Los Cabos real estate market:
what buyers should know in 2026

Don’s local perspective

From a rapid boom to more selective buying

Don recalls the pandemic period bringing buyers who could work remotely and, in some cases, sell a home in the United States at a strong price. In his experience, that demand encouraged new development and higher asking prices. These are his observations from working in Cabo, rather than a measured breakdown of every buyer’s motivation.

His concern today is the relationship between price, buyer demand and a project’s ability to finish. A property should be assessed against the choices available to a buyer now. What someone hoped to sell for during a stronger market is useful history, but it is not a valuation.

Price and value

Are Cabo property prices falling?

Some sellers have reduced asking prices, but a reduction alone cannot tell you how much a property’s market value has changed. An ambitious original price may have been above what buyers would pay. Market-wide averages can also change when a different mix of homes sells.

For a property you are considering, Don’s approach is to examine:

• Recent comparable sales: similar location, property type, size, condition, view and amenities, with attention to when the agreement was reached.
• Current competing listings: the alternatives you could buy with the same budget.
• The complete ownership budget: HOA dues and assessments, maintenance, insurance, utilities, trust fees where applicable and closing expenses.
• Your intended use: the layout, access, community rules and practical features that fit full-time living, vacations or rental plans.

A large price cut deserves investigation. The useful question is whether the resulting price makes sense against comparable properties and your plans.

Know what you can inspect

Completed property or preconstruction?

For nearly three years, Don has favored completed properties in his buyer guidance, particularly for condos. You can visit the actual residence, inspect the finishes and surroundings, and confirm the view. Completed construction still requires title review, appropriate inspections and confirmation of possession and inclusions.

Preconstruction calls for a separate investigation. Don would consider it only where the developer has a demonstrated completion record and the financial capacity to finish through a period of weak sales. Those questions must be answered for the particular project.

• Which comparable projects has the developer completed and delivered?
• What construction funding is already available or committed, and how dependent is completion on future sales and buyer installments?
• What do the contract, independent legal review and construction review establish about the land, approvals, delivery obligations and buyer protections?
• If land is contributed through a joint venture, who supplies the cash required to build?

A land contribution can be valuable while leaving a construction cash requirement. A developer’s previous success is a starting point for verification, rather than proof that a new project has sufficient funding.

Understand the currency exposure

How can the dollar–peso rate affect a purchase?

A developer receiving fixed dollar payments while paying peso costs can receive fewer pesos if the dollar weakens. For illustration, US$100,000 produces MXN2,000,000 at 20 pesos per dollar and MXN1,700,000 at 17—a 15% reduction in peso receipts before conversion charges. This is an example, not the budget of a specific project.

A buyer faces a related distinction: peso-priced expenses become more expensive in dollars when the dollar weakens. A home with an unchanged US-dollar asking price does not automatically become more expensive in dollars.

Exchange rates have moved in both directions since 2020. Confirm the agreed currency for the price, deposits, closing costs and ongoing bills. A project’s actual exposure also depends on payment timing, financing arrangements and cost commitments.

Exchange-rate reference: Banco de México’s official exchange-rate series.

Put the guidance to work

Compare completed homes and condos

Start with the property type and setting you want. These focused selections let you compare prices, photographs and details, then ask for help with the homes that interest you.

For more locations and property types, explore the full MLS search. That broader inventory can include preconstruction. Read the Cabo buyer’s guide for ownership, closing and ongoing costs.

What does this mean if you are selling?

Start with a supported pricing range and a clear understanding of your goals. If you choose to test a higher price, agree on a review date and the evidence that would justify a change. Showings alone do not establish that buyers accept the asking price.

Don’s aim is to explain the market evidence and the tradeoffs so the seller can make an informed decision. Read our approach to pricing and selling Cabo property ↗.

Questions buyers are asking