The Next Cabo Boom: High Season, Infrastructure Growth, and Rising Property Values

by Luis Acosta

🌴 Why High Season in Los Cabos Is the Perfect Time to Invest in Real Estate

DIAMANTE CABO SAN LUCAS diamante cabo san lucas homes for sale

VIEW ALL PROPERTIES FOR SALE AT DIAMANTE CABO SAN LUCAS

The Energy of High Season in Los Cabos

Los Cabos is buzzing. The beaches are alive, the restaurants are full, and the airport is busier than ever. But beyond the energy and sunshine, there’s another story taking shape — one that savvy buyers and sellers should pay close attention to.

The region is entering a new wave of real estate growth, driven by record tourism, infrastructure upgrades, and international demand.

Tourism Growth: More Flights, More Visitors, More Opportunity

Los Cabos has always been a favorite among travelers, but recent numbers prove it’s reaching new heights:

Hotel occupancy averaged 76% in 2024, climbing from around 70% in previous years.
During early 2025, weekly occupancy reached 80–88%, reflecting record demand.
Over 7 million passengers passed through the Los Cabos International Airport (SJD) in 2024 — nearly 40% more than post-COVID levels.
Major airlines continue to add direct flights from top U.S. and Canadian cities, making it easier than ever for visitors (and potential buyers) to get here.

When tourism surges, the local economy thrives — and so does property demand. Short-term rentals perform better, developers expand, and homeowners see stronger appreciation.

sjd airport los cabos airport

Infrastructure Upgrades: Cabo Is Leveling Up

Roads and Mobility:

Fonatur Underpass: A major underpass is under construction at the Fonatur roundabout in San José del Cabo, a 480 million peso investment aimed at easing one of the municipality's worst traffic bottlenecks.
Paving and Resurfacing: Numerous street paving and rehabilitation projects are underway in Cabo San Lucas and San José del Cabo, with funds exceeding 73 million pesos from the Social Infrastructure Works Trust (FOIS) and municipal budgets.
Federal Road Program: Baja California Sur is set to receive 612 million pesos in 2025 for priority federal highway projects.

cabo fonatur underpass construction

Water Infrastructure:

Hydraulic Works in Cabo San Lucas: Five hydraulic projects began in late 2024/early 2025 with an 82 million peso investment to expand the drinking water network.
Historic Investment: An unprecedented 100 million peso investment has been announced for 2025 across all three levels of government to address water issues statewide, including system improvements in La Paz and Los Cabos.
Desalination Plant: The ongoing desalination plant project remains a crucial component of the long-term water strategy for the region.

Tourism and Urban Development:

Tourist Center Renovation: State and municipal governments plan to invest over 120 million pesos in renovating the historic centers and urban tourist areas.
Port Modernization: The Navy Secretariat (Semar) has a master plan for the Port of Cabo San Lucas (2024-2029) with an investment of almost 688.4 million pesos for expansion and modernization.
Private Hotel Investment: Significant private investment is expected, with approximately $900 million in new hotel development, including luxury resorts like the Four Seasons Resort and Residences Cabo San Lucas.

These projects represent a concerted effort by all levels of government and private investors to modernize and expand Los Cabos' infrastructure to meet the growing demands of its population and the thriving tourism industry.

Why Now Is the Right Time to Act

cabo homes for sale

🏡 For Buyers

Get in before prices rise. The combination of tourism growth and infrastructure expansion almost always leads to property appreciation.
High rental returns. Los Cabos remains one of Mexico’s most profitable vacation rental markets, with average annual income around $32,000 USD per listing in Cabo San Lucas.
Improved quality of life. Better roads, modernized airports, and a growing dining and cultural scene make living (or vacationing) here even better.
Global appeal. With increasing visibility, more international buyers are eyeing Cabo for second homes and retirement properties.

💼 For Sellers

High demand = faster sales. With more buyers in town and more eyes on Cabo, listings attract stronger offers.
Sell into strength. The region’s upgrades and buzz create a sense of urgency among buyers — ideal timing for sellers looking to capitalize.
Stronger positioning. Highlight your property’s investment potential, not just its lifestyle appeal.

Smart Investment Considerations

Location: The Tourist Corridor, Cabo San Lucas, and San José del Cabo remain top picks for appreciation.
Property type: Ocean-view condos, beachfront villas, and lots within gated communities offer the best long-term potential.
Rental strategy: Verify rental permissions if you plan to rent short-term.
Foreign ownership: Learn about the fideicomiso trust system and related taxes before buying.

The Next Wave of Cabo’s Growth

prices cabo real estate market trends

After the post-COVID real estate boom, Los Cabos is now entering its next phase of value growth — one powered by infrastructure and sustained tourism demand.

For buyers, this is the window to secure property before prices accelerate.
For sellers, it’s the moment to ride the high-season wave and attract serious, qualified buyers.

In short: Los Cabos is evolving fast — and the time to act is now.

👉 Explore available Los Cabos properties

👉 Learn how to buy property in Mexico as a foreigner