In 2025, 60% of the properties sold in Los Cabos were acquired by U.S. buyers
Los Cabos, Baja California Sur – Los Cabos, in Baja California Sur (BCS), is closing out 2025 as one of Mexico’s most reliable real estate investment destinations. According to Century21 Legendary Realty, 60% of the properties sold in the region during 2025 were acquired by U.S. buyers, strengthening American investors as the top driver of local real estate transactions.
“The strength of the U.S. dollar and the appeal of properties priced in that currency are setting the pace for investment,” confirmed John Ceballo, broker and luxury real estate specialist at Century21 Legendary Realty, consulted for this article.
Construction Growth & Market Appreciation Outpacing Mexico’s Average
BCS has experienced a favorable expansion environment. From 2019 to 2024, construction output in BCS grew 7% annually on average, outperforming the national benchmark, according to INEGI.
This upward momentum has had a direct impact on the housing and commercial markets. Luxury real estate prices rose an average of 18% during the same period, fueled by strong demand for high-end housing and a limited supply of beachfront land, based on data from the BCS Public Property Registry.
Los Cabos ranks among the country’s most expensive property markets. Century21 Legendary Realty’s current inventory reflects price ranges from 32,280 MXN to 153,165 MXN per square meter, depending on the property’s location and classification.
Vacation Rentals & Premium Tourism Fueling the Market
Luxury tourism continues to push the vacation rental sector upward. FITURCA reported an average 12% yearly increase in private rental rates between 2019 and 2024, tied to premium visitor demand.
Additionally, hotel occupancy in 2024 averaged 85%, reinforcing market appetite for second homes and rental-optimized properties.
Nearshoring: A Broader Trend Beyond Tourism
U.S. capital inflow is also being absorbed by major commercial and industrial cities in northern and northwestern Mexico—Monterrey, Tijuana, Guadalajara, Chihuahua, and León—benefiting from nearshoring, according to Century21 network research.
Why Los Cabos Led U.S. Real Estate Investment in 2025
Experts and residents cite a combination of strategic factors:
Financial security in assets priced in USD
Sustained luxury tourism with high seasonal occupancy
Growth of gated communities and premium resorts that elevate local lifestyle appeal
Returns of up to 20% annually in new developments, especially pre-sale properties
Valuation increases of up to 30% in commercial real estate along strategic corridors
Gains of up to 30% in commercial zones and high-demand corridors
“Buyers are thinking in terms of 3–12-month stays, not just short vacations. That shift demands a fully integrated real estate strategy, and Los Cabos is winning market share there,” added John Ceballo, broker at Century21 Legendary Realty.
Outlook
With these indicators, Los Cabos is projected to remain a leading luxury real estate market offering global reach and strong investment returns. Analysts expect continued foreign buyer activity—always dependent on responsible urban planning and commercial land management—to sustain long-term growth.
