The real estate market in Baja California Sur is undergoing significant changes in 2024. While the market remains robust, it is marked by increased competition and shifting dynamics compared to the peak years of 2021 and 2022. Here’s a deep dive into the current trends and what buyers and investors can expect this year.
A Competitive Landscape
In 2024, sellers are facing a more challenging market with around 30% fewer units going under contract than in previous high years. This increased competition means that sellers need to be more strategic in pricing and marketing their properties to stand out.
Broader Inventory for Buyers
On the flip side, buyers are finding a more diverse inventory, including a higher number of new construction properties. This expansion in options is beneficial, although it comes with the trade-off of fewer turnkey-ready properties. However, as construction projects progress, the market is expected to see more turnkey-ready homes becoming available, providing excellent opportunities for buyers seeking move-in-ready options.
Political Influences in 2024
The dual election year in both Mexico and the United States is set to impact the real estate market dynamics in Baja California Sur. Historically, U.S. elections have positively influenced the Baja market, and this year is expected to follow that trend. The post-election period often brings increased activity and investment, adding a layer of optimism for the latter part of 2024.
Market Statistics and Insights
The first half of 2024 has shown diverse activity across various property types, including commercial properties, condos, houses, land, and multifamily units. Here are some key statistics:
• New listings: 1,998
• Sales volume: $2.6B USD
• Pending transactions: 611 units totaling $590M USD
• Closed transactions: 935 units totaling $671M USD
• List to sale price ratio: 97%
• Average days on market: 252 days
Regional Market Breakdown
Cabo Corridor: Luxury and High Demand
The Cabo Corridor is leading with high activity in active, pending, and closed transactions. The average sales price of $592,268.57 and a list to sale ratio of 99% highlight the area’s strong demand and luxury market status.
Cabo San Lucas: Diverse Market Appeal
Cabo San Lucas exhibits balanced activity with a list to sale ratio of 98% and an average sales price of $430,057.90. This region appeals to a wide range of buyers, from mid-range residential to commercial investors.
San Jose del Cabo: Premium Market Segment
San Jose del Cabo stands out with an average sales price of $935,771.86 and a list to sale ratio of 95%. The shorter average days on market (177 days) indicate strong demand and quick sales in this premium market segment.
East Cape: Growth Potential
East Cape is emerging as a high-potential investment area with a sales volume of $552,418,058.00 and a list to sale ratio of 98%. The average sales price of $375,263.93 and longer days on market (365 days) suggest opportunities in niche markets like eco-tourism and beachfront properties.
La Paz: Affordable and Growing
La Paz demonstrates strong demand with a list to sale ratio of 101%, meaning properties often sell above their listed prices. The average sales price of $359,049.72 supports its reputation as an affordable yet growing urban center, suitable for various investment types.
Opportunities and Strategic Insights
The 2024 real estate market in Baja California Sur offers a complex yet promising landscape. Increased competition and a shift towards new constructions are shaping the market dynamics. Buyers and investors have numerous opportunities, especially as new constructions reach completion, providing more turnkey-ready properties.
Understanding the regional specifics and market trends can help investors make informed decisions and capitalize on high-potential areas. The market’s resilience and adaptability continue to make Baja California Sur a desirable destination for real estate investment.
For further information and to explore real estate opportunities, visit Ronival Real Estate. Stay connected with us on Instagram at @nickfong_ronival and @ronivalrealestate and listen to The Nick Fong Podcast for the latest insights.
