Although with less pandemic fury, the real estate and tourism market in Los Cabos maintains important advances that mark a new era for Baja California Sur.
The numbers in Los Cabos are evident: rates 21 percent higher, on average $456 per night, new rooms under construction and residential land on the rise, among others, as it is one of the main generators of sources of employment and economic growth along with Riviera Maya.
These are numbers that matter for a destination that will offer 7.5 percent more hotel keys this year, of which 51 percent are located in the luxury segment, according to a report at the end of 2024 by JLL in the hospitality area.
It is precisely the segment in which the next hotel offer under construction is located, which determines the price boost in other real estate segments.
For this reason, together with Riviera Maya, Los Cabos appears in the ranking of global destination hotspots with the greatest attraction for the development of branded residences in the world, where Savills Global Residential Development Consultancy recorded in its 2024-2025 report, 240 outstanding projects among the 100 markets it monitors.
The adjusted pipeline puts them in places 8 and 9 in the ranking of the most important of the Top 10.
Although it is far behind in terms of the volume of completed and projected projects in Dubai, South Florida and New York, its participation is important due to the volume of new developments that are coming.
The scenario for the 12 leaders of the luxury brands in the world makes it evident why some like Marriott International with The Ritz Carlton, St Regis and W, along with Four Seasons, Rosewood, Fairmont, and Aman have or build a presence in the segment, but also some of them in Los Cabos, Riviera Nayarit, Riviera Maya, Cancun and San Miguel de Allende.
Together, the resort and luxory made it possible to maintain a 70 percent hotel occupancy rate in Cabos in 2022 and 2023 with rising rates.
This context also encouraged growth in the demand for services and commercial real estate supply.
Therefore, the residential market (condominiums and houses), in addition to land located in Los Cabos and the Pacific Zone, have registered increases in values, as well as an acceleration in the rate of displacement, which, when benefited by construction projects such as St. Regis Residences in Diamante and Aman, with a similar component, predict growth.
Until 2023, 2,389 units of all types were displaced. But by the third quarter of 2024, an estimate by the 4S firm in the vertical residential segment, integrated into the 4 niches that measure them (including the premium plus as the highest) located 79 projects that during that period sold 126 units of 889 in inventory, with an average value of 11.6 million pesos with surfaces of 152 m².
Other examples are Cabo del Este, known for land transactions and the development of Costa Palmas, which opened opportunities for large-scale development, in addition to what is projected in Loreto and Mulegé, emerging markets with growth potential for buyers.
These dynamics lead JLL to predict that residential growth will accompany hotel growth with 2,731 hotel rooms in all segments by 2030. Thus, Los Cabos would see the arrival of 17,456 new keys.
Development, however, involves infrastructure challenges that should be resolved to facilitate the development era.
Source: elfinanciero
