Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of Mexico City's property market is included in our pack
Mexico City's real estate market continues to attract both local and international buyers as of mid-2025.
Property prices in Mexico City vary dramatically by neighborhood and property type, with average home prices around MXN 3.7 million (USD 200,000-220,000) and luxury properties in Polanco reaching over USD 10 million. The market has shown consistent growth with 8.1% year-on-year increases in 2024, driven by strong demand from both domestic buyers and foreign investors seeking value in Latin America's largest metropolitan area.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
As of June 2025, the average property price in Mexico City is approximately MXN 3.7 million (USD 200,000-220,000), with significant variations between neighborhoods and property types.
Central areas like Polanco, Roma, and Condesa command premium prices of USD 4,000-5,500 per square meter, while peripheral areas offer opportunities starting at USD 1,500 per square meter.
| Key Metric | Value (USD) | Notes |
|---|---|---|
| Average Property Price | $200,000-$220,000 | MXN 3.7 million citywide average |
| Price per Square Meter (Average) | $2,500 | Ranges from $1,500 to $5,500 |
| Condos/Apartments | $100,000-$400,000+ | Most common property type |
| Single-Family Homes | $200,000-$1,000,000+ | Rare in central areas |
| Luxury Properties | $1,000,000-$10,000,000+ | Polanco, Lomas, Reforma areas |
| Total Buying Costs | 4-10% of purchase price | Includes all fees and taxes |
| Rental Yields | 4-6% | Prime central areas |
What's the average house price in Mexico City right now?
As of June 2025, the average property price in Mexico City is approximately MXN 3.7 million, which equals about USD 200,000 to 220,000 depending on current exchange rates.
The Mexico City residential market shows significant price variations across different areas and property types. The citywide average price per square meter stands at around MXN 50,116, equivalent to approximately USD 2,500 per square meter.
Property prices in Mexico City range from USD 1,500 per square meter in peripheral areas to USD 5,500 per square meter in luxury neighborhoods like Polanco. The Mexico City condo market dominates the residential sector, with most transactions involving apartments rather than single-family homes.
Central neighborhoods command premium prices due to limited supply and high demand from both domestic buyers and international investors. The Mexico City property market has experienced consistent growth, with prices increasing 8.1% year-on-year in 2024.
Foreign buyers particularly favor central areas like Roma, Condesa, and Polanco, contributing to sustained price appreciation in these zones.
How do prices differ between condos, single-family homes, and luxury properties?
The Mexico City residential market shows distinct pricing tiers based on property type, with condos and apartments representing the most accessible entry point for buyers.
| Property Type | Price Range (USD) | Market Characteristics |
|---|---|---|
| Studio Apartments | $100,000-$150,000 | Entry-level, high rental demand |
| 1-2 Bedroom Condos | $150,000-$300,000 | Most popular among first-time buyers |
| 3-Bedroom Apartments | $300,000-$600,000 | Family-oriented, central locations |
| Single-Family Homes | $200,000-$1,000,000+ | Rare in center, common in suburbs |
| Luxury Penthouses | $1,000,000-$5,000,000 | Premium amenities, prime locations |
| Ultra-Luxury Properties | $5,000,000-$10,000,000+ | Exclusive areas, custom features |
Condos and apartments dominate the Mexico City market, accounting for approximately 85% of all residential transactions. Studios start from around USD 100,000 in peripheral areas, while 2-3 bedroom units in trendy neighborhoods like Roma and Condesa typically range from USD 400,000 to USD 800,000.
Single-family homes are rare in central Mexico City due to space constraints and urban density. Most detached homes are located in suburban areas or peripheral boroughs, with prices ranging from USD 200,000 for modest properties to over USD 1,000,000 for upscale homes in affluent suburbs.
Luxury properties in Mexico City represent the highest tier of the market, with penthouses and large homes in Polanco, Lomas, and along Reforma commanding prices from USD 1,000,000 to over USD 10,000,000 for ultra-premium properties.
Which neighborhoods are the most expensive, which ones are up-and-coming, and which areas are the most budget-friendly?
Mexico City's neighborhood pricing reflects a clear hierarchy based on location, amenities, and historical prestige, with central areas commanding the highest premiums.
The most expensive neighborhoods in Mexico City include Polanco, Roma Norte, Condesa, AmpliaciĂłn Granada, Tabacalera, and Tacubaya. These areas feature premium pricing due to their central location, cultural attractions, and high concentration of restaurants, galleries, and international businesses.
