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
This article breaks down the current state of the residential real estate market in Mexico City, including housing prices, market momentum, and what you can realistically expect as a buyer in 2026.
We constantly update this blog post to keep the data fresh and reliable, so the numbers you see here reflect our latest analysis based on official Mexican sources and our own market tracking.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Mexico City.
How's the real estate market going in Mexico City in 2026?
What's the average days-on-market in Mexico City in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Mexico City is around 80 to 110 days for a typical mid-market apartment, though well-priced properties in sought-after neighborhoods can sell in 45 to 90 days.
The realistic range that covers most typical listings in Mexico City spans from about 45 days for correctly priced apartments in prime areas like Roma Norte, Condesa, or Polanco, all the way up to 150 days or more for overpriced listings or properties in less popular neighborhoods.
Compared to one or two years ago, days-on-market in Mexico City have remained relatively stable, as mortgage rates stayed elevated through late 2025 (Banxico's benchmark rate was cut to 7% in December 2025, but mortgage rates for households still averaged around 11.6%), which kept buyers cautious and negotiations longer than in a low-rate environment.
Are properties selling above or below asking in Mexico City in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Mexico City shows that most homes close at about 3% to 7% below the original asking price, with negotiation being a normal and expected part of the buying process.
Across Mexico City, roughly 85% to 90% of properties sell at or below asking, while only a small fraction (perhaps 5% to 10%) in the most competitive micro-markets see at-ask or occasional above-ask closings, though we have moderate confidence in this split because official transaction-level data is limited.
The property types and neighborhoods most likely to see bidding wars and above-asking sales in Mexico City are renovated apartments with good natural light in Roma Norte, Condesa, Juarez, and Polanco, where scarce inventory meets strong demand from both locals and foreign buyers.
By the way, you will find much more detailed data in our property pack covering the real estate market in Mexico City.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Mexico. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Mexico City?
What property types dominate in Mexico City right now?
The estimated breakdown of the most common residential property types available for sale in Mexico City is approximately 70% apartments and condos, 20% houses, 5% townhouses, and the remaining 5% split between penthouses, lofts, and other niche formats.
Apartments and condos represent the largest share of the Mexico City market by a wide margin, accounting for roughly seven out of every ten residential listings you will encounter.
Apartments became so prevalent in Mexico City because the city's dense urban core, limited buildable land, and decades of vertical development made mid-rise and high-rise living the most practical and affordable option for most households.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Mexico City right now?
The estimated share of new-build properties among all residential listings currently available in Mexico City is relatively low, likely accounting for only 15% to 25% of total supply, because formal new housing completions lag far behind demand in the city's constrained central areas.
As of early 2026, the neighborhoods and districts in Mexico City with the highest concentration of new-build developments include parts of Benito Juarez (especially Narvarte, Del Valle, and Napoles), Miguel Hidalgo (Granada, Nuevo Polanco, Anzures), and pockets of Cuauhtemoc near Reforma, where developers have focused vertical projects over the past decade.
Get fresh and reliable information about the market in Mexico City
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which neighborhoods are improving fastest in Mexico City in 2026?
Which areas in Mexico City are gentrifying in 2026?
As of early 2026, the top neighborhoods in Mexico City showing the clearest signs of gentrification include Santa Maria la Ribera, San Rafael, Escandon, select blocks of Doctores, and the edges of Narvarte and Del Valle, all of which are experiencing spillover demand from already-expensive cores like Roma and Condesa.
Visible changes indicating gentrification in these Mexico City areas include the rapid appearance of specialty coffee shops, coworking spaces, boutique hotels, and restaurants with English menus, alongside building renovations that convert older vecindades into modern apartments, often with exposed brick aesthetics and rooftop terraces.
The estimated price appreciation in these gentrifying Mexico City neighborhoods over the past two to three years has ranged from roughly 20% to 40%, with Santa Maria la Ribera and San Rafael seeing some of the fastest gains as buyers priced out of Roma and Condesa moved one ring outward.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Mexico City.
Where are infrastructure projects boosting demand in Mexico City in 2026?
As of early 2026, the top areas in Mexico City where major infrastructure projects are currently boosting housing demand include the western corridor around Observatorio and Tacubaya (benefiting from the Tren Interurbano completion), plus areas along the renovated Metro Line 1 from Observatorio to Pantitlan.
The specific infrastructure projects driving demand in Mexico City right now are the Tren Interurbano Mexico-Toluca (branded "El Insurgente"), which will fully open to Observatorio station in late January 2026, and the complete renovation of Metro Line 1, which reopened its final section to Observatorio in November 2025 after years of modernization work.
