Summary
Yes, but only for some buyers. If you pay mostly cash and plan to hold for 10 years, it's a decent time: prices in the Mexico City area rose 4.6% in the first half of 2026, far less than the 7.9% national increase. If you need a big mortgage or want to sell in two or three years, there's no reason to rush.
Prices are rising, but this isn't a boom. Inmuebles24's average asking price reached MXN 52,087 per m² in June 2026, up 3.9% in six months but only about 1% over a year once inflation is removed.
Loans are still the problem. Banks quote about 11.31% on average, so an 80% loan on a 65 m² apartment costs about MXN 28,500 a month, against MXN 21,921 to rent a typical two-bedroom.
Waiting for cheaper loans doesn't automatically pay. If rates fall to 9.5% but the apartment rises 5% in the meantime, close to 40% of the monthly saving is gone.
Rents did most of the work. Asking rents are about 64% above their October 2021 level and up 9.6% in the year to June 2026, which lifted Inmuebles24's gross yield to 7.64%, from about 6.2% in early 2022.
The city builds too little overall, but too much in a few places. Nuevo Polanco alone had 743 new apartments on sale in 2025, from just two projects.
Roma, Condesa and Polanco still rent and resell well, but a 65 m² two-bedroom in Hipódromo Condesa asks about MXN 38,400 a month, so you're already paying for the name.
Short holds get eaten by costs. The ISAI transfer tax alone is about MXN 279,000 on a MXN 5 million apartment, before the notary, registry and appraisal.
Rent rules are tighter: renewals are capped at last year's inflation (3.69% in 2026), and a "fair rents" bill sent on October 19, 2026 would add fines and a compulsory contract registry.
Airbnb is no longer a safe plan. The law caps short stays at 50% of the year's nights, even if most of it isn't enforced yet, while AirDNA still shows 64% occupancy.
The peso just gave dollar buyers a break. It slid from below 17 per dollar in early September to about 18.6, so a MXN 5 million apartment now costs about US$269,000 instead of US$294,000.
The best buys are boring ones: a hard-to-replace apartment, a building that checks out, little new supply nearby, a small loan and a long hold. It's a decent window, not a bargain you have to grab.
Are Mexico City property prices taking off again?
No, they're rising again, but slowly, and much more slowly than in Mexico's hottest cities.
The latest Sociedad Hipotecaria Federal data puts housing appreciation in the Valle de México at 4.6% during the first half of 2026. That's well below the 7.9% national increase and also below Guadalajara at 11.1%, Tijuana at 9.7%, Puebla-Tlaxcala at 8.5% and Monterrey at 8.3%.
Listing prices tell the same story. According to Inmuebles24, the average asking price in Mexico City reached MXN 52,087 per square meter (about US$2,800) in June 2026, after rising 3.9% in the first half of the year. A year earlier, asking prices had fallen 0.7% over the same six months. After inflation, the 12-month increase is only about 1%.
So the cheapest entry point, when asking prices were still falling, has passed. But Mexico City is far calmer than the markets that are really running.
The financed homes tell you who can still buy: the average home bought with a mortgage in Mexico City was worth about MXN 4.3 million in 2026 (about US$231,000), more than double the national average.
| Market measure | Earlier reading | Latest reading | What changed |
|---|---|---|---|
| Mexico City asking prices | -0.7% in H1 2025 | +3.9% in H1 2026 | Prices turned upward |
| Valle de México SHF index | +5.1% in 2025 | +4.6% in H1 2026 | Growth remains moderate |
| Mexico housing nationally | +8.7% in 2025 | +7.9% in H1 2026 | Mexico City still trails |
| Mexico City real asking-price growth | — | About +1% over 12 months | Little real overheating |
Why are mortgage rates still above 11% when Banxico cut to 6.5%?
Because banks pass on cuts slowly and price in risk, so mortgages are still expensive, and that's the clearest reason for a heavily leveraged buyer to hold back.
Banco de México has cut its policy rate from 11.25% in early 2024 to 6.50% in October 2026. Mortgages barely followed: the average fixed rate banks quote was still 11.31% in August 2026, and the rate on loans actually granted averaged 9.99% in June, from 10.31% a year earlier.
At Inmuebles24's MXN 52,087 per square meter, a 65 m² apartment costs about MXN 3.39 million (about US$182,000). Put 20% down and borrow the rest over 20 years at 11.31%, and the loan costs about MXN 28,500 a month before insurance. Even at 9.99%, it's still about MXN 26,100.
