Los Cabos has quickly gained a reputation for being a luxury holiday destination, and with frequent celebrity visits, 5-star hotel openings and the region being voted the most expensive holiday destination in Mexico, you may assume buying a home here is out of the financial question. This year has proven quite the opposite, with a staggering number of people, particularly from the United States, purchasing a second home in Los Cabos.
Property prices in Los Cabos certainly took a tumble during the pandemic, which is when many people attempted to snap up bargains. However, even though prices have risen around 15% this year, there is no shortage of potential buyers. Currently, 80% of buyers come from the US, although Canada and Europe are emerging markets. Houses under the $1m mark are unsurprisingly the most popular, and new developments are being built all the time.
House and rental prices
The number one reason for the spike in people buying second homes in Los Cabos is that although they are pricey, they are still far cheaper than homes in cities such as Los Angeles, San Francisco or Chicago, or further afield, capital cities like London and Paris. That’s not to say properties in Los Cabos are affordable for the everyday buyer. A luxury house, with amenities such as a pool or terrace, close to the beach, would set you back up to $1.5 million.
However, in cities such as London, where even owning an apartment can be up to £1 million ($1.2m), while a house could be five times that – without a pool, balcony or even a garden, it suddenly doesn’t seem so out of reach. This also applies to renting, with many people opting for long term rentals in Los Cabos. The average cost of living for one person is around $730 (£600), while for a family of four it is $1600 (£1300) – this includes things such as rent, utilities and food.
Living in Los Cabos
Within the costs factored in for people looking to buy in Los Cabos, it is not just the property or rental prices that come into play. As mentioned, the full cost of living is taken into consideration and Los Cabos is generally affordable in all aspects. Food is relatively inexpensive, provided you don’t spend every day eating in the main tourist zone. Restaurants in San Jose del Cabo or La Paz offer far cheaper prices while also supporting local businesses. Transportation remains affordable, with a monthly transport pass costing around $12, while taxis in Cabo San Lucas start at $3.
For Americans looking to buy larger properties, hiring staff such as housekeepers works is a stark contrast to the States. In the US, hourly rates can be up to $60, while in Mexico, it is less than half this. Other factors people are considering when buying second homes are amenities such as the cost of gyms, childcare, attractions and activities– which Los Cabos, with its world class beaches, landscapes and wildlife, has in spades.
Cabo San Lucas not only has hundreds of direct flights to cities across North America but is also beginning to introduce direct flights to Europe, with a route to Madrid, launched earlier this year and talks of expansion to London and Frankfurt. This could make the Mexican destination even more attractive for Europeans looking to buy second homes or holiday homes in the area.