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2019 Luxury Cabo Real Estate Trends

by 2seasWP on January 12, 2019
2019 Luxury Cabo Real Estate Trends

In this article, we discuss 2019 luxury Cabo real estate trends. It seems that a pre-cursor to explosive real estate growth in any area is when a surge in tourism occurs. Particularly when that surge involves luxury hotel brands. Cabo is currently experiencing this very phenomenon.

A Significant Increase In Luxury Tourism

Last year, Los Cabos celebrated the openings of Montage, Solaz, and Grand Velas resort developments. In 2019, we are looking forward to the resort openings of Le Monde, Aqua, Casa Blanca, Ritz Carlton, De La Valencia, and Riu.

And the list doesn’t end there.

Four Seasons, Nobu, Hard Rock, and Quantara, followed by Aman, Park Hyatt, Saint Regis and expansion development within the Grand Solmar are all in the works.

Why The Rapid Development?

Why is there such a surge of luxury resorts opening in Cabo and not somewhere else in the world?

We have (in part) Mother Nature to thank for this explosion of high-end resort development. Of course, the near-perfect year-round weather conditions are always a big attraction.

Post-Hurricane Odile, developers and resort owners alike brought their investment dollars to Cabo and with that came a large influx of more flights. While Cabo has always been famed for being an exclusive luxury paradise, this rapid increase in resort rooms and flights really put Cabo on the map as an international destination.

the Cabo arches - famous for helping to strengthen the luxury Cabo real estate market

Cabo Is The Ultimate International Destination To Live, Work & Play

As we previously revealed, Cabo will receive a direct flight from London at the end of 2019.

Finally, we have a direct connection with the European market.

Friends, this is how the luxury Cabo real estate market booms. A tourist comes to visit Los Cabos and fall in love with the destination. The same person returns multiple times until he or she announces “I want to buy something,” to spend longer amounts of time here. Some tourists fall in love with Cabo so much that they can envision it being their place to retire.

Cost of living in Los Cabos still remains lower than in the US, Canada or elsewhere in the first world.

20% Annual Growth In Flights

Cabo is seeing an increase of approximately 20% a year in flight connections. Our current hotel inventory cannot contain this surge in tourism, therefore new hotels and resorts must be built. This, in turn, has a domino effect on the Luxury Cabo real estate market. Many of these resorts are master developments. A master resort plan has a hotel on its property, but it also includes luxury real estate.

We sell lifestyle in Los Cabos.

Everything here is about the enjoyment of life and having life’s pleasures close at hand.

That’s why so many buyers are attracted to luxury Cabo real estate purchases within master resort communities.

Currently, new direct airline routes are being worked on from Cancun, Boston, Orlando, Indianapolis, Philadelphia, San Antonio and Omaha. This stimulus of flight connections shows how important Cabo is becoming as an international destination.

people come on a vacation and eventually want to purchase a piece of luxury Cabo real estate

More tourists, more buyers, more renters.

Los Cabos is estimated to be receiving 60,000 more tourists as a result of all the new resorts opening. With that comes a flurry of new employment, which in turn demands more housing. This knock-on effect stirs the real estate market for investors and buyers. Rental revenue potential is huge and many of these new tourists will one day become citizens of Los Cabos.

While not part of the luxury Cabo real estate market, with the huge levels of job creation for tourism professionals, we are seeing large amounts of housing within the $200-350,000 USD range.

New cruise ship routes are opening daily with concentrations of people coming from Las Vegas, Chicago, Ottawa, and Kelowna, San Louis, and Milwaukee, Cincinnati, okay, and London.

Promoting Los Cabos

10 years ago, there were no big brands in Los Cabos. The only hotel brand in the luxury arena was the One & Only Palmilla. Today, it feels like every brand wants a piece of the Los Cabos real estate action. Caesar Palace recently announced that they’re going to come.  When these affluent companies come to join the party, they bring with them millions of dollars in advertising for Los Cabos as a destination.

Superior Hotel Rates

Los Cabos has the highest hotel rate per day in Mexico, by far. In Cancun, the average rate is approximately $86 USD; in Los Cabos, it’s around $280 USD. Needless to say, this per nightly rate is most attractive to luxury resort brands.

a clean and modern look inside a luxury Cabo real estate property within Palmilla

Architectural Trends

Buyers who came to Los Cabos 10 years ago wanted the Mexican Hacienda-style architecture. Now we’re seeing clients that want modern homes; clean and bright aesthetics. This is no doubt due to a generational shift. The baby boomers have already bought and now we’re seeing a lot of clients under 50’s coming to buy Cabo real estate. That explains why projects like Solaz are thriving. With this generational change, we are enjoying a new trend in architectural style. Interestingly, the exterior of luxury housing appears to remain the same.

Mexican National Buyer Increase

We are seeing an increase in Mexican national families purchasing a second home in Los Cabos. This trend will continue as families seek a close and convenient getaway destination for their reunions. With Guadalajara and Mexico City being such short flights, many Mexicans view Cabo as a perfect place to buy luxury real estate for a long weekend escape.

luxury Cabo real estate no extends all the way out to the East Cape

East Cape & Pacific Coastal Development

Sales and developments will increase along the East Cape and Pacific Coast. Buyers and resorts alike are seeking a new and private spot, but with the ability to also retain the amenities and services they want. The cost of development and luxury real estate acquisitions are still relatively low in areas like Todos Santos. Therefore, the opportunity to buy and build is now.



Looking for real estate representation regarding either buying or selling a Los Cabos property? Please reach out to our team of 2 Seas Los Cabos agents at:

Tel: +52 624-105-2547

Tel: +1 520-204-5450



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