Tabacalera leads the expensive category with MXN 418.22 per square meter for rentals, equivalent to approximately $21,747 monthly for a 52-square-meter apartment. Tacubaya follows closely with MXN 352.52 per square meter, representing about $18,331 monthly for similar-sized accommodations.
Up-and-coming neighborhoods in Mexico City include peripheral boroughs such as Tláhuac, Gustavo A. Madero, Magdalena Contreras, and Iztapalapa. These areas are gaining traction among investors due to improving infrastructure, better transportation links, and significantly lower entry prices compared to central districts.
Budget-friendly areas in Mexico City offer attractive options for cost-conscious buyers. Doctores provides an affordable yet central location with authentic local character. Coyoacán and San Angel offer charming residential environments with colonial architecture at more accessible price points. Tepito, while known for bargain properties, may be less desirable for some buyers due to safety concerns.
It's something we develop in our Mexico property pack.
What's the average cost per square meter in different parts of the city?
Mexico City's cost per square meter varies dramatically across different zones, reflecting the city's diverse economic geography and development patterns.
| Area/Neighborhood | Price per m² (USD) | Characteristics |
|---|---|---|
| Polanco Premium | $4,500-$5,500 | Luxury shopping, business district |
| Roma Norte/Condesa | $4,000-$4,500 | Cultural hub, expat favorite |
| Santa Fe Business District | $3,500-$4,000 | Modern towers, corporate offices |
| Tabacalera/Tacubaya | $1,700-$2,000 | Gentrified, central location |
| Coyoacán/San Angel | $1,500-$2,000 | Historic, residential charm |
| Peripheral Boroughs | $1,200-$1,500 | Emerging areas, value opportunities |
The Mexico City luxury market reaches its peak in Polanco, where premium properties command USD 4,500 to 5,500 per square meter. This neighborhood attracts high-net-worth individuals and international executives due to its proximity to embassies, luxury hotels, and high-end shopping.
Roma Norte and Condesa maintain strong pricing at USD 4,000 to 4,500 per square meter, driven by their reputation as cultural and gastronomic centers. These neighborhoods have become particularly popular among remote workers and creative professionals.
Mid-range pricing zones like Tabacalera and Tacubaya offer better value at USD 1,700 to 2,000 per square meter while maintaining central locations and good transportation connections. These areas represent excellent opportunities for buyers seeking balance between price and convenience.
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How much have housing prices changed compared to one year ago and five years ago?
Mexico City property prices have demonstrated consistent upward momentum over both short-term and long-term periods, reflecting the market's fundamental strength and growing demand.
Year-on-year price growth in the Mexico City residential market reached 8.1% in 2024, significantly outpacing inflation and indicating robust market conditions. This growth rate reflects strong demand from both domestic and international buyers, particularly in central neighborhoods favored by expatriates and remote workers.
Five-year price appreciation in Mexico City shows even more dramatic increases, with some central neighborhoods experiencing growth of 30% or more. Areas like Roma, Condesa, and Polanco have seen particularly strong appreciation due to limited supply and continuous demand from high-income buyers.
Venustiano Carranza neighborhood recorded exceptional growth of up to 55% over the five-year period, demonstrating how emerging areas can deliver outsized returns for early investors. This pattern reflects the ongoing gentrification and infrastructure improvements across previously overlooked districts.
The Mexico City condo market has generally outperformed single-family homes in terms of price appreciation, driven by higher liquidity and stronger rental demand from young professionals and expatriates.
What are the forecasts for house prices in Mexico City in 1 year, 5 years, and 10 years?
Mexico City property price forecasts indicate continued growth across all time horizons, though at varying rates depending on economic conditions and supply dynamics.
One-year forecasts for the Mexico City residential market predict price increases of 3% to 7% through 2025. This moderate growth reflects expectations of continued demand while acknowledging potential economic headwinds and interest rate factors that may temper speculation.
Five-year projections suggest cumulative price appreciation of 10% to 20% or more, with central areas likely to outperform due to ongoing supply constraints. The Mexico City luxury market may see even stronger growth as international investment continues and infrastructure improvements enhance accessibility.
Ten-year forecasts for Mexico City property prices remain optimistic but acknowledge potential moderation in growth rates. Long-term appreciation is expected to continue, though the pace may slow if new supply comes online or if economic conditions change significantly.
Peripheral areas and emerging neighborhoods are expected to deliver the strongest relative returns over the ten-year period as infrastructure development and gentrification drive value appreciation. The Mexico City rental market is also expected to strengthen, supporting property values through improved investment yields.
