Luxury property sales in Los Cabos generate $1.5 mdd a year, fueled by purchases from American investors
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Los Cabos Luxury Real Estate Market Draws U.S. Buyers
Los Cabos, Baja California Sur, Mexico — Los Cabos continues to attract strong activity in the luxury real estate market, with U.S. buyers and investors playing a significant role, according to statements from industry executives and economic authorities in Baja California Sur.
John Ceballos, director of Century21 Legendary Realty in Baja California Sur, stated that more than 35,000 Americans purchase properties in Mexico, representing, according to his statement, approximately 90 real estate transactions per day involving U.S. investors.
Ceballos also described Los Cabos as one of Mexico’s most dynamic markets for luxury real estate sales to foreign buyers and said that approximately 3,000 premium properties are sold in the destination each year.
Real Estate’s Role in the Baja California Sur Economy
From the government perspective, Alonso Gutiérrez, Undersecretary of Economy for Baja California Sur, stated that the real estate sector represents approximately 8% of the state’s GDP.
He also indicated that 2024 real estate sales were expected to exceed $1.5 mdd. The monetary abbreviation should be verified against the original source before publication because its intended dollar amount is not clear from the supplied material.
The government also projected the addition of approximately 1,500 new properties to the local inventory in 2024, including condominiums, homes and land lots.
Gentrification, Housing and Regulation
Rapid market growth has also increased concerns about rising housing prices and gentrification pressures.
Gutiérrez said the state government was reviewing regulatory options to address the increase in housing prices and explore a more structured approach to market growth.
He identified several regional challenges, including responsible land use, environmental protection, water availability and strategic urban planning along Baja California Sur’s extensive coastline.
Tariffs and Market Resilience
Regarding uncertainty surrounding U.S. tariffs, Gutiérrez argued that the impact would be temporary because U.S. capital typically operates on a 3-to-9-year investment horizon.
Karim Oviedo, national president of the Mexican Association of Real Estate Professionals (AMPI), along with other business leaders, also described the sector as recovering positively, particularly since the second half of 2025.
Oviedo said the Los Cabos market was showing a strong recovery despite tariff-related uncertainty.
Investment Pipeline and Market Opportunity
Century21 is also pursuing nationwide franchise expansion, which, according to the figures cited in the supplied material, could generate an estimated $2.0 million to $2.4 million in additional foreign direct investment (FDI).
The article cites the National Association of Realtors (NAR) as reporting that 16% of Americans are interested in investing in Mexico but do not do so because they cannot find suitable property options.
For Los Cabos, this potential demand represents an important market opportunity, particularly among U.S. buyers seeking residential and investment properties.
Century21 currently operates in 84 countries, with 14,000 franchises and 147,000 agents worldwide, according to the figures provided.
In Mexico, the company is strengthening the U.S.-Mexico border region and the Pacific coast as key hubs for foreign real estate investment.
