The vibrant State of Baja California Sur (BCS) in México, boasting the renowned destination of Los Cabos, has emerged as one of the top three global hotspots for Real Estate investment. This thriving region comprises five key market areas: Cabo San Lucas (including its Corridor), San José del Cabo (and its corridor), East Cape, Pacific-Todos Santos, and La Paz (the state capital).
In a remarkable testament to its resilience and appeal, the Baja California Sur Real Estate Market entered the spotlight in 2021 amidst the challenges of the Pandemic, achieving an outstanding $1.581 Billion Dollars in sales. This impressive figure reflects a phenomenal 310% increase from the previous year. The influx of foreign investors, primarily Americans and Canadians, flocked to Los Cabos, recognizing it as a secure paradise with world-class amenities. Contrary to skeptics who believed this surge was temporary, astute visionary investors seized opportunities in San José Del Cabo and Cabo San Lucas, where land became increasingly scarce and valuable.
In an alternative move, capital flowed to East Cape (Cabo Del Este) during the early stages of 2019 and 2020. Notably, significant developments, including the establishment of the 4 Seasons and Aman resorts in La Ribera of East Cape, acted as magnetic poles, attracting substantial capital and fostering new projects. However, the narrative shifted in 2021, 2022, and the initial months of 2023, as the Pacific-Todos Santos market took the lead in drawing in fresh investments and aligning with buyers’ preferences.
San José del Cabo and Cabo San Lucas stand as mature and predominant markets, witnessing substantial price surges over the past decade. By the close of 2022, the B.C.S. market as a whole demonstrated its resilience, with the average price of homes sold (721) reaching an impressive $1,029,682 dollars. This represents a remarkable +42.89% increase compared to the $720,135 recorded for the 395 homes sold in 2019. Furthermore, there was an astounding 82.53% surge in the number of homes sold during this period.
The condominium sector also experienced noteworthy growth, with the average price of units sold (1,136) in 2022 reaching $447,316 dollars. This is a substantial +10.77% increase from the $403,441 average recorded for the 415 units sold in 2019. Remarkably, the number of units sold exhibited a staggering +173.74% surge during this period, indicating the robust demand and positive momentum in the Baja California Sur Real Estate Market.
The positive shift in the 2023 real estate landscape is highlighted by the remarkable sales in favor of the Pacific-Todos Santos Sub-Market, surpassing East Cape and presenting strong competition to Los Cabos’ major markets. The latest MLS data underscores the fact that the Pacific market, spanning from Cabo San Lucas to Todos Santos, has not only captured buyer preferences but has also garnered significant attention from investors and developers. With the current sales momentum, 2023 is poised to become the best year ever for the real estate market of Baja California Sur. This growth is primarily propelled by Los Cabos and, notably, the burgeoning success of the Pacific – Todos Santos real estate market.
Undoubtedly, Los Cabos and its surroundings are currently experiencing an unprecedented real estate boom. The breathtaking beauty of the Pacific shoreline, paired with the enchanting allure of Todos Santos, has seamlessly come together at the perfect moment and location. This convergence has captivated the minds and souls of both buyers and investors, creating an exciting and positive momentum in the real estate market.