Quick Answer
Pre-construction can offer 10-20% discounts versus completed units and allows you to lock in today's prices with developer financing (20-50% down, payments during construction). However, risks include construction delays, developer default, and quality uncertainty. Only buy pre-construction from established developers with a track record. Use escrow for payments and have an attorney review the contract.
Detailed Answer
Pre-construction purchases in Los Cabos can be an excellent investment strategy — when approached carefully. The primary appeal is pricing: developers typically offer 10-20% discounts versus comparable completed units to incentivize early sales that fund construction. Combined with developer financing (20-50% down with installments over the build period), you can control a valuable asset with relatively modest upfront capital. By the time the project delivers, market appreciation often means you have built-in equity from day one.
However, pre-construction carries risks that require due diligence beyond a standard resale purchase. Construction delays of 6-18 months are not uncommon. Developer default — while rare among established firms — can result in significant losses if payments were not held in escrow. Quality may differ from renderings and marketing materials. To mitigate these risks, our team only recommends pre-construction from developers with a proven track record of completed projects in Los Cabos, verified building permits, and payment structures that use third-party escrow accounts.
Having an independent real estate attorney review the promissory agreement is non-negotiable for pre-construction deals. The contract should clearly specify delivery dates, penalty clauses for delays, finish specifications, and refund terms. Our team monitors every active development in Los Cabos and can guide you to the strongest opportunities. Contact us for current pre-construction options, or browse our community guides.