Recent U.S. trade policy moves, including new tariffs on Mexican imports, had everyone wondering what their economic effect would be. While the shifts may impact the economy and consumer sentiment, Los Cabos remains a sought-after second-home market, due to its dynamic real estate market, strong tourism, and ongoing infrastructure investment.
Most Significant Market Factors for Los Cabos Real Estate
Economic Uncertainty & Consumer Apprehension
Whenever trade tensions rise, real estate investors adopt a wait-and-see approach. Others will wait and purchase later, and others will purchase today so they can benefit from present prices before the market fluctuates.
Cabo Real Estate Market Performance in 2025 Q1
In the first quarter of 2025, Los Cabos saw an impressive sales surge, totaling $559 million USD in signed contracts. This represents a 70% increase compared to the previous quarter (Q4 2024) and marks the second-highest sales volume on record, trailing only Q1 2022.
Luxury Market Activity
In Q1 2025, properties priced above $1 million accounted for 77% of the total market value. Additionally, six properties sold for over $10 million, demonstrating the ongoing demand and strength of the luxury real estate segment in the region.
Fluctuations In Currency Can Benefit Buyers
If tariffs devalue the Mexican peso, purchasing real estate in Los Cabos would be cheaper for US consumers, boosting demand and making real estate purchase more attractive.
Los Cabos: A Dynamic Real Estate Market
Los Cabos, in spite of economic downturns, is now an international real estate hot spot because of some factors that shape it:
- Property value appreciation keeps going up, so it is a good long-term investment.
- A sound rental market, fueled by robust tourist demand and seasonal residents.
- Improvements in infrastructure, in the form of new roads, high-end properties and communities, and upgraded facilities, to make the location even more attractive.
- Tourism growth, with many visitors choosing to stay for longer or relocate here for parts of the year, again creating more demand for housing.
A Dynamic Market with Turn-Key Investment Opportunities
The Los Cabos real estate is presently favorable to buyers with high inventory to choose from in various price levels. Resale houses offer a good opportunity, most fully furnished and ready to move in, paving the way to easy and quick occupancy.
While trade policy and tariffs are uncertain, Los Cabos remains a top destination for real estate investment and second homes. The dynamism of the real estate market, safety, stable rental market, infrastructure expansion, and steady expansion of tourism are all keeping demand high, and it’s an excellent place to put your money.
https://calendly.com/nancymexicorealtor/consultationI’m Nancy Bouchard, your local Cabo real estate agent. Thinking of buying in Los Cabos? Let’s sit down and locate the perfect property for you.