Hi Cabo Costa Owner,
Great news from Cabo. The first group of RETA members are taking delivery of their Cabo Costa condos right now. In fact, deliveries started in December 2023 and will continue throughout 2024.
I’m also happy to tell you that tourism in Cabo is booming and rental prices remain strong.
This is Janaina Simon, Chief Real Estate Advisor with Smart Money Homes, writing today with the latest construction update for the Cabo Costa community and yet more good news about the Cabo real estate market.
I’d like to take this opportunity to remind you that the Smart Money Homes team and I are here to help however we can.
Contact us at info@smartmoneyhomes.com with any questions and we will get back to you with the answer.
If you have any questions related specifically to Cabo Costa you may contact the developer, Carpenti’s post sales team. You can contact them here: reginamiller@carpenti.com
I would like to start with some great news from Cabo Costa…
The Latest Construction Update From Cabo Costa Developer
The First Batch of Costa Condos are Being Delivered Right Now
Construction at Cabo Costa, where work is entering the final stages.
As I say, the first group of RETA members are taking delivery of their Cabo Costa condos and construction work on the remaining condos is moving into the final stages.
Here’s a brief building-by-building run through of progress at Cabo Costa.
Arena:
The structural work and masonry are complete throughout the building. 100% of the porcelain tile is installed in the Roof Garden units, 80% in the Penthouse units, and porcelain tile installation is beginning on Level 3. With regards to plastering, 50% of the interior walls and slabs are complete.
In terms of the utilities, all conduits in the building are complete. For anyone who didn’t know (like me) conduits are the tubes used to protect electrical wiring. 80% of the wiring for outlets, light fixtures and switches is now complete.
Duna:
All walls up to and including the third floor are complete, including columns. Electrical conduits and plumbing installation have also been completed up to the third floor.
Oasis:
All second-floor concrete block walls are complete, including poured concrete columns and walls for units 203 and 204. Electrical conduits and plumbing installation are complete to the second level walls. Formwork is in place for unit 204 slab. Work continues formwork for unit 203, steel fabrication and formwork for columns and walls on units 201 and 202, and steel fabrication for 204.
Palmar:
Excavation is complete for half the building footprint and the cistern, mud mat is poured, and steel fabrication (which involves molding the steel into the desired shape for construction) continues for the cistern walls and columns and formwork.
Balandra:
Structure and masonry are complete for the entire building. Finishes including tile installation in the bathrooms are 100% complete.
The Stucco finish has been completed on the exterior walls, the halls, and the basement.
All windows, doors, railings, and mirrors are installed on all levels. Electrical and plumbing installation, including fixtures, is 100% complete. HVAC equipment is installed and connected on all levels.
Kitchens, closets, and bathroom fixtures are installed in all units. Painting is complete in all units.
Work is ongoing to complete the pool and roof garden units.
Brisa Building:
The structure and masonry work has been completed for all four levels and the roof garden.
The electrical conduit for outlets, light fixtures and switches is now complete, as is plumbing/sanitation installation up to the roof garden level.
Work on the underground drainage system is ongoing.
The team are entering the final stages of construction with deliveries taking place throughout the year.
Coral Building:
The concrete block walls, columns, poured concrete walls, and slabs are complete on units 201 and 202, along with concrete block walls, columns, and concrete walls on units 203 and 204, and concrete block walls on units 301 and 302.
Electrical conduit and plumbing/sanitation systems are completely installed up to and including the second floor.
Costa Building:
Structural framing and slabs are complete through the second floor. The concrete block wall installation is 80% complete on units 301 and 302. Work continues block wall completion and steel fabrication for concrete columns on units 301 and 302. Electrical conduit and plumbing/sanitation installation continues through the second level.
Work on Cabo Costa will be finishing in 2024.
Marea Building:
Framing and slabs have been completed through second floor on units 301 and 302. Concrete block wall installation is 70% complete on these units. Electrical conduit and plumbing/sanitation installation continues through second level. No current work.
Club House:
The foundation work is complete across the entire area including equipment pads and tanks for wastewater treatment. Retaining walls are complete at pool deck levels. In café, bathrooms, gym and co-working areas, concrete block walls, columns and bond beams are complete. Backfill continues at pool area. Work at the gym is ongoing.
Master Plan:
The excavation work and installation of drainage, water, medium voltage, voice/data lines are continuing from Arena to Duna, Arena to Estela, and Estela to Balandra.
Base course paving continues from entrance to Oasis, Arena to Estela, and Estela to Balandra, along with concrete paving from Arena to Duna, Duna to Estela, and Estela to Balandra.
Excavation is ongoing for plumbing and irrigation lines from Estela to Club House, along with backfill from Club House to Vela.
The Bullish Cabo Real Estate Market and What it Means for Your Cabo Costa Condo
The Cabo real estate market is thriving thanks to strong tourism, overseas investment, and the growing trend for remote work.
Researching the Cabo listings, I was very happy to see the prices that two-bed condos in Cabo are listing for.
RETA members like you had the chance to buy a spacious two-bed condo with ocean views in Cabo Costa from just $188,200.
There are no opportunities like this on the market today…
Looking at listings for similar condos, in the same El Tezal neighborhood, it becomes clear that Cabo Costa was a very special deal.
