Is right now a good time to buy a property in Mexico City? (2026)

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

Is it smart to buy now in Mexico City, or should I wait as of 2026?

Do real estate prices look too high in Mexico City as of 2026?

As of early 2026, property prices in Mexico City look high when measured against local incomes, with a typical 65 square meter apartment costing around 7.3 times the average annual household income, but they do not look wildly detached from rents.

One clear signal that prices are stretched is that asking prices in Mexico City actually fell by about 1.1% during 2025, which tells you buyers were already pushing back and sellers had to adjust expectations.

At the same time, mortgage costs remain in double-digit territory, which limits how much people can borrow, and this keeps a natural ceiling on how high prices can go without triggering a wave of price cuts.

You can also read our latest update regarding the housing prices in Mexico City.

Does a property price drop look likely in Mexico City as of 2026?

As of early 2026, the likelihood of a meaningful property price drop in Mexico City over the next 12 months looks low because the usual crash ingredients, like a credit bubble or a wave of forced selling, are simply not present in the data.

Our estimate for the plausible price range over the next year is somewhere between minus 5% and plus 5% for the typical apartment or house, meaning the market is more likely to move sideways than to crash or surge.

The single most important factor that could push prices down in Mexico City is a sharp rise in unemployment or a sudden tightening of mortgage credit, since most buyers depend on financing and jobs to afford their purchases.

Right now, that scenario looks unlikely because the banking system shows no signs of stress, mortgage delinquencies are contained, and the central bank has actually been easing rates rather than tightening them.

Finally, please note that we cover the price trends for next year in our pack about the property market in Mexico City.

Could property prices jump again in Mexico City as of 2026?

As of early 2026, the likelihood of a renewed price surge in Mexico City is medium, and if it happens, it will most likely be concentrated in specific neighborhoods rather than spread across the whole city.

On the upside, we think prices could rise by as much as 5% to 10% in the hottest corridors, especially if mortgage rates continue to fall and supply remains tight in desirable areas.

The single biggest demand-side trigger that could push prices higher in Mexico City is a meaningful drop in borrowing costs, since the central bank has already been cutting rates and further easing would make mortgages more affordable for a larger pool of buyers.

Please also note that we regularly publish and update real estate price forecasts for Mexico City here.

Are we in a buyer or a seller market in Mexico City as of 2026?

As of early 2026, Mexico City is closer to a balanced market leaning slightly toward buyers for purchases, but it is clearly a seller market for rentals because rents keep rising while sale prices have stalled.

There is no official months-of-inventory figure published for Mexico City, but the fact that prices were flat to slightly down in 2025 tells you that sellers do not have overwhelming leverage, and buyers have room to negotiate, especially on older units or properties that have been sitting on the market.

Similarly, while we do not have a precise share of listings with price reductions, the overall price softness in the Inmuebles24 index suggests that a meaningful number of sellers have had to cut their asking prices to attract buyers, which is a sign that the market is not tilted heavily in favor of sellers.

Are homes overpriced, or fairly priced in Mexico City as of 2026?

Are homes overpriced versus rents or versus incomes in Mexico City as of 2026?

As of early 2026, homes in Mexico City look expensive when compared to local incomes but reasonably priced when compared to rents, which means the market is stretched but not in a classic bubble where prices have completely disconnected from what landlords can charge.

The price-to-rent ratio in Mexico City works out to roughly 13.6 years of rent needed to cover the purchase price of a typical apartment, which translates to a gross rental yield of about 7.3%, and that is actually decent compared to many global cities where yields have fallen below 4%.

On the income side, a typical 65 square meter apartment in Mexico City costs around 7.3 times the average annual household income, which is high compared to the 3 to 5 times ratio that financial advisors usually consider comfortable, and it explains why many buyers need dual incomes or family help to afford a purchase.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Mexico City.

Are home prices above the long-term average in Mexico City as of 2026?

As of early 2026, property prices in Mexico City are about 35% above where they were in May 2023, which means buyers today are paying for a significant run-up that happened over the past two and a half years, but the good news is that 2025 itself was essentially flat.

Over the past 12 months, asking prices in Mexico City fell by roughly 1% in nominal terms, which is a sharp contrast to the double-digit annual gains seen in 2023 and early 2024, and it suggests the market has shifted from rapid appreciation to a cooling phase.

When you adjust for inflation, the picture is a bit more nuanced because Mexico's consumer prices have also risen, so in real terms, the 2025 price decline was actually closer to minus 5% or so, which means buyers are in a slightly better position than the headline numbers suggest.

