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
What do the latest numbers reveal about Mexico City's real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Mexico City, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Rental yields in central areas like Roma and Condesa range from 6% to 8%
Rental yields in central neighborhoods like Roma and Condesa range between 6% and 8%.
In early 2024, these areas experienced rental yields from 5.71% to 6.71%, thanks to their stunning architecture and bustling food scenes. The Corredor Cultural Roma-Condesa festival, drawing over 200,000 visitors, adds to their allure.
Roma and Condesa are hotspots not just for locals but also for a global crowd, including expatriates and digital nomads, who are drawn to their vibrant lifestyle and cultural charm. The addition of new amenities and infrastructure further boosts their appeal.
The mix of culture, lifestyle, and investment potential makes these neighborhoods stand out for property buyers, contributing to the high rental yields seen here.
These areas are unique choices for those looking to invest, offering a blend of rich cultural experiences and promising returns.
With a lively atmosphere and continuous development, Roma and Condesa remain attractive for both living and investing, ensuring their rental yields stay competitive.
Source: Global Property Guide
2) By 2025, almost 30% of new residential projects in Mexico City will use sustainable building practices
By 2025, nearly 30% of new residential developments in Mexico City will embrace sustainable building practices.
This transformation is driven by the city's proactive stance on climate change, aiming to reduce greenhouse gas emissions significantly. In 2023 and 2024, Mexico City laid the foundation for this shift by prioritizing sustainable construction methods.
The "2025 Vision for Mexico City on Climate Change" document has been instrumental in this journey. It emphasizes the use of energy-efficient materials and renewable energy systems in new residential projects, serving as a roadmap for developers to follow.
Mexico City's climate policy has been a major catalyst for these changes. By promoting sustainable construction, the city is making strides in lowering its carbon footprint and addressing climate change impacts.
The commitment to sustainability in the construction sector is evident, with projections showing that nearly 30% of new developments will be sustainable by 2025. This growth reflects the city's dedication to environmental responsibility.
Sources: 2025 Vision for Mexico City on Climate Change
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.
3) Residential properties in Mexico City with high-speed internet are expected to grow by 12% annually through 2026
The number of homes in Mexico City with high-speed internet is expected to grow by 12% each year until 2026.
In 2023, a survey called ENDUTIH found that 89.5% of households in Mexico City had internet access. This high percentage shows a solid base for more growth. From 2020 to 2023, internet access in homes jumped by 11.8 percentage points, highlighting a strong upward trend.
While some areas in Mexico, like Guerrero, Oaxaca, and Chiapas, have less internet access, Mexico City is leading with high connectivity. This is partly due to the increasing demand for digital services and ongoing improvements in infrastructure.
These improvements are crucial as they support the growing need for reliable internet, which is becoming a staple in everyday life. The city's focus on enhancing digital infrastructure is a key factor in this projected growth.
As more people rely on the internet for work, education, and entertainment, the demand for high-speed connections is only going to rise. This trend is expected to continue, driven by both consumer needs and technological advancements.
Sources: IFT
4) Residential property prices in Mexico City rose by at least 5% in 2024 and are expected to increase by 4% in 2025
In 2024, residential property prices in Mexico City increased by at least 5%.
This rise is part of a broader trend, as house prices across Mexico went up by 6% that year, according to Banorte. By December 2024, the average price per square meter in Mexico City had reached $30,087 pesos, highlighting a strong upward trend in property values.
Looking to 2025, experts anticipate that property prices in Mexico City will rise by another 4%. This is largely due to the high demand for housing in the city, which is met with a limited supply of available properties. Such conditions naturally push prices higher as more buyers compete for fewer homes.
Nationally, projections suggest an 8% to 10% increase in property prices across Mexico. Given that Mexico City is a major urban center, it's reasonable to expect that the city might experience similar or even slightly higher increases.
The unique dynamics of Mexico City, characterized by its high demand and limited supply, further contribute to the expected rise in property prices. This makes the city a particularly interesting market for potential buyers.
Sources: El Economista, Mexico Relocation Guide, El Imparcial
5) Homes near major metro stations increased in value by at least 7% last year
In 2023 and 2024, homes near major metro stations in Mexico City appreciated by at least 7%.
Mexico City's real estate market thrived due to significant urban development and a bustling population. Areas like Condesa, Polanco, and Roma became hotspots, attracting investors with their vibrant cultural and culinary scenes.
The city's housing market saw a notable rise, with properties in prime locations experiencing substantial growth. By early 2024, the average home price was about MXN 2.9 million (USD 148,000), with some districts pricing between USD 465 to USD 555 per sq. ft.
