Cabo San Lucas, Mexico, located at the southern edge of the Baja peninsula, about 1,100 miles from the U.S. border, has become one of Mexico’s 10 most popular tourist destinations, and is the fourth most popular among resort villages. It has a relatively few year-round residents, numbering only about 40,000, but a growing percentage of those residents are relocated retirees, who come from all over the world to boost Cabo San Lucas’ real estate and tourism markets. Demand for property in Cabo San Lucas has been consistently strong, and the growth in the tourist industry will likely remain strong.
The attraction of Cabo San Lucas can be attributed not only to the beauty of its beaches, mountains and deserts, but also to the abundance of recreational activities, including world-class golf courses, sport fish competitions, whale watching, extreme sports, diving and boating. Cabo San Lucas enjoys a year round climate of moderately warm to hot temperatures, as well as 360 days of sunshine, on average.
While in the past it had been impossible for foreigners to own property in Mexico that was located in the “restricted zone,” which specifically included real estate in Cabo San Lucas, recently enacted laws have made that possible.
A foreigner wishing to own property located in the restricted zone must arrange for the purchase to be made on their behalf by a Mexican bank, which will set up a Mexican real estate trust opened, called a fedeicomisos. If the restricted zone property to be purchased is for commercial use, a Mexican corporation can purchase the property directly because a Mexican corporation is permitted to have foreign owners.
Prospective property owners should seek local qualified professional assistance that can help them streamline and finalize the purchase of property in Cabo San Lucas. The American Embassy in Mexico provides a listing of recommended professionals, but clearly states that they can assume no liability, and that buyers should exercise due caution.
Individuals who buy land with the intent to build in Cabo San Lucas should be aware that building materials are sold at a premium, largely because of the booming economy. There is a wide selection of quality fixtures and fittings available, as well as high end tile and stone materials