8-12% Yields in La Paz

For decades, buyers looking at Baja California Sur focused on one place: Los Cabos. Luxury resorts, world-class marinas, and soaring property prices made it the center of attention.

But what happens when a market like Cabo matures?

In this episode, Ronan McMahon takes you just two hours north to a city he’s been quietly tracking for years—La Paz.

With turquoise waters, swimmable white-sand beaches, a revitalized waterfront, and a growing international airport, La Paz is beginning to attract a new wave of attention. And yet, real estate prices remain a fraction of what you’ll find in Cabo.

Ronan breaks down what’s happening on the ground, why accessibility has been the missing piece—and why that’s now changing fast. He also shares real property examples, rental yield potential, and what foreign buyers need to know about owning property in Mexico.

If you’re interested in where the next wave of opportunity could emerge in Baja… this is a place to watch.

Transcript

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For decades, if you wanted to buy real estate in Baja California Seur, you went to Los Cabos. That's where five-star resorts line the coast, where celebrities unwind on golden sand beaches, and where mega yachts bob in vast luxury marinas. But now, a new star is rising in Baja California. It has beaches that regularly rank among the most beautiful in Mexico, turquise waters so clear they look photoshopped, a three-mile waterfront promenade lined with cafes and restaurants. This city offers the same desert meets ocean grandeur as Cabo, but at dramatically lower real estate prices. I've been scouting this city for around a decade. Now I believe it's at an inflection point. This is La Paz. In this video, I'll show you what makes La Paz compelling, why people are just starting to discover this place, what it costs to own here today, and why this may be the Baja's next breakout market. And if you're interested in discovering real estate and untapped markets around the world, consider subscribing. That's what this channel is about. Hi, I'm Ronan McMahon. For more than 20 years, I've been a full-time international real estate investor and scout. My team and I spend more than a million dollars and travel and research every year looking for the best real estate opportunities in the world. Baja California Seur is a market I know intimately. I spend winters in Cabo. I've been investing there for more than a decade. In fact, I own more real estate in Cabo than anywhere else. Whenever I spend time in Cabo, I make sure to scout the surrounding towns and cities. Because when a market booms the way Cabo has over the past decade, I start asking one question: Where will the opportunity go next? When it comes to real estate in Baja California Seur, the answer is clear. Before we go further, if you're interested in places like La Paz, consider subscribing to this channel. My team and I travel the world looking for them and exploring real estate in emerging markets before they fully take off. La Paz is the capital of Baja California Sur, the same state where you'll find Los Cabos. Around 250,000 people live year-round here. La Paz sits on the east coast of the Baja Peninsula, along a long crescent-shaped bay on the Sea of Cortez. The body of water Jacques Custo famously called the aquarium of the world. The setting is breathtaking. To the west, desert mountains rise in burnt copper tones. To the east, the sea stretches out in impossible shades of blue and green. North of the city, you'll find some of the most striking beaches in all of Mexico: Balandra, Tecolote, Pichilingue. This is not Pacific Surf. These are some of the most swimmable white sand beaches Mexico has to offer, all framed by sculpted desert hills. Around La Paz, there's a growing marina seen with multiple yacht harbors and a strong sports fishing culture. Boat owners and serious anglers come from the US for the Baja lifestyle. And at the heart of the city lies the Malichon. This three-mile-long waterfront promenade anchors daily life in La Paz. Think palm trees, open-air cafes, boutique hotels, seafood restaurants serving the catch of the day, families strolling at sunset. This Malicon has been transformed in recent years. Part of a major urban revitalization effort that has reshaped the city's waterfront. And just off the Malicon, in the historic core neighborhoods, you're seeing the same patterns of rejuvenation. Older homes are being restored, traditional colonial style buildings are being turned into art galleries and museums, new restaurants and design forward cafes opening in what were once sleepy streets. This is a cultural beach city with real energy and momentum. And now people are taking notice. In a moment, I'll show you some sample properties in La Paz. But first let me tell you why more and more folks are discovering the city and what it means for anyone who wants to buy in La Paz, Mexico's fastest rising real estate market. For decades people have been talking about La Paz as a breakout destination, but it never quite did. The issue here was accessibility. La Paz used to be hard to reach, a long drive on tough roads. But now those constraints have disappeared. Today, Los Cabos International Airport, one of Mexico's busiest, is just two hours' drive on a modern, well-maintained highway. La Paz has its own airport. For a long time this airport only offered domestic flights, but an LA to La Paz route opened in late 2024. As a result, the airport welcomed a record number of passengers in 2025, with foreign arrivals jumping more than 160%. Bottom line, access is no longer a constraint. And when access improves in a place with this kind of