Los Cabos, also known simply as Cabo, lies at the southern tip of Mexico’s Baja California peninsula. It consists of two towns—Cabo San Lucas to the west and San José del Cabo to the east—and a 20-mile corridor between them, where most of the beaches, resorts and high-end residential developments are located. Until the 1980s, the area was mainly undeveloped desert and fishing villages. Then, drawn by sport fishing, golf and nearly year-round sunshine, U.S. and Canadian visitors helped build the area’s current tourist-oriented economy.
In the wake of the U.S. housing crash and press about Mexico’s crime problems, Los Cabos saw transactions freeze, prices drop and construction stall. Real-estate brokerages fled the market altogether. Last September, Hurricane Odile closed the area’s luxury hotels for most of the tourist season.
But today, the recovery in U.S. luxury-home prices, particularly in California, is driving a post-hurricane revival in Los Cabos. A change in government and subsequent reduction in drug-related homicide helped reduce fears about violence in Mexico overall; Los Cabos has remained a relatively safe and low-crime area.
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