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Yes, the analysis of Mexico City's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Condesa? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other colonias where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Mexico City Property Pack.
Will property prices increase in Mexico City in 2025?
Yes, property prices in Mexico City are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Mexico City remains one of the hottest cities in Latin America for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Mexico City’s price growth aren’t going anywhere.
Demand, especially in the prime central areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Mexico City’s status as a cultural, financial, and political hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Mexico City
Here are some factors suggesting prices could increase:
The ongoing urbanization and population growth in Mexico City are expected to continue in 2025, leading to increased demand for housing. As more people move to the city for job opportunities and lifestyle, the pressure on the housing market is likely to drive prices up.
Mexico City's government is investing in infrastructure projects, such as improved public transportation and road networks, which are expected to enhance connectivity and accessibility. These improvements can make certain areas more attractive to buyers, potentially increasing property values.
The trend of remote work and digital nomadism is expected to persist, attracting more international buyers and expatriates to Mexico City. This influx of foreign interest can boost demand for properties, particularly in desirable neighborhoods, leading to price increases.
The limited availability of land for new developments in central areas of Mexico City is likely to constrain supply. With demand remaining strong, this scarcity of new housing options can contribute to rising property prices.
Mexico City's cultural and historical significance continues to attract tourists and investors alike. The city's appeal as a global destination can sustain interest in the real estate market, supporting price growth.
The Mexican economy is projected to experience moderate growth in 2025, which can improve consumer confidence and purchasing power. As economic conditions stabilize, more individuals may be inclined to invest in real estate, driving up demand and prices.
Signals pointing to a property price decrease in Mexico City
Here are some factors suggesting prices could fall:
Rising inflation and living costs are squeezing household budgets across Mexico, and Mexico City is no exception. As essential goods and services become more expensive, middle-income buyers, especially first-time homebuyers, may be priced out of the market, which could reduce demand for lower and mid-tier properties.
Higher mortgage interest rates, which have risen sharply from the ultra-low levels seen in recent years, are making it increasingly difficult for buyers to secure affordable financing. This particularly impacts those looking to purchase second homes or investment properties, potentially cooling off demand in the broader market outside of the luxury segment.
Economic uncertainties, both domestically and globally, could impact investor confidence and lead to a slowdown in real estate investment. If economic conditions worsen, potential buyers may delay or reconsider their property purchases, affecting demand and prices.
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If property prices go up in Mexico City, how much would they increase by?
If real estate prices in Mexico City were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic, emerging markets like Mexico City appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as neighborhood, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom apartment in Condesa for 4,500,000 MXN today, don't be surprised if it's priced between 4,635,000 and 4,815,000 MXN this time next year.
To give you a better understanding, here is a table that shows 7 types of Mexico City real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (MXN) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Colonial Apartment (60 sqm / 646 sqft) | 4,000,000 MXN | 4,120,000 MXN | 4,200,000 MXN | 4,280,000 MXN |
| Modern Apartment (75 sqm / 807 sqft) | 5,500,000 MXN | 5,665,000 MXN | 5,775,000 MXN | 5,885,000 MXN |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 12,000,000 MXN | 12,360,000 MXN | 12,600,000 MXN | 12,840,000 MXN |
| Studio (30 sqm / 323 sqft) | 2,000,000 MXN | 2,060,000 MXN | 2,100,000 MXN | 2,140,000 MXN |
| Loft (80 sqm / 861 sqft) | 6,500,000 MXN | 6,695,000 MXN | 6,825,000 MXN | 6,955,000 MXN |
| Townhouse (150 sqm / 1,615 sqft) | 15,000,000 MXN | 15,450,000 MXN | 15,750,000 MXN | 16,050,000 MXN |
| Investment Property (50 sqm / 538 sqft) | 3,500,000 MXN | 3,605,000 MXN | 3,675,000 MXN | 3,745,000 MXN |
Everything you need to know is included in our Property Pack for Mexico City
If real estate prices go up in Mexico City, which areas are likely to see the biggest increases?
Today, people who want to move to Mexico City want the charm, but they also want modern conveniences and vibrant social scenes, which La Condesa delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Roma Norte has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Mexico City market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| La Condesa | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Polanco | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Mexico City. |
| Roma Norte | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Santa Fe | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Coyoacán | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| San Ángel | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Juárez | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Narvarte | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Lomas de Chapultepec | Medium-High | Its proximity to central business districts, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Tlalpan | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Bosques de las Lomas | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Centro Histórico | High | Upcoming restoration of historic landmarks and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Mexico City
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Mexico City?
In 2025, Mexico City real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Mexico City are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Mexico City, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Mexico City's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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