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
If you're looking to buy residential property in Mexico City as a foreigner, this guide will help you understand which neighborhoods offer the best yields, which areas are gaining momentum, and which ones you should probably skip.
We've done the research so you don't have to wade through vague advice or outdated data.
Everything here is based on real numbers and official sources, and we update this article regularly to keep it current.
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.
What's the Current Real Estate Market Situation by Area in Mexico City?
Which areas in Mexico City have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in Mexico City are Polanco, Lomas de Chapultepec, and Bosques de las Lomas, all located within the Miguel Hidalgo and Cuajimalpa boroughs.
In these prime neighborhoods, you can expect to pay anywhere from MXN 70,000 to MXN 100,000 per square meter, with Polanco averaging around MXN 84,000 per square meter for apartments.
Each of these luxury areas commands high prices for distinct reasons:
- Polanco: global buyer pool, walkable luxury retail, and embassy-area prestige drive premium pricing.
- Lomas de Chapultepec: large plots, gated homes, and proximity to top international schools attract wealthy families.
- Bosques de las Lomas: newer construction, bigger units, and corporate tenant demand from nearby Santa Fe offices.
Which areas in Mexico City have the most affordable property prices in 2026?
As of early 2026, some of the most affordable areas for residential property in Mexico City include Agricola Oriental in Iztacalco, parts of Iztapalapa near Metro lines, and certain pockets of Gustavo A. Madero close to major transit corridors.
In these more budget-friendly neighborhoods, prices typically range from MXN 15,000 to MXN 25,000 per square meter, with Agricola Oriental averaging around MXN 19,400 per square meter.
However, buying in these lower-priced areas comes with trade-offs: longer commutes to central business districts, older building stock that may require more maintenance, and block-by-block variation in safety that demands careful on-the-ground research before you commit.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Mexico City Offer the Best Rental Yields?
Which neighborhoods in Mexico City have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Mexico City with the highest gross rental yields include Agricola Oriental at around 7.6%, Roma Norte at approximately 5.0%, and Del Valle and Narvarte-adjacent areas in the 4.5% to 6.0% range.
Across Mexico City as a whole, typical gross rental yields for investment properties range from 3.5% to 6.0%, meaning the neighborhoods mentioned above consistently outperform the citywide average.
These top-yielding neighborhoods deliver higher returns for specific reasons:
- Agricola Oriental: very low entry prices while rents remain relatively stable, creating favorable yield math.
- Roma Norte: constant demand from young professionals and expats keeps vacancy low and rents strong.
- Del Valle: family-oriented tenants provide stable long-term occupancy with less turnover cost.
- Narvarte: spillover demand from pricier central neighborhoods supports rents without premium purchase prices.
Finally, please note that we cover the rental yields in Mexico City here.
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Which Areas in Mexico City Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Mexico City perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Mexico City that perform best on Airbnb include Roma Norte and Roma Sur, Condesa and Hipodromo Condesa, Juarez along Reforma, and Polanco for the premium segment, all showing strong occupancy rates around 60% and average nightly rates between USD 70 and USD 120.
In these top-performing neighborhoods, well-managed Airbnb properties in Mexico City typically generate monthly revenues ranging from MXN 25,000 to MXN 60,000, depending on unit size, quality, and exact location within the neighborhood.
Each of these neighborhoods outperforms others for short-term rentals due to specific advantages:
- Roma Norte: walkable restaurants, cafes, and nightlife make it the default choice for leisure visitors.
- Condesa: park access, tree-lined streets, and Instagram-friendly aesthetics attract younger tourists.
- Juarez: Reforma corridor proximity and hotel ecosystem create steady business traveler demand.
- Polanco: luxury retail and fine dining support higher nightly rates from affluent guests.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Mexico City.
Which tourist areas in Mexico City are becoming oversaturated with short-term rentals?
The three tourist areas in Mexico City showing the clearest signs of short-term rental oversaturation are Roma Norte, Condesa and Hipodromo Condesa, and Centro Historico, where listing density has grown faster than visitor demand.
In these oversaturated areas, Inside Airbnb data shows thousands of active listings concentrated within just a few square kilometers, creating intense competition for guests and downward pressure on nightly rates.
The main indicator that these Mexico City neighborhoods have reached oversaturation is visible in the data: average occupancy rates are declining even as tourism grows, meaning new listings are splitting existing demand rather than capturing new visitors.