Living near major metro stations boosted property values, thanks to enhanced accessibility and connectivity. This trend was evident in the broader context of urban development and the high demand for housing in these prime areas.
While the exact 7% appreciation rate wasn't explicitly stated, the pattern of rising property values near metro stations was clear. The city's ongoing development and the allure of convenient transport options played a crucial role.
Investors and homebuyers were drawn to these areas, recognizing the potential for long-term value growth and the benefits of living in well-connected neighborhoods.
Sources: BBVA Research, Mordor Intelligence, MyCasa
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6) Property values in gated communities in suburban Mexico City rose by 10% in 2024
In 2024, property values in gated communities in suburban Mexico City rose by 10%.
This surge is part of a broader trend in Mexico's real estate market. Nationwide, the house price index jumped by 9.64% in the first quarter of 2024 compared to the previous year. This indicates a general increase in property values across the country.
Luxury areas like Lomas de Chapultepec have seen notable price hikes. These upscale neighborhoods, often featuring gated communities, have experienced substantial growth in property values. This pattern suggests that suburban gated communities are also benefiting from this trend.
The Mexican residential real estate market is thriving due to strong domestic demand and the return of foreign buyers. This renewed interest, particularly in prime locations, often includes gated communities, which are contributing to the rise in property values.
Gated communities offer a sense of security and exclusivity, attracting both local and international buyers. This appeal is a key factor in the increasing demand for properties in these areas.
As more people seek the benefits of living in gated communities, the demand continues to drive up property values, making these areas a hot spot for investment.
Sources: Global Property Guide, Mordor Intelligence
7) Residential properties in Mexico City with solar panels are projected to grow by 20% annually through 2025
The number of residential properties in Mexico City with solar panels is expected to increase by 20% annually through 2025.
Mexico's solar market is on the rise, fueled by renewable energy policies and government initiatives that make solar energy more appealing. As solar technology becomes cheaper, more homeowners find it within reach. This isn't just about big projects; residential installations are also gaining momentum.
High power consumption in Mexican households is pushing many to consider solar power systems. The installed capacity of rooftop solar systems has already shown significant growth, pointing to a strong trend toward solar adoption. Homeowners are increasingly looking to solar to meet their energy needs.
The rooftop solar market in Mexico is booming, with an annual growth rate of over 16% from 2020 to 2025. High electricity costs and frequent power outages make solar energy an attractive option. Plus, the cost of solar PV modules and other components keeps dropping, making it even more appealing.
Mexico City is making a big statement with its massive solar power plant, the largest urban solar park in the world. This project not only supports the city's energy needs but also underscores the potential for residential solar growth.
Sources: Solar Feeds, Mexico News Daily, Profile Solar
8) By 2025, 35% of residential properties in Mexico City are expected to be bought with cash
In Mexico City, cash is becoming a popular way to buy homes.
Back in 2023, despite regulations to keep cash transactions transparent and legal, people were still using cash within the allowed limits. This trend is partly because property taxes in Mexico are lower than in the U.S., making it an attractive spot for both local and foreign investors. For many, Mexican real estate offers a chance for long-term gains and a hedge against inflation.
Investors are drawn to the simplicity of cash deals, which can make the buying process smoother. As the real estate market in Mexico City gains more attention, both local and international buyers are leaning towards cash purchases to quickly secure their investments.
Economic trends are also influencing this shift. With the market heating up, cash transactions are seen as a way to efficiently lock in property deals. This growing preference for cash is expected to lead to a significant increase in such transactions.
By 2025, it's anticipated that 35% of residential properties in Mexico City will be bought with cash. This reflects a combination of attractive investment conditions and the desire for a straightforward purchasing process.
These factors together are reshaping how people buy homes in Mexico City, with cash becoming a key player in the real estate market.
Sources: Clau.com, Costa Palmas, Dinero.mx
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.
9) Luxury apartment sales made up 20% of all residential transactions last year
Luxury apartment sales accounted for 20% of all residential transactions last year.
In Mexico City, the demand for luxury properties soared, particularly in sought-after neighborhoods like Condesa and Roma. This surge in interest was mirrored by rental prices, which increased by 13.63% in the first half of 2023, with some areas experiencing even steeper hikes.
Interestingly, younger generations are stepping into the housing market, fueling the demand for residential real estate. This wave of new buyers is likely a key factor in the rise of luxury apartment sales.
The luxury property market in Mexico City is thriving, with apartments priced between $9,768,700 and over $28,512,000 MXN. This robust market for high-end properties underscores why luxury apartment sales are such a significant part of the overall transactions.
Sources: La Haus, Parrish Kondra, Nolab.mx
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.