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Mexico City's property market is experiencing robust growth with prices rising 8-9% in the past year, driven by supply shortages and strong demand from both locals and foreign buyers.
Central neighborhoods like Polanco, Roma, and Condesa continue to command premium prices while emerging areas offer better value for investors and first-time buyers looking for growth potential.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico City, based on reliable facts and data, not opinions or rumors.
Mexico City's property market shows strong momentum with 8-9% price growth in 2024 and continued increases expected through 2025.
Central areas like Polanco and Roma Norte command USD 4,000-5,500 per square meter while peripheral areas offer better value at USD 1,200-1,500 per square meter.
Market Aspect | Current Status | Outlook |
---|---|---|
Price Growth (12 months) | 8-9% increase | 3-7% more expected by end 2025 |
Average Price per m² | USD 2,473 city-wide | Continued appreciation in prime areas |
Inventory Levels | Historic lows | Shortage continues, quick sales |
Time on Market | 1-4 weeks (prime areas) | Fast transactions in desirable zones |
Rental Yields | 4-9% depending on area | Higher yields in peripheral areas |
Best Investment Areas | Roma, Condesa, emerging districts | Central for stability, periphery for growth |
Long-term Trend | 4-6% annual growth expected | Sustained appreciation likely |

How have property prices in Mexico City changed in the past year?
Property prices in Mexico City rose 8-9% over the last 12 months, continuing the strong growth trend from 2024.
Central neighborhoods like Polanco, Roma Norte, and Condesa experienced above-average gains, with some prime areas posting growth rates significantly higher than the city average.
The current average asking price across Mexico City stands at MXN 50,116 per square meter (approximately USD 2,473), though prices vary dramatically by location and property type.
This growth has been driven by chronic supply shortages, increasing demand from foreign buyers, and Mexico City's growing appeal to digital nomads and remote workers.
As of September 2025, the upward price momentum shows no signs of slowing, particularly in desirable central districts.
What's the short-term price outlook for the next 6 months?
Mexico City property prices are forecast to increase another 3-7% through the end of 2025.
The pace of growth may moderate slightly compared to the previous year due to higher mortgage rates, which currently sit at 10-11%, and new regulatory controls on rent increases.
However, underlying supply shortages and sustained demand will continue driving price appreciation, especially in the most sought-after neighborhoods.
Prime central areas are expected to outperform the city average, while emerging neighborhoods may see accelerated growth as buyers seek better value propositions.
It's something we develop in our Mexico City property pack.
What's the medium-term forecast for property prices over the next 2-3 years?
Annual price growth of 4-6% is expected through 2027 for Mexico City's residential property market.
Structural supply constraints, continued urban migration, and sustained interest from foreign buyers will underpin this healthy medium-term outlook.
Central neighborhoods like Roma, Condesa, and Polanco are likely to continue outperforming city averages due to their established appeal and limited developable land.
Emerging suburban areas may experience accelerated gains as buyers priced out of central zones seek more affordable alternatives with good growth potential.
The Mexican peso's stability and Mexico City's strengthening economy will support this positive trajectory for residential real estate.
What's the long-term price trend expected for the next 5-10 years?
The long-term outlook suggests steady annual appreciation of 4-6% for Mexico City residential properties over the next decade.
Chronic housing shortages, rising population, and Mexico City's role as a major economic and cultural hub in Latin America point to sustained value growth.
Well-connected, safe districts with good infrastructure are particularly likely to see consistent appreciation over this timeframe.
Potential regulatory changes and urban policy shifts could alter this trajectory, but the fundamental outlook remains favorable absent major macroeconomic disruptions.
Mexico City's growing international profile and increasing foreign investment will likely support property values throughout this period.
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How do prices compare between central areas and suburbs?
Mexico City shows significant price variations between central premium neighborhoods and suburban areas.
Neighborhood | Price per m² (USD) | Main Characteristics |
---|---|---|
Polanco | 4,500–5,500 | Luxury district, embassies, business center |
Roma Norte/Condesa | 4,000–4,500 | Trendy, cultural hub, expat favorite |
Santa Fe | 3,500–4,000 | Modern corporate district, spacious units |
Tabacalera/Tacubaya | 1,700–2,000 | Gentrifying areas, good transport links |
Coyoacán/San Ángel | 1,500–2,000 | Historic charm, residential character |
Peripheral Boroughs | 1,200–1,500 | Value zones, higher rental yields |
What are the differences between apartments, houses, and luxury properties?
Apartments dominate the Mexico City market, particularly in central areas where they command higher prices per square meter but offer strong rental demand.
Houses are more common in suburban and peripheral districts, typically offering lower per-unit prices compared to central apartments but providing larger living spaces and potential for better resale in emerging areas.