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.
Which Areas in Mexico City Are Best for Long-Term Rentals?
Which neighborhoods in Mexico City have the strongest demand for long-term tenants?
The neighborhoods in Mexico City with the strongest demand for long-term tenants are Roma Norte, Juarez, San Rafael, and Polanco, where rental listings typically find tenants within two to four weeks of being posted.
In these high-demand neighborhoods, vacancy rates tend to stay below 5%, meaning landlords rarely experience extended periods without rental income if their properties are priced correctly.
Different tenant profiles drive demand in each of these Mexico City neighborhoods:
- Roma Norte: young professionals and digital nomads seeking walkable lifestyle and coworking access.
- Juarez: office workers and corporate tenants who want Reforma proximity and Metro connections.
- San Rafael: budget-conscious professionals priced out of Roma looking for similar central convenience.
- Polanco: executives, diplomats, and affluent families needing premium amenities and international schools.
The key characteristic that makes these neighborhoods attractive to long-term tenants in Mexico City is reliable Metro access combined with a dense mix of restaurants, shops, and services within walking distance, which reduces car dependency and improves daily quality of life.
Finally, please note that we provide a very granular rental analysis in our property pack about Mexico City.
What are the average long-term monthly rents by neighborhood in Mexico City in 2026?
As of early 2026, average long-term monthly rents in Mexico City vary significantly by neighborhood, ranging from around MXN 7,500 in affordable areas like Agricola Oriental to MXN 25,000 or more in central lifestyle neighborhoods like Roma Norte.
In the most affordable neighborhoods of Mexico City, such as Agricola Oriental and parts of Iztacalco, entry-level apartments typically rent for MXN 6,000 to MXN 10,000 per month for units around 50 to 70 square meters.
In average-priced neighborhoods like San Rafael, Santa Maria la Ribera, and parts of Benito Juarez, mid-range apartments typically rent for MXN 12,000 to MXN 18,000 per month for units around 70 to 90 square meters.
In the most expensive neighborhoods like Roma Norte, Condesa, and Polanco, high-end apartments typically rent for MXN 22,000 to MXN 40,000 per month, with premium units in Polanco sometimes exceeding MXN 50,000 for larger spaces.
You may want to check our latest analysis about the rents in Mexico City here.
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Which Are the Up-and-Coming Areas to Invest in Mexico City?
Which neighborhoods in Mexico City are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Mexico City that are visibly gentrifying and attracting new investors include San Rafael, Santa Maria la Ribera, and Escandon, all benefiting from spillover demand as Roma and Condesa prices climb higher.
These gentrifying neighborhoods in Mexico City have experienced annual price appreciation of roughly 8 to 12 percent over the past two to three years, outpacing the citywide average as cafes, restaurants, and renovated buildings transform their streetscapes.
Which areas in Mexico City have major infrastructure projects planned that will boost prices?
The areas in Mexico City most likely to see price boosts from infrastructure improvements are those along expanded Metro lines and the Tren Interurbano corridor connecting western neighborhoods to Toluca and Santa Fe.
The most significant infrastructure project is the Tren Interurbano Mexico-Toluca, which will dramatically improve connectivity for Santa Fe and western Cuajimalpa, along with ongoing Metro expansions that are improving access to previously underserved areas in the east and north of the city.
Historically, neighborhoods in Mexico City that gain new Metro stations or major transit connections have seen property prices increase by 15 to 25 percent within three to five years of project completion, though the effect is strongest for properties within a 10-minute walk of stations.
You'll find our latest property market analysis about Mexico City here.
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.
Which Areas in Mexico City Should I Avoid as a Property Investor?
Which neighborhoods in Mexico City with lots of problems I should avoid and why?
Neighborhoods in Mexico City that investors should generally approach with extra caution include certain blocks in Tepito, parts of Doctores with older unreinforced buildings, and specific high-hazard zones in Iztapalapa that face flooding or subsidence issues.
Each of these areas has distinct problems that make investment risky:
- Tepito: informal commerce, security challenges, and limited formal rental market make tenant quality unpredictable.
- Parts of Doctores: older buildings on soft soil with poor earthquake performance and unclear structural maintenance.
- High-hazard Iztapalapa blocks: flood-prone streets and subsidence issues that damage buildings and deter quality tenants.