The estimated timeline for completion of these major Mexico City projects is imminent: the Tren Interurbano is in final testing and expected to open to the public by the end of January 2026, while Metro Line 1's renovation is already complete and operational.
The typical price impact on nearby properties in Mexico City once such infrastructure projects are announced versus completed tends to be a 10% to 20% premium during the announcement and construction phase, with an additional 5% to 15% bump once operations begin and commute times are proven, especially in neighborhoods like Tacubaya, San Miguel Chapultepec, and Escandon.
We have made this infographic to give you a quick and clear snapshot of the property market in Mexico. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What do locals and insiders say the market feels like in Mexico City?
Do people think homes are overpriced in Mexico City in 2026?
As of early 2026, the estimated general sentiment among locals and market insiders is that homes in prime central Mexico City neighborhoods like Roma, Condesa, and Polanco are indeed overpriced relative to local incomes, though many still see value compared to equivalent neighborhoods in other global capitals.
Specific evidence locals typically cite when arguing homes are overpriced in Mexico City includes the fact that housing costs have risen roughly 286% since 2005 while real wages decreased by about 33% over the same period, making homeownership increasingly out of reach for middle-class Mexican families.
Counterarguments given by those who believe prices are fair in Mexico City often point to the city's global appeal, chronic housing undersupply, and the reality that prices per square meter remain 60% to 75% cheaper than comparable neighborhoods in New York, Los Angeles, or Miami.
The price-to-income ratio in Mexico City is significantly higher than the national average, with median home prices in central boroughs requiring roughly 10 to 15 years of median household income, compared to 6 to 8 years in secondary Mexican cities like Guadalajara or Queretaro.
What are common buyer mistakes people regret in Mexico City right now?
The estimated most frequently cited buyer mistake that people regret making in Mexico City is purchasing a noisy unit without properly checking for street noise, nearby bars, or microbus routes, because many buildings in popular areas like Roma and Condesa sit on loud corridors where sleep quality suffers badly.
The second most common buyer mistake people mention regretting in Mexico City is skipping thorough condominium due diligence, specifically failing to review the building's maintenance reserves, water supply reliability, elevator condition, and whether the administracion actually enforces rules, which can lead to surprise costs and neighbor conflicts.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Mexico City.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Mexico City.
Get the full checklist for your due diligence in Mexico City
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Mexico City in 2026?
Do foreigners face extra challenges in Mexico City right now?
The estimated overall difficulty level foreigners face when buying property in Mexico City is moderate, meaning it is definitely doable but requires more paperwork, patience, and professional guidance than a local buyer would need for the same transaction.
The specific legal restrictions that apply to foreign buyers in Mexico City are actually minimal because the city lies outside Mexico's "restricted zone" (50 km from coasts, 100 km from borders), so foreigners can own property directly in their own name without needing a fideicomiso bank trust.
Practical challenges foreigners most commonly encounter in Mexico City include navigating the notario publico system (which is unfamiliar to most non-Mexicans), obtaining an RFC tax ID, proving the legitimate source of funds to satisfy anti-money-laundering checks, and dealing with sellers or agents who may not speak English or respond to international communication norms.
We will tell you more in our blog article about foreigner property ownership in Mexico City.
Do banks lend to foreigners in Mexico City in 2026?
As of early 2026, the estimated availability of mortgage financing for foreign buyers in Mexico City is limited but real, with several major banks and specialized lenders offering products to foreigners who have temporary or permanent residency and can document their income clearly.
Typical loan-to-value ratios foreign buyers can expect in Mexico City range from 50% to 70%, meaning you will likely need a down payment of 30% to 50%, and interest rates for well-documented foreign borrowers currently run between 10% and 14% for peso-denominated loans.
Documentation and income requirements banks typically demand from foreign applicants in Mexico City include a valid passport, proof of Mexican residency status (temporary or permanent), an RFC tax ID, two years of income verification (tax returns or bank statements), a credit report from your home country, and clear evidence of the funds' origin for anti-money-laundering compliance.
You can also read our latest update about mortgage and interest rates in Mexico.
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 risky is buying in Mexico City compared to other nearby markets?
Is Mexico City more volatile than nearby places in 2026?
As of early 2026, the estimated price volatility of Mexico City is lower than comparable markets like Cancun, Puerto Vallarta, or San Miguel de Allende, because the capital has more diversified demand drivers and deeper liquidity than tourism-dependent or expat-heavy secondary cities.
Historical price swings Mexico City has experienced over the past decade have been relatively modest, with steady annual appreciation of 6% to 9% and no major crashes, compared to beach markets that saw sharper booms during the pandemic remote-work surge and are now experiencing softer demand.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Mexico City.
