Market insight

By Leticia Diaz Rivera

For many years, the South of Baja (particularly the Los Cabos area) has been the hot spot for real estate investors. With a perfect climate for indoor and outdoor activities, miles of white sandy beaches and the convenience of short flights into La Paz and Los Cabos, the south of Baja offers the perfect getaway for Mexican and American second home buyers. Demand for properties has grown and, with the US credit situation and its potential impact on the real estate market, no one can help but ponder what the next smartest real estate investment is.

Besides Los Cabos and La Paz there new areas emerging with attractive developments on the East Cape Corridor and on the New Pacific Corridor between Cabo San Lucas and Todos Santos, where you can enjoy the beauty of the coast line and the mountains. Mountainside of Pacific Corridor offers a completely different Baja as you know now, with organic ranches and true spring.

With an average increase in values of up to 17% per year over the past 6 years in Pedregal de Cabo San Lucas, and up to 25 % in Pedregal de La Paz over the last two years, developers and investors are reaping the rewards. Steadily the South of Baja continues to move ‘up market’ with developers and investors pushing the bar ever higher in terms of luxury and service. Ultra luxurious specialty resorts are developing exclusive retreats to include Golf, Yachts, Marinas and full service hotels providing every convenience in terms of service to the ever discerning buyers. The growth and diversity of the residential communities and added amenities offer a choice of lifestyle.

Although the ripple effects are undeniable, development of phenomenal properties persists and sales continue to occur in the high end. Sellers need to leave their comfort zone to be aware that the competition is not as it used to be. Buyers have an ever increasing range of options ranging from private golf projects competing head to head to the full-service environment, to projects that look to pamper their clients with all the conveniences of an ultra luxury hotel. Opportunities exist in select niches. Land sales are still an area where buyers can capture substantial value and intelligent investors are recognizing it and are buying residential lots and larger tracts of land.

With an average of 7.25 properties sold per month throughout all the offices in the South of Baja from January to August 2008, Coldwell Banker Riveras maintains its vision of being the #1 real estate company in BCS, which offers a full range of real estate services, and bases its value on more than 30 years of real estate experience and expertise, proven track record and quality service. Weather you are buying or selling, Coldwell Banker Riveras offers our clients consultation, with the most accurate information available, to devise the most critical options on buying, selling, rental and financing options in the market. For more information, send us an email at info@cbriveras.com.