This report is part of PERSPECTIVES, a comprehensive look into the world of prime residential real estate. Access the full report here to discover the latest trends and dynamics shaping the market.
Los Cabos is where the Pacific Ocean and Sea of Cortez meet at the tip of Mexico’s Baja Peninsula. The region’s landscape shifts “from sprawling beachfront to towering mountainside to tranquil desert terrain in a matter of a few miles,” according to a recent Forbes story.
It’s an unbeatable location, with the rocky beauty of the Arch in Cabo San Lucas serving as a signature landmark that welcomes visitors. It encompasses the towns of Cabo San Lucas and San José del Cabo and the Tourist Corridor that links them.
Los Cabos has long been a vacation hot spot for beach lovers and scuba divers as well as a haven for wealthy homeowners who seek high-end waterfront villas.
The market remained resilient in 2023; homes in the $2-million to $5-million category occupied the sweet spot with fourth-quarter sales of $73.5 million.
Sales of homes, condos and raw land were up 4.2% in 2023 year over year. Though home sales dipped 16%, the volume of sales totaled $1.7 billion in 2023, up from $1.63 billion the year before. Ramiro Palenque Bullrich, owner of the luxury brokerage 2Seas Los Cabos, says land sales for development figured prominently last year.
Fundadores 4, San Jose del Cabo. Presented by 2Seas Los Cabos
The most popular properties for sale are villas in the $1-million-plus range, with large windows and outdoor terraces to take in views of the ocean and the mountains.
Many have pools and spas and are in gated communities with popular brand names such as Montage Residences Los Cabos, Ritz-Carlton Reserve Residences and the Four Seasons, which has two locations in Cabo. Spas, restaurants, lounges and bars, beach clubs and golf courses are some of the high-end amenities that come with resort ownership.
The most exclusive area is the Tourist Corridor, sometimes just called the Corridor. Bullrich has seen its transformation from coastal land into a high-end enclave.
“Ten years ago, you could drive from Cabo San Lucas to San José del Cabo and see the ocean almost the whole time,” he previously shared with Forbes. “Now, everything is built up. There’s a lot of development still happening and big players coming and what we see is a bright future for Los Cabos.”
The Corridor continues to be a sought-after location, more so than Cabo San Lucas, the tiny fishing village that turned into a vacation resort. “[The] Pacific corridor to Todos Santos is growing fast,” Bullrich says. “It is where you can find luxury properties surrounded by excellent golf courses, spectacular views and incredible sunsets.”
Fundadores 48, San Jose del Cabo. Presented by 2Seas Los Cabos
In Los Cabos, home transactions are cash deals, with most buyers from California, Texas and Colorado. Canada is becoming a feeder market as well. Bullrich says many homeowners came to Los Cabos to live during the Covid pandemic. Now, they go back and forth. “They stay in their primary home for four or five months and live in Cabo the rest of the time,” he says.
What does 2024 hold? High demand and lack of houses, even in the luxury market, will remain issues. Elections in Mexico and the U.S. may affect interest rates and influence decisions by some interested buyers. Still, Bullrich expects luxury sales to hold steady this year. “They will stay stable, not grow that much,” he says.