Currency fluctuations and foreign investment flows will continue to influence long-term price trends, particularly for dollar-denominated buyers seeking value in Latin American real estate markets.
What are the total costs involved in buying a home, including fees, taxes, and legal costs?
Buying property in Mexico City involves several mandatory costs beyond the purchase price, typically totaling 4% to 10% of the property's value.
Property acquisition tax in Mexico ranges from 2% to 4% of the purchase price, though it can reach up to 6.5% in some states. This tax represents one of the largest closing costs for buyers and varies based on property value and location within the metropolitan area.
Notary fees in Mexico City typically cost 0.5% to 1.5% of the property purchase price. The notary public plays a crucial role in Mexican real estate transactions, handling legal verification, title transfer, and registration with municipal authorities.
- Property acquisition tax: 2-6.5% of purchase price
- Notary fees: 0.5-1.5% of purchase price
- Legal representation: $1,000-$5,000 depending on complexity
- Property appraisal: $300-$800 for professional valuation
- Title insurance: 0.5-1% of purchase price (optional but recommended)
- Trust setup for foreigners: $450-$1,000 initial cost
- Annual trust fees: $550-$1,000 per year
- Registration fees: $200-$500 for municipal records
Foreign buyers face additional costs related to fideicomiso (trust) setup, which is required for properties within 50 kilometers of the coast or 100 kilometers of international borders. While Mexico City is inland, some suburban areas may fall within restricted zones.
It's something we develop in our Mexico property pack.
How does financing work—what are the mortgage options, typical down payments, and interest rates for locals and foreigners?
Mortgage financing in Mexico City presents different challenges and opportunities for local residents versus foreign buyers, with significant differences in accessibility and terms.
Mexican residents have access to local mortgage products with down payments typically ranging from 15% to 20% of the property value. Current interest rates for locals range from 10.25% to 11.45%, though rates are expected to decline to approximately 8.25% as economic conditions stabilize.
Foreign buyers face considerably more limited financing options in the Mexico City market. Most international buyers purchase properties with cash or utilize cross-border mortgage products offered by specialized lenders.
Cross-border mortgage options include products like the Intercam Dream Loan, which offers rates between 7% and 9% for qualified foreign borrowers. However, these programs typically require substantial down payments of 30% to 40% and have strict income verification requirements.
Developer financing represents another option for foreign buyers, particularly for new construction projects. Some developers offer payment plans allowing buyers to make installments during construction, though interest rates are often higher than traditional mortgages.
Alternative financing strategies for foreigners include home equity loans in their home country, private lending arrangements, or partnerships with Mexican nationals who can access local financing more easily.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How does buying to live compare with buying to rent short-term (like Airbnb) or long-term?
The decision between buying for personal residence versus investment rental in Mexico City depends on individual financial goals, risk tolerance, and involvement preferences.
Buying to live in Mexico City offers stability and equity building, with property appreciation providing long-term wealth accumulation. Owner-residents benefit from stable housing costs and avoid rent increases that average 5% to 8% annually in popular neighborhoods.
Short-term rental investment through platforms like Airbnb can generate attractive returns in central Mexico City neighborhoods. Popular areas like Roma, Condesa, and Polanco command daily rates of $80 to $300 depending on property size and amenities.
However, short-term rental management requires significant time investment or professional management services costing 15% to 25% of gross rental income. Mexico City has also implemented new regulations affecting short-term rentals, requiring registration and limiting operations in certain residential areas.
Long-term rental investment in Mexico City typically yields 4% to 6% annually in prime areas, with lower management requirements than short-term rentals. Long-term tenants provide stable monthly income and reduce vacancy risks associated with short-term rental fluctuations.
Market conditions in Mexico City favor rental investment due to strong demand from young professionals, expatriates, and students. The city's growing tech sector and remote work trends support sustained rental demand across all property types.
If I want to flip the property later, what are the best areas and strategies to maximize resale value?
Property flipping in Mexico City requires careful neighborhood selection and strategic timing to maximize returns in this dynamic real estate market.
The best areas for property flipping in Mexico City include emerging neighborhoods like Tláhuac, Gustavo A. Madero, and parts of Iztapalapa where infrastructure improvements and gentrification trends are driving value appreciation. These areas offer lower entry costs with higher upside potential.
Central neighborhoods like Roma Sur, Doctores, and transitional areas near established premium zones present opportunities for value-add renovations. Properties requiring cosmetic updates or modernization can be acquired below market value and improved for resale.
