U.S. luxury buyers continue to propel real estate market in Los Cabos, Mexico
With tourism back and bigger than everLos Cabos, Mexico is becoming one of the largest second home markets in North America, with many vacationers choosing to become homeowners.
The world-class destination at the southern tip of Mexico’s Baja California peninsula is one of the strongest real estate markets in the country, with 6% annual growth in overall sales over the past five years, according to a NY Times report citing research from CBRE Hotels.
“Right now we’re in a seller’s market,” says Ramiro Palenque BullrichOwner of 2Seas Los Cabos, the leading luxury brokers in the region. “Due to low inventory, sellers have more control over the price they accept on their properties in offers.”
Increased interest from US buyers has left developers scrambling to keep up with demand, Bullrich says. “About 80% of our buyers come from the United States”
Now, with a new direct flight to and from Europe, the real estate market in Los Cabos – an area that includes the two resorts of Cabo San Lucas and San José del Cabo – is set to continue on a rapid growth path. .
Bullrich recently shared his thoughts on the state of the Los Cabos luxury market, including what he expects to see in the second half of 2022. His comments have been edited for clarity.
What does the Los Cabos market look like in 2022?
BPR: In Los Cabos, the high-end market exceeds $1 million. It’s a very hot market now. For me, it’s the best I’ve seen in 15 years. It really is a bull market. It is driven by new developments with new builds at all price points. The current resale market accounts for approximately 90% of sales. All this new inventory is not ready. We are seeing strong demand and are buying pre-construction. Most will be ready in a year or two. This high-end market represents 10 to 15% of overall residential sales.
Which market segments are the most active?
BPR: Properties priced under a million sell the most. This segment is growing by more than 10% per year. We have less stock prices rising in all markets with increases of around 5-10%.
What regions are the buyers from?
BPR: Of our US buyers, 50% come from California and 20% from Texas. We also see buyers coming from New York, Chicago and Mexico City. The Canadian market is starting to grow. We now have a direct flight from Madrid and our tourist office is working on direct flights from London and Frankfurt. Thus, Cabo opens up to Europe. Since the start of the pandemic, more and more buyers have been living here full-time since they can work remotely. It’s good for our economy. Why not be at the beach if you can live and work anywhere?
2Seas Los Cabos is an exclusive member of Forbes Global Propertiesa consumer marketplace and member network of elite brokerages selling the world’s most luxurious homes.