Buying real estate in Mexico?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

Is it worth it buying property in Mexico City in 2025?

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Authored by the expert who managed and guided the team behind the Mexico Property Pack

property investment Mexico City

Yes, the analysis of Mexico City's property market is included in our pack

Mexico City's property market in 2025 offers compelling opportunities for investors and residents, with prices growing 4-6% annually and rental yields reaching 4-6% in prime neighborhoods.

The city faces a critical supply shortage that's driving prices upward, particularly in central areas like Roma, Condesa, and Polanco where demand from expats and remote workers remains strong. Property prices average USD 2,500 per square meter as of June 2025, ranging from USD 1,500 in affordable peripheral areas to USD 4,000 in luxury zones.

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.

How this content was created 🔎📝

At TheLatinvestor, we explore the Mexican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Mexico City, Guadalajara, and Playa del Carmen. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties can I buy in Mexico City, and what are their pros and cons?

Mexico City's residential property market in 2025 offers five main property types, each with distinct advantages and drawbacks depending on your investment goals and lifestyle needs.

Apartments (including condos, studios, and lofts) dominate the market, especially in central locations. These properties offer excellent security, building amenities like gyms and pools, and easier maintenance compared to houses. They're particularly popular among expats and remote workers, making them ideal for both long-term and short-term rentals. However, buyers should budget for monthly maintenance fees ranging from MXN 1,500 to over MXN 10,000 in luxury buildings, and be prepared for limited outdoor space and HOA restrictions.

Houses and townhouses provide more space and privacy, with private outdoor areas perfect for families. You'll find these primarily in suburban or peripheral boroughs where prices are more affordable. The trade-off includes higher maintenance responsibilities, less walkability, and longer commutes to the city center. Security can also vary significantly by neighborhood.

Luxury penthouses represent the premium segment, offering privacy, large terraces, and panoramic city views. These properties can generate high rental income and come with exclusive amenities. However, they require substantial purchase and maintenance budgets, and owners often bear responsibility for specialized repairs and shared building elements.

The second-hand property market is particularly strong in 2025, representing 52% of all sales. These older properties offer lower prices per square meter and established neighborhood character, though buyers should prepare for potential renovation needs and less energy efficiency.

Should I buy or rent in Mexico City right now?

The buy-versus-rent decision in Mexico City depends primarily on your time horizon and financial goals.

Buying makes sense if you're planning to stay for at least 5 years, want to build equity, or seek investment returns through appreciation or rental income. Mexico City properties are appreciating at 4-6% annually in 2025, offering a dollar-hedged asset with potential rental yields of 4-6% in top neighborhoods. This provides both stability and growth potential for long-term investors.

However, buying involves significant upfront costs, mortgage rates around 10%, ongoing maintenance responsibilities, and legal complexities for foreigners. The property becomes an illiquid asset that can be challenging to sell quickly if your plans change.

Renting offers maximum flexibility with lower upfront costs, making it ideal for stays under 5 years, newcomers testing different neighborhoods, or those uncertain about long-term plans. Mexico's rental laws favor tenants, and new 2025 regulations cap rent increases to inflation, providing additional protection. Landlords handle repairs and maintenance, simplifying your budget and lifestyle.

As we reach mid-2025, renting remains popular due to high interest rates and rising property prices, especially among younger residents and the lower-middle class. However, buying becomes increasingly attractive for those seeking to lock in costs before further appreciation, particularly given the ongoing supply shortage driving prices upward.

How have property prices changed recently, and what's the outlook for 2025 and beyond?

Mexico City's property prices have shown consistent growth, with the residential market experiencing 5% appreciation in 2024 and continuing at 4-6% annually through 2025.

As of June 2025, the average apartment price per square meter stands at USD 2,500, though this varies significantly by location - from USD 1,500 in affordable peripheral areas to USD 4,000 in premium neighborhoods like Polanco. A typical 60-square-meter colonial apartment in a mid-tier area costs around MXN 4.2 million (approximately USD 240,000), while luxury penthouses in prime locations can exceed MXN 12.7 million (USD 720,000).

The rental market has been even more dynamic, with rents increasing 14.4% year-over-year in 2024. This rapid growth led to new regulations in 2025 capping future rent increases to inflation rates, which should moderate rental price growth going forward.

