Building Costs In Cabo

by Luis Acosta

Construction Costs in Cabo (Per Square Foot)

🔹 Average Construction Cost

Approx. $196 USD/ft²

This is a solid ballpark for standard residential construction with good materials and finishes in Los Cabos.

📊 Cost Range by Construction Type

Construction Type	Approx. USD per ft²
Basic (functional)	$130 – $180
Standard residential	$180 – $220
Premium / Luxury	$220 – $450+

🧱 What’s Included in That Cost?

✅ Labor
✅ Standard materials (concrete, tile, stucco, etc.)
✅ Project management and basic engineering
✅ Standard finishes

❌ Usually not included:

Architectural design (usually 5–15% extra)
Permits & licenses
Pools, solar panels, smart home tech, landscaping

🏡 Real-World Example:

Let’s say you want to build a 2,000 ft² home with good finishes (mid-to-high range).

Using $220 USD/ft²:

2,000 ft² x $220 = $440,000 USD

✅ Add a contingency budget of 10–20% to stay safe (Murphy’s Law loves construction projects).

🧠 Quick Takeaways

Budget builds: Start around $130–$150 USD/ft² (but be prepared to compromise on finishes).
Mid-range homes: Typically $180–$220 USD/ft² – a sweet spot for most residential builds.
Luxury homes: Easily $250–$450+ USD/ft² with high-end materials, ocean-view designs, and custom features.

🌊 Cabo Bonus Wisdom

Ocean-view lots and hilltop access can increase foundation and utility costs.
Local materials and labor are generally more affordable than importing finishes – unless you have a marble obsession.
Working with a reputable builder who knows local codes (and how to deal with hurricane-resistant construction) is worth its weight in tequila.

While the Cabo Real Estate Market is still booming with new constructions from condos to oceanfront homes, the best you can do is to work with an experienced agent to get a better picture of buying during a construction of any project.

Key Considerations When Purchasing Pre-Sale Real Estate in Los Cabos

Review and Negotiate Contracts
Carefully read all contracts and request modifications if necessary to ensure a balanced agreement. If there are penalties for late payments during construction, ensure the developer is also subject to penalties for delayed delivery.
Clarify Inclusions
Specify all finishes, appliances, and equipment promised in writing, signed by the seller. Keep documented proof or backup for every commitment to avoid future disputes.
Confirm Amenities in Writing
If the property is in a private community, list all amenities—such as beach club access or memberships—in the contract, signed by the seller. If they fail to deliver, include penalties. For example, I once had buyers whose developer openly advertised a beach club membership, but it was not in the contract and ultimately was not provided.
Vet the Developer’s Track Record
Be cautious with first-time developers. While not all new developers fail to deliver, inexperience can lead to delays and complications that ultimately affect you. Work with developers who have completed multiple successful projects in the area.