Expert insights on Los Cabos luxury real estate from Berkshire Hathaway HomeServices Baja Real Estate
Having passed the midpoint of 2025, something fundamental has shifted in the Los Cabos real estate market. The question sophisticated buyers ask has evolved from “Should I invest in Cabo?” to “What strategy will deliver the most value for my specific objectives?”
This evolution reflects a market that has matured beyond speculation into strategic investment. At Berkshire Hathaway HomeServices Baja Real Estate, we’ve observed clients approaching their purchase decisions with unprecedented intentionality—combining lifestyle aspirations with portfolio considerations in ways that require deeper market intelligence and more nuanced guidance.
To better understand these dynamics, we spoke with Ian Gengos, Owner/Managing Broker, and Michelle Wilhelm, Owner/COO, whose perspectives reflect what’s actually happening across showings, negotiations, and closings throughout the region.
The Market Has Not Slowed, It Has Matured
Over the past six months, the Baja California real estate market has demonstrated remarkable consistency rather than volatility. While this stability might appear unremarkable from the outside, it represents a significant shift in underlying buyer behavior that sophisticated investors are learning to recognize and leverage.
“The strong start to the season anticipated after the 2024 US election results was delayed by the following policy uncertainty that came out of Washington,” notes Gengos. “Although it caused some to stay on the sidelines, others identified strong buyer conditions and larger institutional investments continued. When the market picked up, the increased activity was sustained through Q2 into the summer months.”
This pattern reveals a market where timing matters less than preparation. Properties in desirable communities continue to move decisively when they meet specific buyer criteria, while inventory remains constrained in the most sought-after locations. The result is an environment that rewards clarity of purpose over market timing speculation.
Three Distinct Buyer Profiles Drive Today’s Market
Current market activity centers around three primary buyer segments, each approaching Los Cabos with different motivations but similar long-term thinking:
Lifestyle-Driven Relocators represent individuals and families choosing Los Cabos for full-time or part-time residence. They’re drawn by quality of life factors—climate, international connectivity, access to high-end services and amenities—and typically prioritize location and livability over pure investment metrics.
Dual-Purpose Investors seek properties that function both as personal retreats and income-generating assets. These buyers demonstrate sophisticated analysis of revenue potential, operating costs, and market positioning, often focusing on properties with proven rental performance or clear rental optimization opportunities.
Portfolio-Minded Buyers evaluate Cabo within broader global diversification strategies. For this segment, Mexico offers an attractive combination of legal structure, established property rights, favorable tax conditions, and consistent capital appreciation potential.
“Affluent international buyers continue to view Los Cabos as a hot-spot for lifestyle and ROI, but also as a key strategy to protect and preserve wealth as it transfers to the next generation,” explains Gengos. “The entry level of the market is also active as people continue to pursue retirement and remote work destinations that offer climate, culture, cost-efficiency, and livability.”
All three buyer types share one crucial characteristic: they’re thinking in decades, not quarters.
What’s Moving and Why
While luxury homes in Cabo San Lucas and beachfront inventory remain in perpetually high demand with limited supply, sustained activity in the $750,000 to $1.5 million range tells a more complete market story. Properties in this segment often combine privacy, architectural quality, and rental versatility—attributes that appeal across buyer categories.
Pre-construction opportunities and recently completed developments have captured significant attention, particularly among younger buyers establishing long-term positions in Los Cabos. Flexible closing timelines, contemporary amenities, and elevated design standards have enhanced the appeal of these options compared to previous development cycles.
“Among Ultra High Net Worth buyers, properties that offer luxury, amenities, and prestige become trophies for a real estate portfolio,” notes Gengos, “while turn-key new builds in locations that support lifestyle and investment appeal are popular across the spectrum of buyers.”
This suggests a market where quality and positioning matter more than specific price points. This dynamic favors prepared buyers working with experienced local representation.
Market Timing vs. Personal Timing: A Strategic Framework
The perennial question of whether “now” is the right time to buy continues to surface, but the answer depends entirely on aligning market conditions with personal objectives.
For lifestyle buyers, optimal timing often coincides with finding the right property rather than identifying the perfect market moment. In a region where inventory in premier communities is limited and often moves through private networks, attempting to time the market can mean missing exceptional opportunities.
For investors, current fundamentals remain compelling. The peso has maintained relative stability against the dollar, international interest in the region continues expanding, and high-season performance among short-term rental properties shows consistent strength. Long-term appreciation trends support patient capital deployment strategies.
“We always respect our clients’ visions and provide market insight and context to support the best strategies to achieve them,” explains Gengos. “When you find what you’ve been long searching for, the decision to purchase is easy, even if it means shifting resources from one asset at a small loss to achieve a greater upside in the long run. Whatever the client’s goal, we find the best balance between market and personal timing to surpass it.”
Strategy Defines Success in Sophisticated Markets
In a market like Los Cabos, the differentiator isn’t whether you can locate attractive properties—it’s whether you’re positioned to make optimal decisions when opportunities emerge.
Clients working with our team navigate this process through comprehensive preparation that extends beyond property selection. Legal structure optimization, financing readiness, negotiation strategy, and future resale considerations all factor into decisions designed to support long-term value creation.
This approach recognizes that successful Los Cabos real estate investment requires local expertise, market timing awareness, and strategic patience. These qualities distinguish sophisticated buyers from opportunistic speculators.
“Success happens when preparedness meets opportunity,” notes Gengos. “Before you find your perfect property, do your research, define your budget, have funds or financing in order, know your ‘must haves’ and your ‘why,’ and most importantly have an experienced expert with only your best interests in mind in your corner.”
Looking Forward: A Market Built for Strategic Buyers
The Los Cabos real estate market has evolved into something more selective and strategic than in previous cycles. It no longer rewards speculation or urgency-driven decisions. Instead, it favors preparation, local insight, and clarity of purpose.
This maturation creates advantages for buyers who understand the shift. While casual investors may find the market less accommodating than during speculative periods, serious buyers with clear objectives and proper preparation are identifying exceptional opportunities.
For those considering a Los Cabos purchase in 2025, the path forward requires more than market monitoring. It demands strategic preparation and experienced local partnership. Whether your interest centers on lifestyle enhancement, investment performance, or both, success depends on aligning personal objectives with market realities through informed, strategic action.
For a private strategy session to discuss your Los Cabos real estate objectives, contact our team at Berkshire Hathaway HomeServices Baja Real Estate. We’re here to help you navigate this sophisticated market with confidence and clarity.