Analysis of the real estate market in Baja California Sur in 2024.
Despite the economic difficulties and conflicts between countries that we have experienced so far in 2024, the real estate market in B.C.S. continues to show resilience. Between 2021 and 2022, the market for property owners wishing to sell did not have as many concerns about the competition that might exist in the market, and benefited from fast and dynamic transactions. This has changed radically over the last few years, as they are now facing a much more competitive market. This, in turn, is also due to a 30% drop in home purchases, compared to the two previously mentioned periods, along with a greater supply with several pre-sale developments being developed throughout Baja California Sur. Although ready-to-live-in homes are very scarce, it is expected that upon completion of all these new real estate projects, ready-to-use properties will increase, benefiting buyers in the upcoming years.
Presidential elections:
The presidential elections in both Mexico and the United States are in this same year. In our country we had as president elect Dr. Claudia Sheinbaum, who promises an important growth in the Mexican economy. On the other hand, elections in the United States have always represented an increase and significant boost in the B.C.S. real estate market, precisely right after the elections, as it has been experienced in the last 4 electoral cycles in the United States.
Despite the economic difficulties and conflicts between countries that we have experienced so far in 2024, the real estate market in B.C.S. continues to show resilience.
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Real estate market data during the first quarter of the year:
Some key statistics of the real estate market, which encompass various types of properties such as apartments, commercial lots, houses, lands, among others, are as follows:
- New listings: 1,998
- Sales volume: $2.6 billion dollars
- Pending real estate transactions: 611 units and $590 million dollars
- Completed transactions: 935 units ($671 million)
- List-to-sale price ratio: 97%.
- Average days on market: 252 days
Regional data:
- The Los Cabos tourism corridor ranks first in finalized real estate transactions, active and pending. The market in this area is in a state of strength and confidence, due to high demand, large sales volumes and a 99% list price to sales price ratio, along with an average sale price of $592,268.57, which indicates a luxurious and ideal market for big investors.
- San Jose del Cabo also stands out as a luxury market, demonstrated by its average sales of $935,771.86 and a 95% list price to sales price ratio. This shows an ideal location for luxury and high-end investments in this region, with its 177 average days on sale, reflecting a market with very high demand and dynamic sales.
- East Cape has been one of the points cataloged as an emerging area within Baja Sur, for its beautiful views and its proximity to the sea and nature, has obtained an accumulated active sales value of $552,418,058.00 dollars, with an average sale of $375,263.93 dollars and 365 days average on the market, making it a place with too much potential and a unique opportunity for investors seeking properties with proximity to the sea and the love for eco-tourism.
- La Paz has shown lately to be a sector of much interest, showing a list price to sales price ratio of 101%, indicating that properties tend to be sold above the original listing price. With an average sale price of $359,049.72 dollars, demonstrating a high demand in the region.
The overall outlook of the market in Baja California Sur for this 2024, presents too many opportunities with a lot of competition and developments under construction that will provide investors with diverse opportunities, this along with the macroeconomic events worldwide, together with the presidential elections in our neighboring country, promises that the market will obtain a growth in the coming years. The resilience and adaptability of the real estate market make this tourist destination one of the best in the world to invest in.
