Looking to buy property in Cabo San Lucas?
You’re not alone. Thousands of expats flock to this beautiful coastal city each year. But here’s the deal… Buying real estate in Mexico is not the same as in your home country.
The good news?
With the right information, you can easily navigate the Cabo San Lucas real estate market and find the perfect property for you without any headaches.
In this guide, we’ll cover everything you need to know about buying Cabo property as an expat.
Contents
- 1 What you’ll learn:
- 2 Why Cabo San Lucas is attracting Expats
- 3 The Real Estate Market in Cabo San Lucas for Expats
- 4 Legal Considerations for Expats Buying in Cabo San Lucas
- 5 Best Neighborhoods in Cabo San Lucas for Expats
- 6 Mistakes to Avoid When Buying Real Estate in Cabo San Lucas as an Expat
- 7 Financing Your Cabo Property Purchase
- 8 Final Thoughts
What you’ll learn:
- Why Cabo San Lucas is so attractive for expats
- The current local real estate market
- Legal considerations for expats
- The best neighborhoods
- Mistakes to avoid
Why Cabo San Lucas is attracting Expats
Cabo San Lucas has become one of the most popular destinations for foreign property buyers in Mexico.
In fact, it is estimated that between 15,000 and 20,000 full-time expats are living in the city. The reasons for this are clear – sunshine year-round, gorgeous beaches, luxury amenities and much more.
The lifestyle in Cabo San Lucas for expats is one of the main reasons people are buying real estate for sale in Cabo San Lucas right now. Healthcare costs run 50-70% less than the United States while maintaining high quality. And you’re only a short flight from major US cities.
The best part? You can have all of this without having to sacrifice modern amenities or safety.
The Real Estate Market in Cabo San Lucas for Expats
Ok, let’s talk about numbers for a minute.
The real estate market in Cabo San Lucas has been strong for a long time. The median sale price of Cabo homes increased 13% year-over-year, with the median price hitting $768,554 in 2024. What has changed is the market has finally shifted into favor of buyers.
Properties are spending more time on the market, which means you have time to make decisions. The market also has a higher inventory allowing you to actually negotiate price.
This is a massive shift for expats who wish to take their time to find the perfect property.
Cash is Still King in Cabo San Lucas
One of the interesting things to note about the Cabo San Lucas real estate market is…
It remains a cash market. Meaning, if you’re looking to finance then you will need to get creative with options like HELOCs or alternative lending. The benefit of a cash market is less risk and more stability overall.
Legal Considerations for Expats Buying in Cabo San Lucas
Ok, this is where it gets interesting.
Foreigners can own property in Cabo San Lucas, Mexico. But not without a catch. Since Cabo San Lucas lies within 50 km (31 miles) of the coast, any property purchase will require a special bank trust known as a fideicomiso.
Don’t let this intimidate you.
A fideicomiso is perfectly safe and legal. The property title is held by a Mexican bank in trust for the foreign buyer, but you retain all ownership rights. You can sell, rent, remodel or pass the property to your heirs without any issues.
Work With the Right Professionals
Ok, here’s the deal… You must hire a qualified Mexican real estate attorney. Not your buddy who “has a friend” – a real licensed professional that specializes in real estate transactions.
Your attorney should be able to:
- Review contracts and documents
- Conduct a proper title search
- Verify the property has no liens or encumbrances
- Facilitate the fideicomiso setup
- Register the property
Cutting corners by not having legal help is the biggest mistake expats make. And one that can cost you everything.
Best Neighborhoods in Cabo San Lucas for Expats
Not all neighborhoods in Cabo San Lucas are created equal. Some suit the expat lifestyle much better than others. Here’s our top picks…
Pedregal
This gated community is on cliffs that overlook the Pacific Ocean. Pedregal is known for its security, stunning views and high-end homes. Prices will be at the higher end, but you’re paying for an incredible spot.
El Tezal
More of a suburban feel? El Tezal offers newer condos and single-family homes that are just 5-10 minutes from downtown Cabo. Families and retirees really enjoy this area for its space and value.
Marina Cabo San Lucas
In the heart of the action! The Marina area puts you right steps from restaurants, shops and Medano Beach. Condos are perfect for vacation rentals in this area. However, you will see more tourists and nightlife activity.
Corridor Communities
The 20-mile corridor between Cabo San Lucas and San Jose del Cabo is hot right now. High-end developments such as Querencia, Palmilla and Puerto Los Cabos offer golf course living, private beaches and resort-style amenities.
Mistakes to Avoid When Buying Real Estate in Cabo San Lucas as an Expat
Now let’s talk about some of the most common mistakes expats make.
Buying Too Fast
Cabo San Lucas is a beautiful city and it’s easy to fall in love at first sight. However, buying a property is a huge financial and life decision and should be done with proper due diligence.
Make sure to take your time to explore different neighborhoods and truly understand your budget and researching comparable sales.
Skipping the Property Inspection
Don’t let a pretty facade fool you.
Hire a qualified inspector to make sure there are no structural issues, plumbing problems, electrical issues or other nightmares that could cost you later. A few hundred dollars on a property inspection can save you tens of thousands of dollars in the future.
Neglecting Ongoing Costs
Property taxes are absurdly low in Cabo compared to the United States, generally 0.1% of assessed value.
But don’t forget about:
- Monthly HOA fees ($150-$600+)
- Utilities (water, electricity, internet)
- Annual fideicomiso fees
- Homeowners insurance
These costs add up and should be part of your budgeting.
Financing Your Cabo Property Purchase
The reality about financing your Cabo property…
You can’t get a traditional US mortgage for property in Mexico. Many expats are using home equity lines of credit (HELOCs) on their US property to finance their purchase. Others tap into their retirement accounts or investment portfolios.
Some developers even offer in-house financing on pre-construction purchases. But read the fine print – the interest rates and requirements vary.
Final Thoughts
Buying real estate in Cabo San Lucas as an expat doesn’t have to be complicated or intimidating.
In fact, the market is strong, the lifestyle is second to none and the expat community in the area is growing fast. As long as you have proper legal guidance, do your due diligence and have realistic expectations, then you can find that perfect piece of paradise and start living your dream.
Just make sure to take your time, do your homework and work with qualified professionals every step of the way. Get your residency paperwork in order as soon as possible and get connected with the friendly and welcoming expat community through social clubs and events.
Avoid shortcuts, be aware of the common mistakes and you’ll be sipping margaritas on your terrace in no time. Ready to take the plunge? Start exploring your real estate options today and join the thousands of expats that have already discovered why Cabo San Lucas is one of the best places on earth to buy property.
