Building in Cabo: Materials, Markups, and How to Save Money
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
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