Inmuebles24's average rent for that same 65 m² two-bedroom is MXN 21,921 a month. So with a big mortgage you pay about MXN 6,600 more each month (about US$355) on the loan alone than someone renting a similar place.
What to do: get quotes from at least three banks and ask for the rate on the loan you'll actually get, not the advertised one. The average loan actually granted was just under 10%, so a strong file should land well below the 11.31% quote. If you don't have Mexican income, expect to pay cash or use a cross-border lender, which typically asks for at least 35% down.
| Example purchase | Approximate amount |
|---|---|
| 65 m² apartment at current city average | MXN 3.39M |
| 20% down payment | MXN 677,000 |
| Mortgage amount | MXN 2.71M |
| Average quoted mortgage rate (Aug. 2026) | 11.31% |
| Approx. 20-year payment at 11.31% | ~MXN 28,500/month |
| Approx. 20-year payment at 9.99% (average granted, June 2026) | ~MXN 26,100/month |
| Average two-bedroom rent | MXN 21,921/month |
Mexico Property Market
This is just a preview page. Prices and rents move fast: your guide is refreshed every month, and you always get the latest version.
Should you wait for Mexico City mortgage rates to fall?
Not if you've found the right apartment, because even modest price growth eats a big part of the saving.
Take the same MXN 3.39 million apartment. Borrowing 80% over 20 years at 11.31% costs about MXN 28,500 a month.
If rates fall to 9.5%, that payment drops to about MXN 25,250.
But the apartment doesn't wait for you. A 5% rise takes the price to about MXN 3.56 million, and borrowing 80% of that at 9.5% costs close to MXN 26,500 a month.
Close to 40% of the saving is gone.
A 5% rise isn't an aggressive assumption when the latest SHF reading for the Valle de México is 4.6%. For an average apartment, waiting is easy. For a genuinely good one at a fair price, trying to time rates can cost more than it saves.
Are Mexico City rents rising fast enough to make buying worthwhile?
Yes, rents have done far more work than prices over the last five years, and that's what makes buying look better than it did.
Inmuebles24 puts the average asking rent for a 65 m² two-bedroom at MXN 21,921 a month in June 2026. That's 9.6% more than a year earlier, and 3.7% more than in December, well above inflation.
Since the rent upswing began in October 2021, Inmuebles24 has measured a cumulative increase of about 64%. Sale prices stalled or fell in real terms for part of that time.
The result: each peso you put into an apartment buys more rent than it did a few years ago. That's why buying can make sense for a cash investor while the same apartment looks bad with an 80% mortgage.
Are Mexico City rental yields actually good now?
Better than they were, yes: Inmuebles24's gross yield is 7.64%, against about 6.2% in early 2022.
At 7.64%, about 13.1 years of gross rent pays back the purchase price. At 6.2%, it took more than 16 years. Each peso of purchase price now earns about 23% more gross rent.
Global Property Guide, working from listings with its own method, gets a lower 6.77% for the second quarter of 2026. So treat 7% as a realistic citywide gross figure, before costs.
The catch is borrowing. A 7% to 7.6% gross yield sits well below mortgage quotes above 11%, and building fees, vacancy, taxes and management take another slice. Cash buyers can like these numbers. Buyers borrowing most of the price shouldn't.
| Rental metric | Around early 2022 | Currently | Change |
|---|---|---|---|
| Gross rental yield (Inmuebles24) | ~6.2% | 7.64% | Strong improvement |
| Gross rent/payback period | ~16.1 years | 13.1 years | About 3 years shorter |
| Average quoted mortgage rate | — | 11.31% | Still above gross yield |
| Rent cycle | Near its low point | +64% since Oct. 2021 | Major repricing |
70+pagesIs Mexico City building enough homes to stop prices rising?
No. The city builds too little housing, in too few places, for a broad oversupply anytime soon.
Research from 4S Real Estate found 8,252 new homes on sale across the Valle de México in 2025. The metro area has more than 2,000 geographic quadrants, yet new apartment towers appeared in only 52 of them.
More than half of those new units, 4,644 apartments, were concentrated in just 12 neighborhoods.
So the city can be short of housing overall and still have too many similar apartments in one corridor. A buyer on an established street with almost no new building faces a very different market from someone buying one of hundreds of units in a big new development.
Which Mexico City neighborhoods have too much new construction?
Nuevo Polanco first, then Portales, Roma and San Ángel: check the pipeline around the building before you assume scarcity will protect you.
