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Property prices in Mérida are likely to continue rising in 2026, though at a more moderate pace than the dramatic increases seen in recent years. With house prices at MXN 20,883 per square meter and condo prices at MXN 37,748 per square meter as of September 2025, the market shows strong fundamentals driven by population growth, foreign investment, and limited supply.
While annual price increases of 14-15% seen in 2023-2025 may slow to 8-12% in 2026, several factors support continued appreciation: Mérida's population grows by 1.45% annually, new housing construction barely keeps pace with demand, and foreign buyers remain active despite higher prices. Construction costs rising 8-15% yearly and low property taxes at 0.19% add upward pressure on prices.
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.
Mérida property prices are expected to rise 8-12% in 2026, down from the 14-15% annual increases of recent years but still above inflation.
Strong population growth, limited housing supply, and continued foreign investment support price appreciation, though affordability concerns may moderate demand.
| Metric | Current Value (Sept 2025) | 2026 Outlook |
|---|---|---|
| House Price (MXN/m²) | 20,883 | 22,500-23,400 |
| Condo Price (MXN/m²) | 37,748 | 40,800-42,300 |
| Population Growth | 1.45% annually | Stable at 1.3-1.5% |
| New Housing Units | 9,000+ annually | 9,500-10,500 |
| Mortgage Rates | 9.36% | 9.0-10.5% |
| Construction Cost Increase | 8-15% annually | 6-12% |
| Rental Yields | 5-6% | 4.5-5.5% |
What's the average price per square meter for houses and condos in Mérida right now?
As of September 2025, houses in Mérida cost an average of MXN 20,883 per square meter, while condos command MXN 37,748 per square meter.
Houses in Mérida offer better value per square meter compared to apartments, with the average house priced at MXN 4.8 million total. Condos, despite their higher per-square-meter cost, average MXN 2.9 million total due to smaller unit sizes.
Premium locations like Colonial Centro and Centro Histórico reach around MXN 35,500 per square meter, reflecting their historic charm and central location. Luxury developments in top neighborhoods can command up to MXN 45,000 per square meter for houses with premium finishes and exclusive amenities.
These prices represent the current market reality after significant appreciation over recent years, making Mérida one of Mexico's faster-growing real estate markets in terms of pricing.
It's something we develop in our Mexico property pack.
How have property prices in Mérida changed each year over the last 10 years?
Mérida property prices have accelerated dramatically since 2020, with the most recent period showing annual increases of 14-15%.
From 2022 to 2025, condo prices surged from MXN 30,211 per square meter to MXN 37,748 per square meter, representing 25% growth over just three years. The two-year period before 2024 alone saw a remarkable 36.3% price increase.
Used housing prices increased 14.6% annually in the latest reporting period, while new construction prices rose 15.6% yearly. This recent acceleration marks a significant departure from historical trends, when Mérida property prices typically grew below Mexico's inflation rate.
The turning point came around 2020, when increased interest from foreign buyers and domestic migration began driving demand beyond the market's traditional pace. Before 2020, price growth was much more modest and aligned with general economic conditions.
What's the average household income growth in Mérida compared to property price growth over the last 5 years?
Property prices in Mérida have significantly outpaced household income growth, creating an affordability gap that concerns many potential buyers.
While property prices surged 25% from 2022-2025 alone and continue growing at 14-15% annually, household income increases in Yucatán state remain much more modest at approximately 3-5% per year, closer to general inflation rates.
This divergence means that local residents face increasingly challenging affordability conditions, as their purchasing power hasn't kept pace with real estate appreciation. The gap has widened particularly since 2020, when property price acceleration began outstripping traditional economic fundamentals.
While specific Mérida household income data isn't published separately from state-wide figures, the broader pattern shows property investment increasingly driven by external buyers rather than local economic growth, which may influence market sustainability long-term.
How many new housing units are being built each year in Mérida, and how does that compare to population growth?
Mérida's housing construction slightly outpaces population growth, with over 9,000 new households forming annually and 11,845 new units available as of 2024.
The city's population grows by 1.45% per year, adding approximately 18,000-19,000 new residents annually to reach 1,258,000 in 2025. This steady population expansion creates consistent housing demand that new construction struggles to fully satisfy.
While housing supply keeps pace with demographic growth on paper, the reality includes varying quality and location preferences, foreign buyer competition, and the fact that many new units target higher-income segments rather than addressing broad market needs.
This balance between supply and demand helps explain why prices continue rising despite active construction—new housing barely meets growing demand without creating the surplus needed to moderate price appreciation.
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What's the current population of Mérida, and how fast is it growing annually?
Mérida's population reached 1,258,000 in 2025, growing at a steady annual rate of 1.45%.
This growth represents a gradual deceleration from recent years: 1.69% in 2022, 1.67% in 2023, and 1.56% in 2024, suggesting the rapid growth phase may be moderating slightly but remains robust.
The population expansion adds approximately 18,000-19,000 new residents each year, creating consistent demand for housing, services, and infrastructure. This growth combines natural population increase with significant in-migration from other parts of Mexico and international arrivals.
At the current growth rate, Mérida will reach approximately 1.3 million residents by 2026, maintaining its position as one of Mexico's fastest-growing major cities and sustaining real estate demand fundamentals.
How many foreign buyers purchased property in Mérida last year, and what share of total transactions do they represent?
While exact transaction data isn't officially reported, an estimated 10,000 expatriates from the US and Canada now call Mérida home, and foreign buyers are recognized as a major driver of market demand.
The foreign buyer presence has grown substantially since 2020, contributing significantly to the price acceleration experienced in recent years. These buyers typically target higher-end properties, influencing pricing across market segments.