Luxury properties show strong demand from foreign buyers and affluent locals, especially in areas like Polanco and select western and southern neighborhoods.
Average luxury property values range from MXN 12-17 million, with steady appreciation rates and rental yields of 4-5% for high-end properties.
The luxury segment benefits particularly from demand from expatriates, remote workers, and international investors seeking premium locations.
How many properties are currently listed compared to last year?
Mexico City faces a pronounced shortage of listed properties relative to demand, with inventory at historic lows.
The supply-demand gap has widened significantly compared to last year, especially in trendy central districts like Roma, Condesa, and Polanco.
This shortage has led to multiple bidding situations and rapid sales for attractive properties in desirable locations.
Most transactions now occur in the second-hand market due to the lack of new development projects coming to market.
The tight inventory situation continues to be a major factor driving price appreciation across the city.
What's the average time properties stay on the market before selling?
Prime central properties in Mexico City often sell within just a few weeks of listing.
The best apartments in Roma, Condesa, Polanco, and Del Valle can complete transactions in as little as 1-4 weeks due to high demand and low inventory.
Houses in peripheral districts typically take longer to sell, ranging from 2-6 months depending on pricing, condition, and specific location.
Properties priced competitively in popular neighborhoods may receive multiple offers, further accelerating the sales process.
It's something we develop in our Mexico City property pack.

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 are rental yields across different neighborhoods right now?
Rental yields in Mexico City vary significantly by neighborhood, with peripheral areas generally offering higher returns than central districts.
Neighborhood | Typical Yield | Investment Notes |
---|---|---|
Polanco | 4–6% | Corporate and executive rental demand |
Roma/Condesa | 4–6% | Strong expat and professional demand |
Benito Juárez/Santa Fe | 5–7% | Mid-range apartments with steady demand |
San Ángel/Coyoacán | 6–8% | Larger family units, residential appeal |
Outer/Peripheral Areas | 6–8% | Highest yields, lower entry prices |
Centro Histórico | 7–9% | Older buildings, high rental volume |
Which areas show the strongest demand from owner-occupiers?
Roma Norte, Condesa, Polanco, and Del Valle show the highest demand from buyers planning to live in their properties.
These neighborhoods attract expatriates, young professionals, and families seeking walkable, amenity-rich districts with premium services and cultural attractions.
Emerging areas like parts of Gustavo A. Madero, Magdalena Contreras, and Tláhuac are gaining popularity among local buyers seeking better value while maintaining community feel.
Safety, proximity to metro stations, restaurants, and cultural venues are key factors driving owner-occupier demand in these areas.
Foreign buyers, particularly Americans and Europeans, show strong preference for established central neighborhoods with international communities.
Which areas look best for rental property investors?
Roma Norte, Condesa, and Polanco remain top choices for rental investors due to high rental income potential and stable expatriate demand.
These central areas offer opportunities for both long-term rentals to professionals and short-term rentals to tourists and business travelers.
Outer boroughs including Benito Juárez, Santa Fe, and select peripheral districts offer higher rental yields and lower entry prices, making them ideal for investors focused on cash flow.
Emerging neighborhoods with improving infrastructure and gentrification trends present opportunities for investors seeking both rental income and capital appreciation.
It's something we develop in our Mexico City property pack.
Which areas seem most promising for buyers planning to resell?
Polanco, Roma Norte, Condesa, and Del Valle offer the strongest resale prospects due to consistent demand and above-average appreciation rates.
These established central neighborhoods benefit from steady buyer interest and limited new supply, supporting future value growth.
Emerging areas like Doctores, Iztacalco, Magdalena Contreras, and Tláhuac show notable growth potential and gentrification trends.
These developing neighborhoods offer better infrastructure improvements and upward price momentum, creating resale opportunities for buyers of affordable and new-build properties.
Areas with planned metro expansions or major urban development projects typically present the best medium-term resale potential for strategic buyers.
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 property market continues to demonstrate strong fundamentals with robust price growth, tight inventory, and sustained demand from both domestic and international buyers.
Central neighborhoods offer stability and prestige while emerging areas present opportunities for value-conscious investors seeking growth potential and higher rental yields.
Sources
- Mexico City Price Forecasts - The LatinVestor
- Mexico House Prices Growth - CEIC Data
- Mexico Buy Property Guide - The LatinVestor
- Average House Price Mexico City - The LatinVestor
- Mexico City Property Market - The LatinVestor
- Mexico City Real Estate Market - The LatinVestor
- Mexico City's Most Promising Neighborhoods 2025 - Mexico News Daily
- Ultra Luxury Properties Mexico 2025 - Nestseekers Mexico