In 4S Real Estate's 2025 data, Nuevo Polanco had 743 new apartments on sale from only two projects. Portales had 458 across 13 projects, Roma 435 across 15, and San Ángel 417 across six.
Seven hundred apartments in two developments create a pool of near-identical units. Owners may later list against apartments of the same age, amenities, layout and target tenant.
Narvarte had 188 new units across 11 projects, and Del Valle 151 across nine. There's supply there too, but it's far more spread out.
| Area | New units reported in 2025 | Projects | Concentration |
|---|---|---|---|
| Nuevo Polanco | 743 | 2 | Very high |
| Portales | 458 | 13 | High but dispersed |
| Roma | 435 | 15 | High but dispersed |
| San Ángel | 417 | 6 | Significant |
| Narvarte | 188 | 11 | More limited |
| Nápoles | 186 | 8 | Moderate |
| Del Valle | 151 | 9 | Relatively contained |
Is buying in Roma, Condesa or Polanco still worth it?
It can be, but the name alone no longer justifies the premium.
These areas are central, walkable and full of restaurants, offices and parks, with deep pools of local and foreign tenants. Good apartments there rent and resell more easily.
You pay for it. Inmuebles24 puts the standard 65 m² two-bedroom rent in Hipódromo Condesa at about MXN 38,400 a month, the highest in its city index. High rents can still mean thin returns when prices are higher still.
So be demanding: natural light, low noise, a good layout, solid construction, a good floor and a pleasant street matter much more when you're paying some of the city's highest prices per square meter. An ordinary apartment at a premium price is easy to find. A truly scarce one is worth more of your time.
70+pagesAre cheaper Mexico City neighborhoods better investments now?
On rent alone, often yes: some less famous neighborhoods earn more rent per peso than the areas foreigners know first.
Inmuebles24's citywide gross yield is 7.64%, but its highest-return neighborhood is Unidad Habitacional Lomas de Sotelo, and its data keeps putting less fashionable parts of the north, east and west of the city above the premium central districts.
Rents there are lower than in Condesa or Polanco, but prices are lower still. Rents are also rising fast outside the center: 15.5% in a year in Coyoacán, against 6.9% in Benito Juárez.
Don't chase the highest yield blindly. A 10% or 12% gross yield may just be paying you for weaker resale, more vacancy, older buildings or a narrow tenant pool. The best deals usually sit in between: established neighborhoods with good transport and solid local demand, without the international-name premium.
Is buying cheaper than renting in Mexico City right now?
Not with a big mortgage and a short stay: renting is still cheaper.
A 65 m² apartment at MXN 52,087 per m² costs about MXN 3.39 million, while the average two-bedroom rents for MXN 21,921 a month. Borrow 80% at current rates and the loan alone costs about MXN 28,500 a month. Add maintenance, property tax, building fees, insurance and the purchase costs.
A long stay changes things. Over ten or fifteen years, you spread the purchase costs, pay down the loan and keep any appreciation. A three-year buyer gets none of that.
If you're unsure you'll still live in Mexico City in a few years, rent. If you're staying for the long run and have the cash, buying makes much more sense.
Can Mexico City buying costs wipe out your return?
Yes, on a short hold. The costs of buying and selling can swallow a modest price gain.
The biggest item is the ISAI transfer tax, which is progressive: about 5.07% on a MXN 2.5 million value under the 2026 tariff, and roughly MXN 279,000 (about US$15,000) on MXN 5 million. Registration, appraisal, certificates and the notary's fee come on top.
The Colegio de Notarios de la Ciudad de México points out that most of what a notary collects is taxes and government fees, not the notary's own fee. So shopping around for a notary helps, but it won't make the tax go away.
Pay MXN 5 million, add the purchase costs, sell after two or three years at a 4% to 5% yearly gain, and a large part of the gain is gone before maintenance, interest or capital gains tax. We'd be very reluctant to buy here with a two- or three-year exit plan.
Are Mexico City's new rent rules bad for landlords?
They're less friendly than before, so plan for modest rent increases on sitting tenants.
Since a 2024 reform of the city's Civil Code, yearly increases on an existing residential lease can't exceed the previous year's inflation: 3.69% for 2026. The Supreme Court upheld the rule in February 2026.
It goes further. On October 19, 2026, the city sent a "fair rents" bill to Congress, with fines of MXN 11,731 to 46,924 for raises above inflation, a compulsory contract registry and a one-year minimum lease. It isn't law yet.
