Los Cabos Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

May 26, 2022

The History of Real Estate in Mexico

mexico real estate

History of Real Estate in Mexico

Between the years 1517 and 1822 Spain held claim to the Mexican land. In 1822 Mexico declared independence from Spain but even so, wealthy foreigners, the Church and the upper-class Mexicans continued to lay claim to much of the land. Also, during the 19th century, Mexico lost about 1/3 of their country to the U.S. Texas in 1845, and in 1848 the territory that became California, Nevada, Utah, most of Arizona, and parts of New Mexico, Colorado, and Wyoming were purchased for $15,000,000.

In 1854, through the Gadsden Purchase, the U.S. acquired the rest of what is now Arizona and New Mexico. In 1917, the Mexican Revolution began, and with it came the loss of over one million lives. From this came the Federal Constitution which imposed new laws and restrictions on foreign ownership (resulting in the "restricted zone") and ownership of lands by the Catholic Church.

With this constitution, Mexico began the process of subdividing large property holdings (50 million acres in total) belonging to the Federal Government into smaller parcels. This provided the Mexican farmers with a beneficiary interest in the land. Entitled under the Agrarian Law, these government parcels, known as "Ejidos", are recorded in Mexico City.

The Ejidatarios (farmers) can live, farm, homestead and construct dwellings on the property but they do not own it. These farmers have the use and benefit of the land, but they do not have title to it and therefore cannot sell, lease, subdivide joint venture, contribute, mortgage or encumber the property. In 1992, realizing the value of the Ejido land and the development potential that would be created by allowing the owners to sell or lease the property to non Ejido members such as foreigners, the Agrarian Law was passed. In other words, Ejido owners had the right to take the land that they didn't own, remove it from federal control, place it in the public land registry and convert it to private property thus allowing them monetary benefits.

Today, thousands of acres are being removed on a daily basis from the Ejidos, to be added to the public lands to be sold or leased.

Investing in Baja Real Estate

baja beachBeginning in 1993, the federal government of Mexico liberalized ownership provisions of all property within the constitutionally protected area known as the "Prohibited Zone". Prospective buyers outside of Mexico's borders seeking to buy tourist developments such as housing, condominiums and time share projects, rustic, industrial or urban property can now enjoy greater legal freedom and ownership rights.

Under this Mexican Foreign Investment Law, a Mexican corporation can be 100% foreign owned with fee simple title if it is non-residential. These foreign investment rules clearly indicate the Mexican government's highly favorable attitude towards outside investors. With the rapidly improving Mexican economy, close proximity to the world's largest market, low-cost skilled labor, ample energy supplies and the Baja area being the fastest growing in all of Mexico, it is most definitely an excellent ongoing, investment environment.

The Fideicomiso or Mexican Trust

In 1972, the government of Mexico initiated a legal process of entitlement to protect foreigners known as the fideicomiso. Simply put the Mexican Government issues a permit to the federally chartered bank of your choice. This allows the bank to hold title to the real estate as the "Trustee" for you the "Beneficiary". The law authorizes Mexican banking institutions as trustees to takes instructions only from the beneficiary of the trust (the foreign purchaser).

The beneficiary has the right to occupy, develop, improve, mortgage, borrow against and enjoy the property. The beneficiary may also will or sell the rights and instruct the trustee to transfer title to a qualified owner.

When first established, the term of a Bank Trust was for 30 years only. In 1989 it was made renewable for another 30, and in 1993 the term was extended to 50 years with a renewable period of 50 years. The renewal must be applied for within this 50-year term. This renewal process can be continued indefinitely, providing for long term control of the asset Thousands of people from countries around the world own real estate in many parts of Mexico. It has been estimated that 300,000 to 500,000 Americans and Canadians spend over six months each year in Mexico, many of which own real estate.

