Luxury property sales in Los Cabos generate $1.5 mdd a year, fueled by purchases from American investors
Los Cabos, Baja California Sur – The luxury real estate market in Los Cabos generates more than $1.5 mdd annually, driven largely by U.S. investors, according to industry executives and state economic authorities.
John Ceballos, Director of Century21 Legendary Realty in Baja California Sur, stated that over 35,000 Americans purchase properties in Mexico, a pace equivalent to 90 real estate transactions per day carried out by investors from the United States.
“Los Cabos stands out as one of the most dynamic cities for luxury real estate sales to foreign buyers. Roughly 3,000 premium properties are sold here each year,” Ceballos noted.
From a government standpoint, BCS Undersecretary of Economy Alonso Gutiérrez confirmed that the real estate sector accounts for approximately 8% of the state’s GDP, and that property sales in 2024 were expected to exceed $1.5 mdd . He also projected the addition of 1,500 new properties to local inventory during 2024, including condos, homes, and land lots.
Gentrification & Regulatory Review
Market growth has also raised concerns over rising home prices and increasing gentrification pressures. Gutiérrez acknowledged that the state government is working on a regulatory analysis agenda.
“This issue is currently under review. We’re concerned about the spike in housing prices. Soon, we will meet with specialists to explore structured and orderly regulatory options,” he said.
The official also highlighted key regional challenges, including responsible land use, environmental protection, water availability, and strategic urban planning across a 2,200-kilometer coastline.
Tariffs & Market Resilience
Regarding tariff uncertainty in the U.S., Gutiérrez argued that the effect was temporary, given that American capital operates under a long-term investment horizon (3–9 years).
Meanwhile, Karim Oviedo, National President of AMPI (Mexican Association of Real Estate Professionals), and other business leaders agreed that the sector is showing a positive recovery, especially since the second half of 2025.
“Tariffs were political campaign promises. The Los Cabos market is bouncing back strongly,” Oviedo stated.
Investment Pipeline & Market Opportunity
Century21 is also pushing franchise expansion nationwide, which could bring an estimated $2.0 to $2.4 mdd in additional Foreign Direct Investment (FDI).
According to the National Association of Realtors (NAR), 16% of Americans are interested in investing in Mexico but don’t due to a lack of suitable property options. Industry specialists see this segment as a strategic opportunity for Los Cabos.
Currently, Century21 operates in 84 countries with 14,000 franchises and 147,000 agents worldwide. In Mexico, the company is strengthening the U.S.–Mexico border region and the Pacific coast as main hubs for foreign real estate investment.
