Los Cabos Real Estate Market Update – January 2025
As we step into 2025, the Los Cabos real estate market continues to flourish, offering a blend of luxury, investment potential, and lifestyle appeal. Here’s an overview of the current trends shaping our market this month:
Sustained Growth and Property Value Appreciation
Los Cabos remains a premier destination for real estate investment, with property values appreciating due to high demand and limited beachfront availability. The luxury-home market is experiencing impressive growth, as investors continue to place Los Cabos as their first choice for vacationing, investing, and retiring.
Significant Sales Volume and Price Trends
The real estate market in Los Cabos achieved a total sales volume of $1.74 billion USD in 2024, marking a 12% increase from the previous year. The average property price surpassed $900,000 USD, with a median price of $450,000 USD. This upward trend is anticipated to continue, with projections estimating the average property price to reach $1 million USD in 2025.
Emerging and Established Growth Areas
Several key areas within Los Cabos are experiencing notable development:
East Cape: Known for its unspoiled nature and pristine beaches, the East Cape market is trending hot with a steady increase in real estate sales. Notably, the Costa Palmas development in La Ribera boasts a 250-slip marina, an 18-hole golf course, and the first Four Seasons Hotel and Residences in Los Cabos.
Puerto Los Cabos: Offers luxury ownership options including turn-key custom homes, homesites, golf villas, and condominiums, all with breathtaking views of the ocean, golf courses, mountains, and city lights. The Puerto Los Cabos Club provides full-service access for all homeowners with amenities such as a beach club, fitness center, spa, and restaurants.
Pedregal: Attracting buyers from all over the world, Pedregal is home to some of the most sought-after luxury real estate in Los Cabos and has consistently remained a top choice for discerning investors.
Infrastructure Developments and Environmental Initiatives
The expansion of the Los Cabos International Airport, set to increase capacity by 35% in 2025, will facilitate greater tourist and resident influx, further stimulating the real estate market. Additionally, investments in desalination plants aim to boost water supply by 50%, addressing environmental challenges and supporting sustainable growth.
Regulatory Changes and Market Transparency
In 2024, the Mexican tax authority (SAT) implemented changes to the Miscellaneous Tax Rule 2.7.1.44, requiring more detailed information on property transactions to enhance transparency and combat improper practices. Buyers and sellers must now provide comprehensive details about the actual value of properties and ensure compliance with corresponding tax obligations. Consulting with tax and legal advisors is recommended to fully understand the impact of these regulations on real estate transactions.
Looking Ahead
Projections for 2025 indicate a total sales volume between $1.8 and $2 billion USD, with the average property price reaching $1 million USD. Emerging areas like Costa Palmas and La Ribera are expected to lead expansion with ultra-luxury developments, while established zones such as El Tezal and El Pedregal continue to dominate sales due to their blend of luxury and accessibility.
Visual and Design Recommendations
To enhance the engagement of this newsletter, consider incorporating images that showcase the diverse real estate offerings in Los Cabos, such as luxury beachfront villas, modern condominiums, and eco-friendly homes. A color palette reflecting the natural beauty of the region—soft blues, sandy neutrals, and vibrant sunset hues—will evoke the coastal charm and elegance of Los Cabos.
Stay informed and seize the opportunities that the Los Cabos real estate market presents this year.
Best regards,
Pablo Armenta