We have all heard the horror stories of the economy back in the United States and how the real estate market is suffering. The affects are felt here in Los Cabos to a degree. The lower end properties (under a million dollar range) have slowed down while the high end properties (a million dollars and up) keep selling like hot cakes. This only proves that those fortunate people (the very rich) spend despite hard times as they are only slightly affected by the downward market trends in the States. Most of these folks have been planning for years to purchase their second or vacation/retirement homes, therefore have the disposable income set aside for their purchases.
Los Cabos has experienced an urban development boom. Everywhere you turn there are new developments. Between March 2007 and March 2008, $1.2 billion dollars were spent on new developments. These new developments include homes and hotels/resorts. An astonishing 1,180 construction licenses were granted, of those 655 went to home builders, 68 to developments and 21 to hotels/resorts plus 28 went to urbanization projects. Interestingly, 60% of those building permits were for developments/project in San Jose del Cabo and 40% to Cabo.