Los Cabos, Mexico: high demand for luxury properties

The high level of demand for holiday properties and second homes in Mexico continues. The remarkable resort destination of Los Cabos is particularly popular with both domestic and international buyers. “The real estate market has witnessed enormous growth in a very short time. Demand is so high that prices have reached up to 38 million US dollars,” said Vanessa Fukunaga, Licence Partner of Engel & Völkers Los Cabos

Los Cabos is the southernmost point of the Mexican state of Baja California Sur, where the Pacific Ocean meets the Sea of Cortez. Its warm climate, miles of beaches and direct worldwide flight connections make the region a sought-after destination. The eleven Engel & Völkers Shops are located throughout the Peninsula. In 2018, two thirds of the homes brokered by Engel & Völkers in Los Cabos were sold for more than 5 million US dollars. 

Hamburg - Los Cabos, Mexico: Exclusive locations command top prices of up to 38 million US dollars. Luxury villas make for stable investment opportunities.

Growing demand from international buyers

Alongside national prospective purchasers, international investors are also active on the property market in Los Cabos. The majority of clients come from the USA, followed by Canada, Europe and Asia. The highest priced addresses in Los Cabos are found in the communities of Palmilla, Caleta and Villas del Mar. “On the East Cape and the areas surrounding Cabo San Lucas we are seeing an emerging trend of investors buying valuable land plots, next to which luxury hotels are built, and then developing these. In locations like these, top properties have a particularly high resale value,” said Vanessa Fukunaga.

Outlook: investments in luxury property remain a worthwhile venture

Los Cabos is set to remain an internationally sought-after location for both investors and wealthy private individuals in the upcoming years. Engel & Völkers forecasts that demand on the property market will continue to rise the next years with all regions offering particularly promising potential for development. 

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