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Real Estate Market in South Baja
Real Estate Market In South Baja
Foreign Ownership In Mexico
- Investment Properties Mexico (IPM) provide expertise in Mexican Real Estate and Investment Opportunities. Their 2019 article '4 Tips for Buying Property in Mexico As a Foreigner' confirms that foreign citizens can purchase property anywhere in the country, however Mexican Constitution does have certain requirements for those who own land inside the 'restricted zone'
- For properties located within the restricted zone, foreign buyers must simply use a bank trust known as a 'fideicomiso', wherein the bank acts as a trustee by holding the deed for the purchaser who retains all legal rights of ownership. IPM produce a guide which further details the process and can be found here
- All of Baja is in the restricted zone - including South Baja. California realtors Rosarito Beach Realty confirm this information on their website
- American advisors Live and Invest Overseas produce a step by step guide for Expats buying property in Mexico with more important information available
South Baja Overview
- South Baja (official name Baja California Sur) is a state in North-West Mexico. It's population according to a 2015 census is approximately ~ 712k. GDP for 2019 was reported at 157,812.6 million Mexican Pesos (~ $7.9bn in USD), and was said to be growing at an annual rate of 4.52%
- Agriculture is the main export, with organic agriculture being a major product of the Todos Santos area. Fishing, salt production and mining are other large contributors to the economy. Tourism, commerce and services make up the majority of GDP
- Demographic profiling data shows a steady population increase between 2008-2018. The population of South Baja grew by 5.8% between 2016 and 2018, which compares to a growth of just 2.3% for the whole of Mexico during the same period
- Average housing price in South Baja for the second quarter of 2020 was 1,154,560 Mexican Pesos (~ $58k in USD). This was slightly above the Mexican national average of 1,141,890 Mexican Pesos (~ $57k in USD)
- 2019 investment analysis of Mexican real estate markets by Sociedad Hipotecaria Federal (SHF) confirmed Mexico's housing market was strengthening, despite a struggling economy with the Baja region, consisting of some of the most sought-after property in Mexico
- There is strong evidence that Baja (including South Baja region) has been experiencing strong growth throughout the period from 2015 onwards, in both commercial and residential real estate markets. The Martin Posch Los Cabos Market Report (referenced here) provides statistics that show in the six months from November 2016 to May 2017, total sales of all residential properties in all price ranges was up by 25%m and the total sales volume was up by 38%
- The effect of the Covid-19 Coronavirus pandemic in 2020 was also reported. The pandemic did cause growth to slow during 2020, however the weakening in value of Mexican Pesos against the US Dollar has created increased opportunities for foreign investors
South Baja Real Estate Developments - Since 2017, the following properties were opened or scheduled to open
- Grand Velas - Luxury holiday resort rated No.1 Mexican Resort by Trip Advisor
- Chileno Bay - Auberge property described as the premier beachfront resort and residential villa community
- Towers at Pacifica - Luxury golf and spa resort, consisting of three tower blocks
- Puerta Bonito Pacifica, Montage Los Cabos, the Hard Rock Hotel, Four Seasons Resort and Residences Los Cabos at Costa Palmas, Grand Solmar, Solaz Los Cabos and Rancho San Lucas are just a few other new developments in the South Baja area
Real Estate Markets Within Coastal Areas/Neighborhoods in South Baja
- A 2015 article by Bajasmart real estate found that the average price on ocean front (beachfront) land in the following areas was as follows: San Jose del Cabo - $1,200 per m2, Cabo San Luas - $1,877, East Cape - $140, La Paz - $130 and other lots in the area were $105
- The Agency Los Cabos suggested in 2020 that in Todos Santos, beachfront land sells for $44 per square meter on average, and street front land sells for $7
- The same study by Agency Los Cabos compared house prices in Todos Santos and nearby Pescadero, and found that the average prices were $2,188 and $3,340 per square meter respectively. Higher average prices for Pescadero are attributed to the fact that these houses were located on the beach front, as opposed to the Todos Santos houses which were located in the centre