Los Cabos is under construction! From the Four Seasons in the East Cape to the Ritz Carlton in Puerto Los Cabos; SPG’s Solaz in the Corridor; Auberge’s Chileno Bay Resort & Residences; a Hard Rock All-Inclusive Hotel and Nobu constructing a signature Hotel directly next to Diamante on the Pacific-side. And these are just to name a few.
Some say the “Baja is Booming!” What seems like another obnoxious expletive from an episode of Jim Cramer’s Mad Money, turns out to be a very accurate statement about current affairs in a vacation haven that continually ranks “Top 3 Destinations in Mexico” [tripadvisor.com].
When driving from San Jose del Cabo Airport (SJD) to the IGY Cabo Marina, there are more than twenty cranes at work. Passing through this area at 5pm on a weekday is a clear indicator that the hundreds of construction crews are rapidly adding value to a recently desolate area. With multiple luxury residential communities selling pre-construction and multi-million dollar homes changing hands after being on the market less than 100 days, Los Cabos has an abundance of positive momentum.
Even Starwood Property Group has made itself a part of the new and evolving action. From around the world, industry professionals know that when SPG begins to build, there is a major increase in demand that comes as part of their monstrous database. In addition to SPG’s currently operating Sheraton project, the company’s new resort called Solaz will have fractional and full-ownership components. “They have taken over a major part of the corridor. It’s a piece of land that other flags have had their eye on for as long as I can remember,” says Paul Geisler, Broker at Dream Homes of Cabo Real Estate.
Once San Jose’s Puerto Los Cabos is complete, the corridor is void of any more space for development and Cabo has expanded up the Pacific-side of the Baja; what will be next?
When seeking insight from external factors, some see sage advice when observing trends in government agencies and their plans forward thinking. With a quick glance at the increase in Pacific-side infrastructure, there is obvious investment in areas north of downtown Cabo. The $34 million USD investment in the new toll road from the International Airport in San Jose to the Pacific is also an indicator of access to new areas not considered in the past. Additionally, the smooth new road that flows all the way to La Paz, through Cerritos, Pescadero and Todos Santos would be a favorable barometer for future traffic in the eye of city leaders.
Observing investment in new development, an individual with knowledge of the area will notice massive near-future plans for beachfront property spanning north on the Pacific-side. In addition to the aforementioned Hard Rock and Nobu Hotels, the new growth is driven by Diamante and the property’s new Tiger Woods-designed Golf Course. In addition, the trending growth spans north over several luxury communities, such as Quivira, Rancho San Lucas and Rolling Hills. The expansion is astounding and the amount of attention the properties are commanding are bringing new people to the area every day.
For entrepreneurs looking at opportunities with exponential future growth, many have turned their interest towards Bed & Breakfasts in less than established areas. With the popularity of Rancho Pescadero, Posada de la Posa and the Todos Santos Inn; there are a myriad of successful operations already paving the way. Taking this concept one step further and looking at areas under heavy development, an outsider looking in can see the fastidious increase in productivity in the beach town of Cerritos, just 8 km south of Todos Santos. In addition to Tres Santos Beach Community and Portus’ new Cabo Cerritos Luxury Condos project, the area is growing with several new hotels, restaurants and activity centers.
For a strategic investor with creative insight, an acquisition in Cerritos will make for a creative, long-term play. As an example, Hacienda Cerritos, which is currently on the market, can be an incredibly exciting opportunity. The Spanish-style luxury boutique hotel boasts 11-rooms, a massive wrap-around swimming pool, 70-meters of ocean frontage and plenty of opportunity for a fresh and creative F&B program; the existing hotel makes for a very attractive investment. With consideration to value and knowing the area’s growth is imminent, the property has almost 500-square meters of additional land available for expansion. Whoever takes on a new project in this quickly developing area is going to need room for increasing demand and thankfully, Hacienda Cerritos comes with this element as part of the package.
When looking into what is next for the Baja, there are a multitude of elements that can be seen as reliable sources of information. From condo and hotel development, to government infrastructure investments, to new restaurants and future planned projects; there are many facets to consider. Because people who live in Los Cabos have seen that anything is possible, the real question one must ask themselves when trying to determine this popular questions is, “What do I want to be next in the Baja?!”
For more information Contact Mishan Andre of Dream Homes at firstname.lastname@example.org or (624) 157-2612