The allure of Los Cabos has been on many investors’ minds for a number of years. Los Cabos became a Premium Airbnb Mexico destination as its Real Estate Sector has significantly grown
Between December 2022 and February 2023, Los Cabos Airbnb witnessed a surge in search volume for rental properties, presenting an impressive increase of 80% to 120% compared to the same timeframe the year prior.
Even though Los Cabos is a more expensive beach destination than others in Mexico, visitors are open to spending more on their rental properties.
We conducted a search for the top nine properties listed on the respective Airbnb properties that will meet similar categories in Cabo San Lucas, Mazatlán, Puerto Vallarta, and Cancún during the week of April 16-22 of this year.
The example was made based on the rental of a two-bedroom property accommodating four adults for a 6 nights stay. Los Cabos emerged in Airbnb as a premium destination with the average cost reaching around $17,986 pesos ($1,124.12 USD) translating to a daily rate of $2,569 pesos or ( $160.00 USD) Where in Cancún, the average was $11,579 pesos ($723.00 USD) and daily rate of $1,654 pesos ($102 USD), Mazatlán it was $12,693 pesos ($793.00USD) with a daily price of $1,813 pesos ($11.00 USD); In Vallarta it was $14,296 pesos ($893.50 USD) with a daily price of $2,042 pesos (127.63 USD)
Cancun offers currently a larger database of rental properties and a notable 35% increase in reservations than Los Cabos does, yet this scene is already changing
While local Hotel Associations have raised concerns about Airbnb’s competitive edge, owing to its lower tax liabilities and more lenient operational requirements, industry leaders like Rodrigo Esponda, director of the Los Cabos Tourism Trust, emphasize Airbnb’s profound positive impact on the local economy. With Airbnb guests comprising approximately 13% of Los Cabos’ visitor population, their economic footprint extends beyond accommodations, bolstering airlines and local businesses such as shops, malls, and restaurants.
BEST INVESTMENT OPPORTUNITY: CURRENTLY WITH ALL NEW CONSTRUCTION ITS AN OPPORTUNE MOMENT FOR BUYERS TO CONSIDER LOS CABOS
The present is undoubtedly an opportune moment for investors to consider Los Cabos. The evident demand, combined with the potential for significant appreciation and lucrative rental income, solidifies Los Cabos’ standing as a sought-after investment haven.
Even more so as many developers offer direct, pre-approved financing for 40% or even 50% of the purchase price. Opting for financing when investing in property in Los Cabos is a strategic move that’s gaining traction.
By doing so, investors can leverage the robust rental market in the region. Essentially, as you rent out your property, the income generated from the tenants can be directed towards repaying the loan. This way, the renters essentially pay off the buyer’s mortgage, offering a seamless route to property ownership while simultaneously reaping rental income. It’s a win-win scenario for forward-thinking investors.
Learn more about investment opportunities by visiting www.caboluxuryliving.com
By : Victoria Dorota Antoszkiewicz / Cabo Luxury Living Real Estate