What’s The Average Price Per Square Foot In Cabo?
Picture this: You’re scrolling through Instagram, watching another beautiful sunset in Cabo San Lucas, and suddenly, you’re hit with that crazy idea. What if you could actually own a piece of this paradise? But then reality sets in – how much is this going to cost me? The good news is that understanding Cabo’s real estate market isn’t as complicated as you might think.
Whether you’re looking for a vacation home, an investment property, or your permanent slice of Mexican heaven, knowing the average price per square foot is your first step to making a smart decision.
Breaking Down Cabo’s Real Estate Price Tags
Let us discuss the real factors that propel property prices in this Mexican paradise. Location isn’t just a factor in Cabo—it’s everything. Beachfront properties command premium prices that can make your wallet feel the burn. A oceanfront condo might run you $500-$1,000 per square foot, while just a few blocks inland, those same square feet could drop to $250-$400.
Consider a neighborhood like Pedregal. This prized area, perched on the steep, stony hills above Cabo San Lucas, affords vistas that would send realtors into paroxysms of delight. Not that they need much encouragement. These views are what have driven up the values of homes in Pedregal to dizzying heights.
A flat, unremarkable house in Pedregal can ask for $700 a square foot; a $1,200-a-square-foot house is clearly not “better” in any conceivable way, other than the fact that it sits in the same neighborhood. It’s location, location, location that changes everything.
What You’ll Actually Pay: Price Ranges Explained [2025]
What can you really buy with that budget in Cabo? When you venture into the $250,000-$350,000 range, you’re getting on the low end for that market. You’re looking at remodels and updates in places that are probably 800-1,200 square feet. You’re looking at an average price per foot of about $300-350.
Raise your sights to $500,000-$800,000, and sudden shifts in reality occur. You find roomy, two-bedroom condos, with ocean vistas or even small single-family homes, in less central locales. The slightly more affordable San Jose del Cabo, compared to its more tourist-centric sister, Cabo San Lucas, can save you a nice chunk of change.
Hidden Costs Most Buyers Don’t Consider
Here’s something that not everyone realizes: buying real estate in Mexico is more than just the purchase price. Property taxes are quite low-usually around 0.1% annually-but maintenance can be a different matter.
Beachfront properties are constantly assailed by salt air and are subject to potential hurricane damage, which means that upkeep costs are pretty darn high.
Additional expenses catch international buyers by surprise. These include:
- Required property insurance
- Possible HOA fees
- Utility hookup charges
- Yearly property management costs
Yet, the very act of buying property from overseas carries with it a multitude of financial factors that can easily bewilder even the most astute investor. Accordingly, we offer this overview of the major issues.
When to Buy: Market Trends That Impact Pricing In Cabo
Cabo’s real estate sector echoes the tourism economy. The summer months tend to see slightly lower prices, as the number of visitors drops, and the winter months see peak pricing.
But 2025 is shaping up to be a banner year, with a month-on-month increase in sales driven largely by well-heeled American and Canadian buyers. They seem to have one-to-two-year horizons in the making. They’re buying now and intending to use or occupy their properties sometime in that range.
Insider Expert Tips for Getting the Best Square Foot Deal
Discussing strategy is important. Collaborating with a local real estate agent who comprehends both Mexican property laws and the needs of international buyers is key.
The agent can help you handle the tricky parts, such as the restricted zone rules, which state that foreigners must use a bank trust to own property within 50 kilometers of the shoreline.
Conclusion
Buying property in Cabo isn’t just about finding a beautiful spot – it’s about making a smart investment. By understanding square foot pricing, you’re already ahead of most buyers. Remember, knowledge is your best tool in any real estate market.
Key Takeaways: Average prices range from $300 to $1,000 per square foot, location is everything in Cabo, always budget for additional expenses, and work with local experts who know the market.
Take your time, do your research, and don’t rush into anything. Cabo’s real estate market is beautiful, but it requires careful navigation.