natural beauty, things tend to move quickly. Look at the key patterns now converging here. You have direct flights from the US, a historic core that's being renovated and redeveloped, an abundance of buyers who want the Baja lifestyle, but in a setting that's more laid back and more affordable than Cabo. When my team and I speak with brokers and property managers in La Paz, the tone has shifted. It's no longer if La Paz breaks out, it's when. And that's the inflection point I look for. In a moment, I'll show you what it costs to own here. I think you'll be surprised at how affordable homes can be. But first, let's step back, talk about fundamentals, and answer a key question I get about buying in Mexico. The question I hear most often is the most basic. Can foreigners buy real estate in Mexico? The answer is yes. Foreigners can absolutely buy property in Mexico, including La Paz. But there are some things to be aware of. Property owned within 50 kilometers, that's about 31 miles, of the coast must be held through a special form of bank trust called a fide camiso. This legal mechanism has been in place since the 1970s, and it's perfectly safe. Millions of Americans and Canadians own property this way. With the right attorney, the process is straightforward, and you don't need residency in Mexico to do this. The bank holds title and trust, but you retain full ownership rights, including the right to sell, lease, renovate, or pass the property to your heirs. I've been investing in Mexico for decades. The system works. Done correctly, it's safe, secure, and very easy. Now, let me show you what it costs to own in La Paz today. La Paz real estate prices are rising because this destination is slowly being discovered. That said, pricing is still very competitive compared to Cabo. The best place to buy here is within a short drive or a short walk from the MalaCon. That's where supply is constrained and rental and resale demand is strongest. You can find modern condos with panoramic sea views in the low 300,000s, and villas with strong rental potential in the $400 to $600,000 range. Here's a few examples that my team and I have found in our research. This 1200 square foot condo is in a community overlooking the Mican and La Paz's Bay. From the terrace you'll enjoy stunning panoramic views of the Sea of Cortez and the city. Community amenities include a pool area with jacuzzi, sun loungers and tanning decks, as well as two panoramic rooftop terraces with lounge areas. The condo is listed for $310,000. Another example, the spacious villa of 4,000 square feet was built in 2020. It's in a private, gated community on the north end of the city, about a two-minute drive from the Malachon. The home has four bedrooms and four and a half bathrooms with sea views from the deck area. The community amenities include three pools, barbecue area, gym, sports bar, recreation room, and cinema. It's listed for $420,000. Prices to own in the historic downtown core have been rising rapidly in recent years. As more folks come, many traditional homes have been turned into businesses like cafes, bars, and restaurants, and well-appointed houses within a few blocks of the Malicon see strong rental demand from families and groups of friends. So the prices of these homes tend to be higher. An example: this colonial style property is in the heart of the city, a short walk from the MalaCon. It has three beds and four baths across 2,000 square feet. Its location and design give it amazing potential as a vacation rental. It's listed for $549,000. Now, let's talk about how much you can earn from renting out a property in La Paz. But first, if you're enjoying this video and our deep dive into La Paz, consider subscribing so you don't miss our future episodes. Until recently, La Paz was a highly seasonal rental market. Summer season, when the weather is hottest, was traditionally slow. Many rental managers discounted heavily during this period to keep occupancy rates up. That's changing. We're now seeing managers report stronger off-season performance and less need for discounting. Occupancy is becoming more stable. That's a subtle but critical shift. Because rental markets strengthen gradually, first awareness rises, then flights increase, then occupancy stabilizes, then rates climb. La Paz appears to be in that middle phase. Buy correctly, near the Malicon with water views and walkable neighborhoods, and you position yourself for strong income. I figure the right buy would generate strong gross yields in the 8 to 12% range. That's strong income for an amazing lifestyle asset in a stunning coastal city. And I'd expect yields to rise as the city is discovered. La Paz checks the boxes I care about as a buyer and investor. Natural beauty that cannot be replicated. Supply constraints in its most sought-after area around the Malichon. Growing accessibility, proximity to an exploding luxury market, year-round livability. La Paz isn't for everyone. If you want to own in Baja California for five-star beach clubs and celebrity glamour, this isn't your place. But if you want a walkable coastal city, swimmable turquise waters, incredible natural surroundings, strong rental upside, and a chance to lock in capital appreciation before the next wave arrives, this is a place to know. When access improves and supply is constrained, prices move. If you enjoyed this episode on La Paz, subscribe to the channel. My team and I spend more than a million dollars every year traveling the world looking for places just like this. Emerging destinations where lifestyle and real estate opportunities intersect. And I'll be sharing many more of them here. Thanks for watching, and I'll see you in the next episode.