In 2025, 60% of the properties sold in Los Cabos were acquired by U.S. buyers
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Los Cabos Real Estate Market 2025: Investment & Trends
Los Cabos, Baja California Sur, Mexico — Los Cabos closed 2025 as one of Mexico’s most relevant real estate destinations for international buyers and investors.
According to data provided by Century21 Legendary Realty, 60% of the properties sold in Los Cabos during 2025 were acquired by U.S. buyers. If measured within the transaction universe analyzed by the company, the figure highlights the significant role of American buyers in the local real estate market.
“The strength of the U.S. dollar and the appeal of properties marketed in that currency are setting the pace for investment,” said John Ceballo, broker and luxury real estate specialist at Century21 Legendary Realty.
Construction Growth and Real Estate Market Appreciation
Baja California Sur has experienced significant growth in construction activity.
According to the information provided for this analysis, construction output in BCS grew by an average of 7% annually between 2019 and 2024, outperforming the national benchmark attributed to INEGI.
During the same period, luxury real estate prices reportedly increased by an average of 18%, driven by demand for high-end housing and limited availability of beachfront land.
These figures should be evaluated according to the methodology and market universe used by each source.
Los Cabos Property Prices
The current inventory provided by Century21 Legendary Realty reflects property prices ranging from approximately MXN 32,280 to MXN 153,165 per square meter, depending on location and property classification.
This range represents the firm’s inventory and should not automatically be interpreted as the average price across the entire Los Cabos market.
Vacation Rentals and Premium Tourism
Premium tourism remains an important factor supporting real estate demand in Los Cabos.
According to the information provided, FITURCA reported an average 12% annual increase in private rental rates between 2019 and 2024, associated with demand from premium visitors.
Hotel occupancy was also reported at an average of 85% in 2024.
These indicators provide context for the destination’s tourism strength, but they should not be interpreted as a guaranteed occupancy rate or investment return for an individual residential property.
Why U.S. Buyers Matter in Los Cabos
Los Cabos has a strong connection with international buyers, particularly purchasers from the United States.
Factors that can contribute to this demand include:
- The appeal of properties marketed or denominated in U.S. dollars.
- International tourism.
- Second-home demand.
- Growth of residential communities and resorts.
- Demand for vacation-oriented properties.
- Interest in premium destination real estate.
“Buyers are thinking in terms of three- to twelve-month stays, not just short vacations. That shift requires an integrated real estate strategy, and Los Cabos is gaining market share in that segment,” added John Ceballo, broker at Century21 Legendary Realty.
Real Estate Development and Investment Opportunities
Los Cabos offers several potential real estate investment strategies.
Buyers can evaluate completed properties, pre-construction developments, luxury residences, vacation-rental properties and commercial assets.
The investment profile of each property depends on factors such as:
- Acquisition price.
- Location.
- Property type.
- Development quality.
- Market demand.
- Rental potential.
- Operating costs.
- Resale conditions.
- Investment horizon.
Any percentage return cited in marketing or investment materials should clearly identify whether it represents appreciation, gross yield, net return or a specific projection. It should not be interpreted as a guaranteed return.
U.S. Capital and Broader Investment Trends in Mexico
U.S. capital is also active in commercial and industrial markets across Mexico, including Monterrey, Tijuana, Guadalajara, Chihuahua and León.
In these markets, nearshoring is one of the factors associated with investment activity.
Los Cabos represents a different investment thesis, more closely connected to international tourism, second homes, premium residential real estate and vacation-oriented properties.
2026 Outlook
The indicators included in this analysis suggest that Los Cabos will remain a relevant destination for international buyers and the luxury real estate segment.
Future market performance will depend on factors including:
- Foreign buyer demand.
- Tourism.
- Real estate supply.
- Infrastructure.
- Urban development.
- Economic conditions.
- Land availability.
- Urban planning and regulation.
For investors, the opportunity should not be evaluated solely on the overall growth of the destination. Each development and property should be analyzed individually.
Conclusion
Los Cabos combines international tourism, second-home demand, real estate development and significant participation from foreign buyers.
The data provided by Century21 Legendary Realty indicates a strong presence of U.S. buyers within its analysis of 2025 transactions.
Looking toward 2026, the market may continue to present opportunities, but selecting a property should be based on verifiable data, location, acquisition price, development quality, costs and investment strategy.
In Los Cabos, understanding the market is the first step; selecting the right asset is what determines the quality of an investment.