The first condo I found is a two-bed, like yours in Cabo Costa, and listed at $349,999.
This condo, in the same El Tezal neighborhood as yours is listed at $349,999, considerably more than RETA members paid in Cabo Costa.
I found another two-bed condo in El Tezal which has an even higher price, listed at $455,000. It’s the same size as your condo in Cabo Costa will be and shows how strong the market here is.
This condo is the same size as yours in Cabo Costa will be and highlights just how robust the real estate market is in Cabo.
Cabo has a very limited inventory of quality real estate for sale. With record tourist arrivals and the trend towards remote work continuing, there’s a shortage of quality condos available. The real estate market in Cabo remains bullish.
The Rental Market in Cabo Remains Strong
The market for long-term rentals in Cabo remains strong. Tourists and snowbirds are being joined by the work from anywhere crowd. These remote workers can work from wherever they choose, and many of them are choosing Cabo.
They’re the reason why Cabo Costa has a planned co-working space with incredible ocean views…
I was researching the rental market for some neighborhoods close to Cabo Costa and found the following listings.
The first is for an unfurnished two-bed penthouse in the Solaria neighborhood, a short drive from Cabo Costa. In fact, an unfurnished rental is listed at a price of $3,500 per month, falling to $3,200 per month for a 12-month stay.
This penthouse in the nearby Solaria neighborhood is renting for $3,500 per month, falling to $3,200 for stays of 12 months.
I also found a three-bed condo in the Vista Vela neighborhood, close to Cabo Costa. It’s priced at close to $3,300 per month.
Both these listings are taken from a private Facebook rentals group in Cabo. Demand in Cabo is such that many listings never make it onto the likes of Airbnb or Booking.com.
Vista Vela is another neighborhood similar to Cabo Costa. At the current exchange rate this works out at close to $3,300 per month.
Los Cabos International Airport sees Record Tourist Arrivals in 2023
Image Source: iStock. Los Cabos International Airport received a record number of passengers in 2023. Beautiful beaches, warm weather throughout the year, and the proximity to the U.S. has made Cabo a favorite vacation spot with Americans.
Los Cabos International Airport is celebrating a record year for arrivals with more than four million air passengers arriving through November 2023.
Speaking in early December, Fernando Ojedo Aguilar, Undersecretary of Tourism in Baja California Sur, stated that Los Cabos has witnessed an increase in air passengers of 11% compared with 2022. This follows a 20% increase from 2021 to 2022.
Aguilar noted that as of the end of November 2023, a total of 4.1 million passengers arrived at Los Cabos Airport by air. While the stats for December aren’t yet available, it’s estimated that Los Cabos International Airport will end 2023 with around 4.5 million arrivals.
These numbers make Los Cabos the third busiest airport in Mexico and with new routes being added all the time, 2024 promises to be even more successful.
In October 2022 there were 20 U.S. airports offering direct flights to Cabo. Today, there are 28, a 40% increase in just one year.
Great news for Cabo Costa owners looking to rent their condos.
Los Cabos Named “Best Destination in Mexico” and Receives Other Prestigious Awards from Travel Industry
Image Source: iStock. The slew of awards Cabo received in 2023 show that it’s become a mainstream destination.
Los Cabos has been named as the “Best Destination in Mexico”. The recognition came at the twenty-first edition of the Travel Weekly Readers Choice Awards, held at the American Museum of Natural History in New York. It’s the first time that Travel Weekly Readers Choice has awarded Los Cabos the title.
Los Cabos also featured in Travel + Leisure’s 50 Best Places to Travel in 2024 list. This is particularly exciting as Travel + Leisure is an online brand that reaches more than 16 million readers each month.
According to the Los Cabos tourism site, Los Cabos won a further 18 awards in 2024.
It’s clear that Los Cabos is now an international travel destination and a place that’s firmly in the public consciousness.
New Hotel Construction Underway in Los Cabos to Meet Strong Demand
Image Source: iStock. New hotel rooms are being built, but is this enough to keep up with the ever-increasing demand for accommodation in Cabo?
Hotel construction in Cabo continues apace as high occupancy rates leave hotel chains scrambling for new inventory.
We’re in the Cabo peak season, which runs from December to April, and hotels were at close to 90% capacity for the holiday season of December and January.
Executive President of the Los Cabos Hotel Association, Lilzy Orecí Fregoso, noted that the high demand in Cabo has raised the average rates to more than $550 per night during the holiday season.
This demand is nothing new, and the reason why more than 600 rooms will be built in Los Cabos during 2024, with further rooms being added in the following years. An estimated 2,000 extra hotel rooms are scheduled to be built in Cabo within the next three years.
Datatur Monitoring System has been tracking hotel occupancy in various tourist destinations throughout Mexico and Cabo ranks third in the country for highest average occupancy rate with 76% occupancy through 2023.
Among the new hotels scheduled for opening in Cabo during 2024 are the Four Seasons Resort and Residences, Cabo San Lucas at Cabo del Sol, Park Hyatt Los Cabos at Cabo del Sol, Soho House Beach Club, and Grand Velas Boutique Los Cabos.
That’s all for now. Be sure to keep an eye out for my next update coming soon.