What local changes could move prices in Mexico City as of 2026?

Are big infrastructure projects coming to Mexico City as of 2026?

As of early 2026, the single biggest infrastructure project affecting property prices in Mexico City is the Toluca-Mexico City Interurban rail (known as El Insurgente), which connects into the Observatorio station and is expected to boost demand in nearby neighborhoods like Tacubaya, Santa Fe, and parts of Alvaro Obregon.

The timeline for this project is essentially now: Metro Line 1 fully reopened to Observatorio in November 2025, and the interurban rail connection is expected to begin operations around January 2026, so buyers looking at properties along this corridor are buying into a catalyst that is arriving, not years away.

For the latest updates on the local projects, you can read our property market analysis about Mexico City here.

Are zoning or building rules changing in Mexico City as of 2026?

The single most important zoning discussion in Mexico City right now is a push to pause or tighten discretionary land-use changes until broader urban planning instruments are approved, which could make it even harder to add new housing supply in central areas.

As of early 2026, the net effect of these potential rule changes would likely be to support prices in well-located neighborhoods because if it becomes harder to build, existing properties become more valuable simply due to scarcity.

The areas most affected by these zoning constraints are the central boroughs like Cuauhtemoc (which includes Roma, Condesa, and Juarez) and Miguel Hidalgo (which includes Polanco and Granada), where demand is high but adding new units is already a slow and bureaucratic process.

Are foreign-buyer or mortgage rules changing in Mexico City as of 2026?

As of early 2026, there are no major foreign-buyer restrictions being actively discussed for Mexico City, and the most relevant rule changes for buyers are on the mortgage side, where borrowing costs remain elevated but have been gradually easing as the central bank cuts rates.

Mexico does not have the kind of foreign-buyer taxes or bans that you see in places like Canada or New Zealand, so international buyers face relatively few barriers beyond the standard requirement to use a fideicomiso (bank trust) for properties in restricted zones near coasts or borders, which does not apply to most of Mexico City.

On the mortgage side, the key thing to watch is whether banks start lowering their rates more aggressively in response to central bank easing, because mortgage costs in Mexico City are still in double-digit territory, and any meaningful drop would expand the pool of buyers who can qualify for financing.

You can also read our latest update about mortgage and interest rates in Mexico.

Will it be easy to find tenants in Mexico City as of 2026?

Is the renter pool growing faster than new supply in Mexico City as of 2026?

As of early 2026, renter demand in Mexico City appears to be growing faster than new rental supply, which is why rents have been rising steadily while sale prices have stalled.

About 23% of occupied housing in Mexico City is rented, which means there is a large and structural tenant base that needs places to live, and this pool keeps growing as young professionals and families move into the city for jobs and education.

On the supply side, new construction in Mexico City has been slow and concentrated in just a few boroughs, so the formal pipeline is not keeping up with demand, especially in the most desirable central neighborhoods where land is scarce and permitting is difficult.

Are days-on-market for rentals falling in Mexico City as of 2026?

As of early 2026, there is no official days-on-market series for rentals in Mexico City, but the fact that rents rose by over 6% during 2025 strongly suggests that well-priced units are renting quickly and landlords have leverage.

In high-demand neighborhoods like Roma, Condesa, and Juarez, properly priced listings often find tenants within days to a couple of weeks, while in weaker areas or for overpriced units, it can take several weeks or even longer.

One common reason rentals move fast in Mexico City is simple undersupply: there are more people looking to rent in desirable, transit-connected neighborhoods than there are quality units available, so when a good listing hits the market, it gets snapped up quickly.

Are vacancies dropping in the best areas of Mexico City as of 2026?

As of early 2026, vacancy rates in the best-performing rental areas of Mexico City, such as Roma, Condesa, Juarez, and Granada (also known as Nuevo Polanco), appear to be tight based on strong rent growth and sustained demand in these neighborhoods.

We do not have official vacancy rates by neighborhood, but the fact that these areas consistently show the highest rents and the strongest price appreciation suggests that vacancies are lower there than in the overall Mexico City market.

One practical sign that the best areas are tightening first is that landlords in Roma and Condesa are increasingly able to raise rents at lease renewal without losing tenants, whereas in weaker neighborhoods, tenants have more bargaining power and can push back on increases.

By the way, we've written a blog article detailing what are the current rent levels in Mexico City.

Am I buying into a tightening market in Mexico City as of 2026?

Is for-sale inventory shrinking in Mexico City as of 2026?

As of early 2026, it is hard to say definitively whether for-sale inventory in Mexico City is shrinking because there is no single official inventory count, but the data we have suggests the market is not in a glut and well-located properties remain relatively scarce.

