Real Estate Market Perspective in Baja California Sur
As a dual citizen of Mexico and the U.S., along with my partner Richard Wesselink, developers of the high end beachfront property El Encanto de La Laguna in San José del Cabo, we were amazed at the roaring comeback of the Los Cabos Real Estate Market from hurricane Odile. Developers have learned after the hurricane that we need to up our game. As an example, Chileno Bay Resort and Residences, which opened in February, are building with a different type of construction, similar to how you would build a high-rise in any major city in the US now says John Domanic, Director of Sales for Chileno Bay Resort and Residences. A lot of hotels that were damaged also took the opportunity to remodel.
Visitors are responding positively to the new Los Cabos. The destination ended 2016 with a 70% occupancy rate. A terrific gage of growth is the number of flights arriving at Los Cabos International airport. Today there are 500 weekly connections that serve Los Cabos International Airport which is undergoing a 48 Million enhancement to be completed in 2019 to serve continued growth. The expansion will include five new gates and a complete refurbishment of Terminal 1 according to Rodrigo Esponda, Managing Director of the Los Cabos Tourism Board.
On the commercial side, in the first quarter 2017 Los Cabos has welcomed the Grand Velas, Chileno Bay Resort and Residences and The Towers at Pacifica, a resort-within-a resort concept at the all-inclusive Pueblo Bonito Pacifica. Los Cabos plans on adding a total of 2,738 new hotel rooms a 17% Increase from 16,000 rooms.
Other future properties include Montage Los Cabos, the all-inclusive Hard Rock Hotel, Four Seasons Resort and Residences Los Cabos at Costa Palmas, and Grand Solmar Rancho San Lucas. We anticipate seeing brand-new product from The Ritz-Carlton, Park Hyatt, Le Blanc, Nobu and Solaz Los Cabos.
In addition to the strong growth in the Los Cabos commercial market the Residential Real Estate Market is on fire. Statistics from Martin Posch Los Cabos Market Report from November 2016 thru May 1st 2017 are as follows:
The total sales of all residential properties in all price ranges are up by 25% to 182 Transactions! The total sales volume is up 38% to $112,517,000 USD.
Condos:
The number of transactions that closed is up by 20% to 101. The total sales volume is up by 29% to $39,324,000 USD. The average sales price is up 7% to $389,000 USD.
Single Family Homes:
Closed transactions for single family homes for the same period are up by 30% to 81 units. The total sales volume is up a whopping 42% to $73,194,000 USD! The average sales price is up by 9% to $904,000 USD.
Total number of closed sales for properties above $1,000,000 USD is up a stunning 75% to 35 closed escrows. The total sales volume is up 80% to $76,328,000 USD. The average sales price is up by 3% to $2,181,000 USD.
Residential Developments in Los Cabos are continuing at a very strong pace. Costa Palmas, the new Four Seasons Resort, is designed for the Super Rich Wealthy Billionaires in mind. Exactly 58 miles from Los Cabos International Airport on the Sea of Cortez, and very convenient for Private Jets, this 1,000 acre Beachfront Development certainly will be home to many of the “Rich and Famous.” The 250 Slip Deep Water Marina is capable of accommodating 250 Foot Mega Yachts. Don’t expect to buy a limited beachfront residence for less than 15M. To learn more about Costa Palmas check out CostaPalmas.com.
Another high end beachfront development is Maravilla. This spectacular project is located on the site of the former Hotel Twin Dolphin between San José and Cabo San Lucas. Comprised of villas, townhomes, custom homes and custom homesites the customer has an array of options to choose from. Maravilla also has a 60,000 square foot club with all the activities and amenities you can think of including a Doctor’s office (a real nice touch!) and climbing wall. Check out Maravilla at MaravillaLosCabos.com.
Chileno Bay Golf and Beach Club is another high quality development in the corridor in Cabo San Lucas. This exquisite development of 400 Residences that is comprised of casitas, haciendas, villa’s, custom homes and homesites ranging from 1,200 sq. ft. to 19,900 sq. ft. has something for everyone. A very nice clubhouse with excellent amenities it is hard to beat. Check out Chileno Bay at ChilenoBayClub.com.
One mile from Todos Santos, halfway between La Paz and Cabo San Lucas is a quaint affordable development Tres Santos. You can purchase a property on the beach, town farm, or on the hillside. Check it out at TresSantosBaja.com.
If you are looking for a secluded Beachfront development that is only 20 minutes from San José International Airport near the historic restaurant Buzzards, and adjacent to Puerto Los Cabos that allows you to “Get Away from It All” look no further than El Encanto de la Laguna. This pristine community on the Sea of Cortez offers the best bargain with a very high quality of construction. The customer has the choice of full or fractional ownership. Full ownership condos are priced from 600k up and homes from 1M-3M. Fractional ownership in the beachfront condos start as low as 55k. If you are a serious qualified potential buyer you can arrange a “Try and Buy.” Check out ElEncantoLosCabos.net.
Los Cabos is ranked in the Top 10 Tourist Destinations in the world. I am proud to be associated with Los Cabos!
Steve Galvanoni and Rick Wesselink have been in the Real Estate Industry in Southern California for many years as a Residential builder and Commercial developer of Jack in the Box and Sonic Restaurants. Together they own East Cape Holdings that has interests in Commercial and Residential properties in Los Cabos. For more information – please visit: ElEncantoLosCabos.net or email info@ElEncantoLosCabos.net.