Looking ahead, Mexico City's property prices are expected to continue appreciating at 4-6% annually through 2026 and beyond, driven by chronic supply shortages, growing demand from remote workers and expats, and the city's economic dynamism. The peripheral boroughs like Tláhuac, Gustavo A. Madero, and Iztapalapa are likely to see stronger growth as buyers seek affordability.

It's something we develop in our Mexico property pack.

What are the key real estate market trends in Mexico City right now?

Mexico City's residential property market in mid-2025 faces a perfect storm of high demand meeting constrained supply.

Demand remains exceptionally strong, driven by population growth, an influx of remote workers and expats, and local buyers seeking to hedge against inflation. This demand significantly outpaces new supply, particularly in central areas where land scarcity and regulatory hurdles limit development. The situation is creating a seller's market with multiple offers common on well-priced properties.

Construction activity has slowed considerably due to high building costs, complex permitting processes, and limited available land in desirable areas. This supply shortage is expected to worsen in coming years, putting additional upward pressure on prices. The second-hand market has become increasingly important, now representing 52% of all transactions as buyers compete for existing inventory.

New regulations implemented in 2025 are reshaping the rental market. These reforms cap rent increases to inflation rates and require digital lease registration, providing more stability for tenants but potentially discouraging some rental property investments. The rules may reduce the supply of rental properties as some owners shift to other investment strategies.

A notable trend is the geographic shift in buyer interest toward peripheral boroughs. Areas like Tláhuac, Gustavo A. Madero, Magdalena Contreras, and Iztapalapa are emerging as affordable alternatives to central neighborhoods, offering better value for money and potential for appreciation as infrastructure improves.

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How does the buying process work in Mexico City, and are there barriers for foreigners?

The property buying process in Mexico City follows a structured path that foreigners can navigate successfully with proper guidance.

The process begins with property search through online portals or real estate agents, followed by negotiation and signing an initial purchase agreement. Due diligence is crucial and includes title verification, legal review, and notary involvement. Most of Mexico City falls outside restricted zones, meaning foreigners can own property directly in their name without special structures. However, properties within 50 kilometers of coastlines or 100 kilometers of borders require a fideicomiso (bank trust), though this rarely applies to Mexico City properties.

Closing costs typically range from 5-10% of the purchase price and include notary fees, registration costs, and taxes. The entire process concludes with property registration in the public registry, officially transferring ownership.

While foreigners don't need residency to buy property, several barriers exist. The legal system's complexity requires working with trusted bilingual lawyers and agents. Language barriers and bureaucratic processes can slow transactions, and thorough due diligence is essential to avoid title issues or disputes. The process typically takes 30-60 days from offer to closing.

Success requires patience, professional assistance, and careful attention to documentation. Never pay large sums in cash without formal contracts, and always verify the seller's ownership through official channels before proceeding.

Which are the best agencies, online portals, and networks for finding property in Mexico City?

Finding the right property in Mexico City requires leveraging multiple resources, from established agencies to digital platforms.

Type Name Best For
Top Agency Pulso Inmobiliario Full-service transactions, local expertise
Top Agency Quality Inmobiliaria Franquicias Wide network, diverse inventory
Top Agency Co83 Inmobiliaria & Constructora New developments, construction
Online Portal MercadoLibre Largest inventory, all price ranges
Online Portal Inmuebles24.com User-friendly interface, good filters
Online Portal Propiedades.com Professional listings, verified agents
Online Portal Vivanuncios Direct owner listings, rentals
Professional Network CREW Mexico City Industry connections, especially for women

Other reputable agencies include Grupo GuĂ­a, Excelencia Inmobiliaria, and Inmuebles HAHN, all known for their professionalism and market knowledge. Lamudi also serves as a valuable online portal, particularly for new developments.

When using online portals, verify listings through multiple sources and be wary of deals that seem too good to be true. Always work with licensed agents and request credentials before engaging in serious negotiations.

What can I buy with $100K, $200K, or $400K in Mexico City?

Your budget determines not just property size but also location and amenities in Mexico City's diverse real estate market.

With USD 100,000, you're looking at entry-level properties in peripheral boroughs. This budget typically secures a small studio apartment or an older one-bedroom unit in areas like Portales, Iztapalapa, or Tláhuac. These neighborhoods offer good public transportation and authentic local atmosphere but fewer international amenities and trendy establishments. Properties at this price point often need some renovation work.