We do not have a precise months-of-supply figure for Mexico City, but the fact that prices were flat rather than falling sharply in 2025 suggests that supply and demand are roughly in balance, rather than inventory piling up and forcing sellers to cut prices aggressively.

One likely reason inventory stays tight in desirable areas is that new construction is slow to come online due to permitting constraints and limited land availability, so even when demand softens, there is not a flood of new units hitting the market to overwhelm buyers.

Are homes selling faster in Mexico City as of 2026?

As of early 2026, there is no official median days-on-market figure for Mexico City, but based on price behavior and market conditions, it does not appear that homes are selling dramatically faster than they were a year ago, though well-priced properties in hot neighborhoods still move quickly.

The fact that prices were essentially flat in 2025 suggests that buyers are being selective rather than rushing to snap up anything available, which typically correlates with stable or slightly longer selling times rather than a speedup.

Are new listings slowing down in Mexico City as of 2026?

As of early 2026, we do not have precise data on new listing volumes in Mexico City, so we cannot confidently say whether new listings are slowing down compared to last year, but we can say that the structural supply of new construction is weak.

Mexico City typically sees more listing activity in the first quarter as sellers try to catch buyers making new-year decisions, but this seasonal pattern can be muted when sellers are cautious about pricing or uncertain about market conditions.

One plausible reason new listings could be slow is that many existing homeowners are sitting tight rather than selling, either because they are locked into favorable mortgage terms or because they are waiting for prices to recover before listing.

Is new construction failing to keep up in Mexico City as of 2026?

As of early 2026, new housing construction in Mexico City is clearly not keeping up with demand, especially in central and well-connected neighborhoods where most buyers want to live.

According to RUV-based reporting, formal new housing registrations in Mexico City have been running at low levels and are heavily concentrated in just a few boroughs, leaving the most desirable areas chronically undersupplied.

The single biggest bottleneck limiting new construction in Mexico City is the permitting and land-use approval process, which is slow, bureaucratic, and increasingly subject to political debates about urban density and neighborhood character.

Will it be easy to sell later in Mexico City as of 2026?

Is resale liquidity strong enough in Mexico City as of 2026?

As of early 2026, resale liquidity in Mexico City is reasonably strong for the right type of property, meaning a well-located 1 to 2 bedroom apartment with clean paperwork will find a buyer without too much trouble, though overpriced or poorly located units can sit for months.

While we do not have official median days-on-market data, market participants suggest that properly priced resale homes in desirable neighborhoods like Roma, Condesa, Juarez, and Granada typically sell within 2 to 4 months, which is considered healthy liquidity for a market like Mexico City.

The property characteristics that most improve resale liquidity in Mexico City are location near metro stations or major transit corridors, natural light, and being in a well-managed building with clear legal documentation, since buyers are cautious about properties with title issues or deferred maintenance.

Is selling time getting longer in Mexico City as of 2026?

As of early 2026, selling times in Mexico City have likely lengthened compared to the boom conditions of 2023 and early 2024, because affordability is stretched and buyers are being more selective with mortgage costs still elevated.

A realistic range for current selling times in Mexico City is probably 2 to 6 months for most listings, with well-priced properties in hot neighborhoods at the faster end and overpriced or poorly located units at the slower end.

One clear reason selling time can lengthen in Mexico City is affordability pressure: when the typical apartment costs over 7 times the average household income and mortgage rates are in double digits, buyers simply need more time to make decisions and secure financing.

Is it realistic to exit with profit in Mexico City as of 2026?

As of early 2026, the likelihood of selling with a profit in Mexico City is medium to high if you hold for at least 7 to 10 years, but it is low if you are planning a quick flip because transaction costs are significant and prices are not surging.

A realistic minimum holding period to exit with profit in Mexico City is around 5 to 7 years, and 7 to 10 years is safer, because you need time for appreciation to cover your buying and selling costs and for any market dips to recover.

Total round-trip costs in Mexico City, including notary fees, taxes, agent commissions, and closing costs on both ends, typically run around 8% to 12% of the property value, which works out to roughly MXN 260,000 to 390,000 (about USD 13,000 to 19,500 or EUR 12,000 to 18,000) on a MXN 3.2 million apartment.

The single factor that most increases your odds of exiting with profit in Mexico City is buying slightly below market in an improving area, such as neighborhoods like Doctores, Anahuac, or Anzures that are seeing spillover demand from more expensive adjacent zones like Roma and Polanco.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Mexico City, we always rely on the strongest methodology we can … and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.