Posted in Blog
Oct. 10, 2019

October Market Update

Posted in Market Updates
Oct. 10, 2019

Q2 Market Update

I wanted to share the 2nd quarter sales according to our MLS.  Note that several new developments do not report sales. 
Total single family houses sold   92    $ 55,721,037 USD
Total Condos sold                    107     $ 1,084,067  USD
Total unimproved lots sold         96      $ 8,528,043  USD
Where are people buying this past quarter:
Cabo san Lucas      $  46,846,591  USD
San Jose del Cabo  $ 57,846,747  USD
East Cape              $ 8,913,782  USD
Pacific Side            $ 7,073,235  USD
Prices are following a trend of advancing higher from 2018.  Beach front properties are selling the most and for higher prices as inventory decreases.
Posted in Market Updates
Oct. 10, 2019

Will Your Remodel Pay Off? The Best (and Worst) Ways to Spend Your Budget

Will Your Remodel Pay Off? The Best (and Worst) Ways to Spend Your Budget 


Most new homeowners have something about their property that they want to change. And as family needs and design trends shift over time, many will eventually choose to remodel. Some homeowners make updates to their property before listing it to maximize their potential sales revenue.


Whatever your reasons are for taking on a home improvement project, it’s wise to consider how the money you invest will impact your home’s value.


We’ve taken a look at six popular home renovations and identified those that—on average—have the best and worst returns on investment. So before you lift a hammer or hire a contractor, take a look at this list and see if your remodeling efforts will reward you when it comes time to sell. 




These three common home improvement projects not only add function and style to your home, but they also offer a strong return on investment. Making strategic upgrades to your property will help you increase its value over time.


Minor Kitchen Remodel


The kitchen is often referred to as the “heart of the home,” and for good reason. Traditionally used for preparing food, it has morphed into so much more. Many of us now eat our family meals in the kitchen, it serves as a favorite spot for homework and kids’ art projects, and it’s the place guests tend to gather when we host events.


Because we spend so much time in our kitchens, it’s natural that we will eventually want to make updates and upgrades to better suit our needs and changing style preferences.


Luckily, a minor kitchen remodel is one of the best investments you can make in your home. According to Remodeling Magazine’s annual Cost vs. Value Report, it has an average 80.5% return on investment.1


The key to making a kitchen remodel pay off is to keep it modest in scale. Spend too much on custom or high-end selections, and you are less likely to recoup your investment. Instead, make an effort to keep your existing layout if it works for you and your family. Paint or reface cabinets instead of replacing them. Update counter tops with low-maintenance quartz and swap out old light fixtures with modern alternatives. Replace outdated appliances with energy-efficient models. The average cost for a minor kitchen remodel is $22,500, and it’s likely to recoup more than $18,000 at resale.1 


Wood Deck Addition 


A deck addition is a popular way to extend and enhance the use of your outdoor space. It’s the perfect spot for grilling, dining alfresco, and entertaining. In fact, 81% of surveyed homeowners said they have a greater desire to be home since completing a deck addition.2


For a 16 x 20-foot wood deck, you can expect to spend around $13,000. Fortunately, the money you invest offers an average return of 76%.1


Decks made of composite material are a popular alternative these days, as they don’t require the regular sanding and staining that wood decks need. However, at an average cost of $19,000 for a 16 x 20-foot composite deck, they are significantly more expensive. Plus, the expected return on investment is only 69%.1 Still, if you plan to hire someone to provide regular maintenance to a wood deck, then a composite deck may offer cost savings over time. 


Siding Replacement 


Everyone knows good curb appeal is important when selling your home. And while it may not be the most exciting way to spend your remodeling budget, new siding can make a big impression on buyers … and your selling price.


Your home’s exterior is one of the first things buyers see when they view your home. It sets the tone for what they are going to see inside. It also gives an impression of how well the property has been maintained. Worn, peeling, or rotted siding can be a major red flag for buyers.


Replacing 1,250 square feet of siding costs around $16,000 and will net you an average of 76% at resale.1


For an even greater impact, consider replacing a portion of your siding with manufactured stone veneer. It can have a dramatic effect on the visual appeal of your home. A 300 square foot area will run you around $8,900, but you can expect to see a nearly 95% return when it comes time to sell.1 




These three popular remodeling projects are homeowner favorites. However, don’t expect to see a high rate of return at resale. Instead, consider them an investment in your current quality of life. Just make sure you’ll be living in the home long enough to make them worthwhile. 


