residential development and resort amenities. These projects typically feature oceanfront access, golf courses, and comprehensive resort services.
Infrastructure improvements include road expansion projects, utility upgrades to support increased development density, and enhanced telecommunications infrastructure. The Los Cabos International Airport continues capacity expansion to accommodate growing tourist and resident populations.
Water infrastructure projects address the increased demand from both tourism and residential growth, while waste management systems receive upgrades to support sustainable development. Marina expansions and beach access improvements enhance the area's recreational appeal.
These development projects create continued construction employment while adding inventory to the luxury market segment, though completion timelines often extend 2-3 years for major resort and residential communities.
What's the current occupancy rate for hotels and vacation rentals in the area?
Short-term vacation rentals in Cabo San Lucas maintain an average annual occupancy rate of 53%, with significant seasonal variation ranging from 35% in slower periods to 73% during peak winter months.
Hotel occupancy rates remain strong throughout most of the year, supported by the area's appeal to both leisure and corporate travelers. The winter season (December through April) sees the highest occupancy rates as North American visitors escape colder climates.
Peak season performance shows vacation rentals often achieving 70-80% occupancy with premium nightly rates, while shoulder seasons require more competitive pricing to maintain reasonable occupancy levels. Properties with unique amenities like private pools or ocean views typically outperform market averages.
The diverse visitor base includes families, couples, corporate groups, and special event travelers, providing multiple demand sources that help stabilize overall occupancy rates. Golf tournaments, fishing competitions, and wedding seasons create additional demand spikes.
It's something we develop in our Mexico property pack.
How have currency exchange rate changes affected purchasing power for US, Canadian, and European buyers recently?
Currency exchange rate changes have significantly benefited international buyers, with the Mexican peso exchange rate providing USD and Canadian buyers approximately 20% more purchasing power compared to three years ago.
The current MXN/USD exchange rate of 19.25-20.50 pesos per dollar creates enhanced affordability for dollar-based buyers, contributing to sustained foreign investment demand. This favorable rate partially offsets the property price appreciation experienced in recent years.
Canadian buyers benefit similarly from peso weakness, though CAD/USD fluctuations affect their relative purchasing power. European buyers face more complex dynamics with EUR/USD movements influencing their peso purchasing power, but generally maintain favorable positions.
These exchange rate advantages have created a competitive advantage for foreign buyers over domestic Mexican purchasers, contributing to the strong international demand driving price appreciation. Many buyers accelerate purchase timelines to capitalize on favorable rates before potential peso strengthening.
Currency volatility does create timing considerations for international buyers, with some choosing to hedge currency exposure for large purchases or utilizing escrow services to lock exchange rates during extended closing periods.
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.
Based on current market conditions and trends, Cabo San Lucas house prices are unlikely to decline in the near term, with multiple factors supporting continued appreciation including foreign buyer demand, tourism growth, and favorable exchange rates.
While properties stay longer on the market and sales volume has decreased, this reflects inventory constraints rather than weakening demand, creating conditions that typically support price stability or growth rather than decline.
Sources
- Properstar - Cabo San Lucas House Prices
- James Edition - Cabo San Lucas Real Estate
- The LatinVestor - Cabo San Lucas Price Forecasts
- Cabo Properties - Market Summary September 2024
- The LatinVestor - Mexico Buy Property
- Susana Bueno - Los Cabos Market Report 2025
- Ronival - Los Cabos Market Report
- AirBtics - Cabo San Lucas Airbnb Revenue