What does luxury mean, and how does it relate to the luxury real estate property market in Cabo? Is it status, quality, and hefty but well worth its price tag? Ultimately, it varies from person to person and more so from property to property. Once, a property hit the luxury status at an average of $1 million. That’s ancient history, with the current number falling into approximately the five million-plus range. As stated, luxury goes beyond a price tag, which applies to real estate.
Luxury is a hook, a catch-some word that appeals to a very niche, but very lucrative, set of homebuyers. While not everyone has the same criteria to what luxurious implies, at least not set in stone, there is a definite spectrum. Luxury suggests a degree of overall exclusivity as found in Las Ventanas al Paraiso, Maravilla, Pedregal, and Palmilla, a few local favorites here in Cabo. Going from a small number of available properties to the innate quality of said properties, be it their high-end architecture or even the location itself.
This wide array of points of interest, or selling points if you will, marks properties as luxurious, superior to the rest of the competition, the 1% (though it’s technically 10% in the housing market). Now, that’s great.
Let us go over the top three defining qualities of a luxury real estate property.
A luxury real estate property requires a fantastic and private location
There’s a reason why beachside and penthouse properties are a big deal. The view, sights, innate privacy, and exclusivity of the place add to the property’s value. Being away from prying eyes and having the status to go with it is worth the extra zeroes.
The price range of a luxury property matters but varies
The $1 million to $5 million bit was a catch-all without considering specific markets. Still, it does grasp a general idea, especially when talking about the real estate market in Los Cabos, where those numbers are not far off the mark. If the average property available ranges from $200 to $500 thousand, then a luxury property will be at least twice as expensive as the baseline, which is a form of gatekeeping. If the average buyer won’t go higher than 500 thousand, then it’s obvious that a price tag as hefty as a million will offer more privacy, on top of its other perks.
Luxury real estate has consistent high-end provenance
The quality of a property is far more than the scarcity of materials, design, décor, amenities, and so on. That’s a given. It’s the quality of a property that is directly correlated to its recognition, that provenance mentioned above that gives it that extra oomph. It’s a layer of history added on top of everything else.
The workings of a world-class architect/designer are more or less a housing market value multiplier that will only grow as time goes on. Think autographs and memorabilia attached to a particular item, and it more often than not increases the value. Except here, you don’t have to worry about damaging the value of a collectible trading card since the signature is the work itself.
As you can see, luxury isn’t all about price and rare resources. In part, it is, but only part is it the reason. Luxury is a way of life, exclusivity, and individuality. It represents success and status through acquisition, and in the case of real estate, it makes it so that your purchase is an assured investment, both for your enjoyment and a considerable reimbursement down the line.
Here in Baja and Los Cabos a lot of things can be considered a luxury, the near proximity to the ocean, the majestic humpback whales that come to visit us every year, and not to mention the epic sunsets. In case you are interested to know more about living here, we invite you to read our article about important things to consider if you’re planning to move to Los Cabos.