- Focus on properties in neighborhoods with planned infrastructure projects or transportation improvements
- Target second-hand properties requiring cosmetic renovation rather than structural work
- Monitor gentrification patterns and buy ahead of mainstream investor interest
- Consider properties near universities, business districts, or cultural attractions
- Network with local real estate agents for off-market opportunities
- Understand local permitting requirements for renovation work
- Factor in Mexico City's property transfer taxes when calculating flip profitability
Timing considerations for Mexico City property flipping typically involve 12 to 24-month holding periods to optimize tax treatment and market appreciation. Shorter holding periods may incur higher capital gains taxes and limit appreciation potential.
Renovation strategies should focus on modern kitchens, updated bathrooms, and improved security features, which are highly valued by Mexico City buyers. Energy efficiency improvements and earthquake retrofitting can also add significant value.
Can you give a few concrete examples of home prices in different areas and property types right now?
Current Mexico City property prices demonstrate the wide range of options available across different neighborhoods and property types as of mid-2025.
| Property Example | Price (USD) | Details |
|---|---|---|
| Polanco Luxury Penthouse | $2,500,000 | 3BR/3BA, 200m², premium building |
| Roma Norte Modern Condo | $450,000 | 2BR/2BA, 90m², trendy neighborhood |
| Condesa Historic Apartment | $380,000 | 2BR/1BA, 75m², original details |
| Santa Fe Business District | $350,000 | 2BR/2BA, 85m², modern tower |
| Coyoacán Family Home | $280,000 | 3BR/2BA, 150m², traditional style |
| Doctores Starter Apartment | $120,000 | 1BR/1BA, 45m², central location |
| Peripheral Borough Condo | $95,000 | 2BR/1BA, 65m², emerging area |
Ultra-luxury properties in Polanco can exceed $10,000,000 for expansive penthouses with premium amenities, private terraces, and exclusive building services. These represent the pinnacle of Mexico City residential real estate.
Mid-range options in established neighborhoods like Narvarte, Del Valle, and Nápoles typically range from $200,000 to $400,000 for well-maintained 2-3 bedroom apartments with good transportation access.
Entry-level opportunities in peripheral areas start around $80,000 to $120,000 for basic apartments, offering affordable access to Mexico City real estate ownership with potential for future appreciation as neighborhoods develop.
It's something we develop in our Mexico property pack.
How do real estate prices in Mexico City compare with other major cities in Latin America and globally?
Mexico City real estate prices position the market as moderately expensive within Latin America while remaining highly competitive compared to major global cities.
Within Latin America, Mexico City ranks among the more expensive markets, comparable to SĂŁo Paulo and Buenos Aires in premium neighborhoods. However, Mexico City offers better value than cities like Santiago, Chile, or exclusive areas of Rio de Janeiro.
Compared to major US cities, Mexico City provides exceptional value, with central neighborhood prices representing 60% to 80% discounts compared to equivalent areas in cities like San Francisco, New York, or Los Angeles. A luxury apartment in Polanco costs roughly one-third the price of comparable properties in Manhattan.
European capital city comparisons show even greater value differentials, with Mexico City prime real estate costing 50% to 70% less than Paris, London, or Amsterdam. This price advantage attracts European investors seeking diversification and higher yields.
Global emerging market comparisons place Mexico City competitively with cities like Bangkok, Kuala Lumpur, and Prague in terms of absolute pricing, though Mexico City often offers superior amenities and infrastructure.
Currency advantages for foreign buyers fluctuate based on exchange rates, but historically, dollar and euro-denominated buyers have benefited from favorable purchasing power in the Mexico City market compared to their home countries.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Mexico City's real estate market offers compelling opportunities for both investors and owner-occupants as we reach mid-2025.
With average property prices around USD 200,000-220,000 and strong growth fundamentals, the market provides attractive entry points across diverse neighborhoods while maintaining long-term appreciation potential driven by limited supply and growing demand from domestic and international buyers.
Sources
- TheLatinInvestor - Mexico City Price Forecasts
- TheLatinInvestor - Mexico City Property Market
- Gringo Gazette - Average Housing Prices Mexico
- TheLatinInvestor - Mexico Property Buying Guide
- Mexico Business News - Real Estate Market Snapshot 2025
- Global Property Guide - Mexico Buying Guide
- MZT Real Estate - Mexico Mortgage Rates
- CDMX Secreta - Expensive Neighborhoods Mexico City