For these neighborhoods to become viable investment options, they would need significant infrastructure upgrades, building code enforcement, improved security, and stronger formal rental markets, which typically requires years of sustained government investment and private development.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Mexico City.
Which areas in Mexico City have stagnant or declining property prices as of 2026?
As of early 2026, Mexico City overall has not experienced broad price declines, but certain micro-markets show stagnation, including overbuilt corridors in parts of Santa Fe with excessive new inventory, older buildings in earthquake-affected zones with unresolved structural issues, and some peripheral areas far from Metro access.
In these stagnant areas, prices have remained flat or grown below inflation over the past two to three years, effectively representing a real-terms decline of 3 to 5 percent annually when adjusted for currency depreciation.
Each stagnant area in Mexico City has different underlying causes:
- Overbuilt Santa Fe corridors: too much similar inventory competing at once, forcing price cuts to attract buyers.
- Earthquake-affected buildings: structural reputation damage and costly retrofit needs scare away both buyers and tenants.
- Far peripheral areas: poor transit access means demand depends entirely on car owners, limiting buyer pool.
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Which Areas in Mexico City Have the Best Long-Term Appreciation Potential?
Which areas in Mexico City have historically appreciated the most recently?
The areas in Mexico City that have shown the strongest appreciation over the past five to ten years include Polanco, Roma Norte and Condesa, and select parts of Benito Juarez like Del Valle, all driven by sustained high-income demand and limited new supply.
These top-performing areas have achieved notable appreciation:
- Polanco: approximately 60 to 80 percent total appreciation over ten years, driven by global buyer demand.
- Roma Norte: roughly 50 to 70 percent total appreciation, fueled by tourism, expats, and lifestyle appeal.
- Condesa: similar gains to Roma, with park proximity and walkability supporting premium pricing.
- Del Valle: steadier 40 to 50 percent appreciation, supported by family demand and Metro access.
The main driver behind above-average appreciation in these Mexico City neighborhoods is the combination of constrained land supply in already-built-out areas, sustained demand from both domestic high earners and international buyers, and improving amenities that make these neighborhoods more desirable over time.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Mexico City.
Which neighborhoods in Mexico City are expected to see price growth in coming years?
The neighborhoods in Mexico City expected to see the strongest price growth in coming years are San Rafael, Santa Maria la Ribera, Escandon, and well-located pockets of Cuauhtemoc near new transit improvements.
These high-potential neighborhoods are projected to see continued growth:
- San Rafael: projected 8 to 12 percent annual growth as spillover from Roma accelerates gentrification.
- Santa Maria la Ribera: similar growth trajectory, with improving restaurants and cultural venues attracting buyers.
- Escandon: expected 6 to 10 percent annual growth from proximity to Polanco and Condesa.
- Transit-adjacent Cuauhtemoc: 10 to 15 percent potential near new or improved Metro stations.
The single most important catalyst expected to drive future price growth in these Mexico City neighborhoods is their position as the "next ring out" from already-expensive lifestyle zones, meaning they capture demand from buyers priced out of Roma, Condesa, and Polanco while retaining central convenience.
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 Do Locals and Expats Really Think About Different Areas in Mexico City?
Which areas in Mexico City do local residents consider the most desirable to live?
The areas in Mexico City that local residents consistently consider most desirable to live include Del Valle and Narvarte in Benito Juarez, Coyoacan for families seeking a village feel, and Polanco for those who can afford premium pricing.
Each of these locally-preferred areas has distinct qualities that residents value:
- Del Valle: excellent Metro access, family-friendly streets, and abundant local services without tourist crowds.
- Narvarte: similar practical benefits to Del Valle at slightly lower prices, with strong neighborhood identity.
- Coyoacan: historic plazas, green spaces, and a quieter pace that appeals to families and academics.
- Polanco: top-tier restaurants, parks, and schools for residents who prioritize premium lifestyle.
These locally-preferred areas attract established middle-class and upper-middle-class Mexican families, professionals with stable careers, and retirees who prioritize safety and services over nightlife.
Local preferences in Mexico City often diverge from foreign investor targets: locals tend to value practical family amenities and quiet streets, while foreign buyers frequently focus on walkable nightlife districts like Roma and Condesa that locals sometimes find too crowded or tourist-oriented.
Which neighborhoods in Mexico City have the best reputation among expat communities?
