The Real Cost of Building in Cabo: Materials, Markups, and How to Save Money

Cabo has a unique challenge that impacts every construction project:

It operates like an island.

Everything Is Imported

Most materials and labor are sourced from mainland Mexico.

This creates:

• Limited local supply
• Higher prices
• Significant markups

The Markup Problem

A real example:

• Local garage door: $9,000
• Same door sourced from mainland: ~$3,600 total

That’s not unusual—it’s common.

Why This Happens

Because:

• Many suppliers act as middlemen
• Builders prioritize convenience
• Costs get passed directly to the client

And many buyers never question it.

The Power of Relationships

Experienced builders leverage:

• Direct supplier relationships
• Mainland sourcing
• Trusted subcontractors

This can save:

• Tens of thousands per project
• Without sacrificing quality

The Subcontractor Reality

Most of your home will be built by specialists:

• Aluminum & windows
• Carpentry
• HVAC
• Pools

This is normal—and necessary.

The issue arises when companies:

• Subcontract everything
• Add heavy markups
• Act as project managers, not builders

The Truth About Price Per Square Foot

You’ll hear numbers like:

• $700–$800 per sq ft

But many projects realistically land closer to:

• $300–$400 per sq ft depending on scope

The gap?

Often branding, not value.

Final Thought

Saving money in Cabo isn’t about cutting corners.

It’s about:

• Knowing where to source
• Who to work with
• And how the system actually works

Fletcher Wheaton fletcher@remexico.com