Blog  |  Thursday, January 18, 2024

The Evolution of Luxury Real Estate in Los Cabos

If you’re interested in buying real estate in Los Cabos, you’re not alone. Many, many visitors decide to become residents of the sun-drenched locale. As the number of visitors climbs, so too does the demand for luxury housing.

In 2022, Los Cabos saw a 20% increase in visitors from the previous year and welcomed 3.3 million people to the southernmost point of Baja. At the same time, demand for luxury homes is rising, and real estate owners say limited inventory often leads to bidding wars.

The rich and famous are drawn to Los Cabos, but it wasn’t always like that. Decades ago, Los Cabos was a quaint fishing town where a luxury home was a hacienda and water access. Today, luxury properties like Costa Palmas offer elegantly designed oceanside residences for affluent buyers.

Let’s look at the evolution of luxury real estate in the area and offer some options for those interested in buying real estate in Los Cabos.

• It starts with fly-in fishing resorts

  Before luxury resorts dotted the shoreline, the area was a fishing hotspot. In the 1950s and 60s, a handful of modest fly-in fishing resorts popped up. These resorts often had a handful of rooms, maybe four, and a flat grassy area they used for a runway. Tourists arrived by plane, usually stayed a week, and spent their days fishing with local guides.

• Resorts stake their claim

  Later, several resorts – not focused on fishing as a draw – were built along the Sea of Cortez. Hotel Hacienda opened in 1963, followed by the Hotel Finisterra in 1972. The Solmar Suites, built into the living rock formation that sits between the Pacific Ocean and the Sea of Cortez, opened in 1974.

  The establishment of these resorts marked the start of the tourism industry in Los Cabos. Tourism in Los Cabos (and the population) continue to grow to this day.

• Transportation allows visitors by land, air, and sea

  While resorts started to shape Baja’s peninsula, it was still a very difficult region for people to travel to. With nothing more than dirt roads, the location posed challenges as a destination. In 1973, that changed. The government paved a narrow two-lane highway from the California border to Los Cabos.

  This strip of pavement made all the difference. People came to the peninsula in droves, sparking major development, both commercial and residential. All along “Mex 1,” as the road was called, new restaurants, hotels, and homes were built.

  At the same time, dredging equipment was brought in to dig a marina, and the small regional airport was expanded to become Los Cabos International Airport.

  Suddenly, visiting Cabos, or even living there, became an easier feat.

• Real estate development begins

  Typical Mexican homes, called haciendas, had adobe walls to keep homes cooler, clay roof tiles, and arched entrances. When the first real estate development broke ground in 1975, its homes were influenced by these architectural themes but with added amenities like balconies, courtyards, and stone columns.

  In time, the homes grew in size, amenities, and opulence. By 2022, Los Cabos had become the strongest real estate market in Mexico, with an annual growth rate of 6% in sales for the last five years.

• Luxury homes become a hot commodity

  In the past two decades, demand for luxury homes has grown. Celebrities like Will Smith, George Clooney, and Jennifer Anniston all own homes on Cabo’s shores.

  Market research shows 80% of luxury homes in Mexico are purchased by Americans and are driven by new developments and new construction. Many buyers hail from California and Texas. But residents from other major cities; like Chicago and New York City, are also rising.

  Real estate experts predict sales to increase from European buyers, too. Sparked by the recent addition of direct flights to Madrid. And with direct flights from London and Frankfurt in the works.

• Luxury home choices available at Costa Palmas

  Nestled along the Sea of Cortez, 45 minutes from the hustle and bustle of tourist-filled Cabo, you’ll find the East Cape. Along this swimmable stretch of sapphire water, several luxury home choices await. Affluent buyers will find properties ranging in price from $700K to $20+ million. Here’s a look at the options available:

  Four Seasons Private Residences

  With luxurious homes managed by Four Seasons, your every whim is cared for. Homebuyers can choose a residence along the beach, marina, or golf course and select from one to three bedrooms, but no matter your choices, the living space is designed with elegance in mind. With floor-to-ceiling walls, spacious outdoor areas, a private pool, bedrooms with full-bath ensuites, and a layout that celebrates togetherness, no detail was overlooked.

  Aman

  Rising from the surrounding desert landscape, Amanvari Residences offers seamless indoor and outdoor living space. Expansive floor-to-ceiling glass walls and playful decor reveal awe-inspiring views of the Sea of Cortez.

  These luxurious residences are still under construction, but once completed, the four to seven-bedroom homes that are up to 20,000 square feet large will offer a new level of luxury living.

  Casa Blake

  Casa Blake is on the water’s edge in the Marina Village, Costa Palmas. Home to inspired design, casual glamor, and playful sophistication. The iconic neighborhood, nestled among some of the most renowned restaurants and upscale boutiques, offers a unique homebuying experience.

  Owning a Residence at Casa Blake unlocks opportunities to join the Costa Palmas Beach and Yacht Club, where members have access to Aventura, dedicated food and beverage outlets, and a team that will ensure every visit provides a new adventure or experience.

Want to learn more about buying real estate in Los Cabos? Review the options at Costa Palmas. This newly-developed luxury community offers a variety of high-end real estate and a full list of amenities to go with it, including a swimmable beach, a beach and yacht club, and an 18-hole golf course right on the premises. You’ll also find first-class dining, sophisticated shopping options, and on-site bars. Making for outings and daytrips that are fun, playful, and convenient.