Real Estate in Baja
Real Estate opportunities in Baja range from very affordable to ultra high-end, and everywhere in between.
The availability of U.S. based title insurance along with the arrival of U.S. based financing has definitely changed the real estate market in Baja!
The real estate market in Baja consists of some of the most sought after property in all of México. There are several reasons that Baja real estate continues to be fairly active even when real estate sales in other parts of México have tapered off considerably. One reason is the old real estate motto – Location – Location – Location! Baja Sur is located less than 2½ hours, by air from its single largest market of buyers who are located in Southern California. Many northern Baja developments, where sales have slowed considerably, can be reached from San Diego in less than an hour by car.
Another reason is that Baja, especially the southernmost area, is considered to be a very safe location. In fact, Baja California Sur is the safest state to live in all of México. This combined with the fact that many of the resales on the market in Baja are a direct result of the current downturn in U.S. real estate. Many of these properties are therefore listed to sell quickly at the lower end of the value scale, for a hopefully quick sale.
The availability of U.S. based title insurance, U.S. based closing services and U.S. financing (this option has slowed considerably, with tight credit practices in place all over the world) has definitely changed the real estate market in Baja. Another factor in the Baja real estate market is the fact that many of the real estate companies have become more sophisticated. Real estate brokers must belong to AMPI and their salespeople are now being more formally trained and educated. All of this is a good thing for those interested in moving to Baja or just investing in local property.
There is no lack of inventory, with new developments being built all over southern Baja, and even more in the planning stages. Los Cabos, the East Cape and Todos Santos are the ever popular hot spots. La Paz is an emerging powerhouse in the real estate picture with a lot of new construction and more well planned developments on the way. The variety of offerings in the market staggers even those with active imaginations. Golf course and marina properties seem to be the big thing in La Paz, ocean view properties in Los Cabos and the East Cape are doing well, while the Todos Santos area seems to be selling a bit of everything.
The weather is another big selling point for southern Baja. There is an incredibly large number of people who live in places where there is snow and extreme cold for almost half of every year. That kind of weather gets old real fast and the mild Baja climate is a big relief to many northerners who are becoming owners of Baja property.
Prices? All over the map, depending on what you are looking for. A recent MLS search showed prices for lots ranging from a low of $6,000 U.S. for a lot on the East Cape to $50 million + U.S. for a large development property near Loreto. Single family homes range from under $50,000 U.S. to over 12 million dollars. Prices of condominiums are as spread out as the rest of available properties – the lowest being a 2 BR – 1 Bath in La Paz – to over $10,000,000 for a 6 BR beachfront condo situated in a high end Los Cabos resort.
One thing is certain, Baja will continue to grow in popularity. All of the new construction is going to create a more competitive real estate market. A whole new group of retirees from the United States and Canada are just starting to explore their options. Baja is a pleasant, easy to get to, alternative for many of these retirees who are seeking, affordable housing, milder weather, reduced stress and a less expensive environment in which to live.