Los Cabos continued to attract second-home buyers, retirees, and investors throughout 2025. However, determining the area’s “average appreciation” is not as simple as applying one percentage to every property.
Prices moved differently depending on the community, property type, price range, and available inventory. Luxury homes in established resort communities performed very differently from entry-level condominiums in areas with substantial new construction.
The Big Picture
Across the broader Baja California Sur MLS market, the average sale price increased from approximately $768,554 in 2024 to $854,409 in 2025. That represents an increase of roughly 11%.
Total sales volume reached approximately $1.59 billion, compared with $1.42 billion in 2024. (oceansideloscabos.com)
A separate Los Cabos-focused market analysis estimated that the MLS market increased approximately 6% year over year. The difference between these figures illustrates why market appreciation depends on the geographic area and methodology being measured. (caborealestate.com)
Based on these reports, a reasonable broad estimate for the market would be approximately 6% to 11% during 2025. This should be treated as a market benchmark—not as the guaranteed appreciation of an individual property.
Appreciation Varied Significantly by Area
Some Los Cabos submarkets experienced considerable price growth, while others recorded lower average sale prices than in 2024.
Single-Family Homes
| Area | 2025 Change in Average Sale Price |
|---|---|
| San José Corridor | +37.9% |
| Cabo Corridor | +10.2% |
| Cabo San Lucas | –22.1% |
| San José del Cabo | –23.9% |
The San José Corridor was one of the strongest-performing luxury segments. Average home sale prices increased from approximately $4.27 million in 2024 to $5.88 million in 2025.
This area includes high-end communities near Palmilla, Querencia, Chileno Bay, and other amenity-rich developments. A greater number of luxury transactions can significantly raise an area’s average price, so the increase does not necessarily mean that every home appreciated by nearly 38%. (oceansideloscabos.com)
Condominiums
| Area | 2025 Change in Average Sale Price |
|---|---|
| San José del Cabo | +10.6% |
| Cabo Corridor | –6.8% |
| Cabo San Lucas | –17.0% |
| San José Corridor | –29.7% |
San José del Cabo recorded solid condo price growth, while other areas saw lower average prices. These decreases do not automatically mean that every existing condo lost value. The results may also reflect a different mix of units sold, including more transactions at lower price points.
Why Average Sale Price Is Not the Same as Appreciation
Average sale prices can be influenced by the types of properties that happen to sell during a particular year.
For example, if more multimillion-dollar homes close in one luxury community, the average price can rise sharply even when comparable properties are appreciating at a more moderate rate. Likewise, a large number of lower-priced condo sales can pull an area’s average downward without proving that every condo declined in value.
To estimate the appreciation of a specific property, it is better to compare:
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Recent sales within the same development or neighborhood
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Similar floor plans, lot sizes, views, and condition
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Price per square foot
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Original purchase price and improvement costs
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Current competition and active inventory
More Inventory Is Giving Buyers Greater Choice
By the end of 2025, Los Cabos had approximately 2,306 active houses and condominiums, an all-time high in the referenced report. Condos represented about 61% of that inventory.
The increase in available properties gave buyers more negotiating power, particularly in condo segments with multiple similar units for sale. Average days on market also increased, reaching approximately 216 days for houses and 184 days for condominiums during the fourth quarter. (Cabo Real Estate Services)
This means sellers must pay closer attention to pricing, presentation, condition, and competition. Properties priced according to recent comparable sales may still perform well, while aspirationally priced listings may remain on the market longer.
Which Properties Are Most Likely to Hold Their Value?
Properties with limited direct competition generally have stronger value protection. These may include:
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Ocean-view homes in established communities
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Residences with access to golf, beach clubs, and resort amenities
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Well-maintained properties in desirable locations
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Units with distinctive views, layouts, or outdoor spaces
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Homes priced accurately according to recent sales
More standardized properties, particularly two-bedroom condominiums in areas with substantial new inventory, may face greater pricing competition.
What Does This Mean for Buyers?
For buyers, the current market offers more selection and, in some segments, greater room to negotiate. However, this does not mean that every seller is willing to accept a significant discount.
Well-located properties with desirable views and amenities may continue to command strong prices. Buyers should examine comparable closed sales rather than relying only on asking prices or broad appreciation percentages.
What Does This Mean for Sellers?
Sellers should not automatically apply a market-wide percentage to their original purchase price. A property purchased for $400,000 did not necessarily become worth $440,000 simply because the broader average increased by approximately 10%.
Its current value depends on the immediate neighborhood, property condition, improvements, competing listings, and recent sales of truly comparable properties.
The Bottom Line
The Los Cabos real estate market showed continued strength in 2025, but appreciation was uneven.
A broad market estimate of approximately 6% to 11% provides useful context, while certain luxury areas experienced much stronger increases and some condo-heavy segments recorded declines in average sale prices.
For an individual buyer or seller, the most reliable measure of appreciation is not the regional average. It is a property-specific analysis based on recent comparable sales in the same community.
Suggested excerpt:
Los Cabos real estate values continued to grow in 2025, but appreciation varied widely by area and property type. Explore the latest market figures and what they mean for buyers and sellers.
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Los Cabos real estate, Cabo real estate market, Cabo property appreciation, buying property in Cabo, investing in Los Cabos, Cabo San Lucas homes, San José del Cabo real estate, Baja California Sur real estate
