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 rental market has experienced significant growth as of June 2025, with average rents in popular neighborhoods like Polanco and Roma reaching $1,200-1,400 USD monthly.
The city attracts a diverse mix of expats, digital nomads, and locals, creating strong demand that drives rental yields between 5-8% depending on location and property type. Understanding these rental dynamics is crucial whether you're considering investing in Mexico City real estate or planning to relocate to the capital.
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.
Mexico City rental prices vary dramatically by neighborhood, with central areas like Polanco commanding $1,200+ monthly while outer districts average $500-800 for similar properties.
Rental yields typically range from 5-8% gross annually, with short-term rentals potentially generating 30-40% higher income than long-term leases, though with additional management requirements and regulatory constraints.
| Neighborhood | Average Monthly Rent (USD) | Property Type | Typical Yield |
|---|---|---|---|
| Polanco/Miguel Hidalgo | $1,244 | 1-2 BR Apartment | 4-6% |
| Roma/Condesa | $1,336 | 1-2 BR Apartment | 4-6% |
| Benito Juárez | $959 | 1-2 BR Apartment | 5-7% |
| Santa Fe | $912 | 1-2 BR Apartment | 5-7% |
| San Ángel | $892 | 1-2 BR Apartment | 6-8% |
| Outer Districts | $470-700 | 1 BR Apartment | 6-8% |
| Central 3-BR | $1,460-2,340 | 3 BR Apartment | 4-6% |
What are the average rents in the most popular neighborhoods of Mexico City?
Mexico City's most sought-after neighborhoods command premium rental prices as of June 2025.
Cuauhtémoc, which encompasses the trendy Roma and Condesa areas, leads with average monthly rents of 22,911 MXN ($1,336 USD). These neighborhoods attract expats and young professionals seeking walkable areas with cafes, restaurants, and cultural attractions.
Miguel Hidalgo, home to upscale Polanco, follows closely at 21,326 MXN ($1,244 USD) monthly. Polanco offers luxury shopping, international business centers, and high-end dining, making it particularly popular among corporate executives and affluent expats.
Benito Juárez, covering areas like Nápoles and Del Valle, averages 16,439 MXN ($959 USD) monthly. These neighborhoods provide excellent value with good transportation links and established residential communities.
Santa Fe in Cuajimalpa de Morelos averages 15,641 MXN ($912 USD), while San Ángel in Álvaro Obregón comes in at 15,302 MXN ($892 USD). Both offer more spacious living with easier parking compared to central areas.
How do average rents vary depending on the type of property?
Property size and configuration significantly impact rental prices across Mexico City's rental market.
One-bedroom apartments in central neighborhoods like Roma, Condesa, and Polanco typically rent for 12,000-18,000 MXN monthly ($700-1,050 USD). These units appeal to young professionals and expats seeking urban amenities and walkability.
The same one-bedroom configurations in outer districts command 8,000-12,000 MXN monthly ($470-700 USD). While less expensive, these areas often require longer commutes to central business districts and entertainment zones.
Three-bedroom apartments in central areas represent the luxury segment at 25,000-40,000 MXN monthly ($1,460-2,340 USD). These properties typically target families, executive expats, or multiple-income households seeking space and premium locations.
Studio apartments, while less common in listings, generally price 20-30% below one-bedroom units in equivalent neighborhoods.
It's something we develop in our Mexico property pack.
What's the average rent per square meter for different types of properties?
Rent per square meter varies considerably across Mexico City's diverse neighborhoods and property types.
Central areas typically command approximately 250 MXN per square meter monthly ($15 USD/m²). For a typical 60-square-meter one-bedroom apartment in Roma or Condesa, this translates to roughly 15,000 MXN monthly rent.
Premium neighborhoods like Polanco can reach 300-350 MXN per square meter monthly ($17-20 USD/m²), reflecting the area's luxury positioning and international business presence. High-end buildings with concierge services and premium amenities command the highest rates within this range.
Mid-tier neighborhoods like Benito Juárez and Santa Fe average 200-250 MXN per square meter monthly ($12-15 USD/m²). These areas offer good value while maintaining decent transportation access and neighborhood amenities.
Outer districts typically price at 150-200 MXN per square meter monthly ($9-12 USD/m²). While more affordable, tenants often accept longer commutes and fewer walkable amenities in exchange for larger living spaces.
What additional fees, taxes, or maintenance costs are typically included or excluded in the rental price?
Mexico City rental agreements typically exclude several mandatory costs that tenants must budget separately.