Real estate professionals consistently identify foreign investment as one of the primary factors behind Mérida's property boom, alongside domestic migration and limited housing supply. The concentration of international buyers in certain neighborhoods has created particular price pressure in those areas.
Foreign buyers often purchase properties for relocation, vacation homes, or investment purposes, bringing purchasing power that exceeds local market norms and contributing to the affordability challenges facing domestic buyers.
What's the current rental yield in Mérida for apartments and houses, and how has it trended over the past 5 years?
Rental yields in Mérida average 5-6% as of September 2025, with houses generating approximately 5% and apartments achieving around 6%.
These yields have decreased slightly over the past five years as property prices increased faster than rental rates could follow. Mexico's national average rental yield was 5.7% in Q2 2025, down from 6.13% in Q4 2024, reflecting this broader trend.
The yield compression indicates that property appreciation has outpaced rental market growth, suggesting either overheating in purchase prices or potential for rental rate increases to restore balance.
Despite declining yields, Mérida rental returns remain attractive compared to many international markets, though investors should factor in property management, maintenance costs, and potential vacancy periods when calculating actual returns.
It's something we develop in our Mexico property pack.
What are the average mortgage interest rates in Mexico right now, and how have they changed since 2020?
Mortgage interest rates in Mexico average 9.36% as of August 2025, representing an increase from their lowest point of 7.0% in October 2021.
Rates have generally ranged between 7-10.5% since 2020, with the current level settling above 9% since late 2023. This upward trend reflects broader monetary policy tightening and inflation concerns affecting the Mexican economy.
The rate environment impacts affordability for both domestic and foreign buyers, though many international buyers purchase properties with cash, reducing their sensitivity to interest rate fluctuations.
Higher mortgage rates may moderate demand from leveraged buyers in 2026, potentially contributing to slower price appreciation as financing costs reduce purchasing power for debt-dependent purchases.
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 much do construction costs per square meter in Mérida increase each year on average?
Construction costs in Mérida increase 8-15% annually on average, with a spike to 17.4% in 2022 due to material shortages and supply chain disruptions.
As of 2023, construction costs averaged MXN 8,733 per square meter, though current pricing is higher due to continued inflation in materials and labor. These increases directly impact new housing supply costs and support property price appreciation.
Material costs, labor shortages, and energy expenses drive most construction cost inflation, creating upward pressure on both new development pricing and existing property values.
Rising construction costs limit new supply at affordable price points, contributing to market tightness and supporting continued price appreciation across all segments of the Mérida real estate market.
What's the average property tax rate in Mérida, and how does it compare with other Mexican cities?
Mérida's property tax rate is 0.19% of cadastral value, making it more affordable than major Mexican cities like Mexico City, Guadalajara, and Monterrey, which charge 0.2-0.3%.
For a typical MXN 2 million property, annual property taxes amount to approximately 3,800 MXN before discounts, or roughly $500 USD per year. This low tax burden makes property ownership very affordable compared to US and Canadian standards.
The favorable property tax environment supports real estate investment by reducing ongoing ownership costs, contributing to Mérida's attractiveness for both domestic and foreign property buyers.
Low property taxes also mean municipal revenues depend more heavily on other sources, potentially limiting infrastructure investment that could support continued development and property value growth.
How many days on average does a property stay on the market before being sold in Mérida, and how has that changed over the past 3 years?
Specific data on average days on market isn't directly published in current market reports, but real estate professionals indicate that sale times have generally decreased during the recent market boom.
The hot market conditions of 2022-2025, characterized by 14-15% annual price increases, typically correlate with faster sales as buyers compete for limited inventory.
As supply catches up with demand and price appreciation potentially moderates, sale times may stabilize or increase slightly from the rapid pace experienced during peak market conditions.
Market velocity remains an important indicator of demand strength and pricing power, with faster sales typically supporting continued price appreciation while slower sales may signal market cooling.
It's something we develop in our Mexico property pack.
What's the projected GDP growth for Yucatán state in 2025–2026, and how does that historically correlate with property prices in Mérida?
Yucatán's GDP growth faces headwinds in 2025, with Mexico's national economy projected between -0.4% (BBVA forecast) and +0.2% (World Bank), though Yucatán typically outperforms national averages due to tourism and foreign investment.
The 2026 recovery is expected to reach 1-1.2% growth, supported by continued tourism development, infrastructure investment, and demographic expansion in the region.
Historically, Mérida real estate prices show strong correlation with regional economic performance, with property appreciation of approximately 2.5% annually during the 2010s when economic growth was modest, accelerating during periods of above-average regional GDP expansion.
The current property price growth of 14-15% annually significantly exceeds what economic fundamentals alone would support, suggesting other factors like foreign investment and supply constraints drive current market dynamics beyond traditional GDP correlation patterns.
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.
Property prices in Mérida will likely continue rising in 2026, though at a more moderate 8-12% pace compared to recent years' dramatic increases.
Strong population growth, foreign buyer demand, and construction cost inflation support continued appreciation, while affordability concerns and higher mortgage rates may temper the pace of increases.
Sources
- The LatinVestor - Mérida Price Forecasts
- Properstar - Mérida House Prices
- The LatinVestor - Mérida Real Estate Trends
- The Yucatan Times - Home Costs in Mérida
- DataMéxico - Mérida Economic Profile
- The LatinVestor - Mérida Real Estate Forecasts
- MacroTrends - Mérida Population
- Global Property Guide - Mexico Rental Yields
- CEIC Data - Mexico Mortgage Rates
- BBVA Research - Mexico Economic Outlook