So you can set a market rent when a lease starts, but after that you're mostly limited to inflation, even if rents in the neighborhood rise 9% or 10% a year. If a deal only works with big yearly rent increases, it doesn't work.
70+pagesCan you still buy in Mexico City to run it as an Airbnb?
You can, but not as the main plan: the law already caps short stays at half the year, even if most of it isn't enforced yet.
The reform limits each short-term rental to 50% of the year's nights, about 182 nights, and requires hosts to register. In October 2026, most provisions still weren't applied because of deadline extensions and amparo lawsuits. Only about 660 short-term rentals had registered by mid-October, and the registration deadline was pushed to December 2026.
Demand is still strong on paper. AirDNA counts 25,568 active listings in September 2026, with 64% occupancy, an average nightly rate of $91 (about MXN 1,690) and about $19,800 a year in revenue per listing (about MXN 368,000). But for a listing open all year, 64% occupancy means about 234 nights, well above the 182-night cap. The World Cup also inflated the numbers: AirROI's average nightly rate jumped to MXN 3,898 in June 2026, then fell back to MXN 2,076 by August.
What to do: run the numbers as a long-term rental first. If the purchase only works with Airbnb income, walk away. Before buying, check that the building's rules allow short stays and ask the seller for real booking statements, not a projection.
Has the peso's October slide made Mexico City cheaper for dollar buyers?
A little, yes: the peso has weakened about 9% since early September, so a dollar buys noticeably more than a few weeks ago.
The peso traded below 17 per dollar at the start of September 2026. It then slid for weeks, Banxico's FIX rate reached 18.49 on October 16, and the dollar is around 18.6 pesos now.
On a MXN 5 million apartment, that's about US$294,000 at 17 pesos against about US$269,000 today, around US$25,000 less without the seller moving on price.
Keep it in perspective: the dollar averaged 19.20 pesos in 2025, when the same apartment cost about US$260,000. Add the 4.6% rise in peso prices, and buying is still pricier in dollars than last year. Most end-2026 forecasts expect the peso to strengthen again, between about 17.3 (BBVA Research) and 18.2 (Citi survey).
What to do: agree the price in pesos, convert at least part of your money once your offer is accepted rather than waiting for 19 or 20, and compare your bank's rate with a transfer service. A 1% gap on MXN 5 million is MXN 50,000.
Ownership itself is simple here. Mexico City is outside the restricted border and coastal zones, so foreigners can own property directly after signing the Article 27 agreement with the Foreign Ministry, with no fideicomiso needed.
| MXN 5M property | Early September 2026 | Late October 2026 |
|---|---|---|
| USD/MXN | ~17 | ~18.6 |
| Approx. USD purchase cost | ~$294,000 | ~$269,000 |
| FX-driven difference | — | ~$25,000 less |
| For comparison: 2025 average (19.20) | ~$260,000 | |
70+pagesIs an older Mexico City apartment too risky because of earthquakes?
Not automatically, but you need to check the building far more carefully than most buyers do.
Earthquake risk changes sharply from one area to the next because the old lakebed amplifies seismic waves much more than firmer ground. The city's official seismic atlas maps this at a finer level than a neighborhood name.
Age alone tells you little. Construction standard, structure, soil, changes to the building, past damage, repairs and maintenance all matter. Older apartments often have what new ones lack: bigger rooms, better layouts, thicker walls and prime locations.
Ask the building and the seller for structural information, records of major repairs and proof of maintenance. A low price never makes up for an unclear structural history.
Are new Mexico City apartments safer investments than older ones?
Not necessarily: a new unit removes some building-age doubts, but it adds resale risk when many identical units sit next to it.
Nuevo Polanco is the clearest example, with 743 new apartments from only two developments in 2025. An owner there may later compete with dozens of apartments built at the same time, with the same layouts, amenities and finishes.
Developers are also shrinking units to keep prices within reach. Market research reported by Expansión shows lofts of 26 to 45 m² gaining ground, especially in central areas such as Cuauhtémoc. They rent well because the monthly rent stays manageable, but they become commodities when many investors own near-identical units.
A distinctive resale apartment with good light, an efficient layout and little competition nearby can beat a brand-new unit. Judge the apartment, not the word "new."
What kind of Mexico City property is actually worth buying now?
One that still works with boring assumptions: realistic rent, normal costs and little debt.
Look for something hard to replace: good natural light, usable outdoor space, a quiet position, an efficient layout, parking where tenants care about it, a well-run building or a street with little competing supply.