Condominium maintenance fees range from 30-100 MXN per square meter monthly ($1.75-5.80 USD/m²), covering common area upkeep, security services, and building amenities like gyms or pools. A 60m² apartment might incur 1,800-6,000 MXN monthly in maintenance fees.
Utility costs add 1,500-3,000 MXN monthly ($90-175 USD) for a typical two-bedroom apartment, varying significantly with air conditioning usage during hot seasons. Electricity, water, gas, and internet are standard tenant responsibilities.
Property taxes (predial) amount to 0.1-0.3% of assessed property value annually, though landlords sometimes include this in higher-end rental agreements. Insurance costs 2,000-5,000 MXN annually ($115-290 USD) and remains optional but recommended for tenants' belongings.
Special assessments for major building repairs or improvements occur occasionally, typically ranging from 5,000-20,000 MXN per unit depending on the project scope and building size.
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How do rents differ between long-term leases and short-term rental platforms like Airbnb?
Long-term and short-term rental strategies yield different income potential and operational requirements in Mexico City.
Long-term leases typically span 12-24 months with rents as outlined in previous sections. Landlords often prefer unfurnished units for these arrangements, while expats and digital nomads frequently seek furnished options that command 15-25% premiums.
Short-term rentals through Airbnb can generate 30-40% higher nightly rates compared to equivalent long-term monthly rates. However, Mexico City regulations limit short-term rentals to 180 days annually, significantly impacting total revenue potential.
Airbnb properties require full furnishing, professional photography, active management, and frequent cleaning between guests. These additional costs can consume 25-35% of gross rental income through management fees, utilities, and maintenance.
Properties in tourist-heavy areas like Roma Norte, Condesa, and Centro Histórico perform best for short-term rentals, often achieving 70-85% occupancy rates during peak periods. Business districts like Santa Fe or Polanco see lower short-term demand but steady long-term rental interest.
What kind of net income can a property owner expect after taxes and expenses?
Property owners in Mexico City can expect varying net returns depending on their rental strategy and property location.
Long-term rental properties typically generate 5-6% gross annual yields in central areas, reducing to 3-4% net yields after taxes and expenses. Deductible expenses include maintenance, insurance, property taxes, and property management fees.
Short-term rentals can achieve 8-14% gross yields in tourist-heavy neighborhoods, but extensive operating costs reduce net yields to 5-7% in most cases. Additional expenses include frequent cleaning, utilities, platform commissions (typically 12-15%), and higher insurance requirements.
Rental income faces income tax (ISR) at progressive rates up to 35%. Short-term rentals also incur 16% VAT and 3-5% lodging services tax, significantly impacting profitability compared to long-term strategies.
Professional property management typically costs 8-12% of gross rental income for long-term properties and 15-25% for short-term rentals. Self-management can improve returns but requires significant time investment, particularly for Airbnb operations.
It's something we develop in our Mexico property pack.
What kind of rental yields are typical today in different neighborhoods and property types?
| Neighborhood | Gross Yield Range | Property Type |
|---|---|---|
| Polanco | 3-5% | Luxury apartments |
| Roma/Condesa | 4-6% | Modern apartments |
| Benito Juárez | 5-7% | Mid-range apartments |
| Santa Fe | 5-7% | Business district units |
| San Ángel | 6-8% | Residential apartments |
| Outer Districts | 6-8% | Working-class housing |
| Centro Histórico | 7-9% | Older buildings |
How have average rents and yields evolved over the last 5 years and the last 12 months?
Mexico City's rental market has experienced dramatic growth since 2020, driven by remote work trends and international migration.
Five-year trends show central area rents increasing 10-30% in popular neighborhoods since 2019. One-bedroom city center apartments rose from approximately 12,670 MXN monthly in 2020 to 19,167 MXN in 2024, representing a 51% increase over four years.
The past 12 months through June 2025 have seen continued upward pressure, with rental growth moderating to 8-12% annually as supply constraints persist. New housing development hasn't kept pace with demand, particularly in central neighborhoods.
Rental yields have remained relatively stable despite price increases, fluctuating between 5.69% and 6.13% quarterly. The Q2 2025 average yield sits at approximately 5.7% citywide, with variations by neighborhood and property type.
Mexico City faces an estimated housing deficit of 800,000 units, creating structural support for continued rent growth. This supply-demand imbalance particularly affects affordable and mid-range housing segments rather than luxury properties.
What are the projections for rental prices and yields in 1, 5, and 10 years from now?
Mexico City's rental market outlook remains positive through 2035, though growth rates may moderate from recent peaks.
One-year projections through June 2026 suggest continued rent increases of 6-10% annually, driven by persistent housing shortages and sustained expat demand. Yields should remain stable in the 5-6% range as property values rise alongside rents.
