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According to Forbes magazine, “Los Cabos, Mexico, is emerging as one of the biggest second home markets in North America, with many holiday-ers opting to become homeowners.” Resting at Mexico’s southern tip, Los Cabos is home to miles of coastline offset by desert backdrops. It offers pleasant temperatures year-round and has a relatively short rainy season – both of which add to its charm.
A large part of the increasing interest is connected to record-breaking tourism. While travelers come from all over the world, majority are coming from the US. In response to the growing demand, several direct connections from major US airport were added to Los Cabos in the last year, including New York, Dallas, and Las Angeles. The ease at which vacationers can access the area has added to the homebuying appeal, which is why vacation home sales are booming.
This is especially true for buyers from California, which live in close proximity to the border and to Los Cabos. Of the buyers that are coming from the US, 50% of them are from California and 20% from Texas. This comes as no surprise, as a direct flights from LA and Dallas take just over 2 hours and run almost every day during high season.
Owner of 2Seas Los Cabos, the area’s leading luxury broker, Ramiro Palenque Bullrich explained that Los Cabos is currently a “seller’s market.” This gives sellers the advantage, which can control the price they accept. Sellers are likely to have multiple bids but can only select one, leaving many to continue their hunt for the perfect Los Cabos home.
Los Cabos Real Estate agent Nick Fong explained that in 2022, “…the market in each city in Baja Sur, like Cabo San Lucas, Loreto, Todos Santos, La Paz and East Cape, to name just a few, the real estate market is quite robust. And, it will continue to strengthen as the year moves forward.” He credits the increasing accessibility to the area and the swift actions taken by Los Cabos officials regarding Covid-19 and crime prevention.
US buyers might be responsible for the current real estate market boom but they won’t be the only ones for long. Iberojet’s recent announcement of direct flights from Madrid to Los Cabos is expected to bring a whole new wave of interest. When looking back on buying trends among Spanish citizens, Bullrich predicts that several will lean toward purchasing luxury condos that can serve as a vacation home and rental. He explained that, “…buyers live two or three months in these houses and then do short-term rentals for the rest of the year.”
As the busiest travel season comes to a close in Los Cabos, hospitality services will only have a few months to prep before the high season begins again. Each year, December kicks off the busy season in Los Cabos, extending into the end of April. While traditional tourism may slow down at this time, real estate tourism will show no sign of slowing down. Potential home and property buyers have to remain on the lookout, especially with all of the hottest areas in high demand.
Those from the US, Canada, and Europe interested in purchasing property in Los Cabos will need to act fast, as anxious buyers are even snatching up unfinished homes. As of now, several new developments are underway, and more are sure to follow as long as the demand remains. Homebuyers as well as digital nomads looking for long-term stays are driving Los Cabos’ housing and accommodation in 2022 and are predicted to continue into 2023.