The neighborhoods in Mexico City with the best reputation among expat communities are Roma Norte, Condesa, Juarez, and increasingly Polanco for higher-budget expats seeking family amenities.
Expats prefer these neighborhoods over others for clear practical reasons:
- Roma Norte: highest concentration of English-friendly cafes, coworking spaces, and international restaurants.
- Condesa: similar walkability to Roma with more green space and a slightly calmer residential feel.
- Juarez: central location with easy Reforma access and growing creative scene attracting younger expats.
- Polanco: preferred by executive expats and families needing proximity to international schools.
The expat profile in these popular Mexico City neighborhoods skews toward remote workers and digital nomads in Roma and Condesa, corporate transferees and diplomats in Polanco, and creative professionals and entrepreneurs in Juarez.
Which areas in Mexico City do locals say are overhyped by foreign buyers?
The three areas in Mexico City that locals most commonly say are overhyped by foreign buyers are Roma Norte, Condesa, and parts of Centro Historico, where prices have climbed faster than locals believe the fundamentals justify.
Locals believe these areas are overvalued for specific reasons:
- Roma Norte: overtouristed, noisy on weekends, and increasingly unaffordable for the young professionals who made it cool.
- Condesa: similar oversaturation concerns, plus earthquake vulnerability in some older buildings on soft soil.
- Centro Historico: security issues persist despite renovation, and daily livability remains challenging for non-tourists.
What foreign buyers typically see in these areas that locals value less highly is the Instagram-ready aesthetic and walkable bar and restaurant scene, which matters more to short-term visitors and recent arrivals than to long-term residents focused on practical daily life.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Mexico City.
Which areas in Mexico City are considered boring or undesirable by residents?
The areas in Mexico City that residents commonly consider boring or undesirable include certain car-dependent pockets of Santa Fe, sprawling northern colonias in Gustavo A. Madero far from Metro access, and isolated gated developments in Cuajimalpa that feel disconnected from the city's street life.
Residents find these areas boring or undesirable for practical reasons:
- Car-dependent Santa Fe: designed for offices and malls, not walkable daily life or neighborhood culture.
- Far northern colonias: long commutes, limited dining and entertainment, and less vibrant street activity.
- Isolated Cuajimalpa developments: gated security but no organic neighborhood feel or walkable amenities.
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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 |
|---|---|---|
| SRE Foreign Property Permits | Official Mexican government guidance on foreign property ownership rules. | We used it to explain what paperwork foreign buyers need in Mexico City. We translated the legal requirements into practical checklist items. |
| SHF House Price Index | Mexico's official housing finance institution publishes the national price benchmark. | We used it to anchor the macro direction of Mexican housing prices in early 2026. We treated it as the baseline against which neighborhood-level data is compared. |
| Banxico Mortgage Data | Mexico's central bank provides official interest rate and credit cost data. | We used it to ground mortgage rate assumptions when comparing leveraged versus cash buyers. We also used it to keep yield expectations realistic. |
| Propiedades.com | Major Mexican property portal with transparent listing-based neighborhood statistics. | We used it to estimate neighborhood price levels and rent per square meter. We treated portal data as asking prices and focused on relative rankings. |
| AirDNA | Industry-standard professional dataset for short-term rental market analysis. | We used it to anchor citywide Airbnb occupancy and revenue baselines. We then narrowed to neighborhoods using Inside Airbnb distribution data. |
| Inside Airbnb | Transparent research project tracking STR supply and activity worldwide. | We used it to identify where listings are concentrated and oversaturation is emerging. We also used it to verify claims about Airbnb density. |
| CDMX Atlas de Riesgos | Official Mexico City government platform for seismic, flood, and subsidence hazards. | We used it to add a risk layer to neighborhood selection recommendations. We turned it into a due diligence step buyers should take before bidding. |
| INEGI Census Data | Mexico's national statistics office provides the baseline for population and housing data. | We used it to understand demand fundamentals like household density and housing stock. We used it to avoid purely vibe-based neighborhood claims. |
| SESNSP Crime Data | Federal public safety dataset used nationwide for official crime incidence reporting. | We used it to assess measurable safety signals rather than relying on rumors. We combined it with street-level checks during due diligence recommendations. |
| SECTUR Tourism Data | Mexico's official tourism statistics reporting from the tourism ministry. | We used it to explain the visitor demand base supporting short-term rentals. We treated it as demand context rather than a performance guarantee. |
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