A USD 200,000 budget opens up significantly more options. You can find comfortable 1-2 bedroom apartments in established mid-tier neighborhoods like Narvarte, Del Valle, or Alamos. These areas offer better amenities, improving infrastructure, and more central locations. Some smaller houses in peripheral areas also fall within this range, providing options for those seeking more space.

With USD 400,000, you enter the premium market segment. This budget secures modern 2-3 bedroom apartments in sought-after areas like Roma, Condesa, or Coyoacán. You'll find properties with high-end finishes, building amenities, and excellent locations. However, in ultra-luxury areas like Polanco, this budget might only buy a small one-bedroom, illustrating the significant price variations across neighborhoods.

Remember that these prices reflect June 2025 market conditions and ongoing appreciation means acting sooner typically provides better value than waiting.

Which Mexico City neighborhoods are affordable, rising stars, or luxury enclaves?

Mexico City's neighborhoods offer distinct investment profiles, from budget-friendly options to exclusive luxury zones.

Affordable areas like Portales and Iztapalapa provide entry points for budget-conscious buyers. These neighborhoods offer low prices, good public transportation, and authentic local experiences. However, they typically have fewer international amenities, less trendy dining and nightlife, and may require longer commutes to business districts. These areas suit investors seeking maximum square meters per dollar and long-term appreciation potential.

Rising star neighborhoods Narvarte and Del Valle represent the sweet spot for many buyers. These areas offer good value, improving amenities, and central locations with strong appreciation potential. They're experiencing gentrification, bringing new restaurants, cafes, and services. The downside is rapidly increasing prices and potential displacement of long-time residents, so buyers should act quickly to capture value.

Trendy areas Roma and Condesa attract expats and young professionals with their walkability, abundant cafes, parks, and vibrant cultural scenes. These neighborhoods command premium prices but offer strong rental potential and lifestyle amenities. Downsides include noise, tourist crowds, and ongoing gentrification concerns.

Luxury enclaves Polanco, Lomas, and Bosques de las Lomas cater to affluent buyers seeking security, international schools, luxury shopping, and exclusive amenities. These areas offer the highest quality properties and services but at premium prices that may limit appreciation potential. They can feel less authentically Mexican and suffer from significant traffic congestion.

It's something we develop in our Mexico property pack.

infographics rental yields citiesMexico City

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.

What common mistakes do buyers make in Mexico City, and how can I avoid them?

Foreign buyers in Mexico City's property market face several potential pitfalls that proper preparation can help avoid.

The most critical mistake is misunderstanding legal requirements, particularly regarding fideicomiso rules for restricted zones and property ownership structures. While most of Mexico City allows direct foreign ownership, buyers must still navigate complex legal processes. Skipping due diligence ranks as the second major error - failing to verify titles, check for liens, or investigate zoning violations can lead to costly problems later.

Many buyers fall victim to scams involving fake listings, unlicensed agents, or pre-sale fraud. The market attracts opportunists who prey on foreign buyers' unfamiliarity with local practices. Always verify agent credentials, never pay large cash deposits without formal contracts, and work only with established, reputable firms.

Underestimating bureaucracy and closing timelines frustrates many foreign buyers. What seems like a simple transaction can involve multiple government offices, extensive documentation, and weeks of processing. Language barriers compound these challenges, making professional bilingual assistance essential.

Buyers often fail to budget adequately for ongoing costs like maintenance fees (MXN 1,500-5,000 monthly), property taxes, and HOA assessments. While property taxes remain low, maintenance and service costs can add up quickly, especially in luxury buildings.

To avoid these pitfalls, always hire a reputable real estate attorney, use established agencies, verify all documents through official channels, and budget 5-10% above purchase price for closing costs and initial expenses.

What's the real cost of living in Mexico City when owning property?

Owning property in Mexico City involves ongoing costs beyond your mortgage that significantly impact your monthly budget.

Property taxes in Mexico City remain remarkably low, often under USD 200 annually for most residential properties. This represents a major advantage compared to property taxes in the United States or Europe. However, this benefit is offset by other monthly expenses that add up quickly.

