Baja California Sur now has the second-highest average home prices in Mexico, with properties appraised at roughly 2.5 million pesos (about $144,900 USD), according to 2025 data from the Federal Mortgage Society (SHF). Only Mexico City, where the average exceeds 4 million pesos ($231,800 USD), ranks higher.
The data, compiled by El Economista and analyzed by the Global Property Guide, draws on appraisal records from 2025. Los Cabos was specifically cited as a high-demand tourism hub driving regional prices upward. BCS also posted the second-largest annual price increase in the country at 12.9%, trailing only the Caribbean state of Quintana Roo at 14.3%.
Fastest-Growing Markets Across Mexico
Nationally, 21 of Mexico’s 32 states posted year-over-year growth rates above the national average. Behind Quintana Roo and BCS, the states of Nayarit (12.2%), Tlaxcala (12.0%), and Jalisco (11.3%) rounded out the top five for price growth. Single-family homes recorded 9.1% annual growth across Mexico, while condominiums and apartments rose 8.2%.
Tijuana, on the northern end of the Baja Peninsula, also saw sharp increases. The border city recorded a 10.6% year-over-year rise in home values, ranking second among major metro areas behind Guadalajara. Baja California state as a whole had an average home price of about 2.1 million pesos ($121,700 USD) as of mid-2025, roughly 12% above the national average of 1.86 million pesos ($107,800 USD).
Mortgage Lending Slows Despite Rising Prices
The price surge comes even as mortgage lending activity has cooled. According to Global Property Guide data citing BBVA figures, total new lending in Mexico decreased by 9.0% in volume and 4.5% in value during the first half of 2025 compared to the same period in 2024. Total new mortgage loans during that period amounted to 251 billion pesos ($14.5 billion USD), split roughly evenly between public and private lenders.
For homebuyers and property owners across the peninsula, the trend is clear: prices in both Baja California Sur and Baja California continue to outpace most of the country. The concentration of tourism demand in Los Cabos and cross-border economic activity in Tijuana remain the primary forces behind the growth.
The data was originally reported by El Economista based on SHF appraisal records and a recent Global Property Guide analysis of Mexico’s residential market.