A partnership between Cabo Platinum and BHHS Baja Properties provides insight to the real estate market as it correlates to high-end villa vacation rentals.
— Mishan Andre
CABO SAN LUCAS, BCS, MEXICO, May 2, 2022 /EINPresswire.com/ — Anyone acquainted with celebrity travel and high net worth real estate knows that the sunny beach destination of Cabo San Lucas falls comfortably into both categories. What was once a small fishing village at the tip of the baja is now a world-renowned destination that hosts some of the hottest names in Hollywood, sports and the world’s most prominent businesses.
At the pinnacle of luxury accommodation and real estate sales, Cabo Platinum announces new numbers as their team of industry professionals scour the data emerging from global COVID lockdowns. “It’s as if people ran to the beach and purchased homes the moment the bans were lifted and travel opened,” states Mishan Andre, owner of Cabo Platinum and Vice President of the Commercial division of Berkshire Hathaway Home Services Baja Properties. “We’re seeing massive absorption rates and a diminishing supply within a marketplace that has not seen these numbers since pre-market global meltdown, back in 2006.”
The partnership between Cabo Platinum and Berkshire Hathaway Home Services Baja Properties provides Mishan and his team with unique insight as they are able to monitor the luxury real estate market as it correlates to the high-end villa vacation rental market. “Our clients are buying anything and everything right now – we have purchases that are made sight unseen.” Mishan continues and reveals that many clients are purchasing homes that have been on the market for years, but now they are acquiring and pumping significant investment so they can bring the properties up-to-date and then rent them on the open market. Due to a surging demand in privacy, exclusivity and unique travel stays, institutional investors have also caught wind and are flooding the market.
When looking at the numbers, it’s reported that more than 400 homes have been closed and/or pending in San Lucas in the last year. Expanding that search to include San Jose del Cabo, brings the amount to 725. Including condos in the analysis—in both locations—brings the number of sold and/or pending to almost 2,500. “These numbers are astounding,” says Mishan. “When we look at land closed or pending over the last year within the two areas, we’re looking at just over 450 lots. That is a ton of development and new inventory that will flood the market once the construction is complete.”
Since the supply of homes on the MLS are limited, new investors are looking towards raw land and development. With all of the inventory on the market, there is still a demand for new product. “Many of my clients ask me where to buy and build,” says Danette Reid, luxury sales advisor of Berkshire Hathaway Home Services Baja Properties. “They want to know which property will provide the best long-term value, while also netting annual revenue from vacation rentals,” says Danette. “Of course it depends on budget, but bigger is always better. My recommendation is two adjoining lots that can build two complimentary homes that can be rented together or separately. This diversification allows for so much versatility and long-term strategy. You can accomplish this in a community like Pedregal, where I just happen to have two of the best lots on the market!” After discussion, Danette explained to our team that the strategy consists of two 6-bedroom homes, that share a community space in-between. “It’s the perfect storm for intimate weddings, corporate retreats, bachelor parties, large family gatherings and more. There are very few 12-bedroom homes here for rent and this opportunity would absolutely kill it!”
Real estate investment strategies should be discussed with industry professionals and determined based on the needs of the buyer. The comments in this article are not to be used as investment advice or recommendations. Each individual should do their own research.
About Cabo Platinum:
Cabo Platinum is an award-winning villa rental, real estate, property management, interior design, and concierge service in Los Cabos, Mexico. Established in 2011, family-owned Cabo Platinum offers a collection of carefully selected and curated private villas for discerning travelers. The luxury company offers concierge and estate managers in-depth and personal knowledge of the area while providing bespoke vacation and travel plans. These experiences can include private air transportation, yacht charters, personal chefs, excursions, reservations, and more. Visit the website or social media: Facebook, Instagram, Linkedin, Pinterest, and Twitter.
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