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Everything you need to know before buying real estate is included in our Mexico Property Pack
Thinking about buying a 3-bedroom apartment in Polanco? 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 neighborhoods like Condesa or Roma 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 Property Pack.
Will property prices increase in Mexico in 2025?
Yes, property prices in Mexico are expected to rise in 2025, driven by a combination of economic growth and increasing demand for real estate.
Backed by our fresh, in-depth market analysis, we’re confident that Mexico remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the main drivers behind Mexico’s property price growth are strong and persistent.
Demand, especially in popular tourist and urban areas, continues to outpace supply, making significant price drops unlikely. Additionally, Mexico's growing economy and improving infrastructure are attracting more buyers and investors.
Signals pointing to a property price increase in Mexico
Here are some factors suggesting prices could increase:
The Mexican economy is projected to grow steadily in 2025, boosting consumer confidence and increasing the purchasing power of potential homebuyers, which is likely to drive up property prices.
Tourism in Mexico is expected to continue its upward trend, particularly in popular destinations like Cancun and Tulum. This sustained interest in tourist areas is likely to increase demand for vacation properties, pushing prices higher.
Urbanization trends are continuing, with more people moving to cities for job opportunities. This urban migration is expected to increase demand for housing in metropolitan areas, leading to higher property prices.
Foreign investment in Mexican real estate is anticipated to grow, as international buyers seek opportunities in emerging markets. This influx of foreign capital is likely to drive up property values, especially in coastal and urban areas.
Infrastructure improvements, such as new transportation projects and better connectivity, are expected to enhance property values in areas benefiting from these developments.
Government initiatives aimed at supporting affordable housing and homeownership are likely to stimulate demand, particularly among first-time buyers, contributing to overall price increases.
Signals pointing to a property price decrease in Mexico
Here are some factors suggesting prices could fall:
Rising inflation could erode purchasing power, making it more difficult for potential buyers to afford homes, which could dampen demand and slow price growth.
Potential increases in interest rates could make mortgage financing more expensive, reducing affordability for many buyers and potentially cooling the market.
Economic uncertainties, such as global market fluctuations or domestic policy changes, could impact investor confidence and slow down the real estate market, leading to a potential decrease in property prices.
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If property prices go up in Mexico, how much would they increase by?
If real estate prices in Mexico were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Mexico appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Polanco 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 Mexican 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 | 4,120,000 | 4,200,000 | 4,280,000 |
| Modern Apartment (75 sqm / 807 sqft) | 5,500,000 | 5,665,000 | 5,775,000 | 5,885,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 12,000,000 | 12,360,000 | 12,600,000 | 12,840,000 |
| Studio (30 sqm / 323 sqft) | 2,000,000 | 2,060,000 | 2,100,000 | 2,140,000 |
| Loft (80 sqm / 861 sqft) | 6,500,000 | 6,695,000 | 6,825,000 | 6,955,000 |
| Townhouse (150 sqm / 1,615 sqft) | 15,000,000 | 15,450,000 | 15,750,000 | 16,050,000 |
| Investment Property (50 sqm / 538 sqft) | 3,500,000 | 3,605,000 | 3,675,000 | 3,745,000 |
Everything you need to know is included in our Property Pack for Mexico
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. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Mexico?
In 2025, Mexico's 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, especially in urban areas like Mexico City.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Guadalajara and Monterrey are seeing increased interest. Proximity to green spaces, schools, and community amenities 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's growing commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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