Is Mexico City resilient during downturns historically?
The estimated historical resilience of Mexico City property values during past economic downturns is relatively strong, with the market showing only minor corrections of 5% to 10% in real terms during crises like 2008-2009 and the initial COVID shock in 2020, followed by quick recoveries.
During the most recent major downturn (early 2020), property prices in Mexico City briefly softened but recovered within 12 to 18 months, and by 2021-2022 the market was posting its strongest appreciation in years as remote workers and foreign buyers flooded in.
Property types and neighborhoods in Mexico City that have historically held value best during downturns are well-located apartments in established central areas like Polanco, Condesa, Roma, and Juarez, where scarcity, walkability, and amenity access keep demand steady even when the broader economy weakens.
Get to know the market before you buy a property in Mexico City
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How strong is rental demand behind the scenes in Mexico City in 2026?
Is long-term rental demand growing in Mexico City in 2026?
As of early 2026, the estimated growth trend for long-term rental demand in Mexico City is solid, with rents having increased roughly 9% year-over-year entering 2026, though the market is also facing new political pressure as the city government introduced plans to control rent increases and sanction abusive landlord practices.
Tenant demographics driving long-term rental demand in Mexico City include young professionals working in tech, finance, and creative industries, university students near UNAM and other campuses, and a growing expat population of remote workers who prefer renting before committing to a purchase.
The neighborhoods in Mexico City with the strongest long-term rental demand right now are Roma Norte, Condesa, Juarez, Napoles, Del Valle, and Polanco, where walkability, nightlife, and proximity to employment centers keep vacancy rates low and landlords able to be selective.
You might want to check our latest analysis about rental yields in Mexico City.
Is short-term rental demand growing in Mexico City in 2026?
Regulatory changes currently affecting short-term rental operations in Mexico City include the tourism law reforms that took effect in 2024, which require platforms like Airbnb and Booking to register properties, share data with authorities, and ensure hosts comply with tax and safety rules, meaning the "easy Airbnb" era is over and compliance risk is higher than before.
As of early 2026, the estimated growth trend for short-term rental demand in Mexico City remains positive, supported by strong visitor volumes (over 6 million international tourists visited in 2024), though the supply of legal listings may tighten as enforcement increases.
The current estimated average occupancy rate for short-term rentals in Mexico City is around 55% to 65% in prime central neighborhoods, though this varies significantly by season, property quality, and exact location.
Guest demographics driving short-term rental demand in Mexico City include leisure tourists from the US, Canada, and Europe, business travelers attending conferences and corporate meetings, and digital nomads on multi-week stays who value the flexibility and amenities of furnished apartments over hotels.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Mexico City.
We made this infographic to show you how property prices in Mexico compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What are the realistic short-term and long-term projections for Mexico City in 2026?
What's the 12-month outlook for demand in Mexico City in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Mexico City is modestly positive, with expectations that transaction volumes will improve slightly compared to 2025 as mortgage rates edge down from their 2024 peaks.
Key economic and political factors most likely to influence demand in Mexico City over the next 12 months include Banxico's continued rate-cutting cycle (with analysts expecting the policy rate to reach around 6.5% by late 2026), the full opening of the Tren Interurbano, and how aggressively the city government enforces its new rent control and STR regulations.
The forecasted price movement for Mexico City over the next 12 months is an increase of roughly 6% to 9% in nominal terms, based on Fitch Ratings' mid-2025 forecast of 8% to 9% national home price growth for 2026, with prime CDMX neighborhoods likely tracking at or slightly above that range.
By the way, we also have an update regarding price forecasts in Mexico.
What's the 3-5 year outlook for housing in Mexico City in 2026?
As of early 2026, the estimated 3-5 year outlook for housing prices and demand in Mexico City is supportive for prime, walkable central neighborhoods, with continued appreciation of 4% to 6% annually expected, while outlying or car-dependent areas may see flatter performance unless new transit connections change commute realities.
Major development projects and urban plans expected to shape Mexico City over the next 3-5 years include continued expansion of the Cablebus network, potential new Metro extensions, President Sheinbaum's National Housing Program aiming to add one million homes nationwide, and ongoing densification along Reforma and in the Nuevo Polanco corridor.
The single biggest uncertainty that could alter the 3-5 year outlook for Mexico City is the trajectory of rent control and investor-targeted regulations, because if the government significantly restricts landlord returns or short-term rental operations, investor appetite could cool even as end-user demand remains strong.