Five-year forecasts through 2030 anticipate sustained growth in rents and yields, particularly in central and emerging neighborhoods. Remote work trends and Mexico's growing tech sector should maintain strong rental demand, especially for furnished units targeting international tenants.
Ten-year projections through 2035 suggest continued market strength, though regulatory changes could moderate short-term rental profitability. Stricter Airbnb regulations and potential rent control measures in gentrifying areas represent key risks to monitor.
Infrastructure improvements, including new metro lines and urban development projects, should create new investment opportunities in currently undervalued neighborhoods. Climate-conscious development trends may also drive demand for energy-efficient buildings with higher rental premiums.
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.
What are the current vacancy rates by area and property type, and how are they trending?
Mexico City maintains relatively low vacancy rates across most neighborhoods, reflecting strong rental demand and limited supply.
Central neighborhoods like Roma, Condesa, and Polanco typically experience vacancy rates below 5%, with premium properties often renting within 2-4 weeks of listing. High-demand areas benefit from steady expat arrival and young professional migration to urban cores.
Mid-tier neighborhoods including Benito Juárez and Santa Fe show vacancy rates of 5-8%, offering reasonable absorption times for well-priced properties. These areas balance affordability with accessibility, maintaining consistent tenant interest.
Outer districts experience higher vacancy rates of 8-12%, particularly for older properties lacking modern amenities. However, newer developments with parking and security features rent more quickly even in peripheral locations.
Short-term rental occupancy has improved as regulatory compliance reduced overall Airbnb supply. Properties meeting legal requirements often achieve 60-75% occupancy rates, up from 50-65% in 2023 when oversupply affected performance in tourist areas.
Who are the typical renters today and what are their preferences?
Mexico City's rental market serves diverse tenant demographics with varying preferences and budgets.
Expats and digital nomads represent a growing segment, typically seeking furnished apartments in central neighborhoods with reliable internet, modern amenities, and walkable access to coworking spaces. These tenants often prefer 6-12 month leases and pay premium rates for convenience and location.
Young Mexican professionals gravitate toward central locations offering good transportation links and nightlife options. They typically seek unfurnished units for long-term leases (12-24 months) and prioritize neighborhoods with metro access and cultural amenities.
Students cluster around university areas, often sharing apartments to reduce costs. They prefer affordable options with good public transportation access, typically in outer districts or emerging neighborhoods.
Local families increasingly face displacement from central areas due to rising rents, leading to migration toward more affordable peripheral neighborhoods. This gentrification pressure has become a significant social and political issue in popular expat areas.
Corporate executives and international business professionals typically target luxury buildings in Polanco or Santa Fe, seeking full-service amenities, parking, and security features suitable for families with children.
How does the rental market in Mexico City compare to similar major cities like Bogotá, Lisbon, or Bangkok?
| City | 1BR City Center (USD) | Market Characteristics |
|---|---|---|
| Mexico City | $770-1,050 | Strong expat demand, rising prices, limited supply |
| Bogotá | $400-600 | Lower rents, less international demand |
| Lisbon | $760-1,200 | Similar pricing, strong digital nomad presence |
| Bangkok | $400-800 | Lower rents, established expat market |
| Buenos Aires | $300-500 | Economic volatility affects pricing |
| São Paulo | $500-800 | Large market, varying quality levels |
| Lima | $400-700 | Growing expat interest, safety considerations |
Conclusion
Mexico City's rental market presents compelling opportunities for both investors and tenants as we reach mid-2025, characterized by strong demand, rising rents, and moderate yields. Central neighborhoods command premium prices while offering the best potential for long-term appreciation, though investors should carefully consider operational costs and regulatory requirements when evaluating short-term rental strategies.
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 rental market continues evolving rapidly, with new regulations and infrastructure projects reshaping investment opportunities across different neighborhoods.
Understanding local market dynamics, tenant preferences, and regulatory requirements remains crucial for successful property investment in Mexico's capital city.
It's something we develop in our Mexico property pack.
Sources
- Mexico News Daily - Mexico City Rental Prices by Neighborhood
- TheLatinInvestor - Mexico City Real Estate Market Data
- TheLatinInvestor - Mexico City Apartment Maintenance Fees
- Deel - Moving to Mexico for Expats
- Hostaway - Airbnb Short-term Rental Mexico City
- Naya Homes - Short-term vs Long-term Rental
- BnbCalc - Mexico City Short-term Rental Regulations
- Global Property Guide - Mexico Rental Yields
- TheLatinInvestor - Mexico City Apartment Rental Yields
- TheLatinInvestor - Property Investment Mexico Worth It