The announcement of tariffs against China sent a clear message to the markets—volatility isn’t going away anytime soon.
For most sectors, this could introduce a new wave of uncertainty. However, you can turn this predicament into an opportunity.
I am here to give you the Cabo real estate market updates that go beyond the picture-perfect listings, giving you a more nuanced, honest view of what’s happening here amid Trump’s war tariffs.
While some investors are waiting for stocks to bounce back (again), discerned international buyers are already reallocating out of paper assets and opting into tangible, income-producing real estate properties, while other buyers remain motivated by lifestyle, retirement, or tax advantages. And Los Cabos is one of the markets they’re betting on. Los Cabos is still a niche market in global terms. It’s not quite comparable to places like Miami, Lisbon, or Dubai in foreign investment scale or liquidity.
Here’s what’s happening right now:
- Luxury resort communities and branded residences that attract high-net-worth travelers and offer strong long-term returns have become prime targets for global investors. There’s limited land near the coast, especially in high-demand areas. Areas like Cabo Del Sol (tourist corridor) and Quivira are gaining momentum with high-profile developments of homes for sale tied to world-class brands such as Four Seasons, Park Hyatt, St. Regis, and Rosewood Residences.
- Wealthy Canadians are diversifying out of Toronto and Vancouver by locking in pre-construction pricing in high-demand, lower-inventory areas like Palmilla and Cabo Del Sol—driven by strong rental ROI and long-term appreciation. However, exchange rates (CAD to USD) aren’t favorable right now due to the imposed Tariffs, making Cabo real estate relatively more expensive.
- European investors from Germany, Spain, and the UK are acquiring boutique hotels and retreat land near Todos Santos and East Cape, tapping into the booming wellness tourism economy.
- U.S.-based family offices and hedge funds are quietly land banking, partnering with developers, and positioning for the next wave of gated communities as infrastructure expands.
Cabo is in the sweet spot of the cycle:
- Airport traffic has surged from 4 million to 7 million passengers in the last few years. This growth reflects a surge in tourism and an influx of foreign residents, particularly from the U.S. and Canada.
- Roads, utilities, and water infrastructure are catching up. Some areas are improving, yes—but others (especially East Cape, Pacific side of the Baja California Sur peninsula) still face major challenges with water, roads, and utilities and therefore, something to know about is that the pace of infrastructure expansion may not keep up with investor expectations or development plans.
- Foreign capital is surging in while real estate prices in Cabo remain very attractive.
Real estate here offers ownership, stability, lifestyle returns, and USD-denominated rental income. It’s a smart hedge against inflation, global uncertainty, and market turbulence.
If you’ve been waiting for the “right time,” this is your signal. Let’s connect.
If you have different thoughts about what’s taking place, feel free to share them with me.