Are demographics or other trends pushing prices up in Mexico City in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in Mexico City is meaningfully positive, as continued household formation, internal migration from smaller cities, and the concentration of high-income jobs in the capital keep pressure on a constrained housing stock.
Specific demographic shifts most affecting prices in Mexico City include the fact that the metropolitan area added roughly 224,000 people over just two years recently, with young professionals and families preferring central, transit-connected neighborhoods where supply cannot keep pace with demand.
Non-demographic trends also pushing prices in Mexico City include the sustained presence of digital nomads and remote workers (many earning in dollars), the nearshoring boom bringing more corporate jobs to Mexico, and persistent foreign investor interest in peso-denominated assets as a hedge against home-country volatility.
These demographic and trend-driven price pressures are expected to continue in Mexico City for at least the next 5 to 10 years, as the city's role as Mexico's economic and cultural hub is unlikely to diminish and new housing supply in desirable central areas remains structurally limited.
What scenario would cause a downturn in Mexico City in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in Mexico City would be a "two-hit combo" of renewed interest rate hikes (if inflation surprises to the upside and Banxico reverses course) combined with aggressive enforcement of rent controls or STR restrictions that sharply reduce investor returns.
Early warning signs that would indicate such a downturn is beginning in Mexico City include a sudden spike in days-on-market beyond 120 days citywide, a meaningful increase in "price reduced" listings in Roma and Condesa, and reports of landlords converting furnished rentals back to long-term leases due to regulatory pressure.
How severe a potential downturn could realistically be in Mexico City, based on historical patterns, is a 10% to 20% real price correction over 18 to 24 months, which would be painful but not catastrophic, as the city has never experienced a US-style crash due to its structural supply shortage and diversified demand base.
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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.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Sociedad Hipotecaria Federal (SHF) House Price Index | SHF is Mexico's public housing-finance institution and its HPI is the most widely cited official benchmark for home prices. | We used it to anchor national and CDMX price-growth trends and treated it as the hard baseline for 2026 momentum assumptions. We also referenced it to validate historical resilience patterns. |
| Banco de Mexico (Banxico) Monetary Policy Announcements | Banxico is Mexico's central bank, and its rate decisions directly shape mortgage costs and buyer affordability. | We used it to frame 2026 financing conditions and estimate whether demand is likely to speed up or cool down. We treated falling or stable rates as a tailwind for transaction volume. |
| Banxico SIE Mortgage Cost Indicator (CAT) | SIE is Banxico's official data system and is the most verifiable way to cite household mortgage costs in Mexico. | We used it to ground mortgage-rate and CAT ranges for both local and foreign borrowers. We used those ranges to estimate how tight affordability feels in early 2026. |
| CDMX Government STR Regulation Q&A | This is directly from the city government and explains the policy intent and scope of short-term rental platform rules. | We used it to describe the direction of regulation risk for STRs. We used it as the official signal of enforcement and compliance expectations going into 2026. |
| Secretaria de Turismo CDMX Official Tourism Stats | This is the city's official tourism statistics publication, with methodology notes and preliminary visitor data. | We used it as a demand proxy for STRs and furnished rentals, since more visitors usually means more short-stay demand. We used it to keep STR claims tied to official flows, not hype. |
| SRE (Mexican Foreign Ministry) Property Acquisition Guidance | This explains foreign ownership rules directly from Mexico's foreign affairs authority, which is as official as it gets. | We used it to state the core rule that foreigners can own directly outside the restricted zone. We used it to keep the foreigner section strictly legal and verifiable. |
| CDMX/INEGI Census Results Compilation | This is a government-hosted compilation of INEGI census results focused specifically on Mexico City's housing stock. | We used it to frame what CDMX housing stock looks like (apartment-heavy versus houses) and why supply is constrained. We used it to keep property type estimates tied to real stock data. |
| Inside Airbnb Open STR Datasets | This is a widely used research dataset with a transparent methodology and reproducible files for STR analysis. | We used it to triangulate order-of-magnitude STR supply and listing density in key neighborhoods. We used it as a counterbalance to platform PR or one-off news claims. |
| CONAPO Population Projections | CONAPO is Mexico's official demographic projection authority, making its data the standard for population-based analysis. | We used it to discuss longer-run demand drivers like household formation and age structure. We used it to avoid hand-wavy "demographics are strong" claims without numbers. |
| Obras Expansion - Tren Interurbano Coverage | This is a mainstream infrastructure-focused outlet that cites government project details and timelines reliably. | We used it to identify which transport nodes are most likely to reprice neighborhoods in 2026. We used it to connect infrastructure to specific, mappable areas like Observatorio and Tacubaya. |