Mexico’s Coastal Real Estate Boom: A 2020–2024 Market Analysis of Mazatlán, Los Cabos, and Playa del Carmen
From 2020 to 2024, Mexico's premier coastal destinations—Mazatlán, Los Cabos, and Playa del Carmen—have experienced significant growth in tourism and real estate development. This period has been marked by a robust recovery from the pandemic, leading to increased tourist arrivals, economic expansion, and a surge in real estate investments.
Tourism Trends and Economic Growth
Los Cabos
Los Cabos has demonstrated one of the fastest recoveries in Mexico's tourism sector. By October 2024, the region welcomed approximately 278,800 domestic and 162,100 international air passengers. The cruise industry also saw growth, with projections of 240 cruise ship arrivals and an estimated economic impact of $75 million pesos, a 20% increase from 2023.
Playa del Carmen (Riviera Maya)
The Riviera Maya, encompassing Playa del Carmen, maintained its status as a top destination for international tourists. In the first quarter of 2024, the region received 5.42 million tourists, marking a 3.5% increase compared to 2023. The cruise sector also thrived, with 2.34 million cruise passengers arriving in the first quarter, an 18.9% rise from the previous year.
Mazatlán
Mazatlán has solidified its position as a key tourist destination, capturing 80.2% of Sinaloa's tourist arrivals in 2022. The city experienced a 3.6% increase in overnight tourists from 2021 to 2022. The cruise industry rebounded significantly post-pandemic, contributing to the city's economic vitality.
Real Estate Development and Investment Opportunities
Los Cabos
The real estate market in Los Cabos has been buoyed by luxury developments and significant foreign investment. In the first quarter of 2025, Baja California Sur attracted approximately $857 million USD in foreign direct investment, positioning it fourth nationally. The average home price in Los Cabos increased by 13% from 2023 to 2024, reaching $768,554 USD. The luxury segment, particularly properties priced above $10 million USD, saw notable activity.
Playa del Carmen
Playa del Carmen's real estate market has been characterized by steady growth and diversification. From 2015 to 2024, property prices increased by 15%, with the average price per square meter rising from $2,471 to $3,830 USD. The city has seen a shift towards smaller, more affordable units, catering to a growing demand for vacation rentals and investment properties.rivieramaya-homes.com
Mazatlán
Mazatlán's real estate sector has experienced a renaissance, with a significant number of new developments and pre-sale projects. In 2024, the city reported 148 projects in pre-sale or under construction. The average property price in tourist areas reached $2,539 USD per square meter, with some areas like Cerritos experiencing up to a 30% increase in property values. The city's affordability compared to other coastal destinations makes it an attractive option for investors.
Conclusion
The period from 2020 to 2024 has been transformative for Mexico's coastal real estate markets. Los Cabos has emerged as a hub for luxury investments, Playa del Carmen continues to attract diverse investors with its robust tourism and infrastructure, and Mazatlán offers high-growth potential with more accessible entry points. Investors seeking opportunities in Mexico's coastal regions should consider these destinations for their unique advantages and growth trajectories.
