As we cross the halfway mark of 2025, Cabo San Lucas has solidified its status as one of the most dynamic and sought-after real estate markets in the Americas. With ocean-view villas fetching record-breaking prices and entire communities reshaping the coastal skyline, the message is clear: Cabo isn’t just growing; it’s flourishing.
The Numbers Behind the Boom
Cabo’s real estate momentum shows no signs of slowing. In Q1 2025 alone, the market registered a 70% year-over-year increase in total sales volume, hitting an extraordinary $559 million USD. Luxury properties led the charge, now representing a staggering 77% of all dollar volume in the region.
Here are a few highlights:
- Average home price: $727,000 USD
- Average condo price: $792,840 USD
- Luxury home average: $1.32 million USD
- Top-tier neighborhoods: Pacific Region ($2.25M avg), San José del Cabo ($1.38M avg)
Cabo’s Luxury Real Estate Landscape
Notably, the ultra-luxury segment ($2M-$5M) is where demand is deepest, with 48 transactions totaling $166 million USD in Q1 alone. Sales in branded communities like Chileno Bay, Maravilla, and El Dorado are shaping Cabo’s image as the Monte Carlo of Mexico.
In Maravilla Los Cabos, an oceanfront lot can command prices between $20 to $30 million USD, reflecting its rare positioning and exclusivity. Villas located on the golf course side—above the highway—typically start at $9 million USD. Custom beachfront estates in this community easily reach the $20 to $50 million USD range.
El Dorado Los Cabos mirrors this high-end trend, offering luxurious beachfront homes in the $20 million and up bracket. Its privacy, prestige, and access to the finest amenities make it a magnet for elite buyers.
At Chileno Bay, one of the most coveted addresses in the region, custom-built homes are quietly changing hands in the $30 to $40 million USD range through private offerings, affirming Cabo’s position as a luxury real estate powerhouse.
Why Prices Are Soaring
Several forces are converging to drive this historic surge:
- International Demand: American and Canadian buyers, many of whom are remote workers or retirees, are leading the charge.
- Infrastructure Investment: Expanded airports, improved highways, and resort development are enhancing accessibility and appeal.
- Limited Inventory: Strict coastal regulations and high demand are shrinking supply, especially in marina and beachfront zones.
- Prestige Appeal: Cabo’s rising profile among celebrities and elite travelers fuels a halo effect on property values.
Remote Workers Are Reshaping the Market
Remote work has permanently changed buyer behavior. Professionals earning in dollars are flocking to Cabo for the lifestyle, climate, and amenities, favoring properties in the $300K-$800K range. Their demand for turnkey homes with office space and outdoor living is driving up prices in newer developments and mid-market condos.
Comparative Advantage
How does Cabo compare to other coastal hotspots?
- Puerto Vallarta: $399,900 USD median
- Tulum: $300K-$400K USD
- Cancún: $200K-$300K USD
Cabo’s average home and condo prices of $727K-$792K USD make it Mexico’s priciest destination, but also the most elite—and that’s precisely its allure for luxury buyers.
Forecast: Continued Ascent Through 2026
Market experts forecast annual appreciation of 3-7% over the next 18 months, especially for properties in premium locations. High-end communities such as Querencia and Palmilla are poised for sustained gains due to constrained inventory and unrivaled amenities.
Favorable Regulatory Environment
As of 2025, there have been no major regulatory shifts affecting property ownership for foreigners in Cabo San Lucas. Buyers continue to purchase through the fideicomiso (bank trust) or Mexican corporations in restricted zones, retaining full rights to use and resell their properties.
This consistency has played a critical role in maintaining investor confidence. Local development regulations remain highly supportive of tourism and luxury residential projects, ensuring continued momentum in the real estate sector.
However, environmental regulations have tightened, particularly in regard to coastal construction and water usage. While these changes have extended some development timelines, they have not negatively impacted the value of existing properties.
Furthermore, the Mexican government’s commitment to infrastructure enhancements—including airport expansions and upgraded highways—continues to elevate the region’s accessibility and long-term real estate appeal.
Best Buys Right Now
For discerning investors and lifestyle seekers, 2025 presents rare opportunities:
- Pre-construction deals: Save 10-20% with high appreciation potential.
- Golf communities: Affordable luxury with built-in lifestyle appeal.
- Eco-developments: Meeting growing demand for sustainable living.
Final Thought
Cabo San Lucas in 2025 isn’t just a vacation dream—it’s a thriving, world-class real estate frontier. Whether you’re looking to invest, relocate, or secure a luxury escape, now is the time to act.
Don’t navigate this booming market alone. Let our local expertise and insider access guide your journey.
Discover Your Cabo Opportunity Today
Written by Valentino Sartev, Owner, CEO & Broker, VanSirius Luxury Real Estate — Over 20 years of excellence in Los Cabos’ ultra-luxury market.
Credits: The Latin Investor
