Resorts and real estate drive Los Cabos’ economy. For the former, there is an increasing focus on luxury goods. Accommodation rates have been steadily rising in recent years. A well-known hospitality brand We have opened a luxury resort in this area. For the latter, luxury is not necessarily a trend. Yes, multi-million dollar ocean view homes continue to sell. However, the market is also seeing an increase in condominium developments that offer primary or secondary residences at lower prices.
How will the Los Cabos real estate market change in 2025?
One of the more interesting new developments on the real estate front in 2025 and beyond is the attempt to make Los Cabos’ luxury market more accessible. Of course, what companies like Pacaso are doing – selling fractional shares of luxury real estate – appeals only to people who can’t afford a beach house or a hilltop villa with access to world-class golf. Not that there is.
as hollywood reporter As noted in an article profiling the 2024 Shared Ownership Market Pacaso, celebrities and people of considerable wealth are also increasingly interested in fractional ownership of real estate…at least for a few weeks each year. When it comes to second homes or vacation homes where you only stay for a few months. .
“Fractional ownership occurs more often than is considered reasonable among the ultra-wealthy,” says Josh Altman, a real estate agent and star of a real estate reality series.Listed for $1 million It is pointed out in the work. “It’s a money play. Maybe one of them didn’t want to drop $108 million, even on any Tuesday of the year. It’s a way to make more of your money.”
Whether you’re a celebrity, a professional athlete, or just someone who can’t afford to own a multi-million dollar vacation on their own, the Pacaso model certainly seems to be turning heads and looks exactly like what you’d imagine. It seems to be attracting attention at the destination.
Los Cabos is one of the top 3 most popular co-owned destinations in North America
PacasoThis is a relatively new real estate service. It’s the brainchild of a former Zillow executive, who reports that the top three markets most searched for co-ownership opportunities are the Lake Tahoe area, Vail, and Los Cabos.
It may come as a surprise that interest in Los Cabos is increasing among real estate listings around the world, including properties in Paris, London, and New York City. But with its almost year-round charm, there’s a reason locals vacation in August and September. Additionally, lifestyle amenities such as world-class golf, dining, and abundant beaches are clearly attracting the attention of those in the second home market.
The population of Cabo San Lucas alone more than tripled between 2010 and 2020. There are many reasons for this. population explosionThis includes the need for a workforce to staff the new openings of many luxury resorts. However, if you look at the real estate numbers, first 3 quarters In 2024, just under 1,000 new homes and condos were relocated, with sales prices totaling $1.13 billion. This is proof enough of how attractive Los Cabos is to homebuyers today.
What does shared ownership of luxury real estate look like?
Ocean views and vistas are the gold standard in Los Cabos real estate, and unsurprisingly, they are also the number one factor prospective buyers look for. According to Pacaso’s latest statistics, the average annual stay in a Los Cabos home is 27 days per owner, with an occupancy rate of 90%, compared to 11% for traditionally owned vacation homes. One-eighth ownership is the norm.
While it’s a great way to enjoy luxury assets you couldn’t afford otherwise, it does have its drawbacks. Pacaso price —10-15% It is one of the home values that brings ownership groups together to promote sales. Limited control is another. Differences of opinion may arise between owners. Maintenance and improvementEspecially if the other owners aren’t family members or friends, or even if they are. Since it will be used almost continuously, the use of amenities will also increase. Of course, if a replacement is necessary, we will split the cost in half.
Given their specialized niche market compared to traditional real estate products, stocks can be more difficult to sell than an entirely owned home. However, owners currently earn an average return of 14.7% on sale.
The advantage is that there is a growing field of companies offering this type of co-ownership real estate. This means that Pacaso is no longer the only option. Angkana and Lifestyle Asset Group The company currently offers premium fractionals in Mexico, but listings in Los Cabos are limited, at least as of January 2025. embers or luxury stocksspecializes in similar services, but has not yet expanded its services from the U.S. to include Mexico.
Not everyone loves models. The city of Sonoma, California, banned Pacaso’s business model. But that kind of headwind is unlikely in Los Cabos. In Los Cabos, selling real estate in any way is a kind of secular religion.
What types of co-ownership opportunities are available in Los Cabos and how much do they cost?
Pacaso is currently on display 23 listings All in the Los Cabos area use a one-eighth ownership model. Shares in the three-bedroom, two-and-a-half-bath Villa Topaz in the Eastern Cape are selling for as low as US$146,000, while a five-bedroom, five-bath luxury home in Palmyra is selling for as much as US$822,000. $869,000 for a three-bedroom, three-and-a-half bath residence in Las Ventanas al Paraiso. A tourist corridor connecting Cape Town.
Ancana and Lifestyle Asset Group’s listed properties are competitive at both the low and high end. Ancana has one listing in Los Cabos, and one-eighth of the ownership constitutes a six-week annual residence in Los Cabos. the break 227,500 USD. Located just outside of San Jose del Cabo, The Break offers ocean views from its nine-residence building.
Lifestyle Asset GroupMeanwhile, we have sold the only property currently listed in Los Cabos, a three-bedroom, two-bathroom condo in Cascadas, Pedregal. The purchase price is advertised at US$825,000 for stays of eight weeks or more, and is estimated to cost $9,000 per year.
Chris Sands is a Cabo San Lucas local expert for USA Today’s travel website 10 Best and author of Fodor’s Los Cabos Travel Guidebook, Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, and Porthole Cruises. , and has contributed to numerous websites and publications, including Cabo. Living and Mexico News Daily. His specialty is travel-related content and lifestyle features focused on food, wine, and golf.