HOA or maintenance fees range from MXN 1,500 to 5,000 monthly for standard buildings, with luxury properties commanding even higher fees. These cover security, common area maintenance, elevators, and amenities. Utilities for a two-bedroom apartment typically run MXN 1,500-3,000 monthly, including electricity, water, gas, and internet.

Additional costs include optional but recommended property insurance, regular cleaning services, minor repairs, and security enhancements. Many buildings charge extra for parking spaces or storage units.

For a comfortable lifestyle excluding mortgage payments, budget MXN 15,000-30,000 monthly (USD 800-1,600) depending on your neighborhood and lifestyle choices. Central trendy areas like Roma or Condesa tend toward the higher end due to premium services and dining options, while peripheral neighborhoods offer more economical living.

Mexico City offers excellent value compared to major U.S. or European cities, with dining, transportation, and services costing significantly less while maintaining high quality.

What's daily life really like for expats in Mexico City?

Living as an expat in Mexico City offers a vibrant, culturally rich experience with world-class amenities at affordable prices.

Central neighborhoods like Roma, Condesa, Polanco, and Coyoacán have developed thriving expat communities where English is widely spoken and international services abound. You'll find excellent healthcare facilities, international schools, modern shopping centers, and efficient public transportation, particularly in these areas. The city's walkability in central zones, abundant parks, and cafe culture create an enviable urban lifestyle.

Safety varies significantly by neighborhood. Luxury and trendy areas maintain good security with visible police presence and private security, while some peripheral areas require more caution. Most expats report feeling safe following common-sense precautions like avoiding flashy displays of wealth and using ride-sharing apps at night.

The expat community is notably welcoming, with numerous social groups, professional networks, and cultural activities facilitating connections. Digital nomads particularly gravitate toward Roma and Condesa for their co-working spaces and international atmosphere.

Challenges include traffic congestion, occasional air pollution, and the altitude adjustment for newcomers. The bureaucracy can frustrate those accustomed to more streamlined processes, and while many locals speak English in central areas, Spanish proficiency greatly enhances daily life.

Overall, expats consistently rate Mexico City highly for quality of life, citing the perfect blend of modern amenities, rich culture, affordable living, and warm hospitality that makes the city increasingly popular among international residents.

If I rent out my property, which neighborhoods work best and what returns can I expect?

Mexico City's rental market offers attractive yields, particularly in neighborhoods popular with expats and young professionals.

For long-term rentals, Roma, Condesa, Polanco, Del Valle, and Coyoacán consistently deliver the best results. These areas attract expats, remote workers, and affluent locals seeking furnished units with modern amenities. Rental yields in these prime neighborhoods range from 4-6% annually, with furnished properties commanding 20-30% premiums over unfurnished units.

Short-term rentals through platforms like Airbnb perform well in central, tourist-friendly areas, though new 2025 regulations may restrict this market. Properties near major attractions, business districts, or with unique character achieve higher nightly rates and occupancy.

Tenants prioritize high-speed internet, security, walkability, and proximity to public transportation and amenities. Furnished units with modern kitchens, comfortable workspaces, and building amenities like gyms or rooftop terraces command premium rents. Properties in buildings with 24-hour security and parking particularly appeal to the expat market.

Legal and tax considerations have evolved significantly in 2025. New regulations cap annual rent increases to inflation rates and require digital lease registration. Property owners must declare rental income and pay appropriate taxes, with rates varying based on total income. Professional property management, while costing 8-10% of rental income, can help navigate these requirements while maximizing returns.

It's something we develop in our Mexico property pack.

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.

Sources

  1. Mexico Business News - Real Estate Market Mexico City Snapshot 2025
  2. MyCasa - Good Time to Buy Property in Mexico 2025
  3. The Latin Investor - Mexico City Price Forecasts
  4. Mexico News Daily - Mexico City's Most Promising Neighborhoods
  5. Global Property Guide - Mexico Price History
  6. The Latin Investor - Mexico City Real Estate Market
  7. Mexpat Realtors - Mexico's Housing Market Supply Shortage
  8. Mexico Custom Homes - Real Estate Law Mexico 2025 Reforms
  9. MyCasa - How Americans Can Buy Land in Mexico 2025
  10. The Latin Investor - Mexico City Average Apartment Prices