Here is a list of trends we perceive to be taking place in the Baja California Sur real estate market. Information is gathered through interviews with real estate agents and developers, then compiled and reviewed for trends. Each year, interestingly enough, brings new trends, which perhaps shouldn’t be surprising considering the activity Baja California Sur has experienced since 2002. What follows are the trends we consider to be the most prominent and important for 2008 - 2009.

US Real Estate Turn down – How Does This Affect Baja California Sur? What seems to be on the mind of everyone I’ve talked to is how the slow down north of the border will influence our local market. Many areas of the United States have been affected by a fall-out in key real estate markets, triggered by the abuse of sub-prime and other adjustable-rate mortgages. Borrowers either bought or refinanced homes with sub-prime loans that offered artificially low introductory rates. Now facing re-pricing, borrowers are experiencing their payments doubling or are having to pay off large balloon payments, just as their home’s value is declining.

So how is that affecting Baja California Sur’s market? First, Baja California Sur’s real estate market has been driven primarily as “cash-only” – mortgage financing has yet to become really popular or necessary for many purchasers. Most realtors we spoke to said that less than 10% of their sales involve financing, except for new product developments, which may offer short-term financing. So, Baja California Sur doesn’t have to worry about a sub-prime meltdown; it doesn’t exist here.

Also, the people caught up in this sub-prime meltdown got there because they couldn’t afford the terms of a regular mortgage or even the down payment. This has never been, nor will it be any time soon, the profile of the typical Baja California Sur home buyer. Americans who have the money to buy a second home still have that money – this turn in the market has not affected them to any great extent.

Baja California Sur and Quintana Roo are Mexico’s youngest states, and possess the most important tourism developments in the country, “Los Cabos and Cancun”. At present, between San Jose del Cabo and Cabo San Lucas are more than 30; 5-star hotels and a great amount of tourism, including more than 18 golf courses and important residential and commercial developments.
Also, close by, privileged Cabo del Este, the East Cape, has also experienced a great boom in recent years, especially Buena Vista and Los Barriles, which are internationally recognized as the world capital for marlin fishing.
Baja California Sur is the only state in Mexico that has three international airports: Loreto International Airport, La Paz International Airport and Los Cabos International Airport.
Baja California Sur possesses the country’s longest coast line, approximately 2,230-kilometers, or 1,385-miles.
It is considered one of the safest places to live, attributable to it having the lowest unemployment rate in the country, and also the lowest crime rate.
The CNN published an article in their website, on the 100 best places to retire; La Paz, Baja California Sur was ranked 9th in that list. From then on,the popularity of La Paz as an outstanding peaceful destination has steadily been growing more and more.
National Geographic magazine published an editorial about three regions with a very promising future in front of them, entering the 21st century, and coincidentally, the three are Peninsulas in America: Florida, Alaska and Baja California.
The strategic advantage of investing in Baja California Sur does not stop here. Many American citizens are considering, investing in Baja California Sur, since the United States government announced that the new generation of retirees will not have the same economic guarantees during their retirement. Retirees savings, and receiving income may be drastically reduced, therefore many are considering more cost effective alternatives, such as Baja California Sur, and more specifically, La Paz and its vicinity.
This current situation represents an enormous potential for this region and a world of opportunities for those that have invested in this land.

The Secretary of State for Tourism, Oscar Escobedo Carignan, participated in the event called “Promoting Real Estate and Tourism in Baja California” which took place at the premises of the Consulate of Mexico in Los Angeles. In his presentation Secture’s Secretariat presented the extraordinary growth that Tourism related development has incurred over the past seven years in Baja California. At present there are just over 100 such developments on the Pacific Coast alone between the towns of Tijuana, Rosarito and Ensenada. He indicated that the Mar de Cortez side of the Baja peninsula is experiencing a similar boom in development, including developments in San Felipe, La Paz. Todos Santos,on Baja Sur Pacific side, is also showing expansive growth and development.
“We have 1,380 kilometers of coastline, which is one of our main attractions, along the beautiful Pacific Ocean and the warm Sea of Cortez ( nominated by National Geographic as the aquarium of the world), “said Escobedo Carignan.
The Secretary of Tourism called on those present to recognize Baja California and emphasized a large investment opportunity that this extraordinary development brings.
The Consul General of Mexico in Los Angeles, Juan Marcos Gutierrez Gonzalez reiterated the importance of conducting these kind of events in which one has the opportunity to make known what the state of Baja California has to offer and the big advantages for investors in the tourism sector.

NewTek Construction Solutions La Paz is making a difference in how construction is done in Baja California Sur! NEW-TEK Construction Solutions S.A. de C.V. is the general Quad-Lock ICF Distributor for Mexico and leading the way in how Green Building is executed clear down to the dot on “i”!

As the Earth’s resources become scarce, it is becoming important to engage with nature, and to re-assess the ways that we use both energy and material resources. NewTek is not a company jumping onto the bandwagon of the “new” Green Building wave - NewTek Construction Solutions has been using QuadLock technologies for many years. NTC La Paz is dedicated to constructing buildings that use sustainable materials and processes! We believe that buildings should be designed to be enviro-conscientious and earth friendly to use as well as joyful to live in. The words “high end developments” and “green building” can be synonymous in Baja Sur just like anywhere else on this planet!

Visit our construction page for more information or visit NTC’s website.