Major Kitchen Remodel 


If there’s one room the majority of homeowners dream about making over, it’s their kitchen. From custom cabinetry to high-end appliances, the possibilities are endless. But those dreams can come at a cost.


An upscale kitchen remodel with high-end cabinetry and countertops, commercial-grade appliances, and designer features can cost upwards of $130,000. And unfortunately, you’ll only get back around 60% at resale. Even a mid-range kitchen remodel that includes new semi-custom wood cabinets, laminate countertops, and energy-efficient appliances could run you around $66,000 and net you a mere 62% at resale.1


Of course, an outdated or non-functional kitchen could turn buyers off from your home completely … and keep you from enjoying it yourself! So if your kitchen needs a major remodel, you shouldn’t necessarily scrap your plans. Just go in with the realization that you may only get back a fraction of what you invest. Then you can decide which upgrades are worth the splurge. 


In-ground Pool 


Few additions deliver more entertainment or enjoyment than an in-ground pool. It brings families and friends together, provides a break from the summer heat, and offers a fun and convenient way to stay fit. Plus, you’ll be the envy of your neighbors! But before you dive into a pool addition, consider whether the benefits outweigh the (substantial) costs.


The average expense to install a standard 18 x 36-foot in-ground pool is $57,500. And the estimated return at resale is only or 43%.2 In addition to the installation cost, plan to spend money each year on maintenance, repairs, and additional insurance.


However, 92% of surveyed homeowners said they “have a greater desire to be home” since installing a pool, and 83% have “an increased sense of enjoyment when they are at home.” For you and your family, the perks of a pool may be priceless.2


Master Suite Addition 


If you own a house built before the 1980s, there’s a good chance it lacks a master suite, which is a feature that has become commonplace in most newly constructed homes.3


Master bedrooms have evolved from a simple place to sleep into a homeowner’s retreat—often featuring a sitting area, his-and-hers walk-in closets, and an attached bathroom with double vanities, a soaking tub, and a walk-in shower.


And master suite additions have become increasingly popular—both in homes that lack one as well as those with aging owners who can no longer accommodate stairs to an upper-level bedroom.


But what’s the typical return at resale? Unfortunately, a master suite addition offers one of the lowest returns of any remodeling project. With a median cost of $125,000, most sellers will only recoup around 52% of their investment.


Nevertheless, in a survey of homeowners, the majority were satisfied with their decision to add a master suite, giving it a “Joy Score” of 10 out of 10.4 




It’s always wise to enter into a remodeling project with knowledge of how it will impact your home’s value. In most cases, upscale or highly-customized upgrades are less likely to offer a high rate of return. That said, home renovations that improve your quality of life and enhance your enjoyment may be worthwhile no matter the cost. 




We’ve been talking averages. But the truth is, the actual return you can expect on a home improvement project will vary depending on your particular home and neighborhood. If you have plans to remodel, call or send us the details. We’d be happy to conduct a free analysis to determine how the renovations will impact the value of your home!



1. 2019 Cost vs. Value Report - https://www.remodeling.hw.net/cost-vs-value/2019/ 

2. NAR’ Remodeling Impact Report - https://www.nar.realtor/sites/default/files/documents/2018-05-remodeling-impact-outdoor-features-05-23-2018.pdf 

3. Zillow - https://www.zillow.com/blog/evolution-of-the-master-bedroom-48286/ 

4. House Logic - https://www.houselogic.com/by-room/bedroom-closet/master-suite-addition-return-investment/


Posted in Blog
Aug. 7, 2018

The Wirikuta

Spectacular entertainment, great food and drinks amid beautiful pyramids. Enjoy the Mexican cultural dancers, acrobats and the light show in this breathtaking setting. Walking through the Huichol village and watching the artisans creating their masterpieces transports you to Mexico's past.


Posted in Cabo Lifestyle
July 31, 2017

Curious About Local Real Estate?

Receive the Latest Local Market Stats

Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

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You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates