Buying Property in Pedregal
The ownership mechanism, the real closing costs at Pedregal prices, and the five things about this community that a general Los Cabos guide will not tell you.
Yes, foreigners can own in Pedregal
Pedregal sits on the San Jose Corridor, well inside Mexico’s restricted zone — the strip within 50 km of the coast where foreigners cannot hold direct title to land. This is not an obstacle. It is a paperwork step that thousands of foreign buyers complete in Los Cabos every year.
You take ownership through a fideicomiso: a bank trust in which a Mexican bank holds legal title as trustee, and you are the beneficiary with every right of ownership. You can live in it, renovate it, rent it, sell it, and leave it to your heirs. The bank cannot sell it, encumber it, or do anything with it without your instruction.
The alternative, used mainly by buyers acquiring several properties or running a rental business, is to hold through a Mexican corporation. Which one suits you depends on how you intend to use the property and on your own tax position at home. Decide that before you make an offer, not after — changing it later is expensive.
How the fideicomiso works
- Term. 50 years, renewable indefinitely, and renewable by your heirs.
- Who holds title. A Mexican bank, as trustee. You are the named beneficiary.
- What you can do. Occupy, renovate, mortgage, rent, sell, or bequeath — all without the bank’s permission.
- Naming heirs. Substitute beneficiaries are named in the trust deed, which keeps the property out of Mexican probate.
- Cost. Roughly US$1,500–2,500 to set up, plus an annual fee of about US$600–900.
- Selling. The trust transfers to your buyer, or is cancelled and a new one created. Either is routine.
The trust is created by a Mexican notario público — a state-appointed official with far broader authority than a US notary. The notary is not your lawyer and does not represent either side; they verify the transaction and are personally liable for getting it right. On a purchase at Pedregal prices, engaging your own independent lawyer as well is money well spent.
What closing actually costs a buyer
Budget 5–8% of the purchase price. The percentage falls as the price rises, because several line items are fixed rather than proportional. At Pedregal prices the absolute numbers get large quickly, and the top of that range is conservative on the largest purchases.
| Line item | Typical cost | Notes |
|---|---|---|
| Acquisition tax (ISAI) | ~2% of value | Paid to the municipality |
| Notary fees | ~1–1.5% | The notary is a state-appointed official, not your lawyer |
| Fideicomiso setup | US$1,500–2,500 | One time, to the trustee bank |
| Foreign Affairs permit | ~US$1,500 | One time |
| Registry & certificates | ~0.5% | Public registry, no-lien certificates, appraisal |
| Title insurance | Optional | Available; I recommend it on resale purchases |
| Annual trust fee | US$600–900/yr | Ongoing, not a closing cost |
Worked at real Pedregal prices
| Property | Price | At 5% | At 8% |
|---|---|---|---|
| Median homesite sale | $442,000 | $22,100 | $35,360 |
| Median condominium sale | $507,500 | $25,375 | $40,600 |
| Community median sale | $800,000 | $40,000 | $64,000 |
| Median house sale | $2,697,000 | $134,850 | $215,760 |
| Record sale | $9,830,007 | $491,500 | $786,401 |
Indicative ranges for Los Cabos as at August 2026, for orientation only. Exact figures depend on the property, the assessed value and the trustee bank, and are confirmed by your notary in the closing statement. This is general information, not legal or tax advice — take advice from a Mexican notary and your own tax adviser before committing.
Who pays what
The seller pays the brokerage commission and their own capital gains tax (ISR). The buyer pays everything in the table above. There is no equivalent of a US-style buyer-agency fee — my representation of you as a buyer costs you nothing directly.
The purchase process, start to finish
- Offer and acceptance. A written offer, usually with a deposit of 5–10% into escrow on acceptance.
- Promissory agreement. The binding contract setting out price, timeline, what is included and what happens if either side walks.
- Due diligence. Title search, no-lien certificates, tax status, HOA standing, permits. Two to four weeks is normal.
- Trust permit. The notary applies to the Ministry of Foreign Affairs for the fideicomiso permit. Four to eight weeks, and it is usually the long pole.
- Appraisal and closing statement. The notary commissions the appraisal that sets the tax base and issues the final numbers.
- Closing. Sign before the notary, fund the balance, receive keys. The deed is then registered, which takes a further few weeks.
Eight to twelve weeks from accepted offer to keys is typical when nothing goes wrong. Cash purchases at the shorter end. If a seller is pushing for a much faster close, understand why before you agree.
Five things specific to Pedregal
1. This is the most negotiable market in Los Cabos
Of 139 recorded Pedregal sales in the three years to 26 August 2026, three closed above the asking price and twenty closed at it. The other 116 closed below. The median sale came in at 94.3% of list.
Houses are softer again: 36 sales in the main body of the community, not one above asking, median 92.3%. Across the six Los Cabos communities covered by these sites, nothing else comes close — Palmilla closes at 96.5% and Club Campestre higher still. If you are being told that Cabo property sells instantly at full price, the Pedregal record is the answer.
2. But it varies enormously by address
The 94.3% community figure is close to useless on its own. It is the spread you write an offer against:
| Address | Median % of ask | Sales at or above list |
|---|---|---|
| Waldorf Astoria Residences | 100.0% | 6 of 8 |
| Monteluna | 98.6% | 3 of 7 |
| Cascadas | 95.9% | 1 of 12 |
| Pedregal Heights | 95.0% | 1 of 3 |
| The Mountain Club | 94.5% | 2 of 5 |
| Pedregal Homesites | 94.1% | 4 of 23 |
| Blue Bay | 93.9% | 1 of 7 |
| Montemar Pedregal | 93.3% | 0 of 10 |
| Pedregal One | 93.1% | 1 of 5 |
| Pedregal Homes | 92.3% | 3 of 36 |
| Portofino | 89.7% | 0 of 5 |
Closed sales, all property types, three years to 26 August 2026. At the Waldorf Astoria Residences a full-price offer is the norm; at Portofino and Montemar Pedregal no seller has ever received one.
3. Condominiums are the deepest market here, and the affordable one
Sixty-two of the 139 recorded sales were condominiums — more than houses and homesites combined. They closed at a median of $507,500, and the cheapest at $300,000.
That matters because Pedregal is one of the best-known addresses in Cabo San Lucas and it still has a genuine sub-$500,000 entry point. Pedregal One has the lowest median of any address with five or more sales, at $395,000. Blue Bay has the cheapest floor area, at $261 per square foot. Cascadas is the premium end at a $860,000 median.
4. Price per square foot works for condominiums here, and not for houses
This site quotes a price per square foot on the condominium pages and never on the house pages. That is a deliberate split, and the reason is worth understanding because it affects any comparison you are shown.
The MLS records one area figure per listing. For Pedregal condominiums it is consistent: the records run 458 to 1,211 square feet per bedroom, which is plainly a building measurement, and prices work out between $191 and $486 per square foot. For Pedregal houses it is not: records run 735 to 4,853 square feet per bedroom, and eight of fifty imply more than 2,500 square feet per bedroom. Those are reading as lot area.
So on a condominium, price per square foot is a fair way to compare two units. On a house it will mislead you. Ask for constructed area and lot area separately, in writing, on anything with walls.
5. Two things the MLS will hide from you
The Waldorf Astoria Residences are filed under a misspelling. The MLS records the subdivision as Waldorf Astoria Resdences, missing an "i". Search the correct spelling and you get nothing, and the address looks as though it has never traded. It has eight recorded sales, and it is the firmest-priced address in Pedregal.
Most Pedregal parcels carry no position label. The MLS labels a few lots Pacific Side or Marina Side and files the rest generically. The labelled ones show a real gap — Pacific-side lots closed at a median of $770,000 against $360,000 on the marina side — but only 18 of 61 parcels are labelled at all. Which side of the hill a lot sits on is a question to ask, not something you can read off a listing.
Both are worth mentioning to whoever is preparing a valuation for you. A comparables list that missed the Waldorf sales, or that mixed Pacific and marina-side lots, is incomplete in ways that are easy to check and easy to miss.
Have a question about a specific property?
Send me the MLS number or the address and I will tell you what the comparable evidence actually says — including when it says the price looks high.
See What Is Available in Pedregal
Fifty-four listings across eleven neighborhoods, from $700,000 to $24.95 million.