Located on the Sea of Cortez just 190 km south of the United States border in Baja is San Felipe. This Mexican city offers plenty of tourism and real estate, and it’s a popular tourist destination for American and Canadian residents looking to move to the area full or even part-time when the weather is less than ideal at home. This little town in Mexico is growing quickly. It was once a fishing town with a small population and a close-knit community of people who work hard to get by. Today, it’s a thriving city with a lot more to offer.

San Felipe is becoming the kind of city where people decide to live whether they are looking for full- or part-time residency. If you’re curious about the real estate in San Felipe, you are not alone. What is it like to live here? What’s the cost of living? Where do you live? What can you do when you’re here? What can you expect if you buy a second home or even a primary home in this area? Other than warm temperatures and beautiful views of the bay, there’s a lot to consider when moving to San Felipe. One of those things is the real estate market and what a home investment here can do for your finances.

San Felipe Real Estate | Your Guide to Paradise

San Felipe is one of the most prominent areas in Mexico for eco-homes, or homes that are energy efficient. The growing economy here is big because of the energy-efficiency of these homes, which makes it one of the most affordable places to live in Mexico. The building industry here focuses on technological advances that make homes more efficient:

  • Self-contained heat, light, sewage, and water
  • Land specifically for eco-friendly homes
  • Affordable land parcels for eco-homes
  • If you’re looking to build an eco-friendly home, you will find there are many perks to doing so in San Felipe. The local government makes it possible to find more affordable pieces of land on either the desert side of the city or the sea for anyone who commits to building something that’s eco-friendly.

    What you must know about living here before you learn how to build or buy here is that you can choose to build an eco-friendly home on the sea and pick up a piece of land for $20,000. Keep in mind this is only for those who want to build a home that’s eco-friendly. There aren’t many other places in the world where you can find a piece of oceanfront property for this price.

    Why Choose San Felipe?

    beach at san filipe mexico

    Image from SanFilipe.com.mx

    When it’s time to choose where you want to buy that vacation home or even a primary residence, you have to ask yourself why you’re choosing that location. In San Felipe, the reasons you might choose to live here vary, but there are numerous reasons that make your decision an easy one.

    The Climate

    San Felipe has an average year-round temperature of 78 degrees. This is warm enough to allow you to enjoy spending the year outdoors, but it’s not so hot that you cannot find some relief from the sun. During the night at winter, the low temperature can reach as low as 38 degrees. During the day in the summer, the temperature can reach as high as 95 degrees. There is variation in the weather throughout the year, but it’s not so dramatic that it feels as if you’re living anywhere but paradise.

    Additionally, there is no monsoon season. There is a rainy season from August to September, but nothing out of the ordinary. There is little threat from hurricanes, though it’s not impossible for the area to face the effects of any hurricane off the Pacific Coast. Compared to other areas around the country, however, it’s relatively protected where it’s located along the Sea of Cortez.


    San Felipe is not a big city, but it’s not a small town, either. It’s more of a moderate town—it feels small enough to know everyone but large enough that you have plenty to do. There are approximately 17,000 people living here. This makes it a nice place to get to know your neighbors. Many of the people who live here migrated from the United States or Canada to seek a warmer climate and a slower way of living once they retired or began their own business. You’ll find an interesting mix of people here, which is a great addition to your new life.

    The Economy

    The economy here is thriving with two main points of business. Fishing is always the number one way of life here due to the location, which means you’ll always have access to some of the freshest and most delicious seafood imaginable. The other biggest industry in this area is tourism. It’s a great spot to live because the economy is good and you have options when you want to start a business, live your retirement life with a part-time job, or just know that you’re buying a home in a thriving community.


    The cost of living in San Felipe is one of the biggest attractions. It’s a moderate cost of living compared to living in other Mexican cities, and you’re getting the best of both worlds. You get to live in a community that’s established but feels like paradise, and you aren’t paying the same money to live here that you might in bigger cities such as Los Cabos.

    Tips for Buying in San Felipe

    Whether you are buying, renting, or building a home in San Felipe, there are a few tips you should know that will help make the process easier.

    Build Friendly

    If you build an eco-friendly home, you’re going to get a premium piece of property at a much lower rate than you would if you didn’t build an eco-friendly home. If you’re not sure what this means, you’ll need to meet with a builder to discuss the terms of building so you know what you’re getting into before you buy a piece of property. You can get an oceanfront property at a much lower price, or you can choose to live in town, along the desert side of the city, or anywhere you want. These homes are considered “off the grid,” so you must know what you’re getting into before you build.

    There Are Few Real Estate Companies

    Unlike the United States, you will not find a real estate office on every corner in this seaside community. Most homes and condos and rentals are handled directly through the developers, which means you might find it more beneficial to go directly to the developer rather than working with a realtor.

    There Are Many Areas to Consider

    If you cannot afford to live on the beach, you might not be entirely out of luck when shopping for real estate in San Felipe. If you’re all right living just outside of town, you may be able to find a piece of property that’s more affordable but offers both desert, mountain, and oceanfront views. Investors have started buying these properties outside of the city limits to build homes that offer a little of everything and the best of both worlds. There is not much walkability in this area, but the views are expansive and the price is worth considering a car and the drive to get to town.

    Rentals Aren’t Easy to Find

    Most rentals around here are offered only by the homeowner or the developer. If you want to find a rental on the beach, in a condo, or even in a private residence, you’ll find rental agencies are not available. This does leave you to do the work yourself, which is not always ideal for renters.


    Image from PriceTravel.com

    On that note, rentals can be a profitable source of income for you if you have a home you don’t reside in full-time. You can rent your home to those who want to stay in the area when you’re not around, and you can charge a premium price for those homes. The easier you are to work with and the better your view and location, the more you can ask for your rental in the San Felipe area. If you choose to buy an investment home here, this is a great place to do it because of the growing economy.

    Change Your Residency

    If you buy or rent a home in San Felipe, you are no longer considered a tourist. Mexican laws are very specific, and this means you need to find out what you must do when you become a homeowner or renter in the area to avoid breaking the law. If you fail to become a proper resident when you own a property or rent long-term, you face drastic legal consequences. Know what you must do prior to signing any contracts.


    If you’re looking to make San Felipe a permanent home or a part-time home, you can find exactly what you want at a reasonable price. What makes this community so inviting to northerners and Americans is its location along the sea and the mountains in addition to the affordability in the area. The restaurants, shops, and activities only make it more enjoyable when you are in town visiting or living the best years of your life.

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