For a home you'll live in, the holding period matters most. Someone staying ten years absorbs purchase costs and price swings far better than someone who may sell after three.
Don't count on big appreciation either: the Valle de México rose 4.6% in the latest SHF reading. If a deal only works with 8% a year, walk away.
What could make buying Mexico City property now a bad decision?
An expensive apartment, a big mortgage and a quick resale plan: any one of them hurts, all three together can sink the deal.
Mortgage quotes are still above 11%. Purchase costs punish short holds. Rent increases on sitting tenants are capped at inflation, and the Airbnb cap is waiting to be enforced. Some popular corridors have hundreds of new units chasing the same tenants and buyers. And dollar buyers who count on the peso staying near 18.6 may find it back near 17 by the time they sell.
Picture a foreign investor paying a premium for a small new-build in a fashionable area, borrowing 80% and planning to sell after three years. Even with moderate price growth, the return can be poor. Now picture a buyer paying mostly cash for a scarce resale apartment and holding it for ten years. Same market, very different result.
70+pagesSo, is it a good time to buy property in Mexico City now?
Yes, for long-term buyers with plenty of cash. Not for heavily financed or short-term buyers.
Prices are growing again, but the latest 4.6% SHF increase is well below the 7.9% national rise. Rents are about 64% above their 2021 level, gross yields are around 7% to 7.6%, and new housing is concentrated in a small part of the city.
Financing is where it breaks down: mortgage quotes above 11% sit well above rental yields. Rent rules leave less room for big increases, and Airbnb income is capped by law even if the cap isn't enforced yet. The one recent help is the peso, which now gives dollar buyers about 18.6 pesos instead of 17 in early September.
There's no reason to rush into an average apartment just because prices are rising again. But if the price holds up against nearby sales, the building checks out, there's little competing supply, the loan is small and you can hold for years, waiting for a perfect moment won't add much. It's a decent window, not a once-in-a-decade bargain.
Our methodology
This article estimates whether buying in Mexico City makes sense now, for different types of buyers. It looks at price momentum, mortgage costs, rents and yields, new supply, purchase costs, rent and Airbnb rules, the exchange rate, building risk and the holding period.
Price growth comes from Sociedad Hipotecaria Federal's official index (first half of 2026). Asking prices, rents and gross yields come from Inmuebles24's June 2026 Mexico City index, cross-checked with Global Property Guide. Mortgage rates come from Banco de México (average quoted rate, August 2026) and the Mexican Bankers' Association (average rate granted, June 2026). New supply comes from 4S Real Estate's 2025 data. Short-term rental figures come from AirDNA and AirROI, which we never mix in the same calculation.
Rules come from the city's Official Gazette, the Supreme Court, the Mexico City Congress, the 2026 Fiscal Code tariff for ISAI, the Colegio de Notarios and the Foreign Ministry (SRE).
We checked these figures in October 2026. Conversions use about 18.6 pesos per US dollar and 20.9 pesos per euro. The mortgage examples are simple 20-year calculations with 20% down, not bank offers.
Limits: Inmuebles24 and Global Property Guide work from asking prices and asking rents, which are usually above what buyers and tenants actually pay. SHF covers homes bought with a mortgage across the whole Valle de México, not single neighborhoods. Gross yields are before vacancy, fees and taxes.
Key sources used for this analysis include SHF's Q2 2026 housing-price index, SHF's Q1 2026 housing-price index, Banco de México mortgage rate quotes, Banco de México monetary-policy decisions, Banco de México FIX exchange rate, Crónica on rates granted and financed home values, BBVA Research, Situación México September 2026, El Financiero on the Citi expectations survey, Inmuebles24's Mexico City sale-price index, Inmuebles24's rent index, Inmuebles24's rental-yield index, El Economista on rents by borough, Global Property Guide rental yields, 4S Real Estate's Gran Reporte de Verticalización 2025, Expansión Obras on the 4S data, the 2024 rental reform in the Official Gazette, the Supreme Court's February 2026 statement, Crónica on the October 2026 fair rents bill, the 2026 legislative initiative, AirDNA's Mexico City overview, AirROI's Mexico City data, El Financiero on short-term rental rules, Expansión Política on the December 2026 deadline, La Razón on registration figures, the Mexico City Fiscal Code, the Colegio de Notarios de la Ciudad de México, the official CDMX seismic atlas and SRE guidance on buying outside the restricted zone.
