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Best Places to Invest in Airbnb in Los Cabos, Mexico: 2023 Edition

Key Takeaways

Airbnb hosts can obtain a good passive income by managing rental properties in Los Cabos since it offers a strong tourist market, good living conditions, high profitability, and more. 

Discover some of the benefits property investors can enjoy when investing in Los Cabos real estate market.

The top rental markets in Los Cabos are featured! We’ll also reveal their recommended property types and specific Airbnb data. 

Introduction

Los Cabos is a world-class destination that could be considered a paradise with its picturesque tropical and desert landscapes that allow visitors and locals alike to enjoy wonderful views. This municipality can seduce everyone with unique experiences, delicious dishes, and a wide range of leisure activities throughout the year.

This wonderland is surely a perfect vacation spot, and this is further confirmed by the number of visitors that Los Cabos welcomes each year. Yet, this destination has not only captured the travelers’ attention but also that of property investors. 

Having clear goals is an important factor in investment success, especially if you are considering investing in the rental market of Los Cabos. For this reason, a good way to start your Airbnb journey is by knowing the most profitable locations for investment properties in Los Cabos. 

In this article, you can find the best places to invest in Airbnb in Los Cabos. As a bonus, we’ll also mention the main reasons why real estate investors like you should consider investing in this destination. Continue reading to learn more about this market!

Reasons to invest in vacation rental homes in Los Cabos

Investing in properties in Los Cabos and then listing them on platforms like Airbnb is certainly a smart way to build your path toward financial freedom. Perhaps, that’s why Airbnb is so popular among young investors! But before making an important decision in your investment journey, it’s always good to know what kind of advantages its rental market can offer to real estate investors such as yourself.

If you’re targeting Los Cabos, then make sure to check out some of the reasons why buying rental properties in Los Cabos can deliver fruitful rewards to you:

  • Stable economy

Los Cabos owns a privileged location and a world-class infrastructure.  At the same time, it offers striking tropical and desert landscapes that have made it t a popular tourist destination. Thanks to this, the municipality enjoys a stable financial situation. Most of its economic activities are concentrated in the services sector, specifically in the tourism industry. 

Another sector that plays a significant role in Los Cabos’ economy is its consolidated real estate. Considering that Los Cabos is a world-class destination that offers a strong tourist market, the demand for rental properties keeps growing, which can be very beneficial for those investors who aim to cater to holiday accommodations.

  • Great quality of life

With almost 320 sunny days, a prime location, and amazing living conditions, Los Cabos is the ideal place to spend your days while enjoying the best experiences. Overall, the cities that belong to this municipality provide friendly and safe environments where you can have a relaxed lifestyle close to the sea. Additionally, Los Cabos has great facilities like schools, hospitals, and shopping centers as well as an excellent transportation system.

Furthermore, Los Cabos’ real estate market offers a variety of housing options at different prices. From affordable apartments to luxury houses in residential communities, you can certainly find a property that fits your goals and budget. There’s also the option to access a direct financing plan with attractive interest rates!

  • Enjoy this leisure paradise!

If you’re a fan of sunny days and enjoy exploring or admiring paradisiacal places, then you will surely love Los Cabos – a destination that can absolutely captivate your heart as soon as you step foot on one of its towns. This municipality offers a variety of wonderful beaches with Blue Flags, splendid cliffs, tons of golf courses, and lovely towns. Moreover, we must add that Los Cabos is home to the best coastlines in the country in terms of its conservation.

Los Cabos is the perfect destination to enjoy unique experiences and adventures, especially if you’re an outdoor lover who likes to practice water sports. Of course, we can’t forget to mention Los Cabos’ charming towns with their vibrant streets, lively events, and top-tier restaurants. But the icing on the cake is that Los Cabos opens the doors to an unforgettable activity: seeing or interacting with marine creatures up close such as grey whales, sea lions, turtles, and stingrays.  

Is Airbnb Profitable in Los Cabos?

Don’t worry too much because Airbtics confirms that real estate investments in Los Cabos can help you to obtain a good return on investment! Of course, you should have in mind that the level of profitability that a listing can generate highly depends on factors like the listing’s location and how many bedrooms it has. Thus, choosing the best type of property type for your Airbnb is just as important.

If you’re thinking of buying a property to let in Los Cabos, then you would like to know how much profitability a listing can generate. Let us give you a hint! – An Airbnb host can expect an average annual revenue of $45,322 (773,644 MXN) and a median occupancy rate of 55% for operating a 2-bedroom property in Los Cabos as confirmed by Airbtics’ data.

best places to invest in los cabos

5 Best Places to Invest in Los Cabos

The majority of cities and towns located in the municipality of Los Cabos are popular tourist destinations. Thanks to this, most of them offer interesting investment opportunities, albeit each of them can generate different levels of profitability. For this reason, it can be quite a challenge to choose the right location to set up your rental property in Los Cabos.

Check out the best places to invest in real estate around Los Cabos and are recommended for starting an Airbnb business:

1. Cabo San Lucas
  • Total Number of Airbnb Listings: 1,175
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $330,000 (5,642,614 MXN)
  • Airbnb Annual revenue: $64,562 (1,102,070 MXN)
  • Gross rental yield: 18.71%
2. El Tezal
  • Total Number of Airbnb Listings: 113
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $329,000 (5,625,515 MXN)
  • Airbnb Annual revenue: $55,815 (953,728 MXN)
  • Gross rental yield: 16.97%
3. Tourist Corridor
  • Total Number of Airbnb Listings: 838
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $375,000 (6,412,062 MXN)
  • Airbnb Annual revenue: $49,607 (847,650 MXN)
  • Gross rental yield: 13.23%
4. Cabo Bello
  • Total Number of Airbnb Listings: 160
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $328,677 (5,620,000 MXN)
  • Airbnb Annual revenue: $41,900 (715,959 MXN)
  • Gross rental yield: 12.75%
5. San José del Cabo
  • Total Number of Airbnb Listings: 415
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $328,000 (5,608,417 MXN)
  • Airbnb Annual revenue: $33,599 (574,116 MXN)
  • Gross rental yield: 10.24%

Summary

Based on the data, we can conclude that Los Cabos’ real estate market offers some profitable locations where investors can obtain a good return on investment by listing their property on Airbnb. 

However, we recommend exploring different locations and reviewing all options carefully so that you won’t miss out on better opportunities. Hence, you should take advantage of the digital era and analyze a market using dynamic data with Airbtics! 

After discovering the best places to invest in Airbnb in Los Cabos, we encourage you to continue your research while checking Airbtics’ short-term rental estimator. This way you won’t only enjoy the best ocean views of Mexico, but also a rewarding financial experience! Improve your strategies with data-based decisions and boost your profitability now!

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