Authored by the expert who managed and guided the team behind the Mexico Property Pack
Everything you need to know before buying real estate is included in our Mexico Property Pack
Mexico is one of the most accessible countries for foreign property buyers, but knowing exactly where to invest makes all the difference between strong returns and costly mistakes.
This guide breaks down every major neighborhood and area in Mexico with real data on prices, yields, and risks so you can make an informed decision.
We constantly update this blog post to reflect the latest market conditions and official data releases.
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.
What's the Current Real Estate Market Situation by Area in Mexico?
Which areas in Mexico have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in Mexico are Colonia Juárez in Mexico City at around MXN 94,000 per square meter, Granada in Miguel Hidalgo at roughly MXN 93,000 per square meter, and San Pedro Garza García in the Monterrey metro area where premium homes command similarly elevated prices.
In these top-tier neighborhoods in Mexico, buyers should expect to pay anywhere from MXN 82,000 to MXN 95,000 per square meter for quality residential properties in 2026.
Each of these expensive areas in Mexico commands high prices for different reasons:
- Colonia Juárez (Mexico City): walkability to Reforma, dense restaurant and nightlife scene, strong expat demand
- Granada and Ampliación Granada (Mexico City): newer luxury tower stock, corporate office proximity, high-end retail
- San Pedro Garza García (Monterrey): top schools, executive housing for nearshoring workforce, perceived safety
Which areas in Mexico have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Mexico with reasonable investment potential include Doctores in Mexico City at around MXN 40,000 per square meter, Tlatelolco at roughly MXN 24,000 per square meter, and peripheral zones in Guadalupe and Apodaca within the Monterrey metro.
In these lower-priced neighborhoods in Mexico, buyers can find residential properties ranging from MXN 20,000 to MXN 45,000 per square meter in 2026, which is less than half the price of premium areas.
However, each affordable area in Mexico comes with specific trade-offs: Doctores has significant street-by-street quality variance and requires careful micro-location selection, Tlatelolco's pricing depends heavily on which specific housing complex you choose, and Monterrey's peripheral areas like Guadalupe often require car dependency and offer fewer walkable amenities.
You can also read our latest analysis regarding housing prices in Mexico.
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 Offer the Best Rental Yields?
Which neighborhoods in Mexico have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Mexico with the highest gross rental yields include Doctores in Mexico City at approximately 9% gross yield, Roma and Condesa in Mexico City at around 5.9% to 6%, and select areas of Narvarte and Del Valle in Benito Juárez offering yields between 5.5% and 6.5%.
Across Mexico's main investment cities, typical gross rental yields in 2026 range from 4% in premium neighborhoods up to 9% in transitional areas with lower entry prices.
Each high-yielding neighborhood in Mexico delivers strong returns for specific reasons:
- Doctores (Mexico City): entry prices are 50% lower than Roma while rents stayed strong from spillover demand
- Roma (Mexico City): sustained tenant demand from professionals and expats keeps vacancy low year-round
- Condesa (Mexico City): walkability and lifestyle amenities justify premium rents relative to purchase price
- Narvarte (Mexico City): younger professional tenants seeking affordability near premium zones
Finally, please note that we cover the rental yields in Mexico here.
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Which Areas in Mexico Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Mexico perform best on Airbnb in 2026?
As of early 2026, the top-performing Airbnb neighborhoods in Mexico include Roma Norte and Condesa in Mexico City with around 60% occupancy and average daily rates near USD 83, Playacar in Playa del Carmen, Aldea Zama in Tulum, and El Médano in Cabo San Lucas.
In these best-performing short-term rental areas in Mexico, hosts typically generate monthly revenues ranging from MXN 20,000 to MXN 45,000 for a well-managed one or two bedroom apartment in 2026.
Each top Airbnb neighborhood in Mexico outperforms for distinct reasons:
- Roma Norte and Condesa (Mexico City): walkable restaurants and nightlife attract business and leisure travelers year-round
- Playacar (Playa del Carmen): gated beach access and family-friendly amenities draw repeat visitors
- Aldea Zama (Tulum): modern design and Instagram appeal command premium nightly rates
- El Médano (Cabo San Lucas): beachfront location and resort services support high average daily rates
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Mexico.
Which tourist areas in Mexico are becoming oversaturated with short-term rentals?
The tourist areas in Mexico showing the clearest signs of short-term rental oversaturation in 2026 are La Veleta and newer off-core developments in Tulum, non-beachfront condo clusters in Playa del Carmen away from 5th Avenue, and certain sections of Cancún's Hotel Zone with aging inventory.
In these oversaturated areas of Mexico, listing density has grown faster than tourist arrivals, with some Tulum neighborhoods now showing hundreds of competing units within a few blocks of each other.
The clearest indicator of oversaturation in these Mexico tourist areas is not just high listing counts but declining occupancy rates during shoulder seasons and increasing price competition that forces hosts to lower nightly rates to attract bookings.
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 Are Best for Long-Term Rentals?
Which neighborhoods in Mexico have the strongest demand for long-term tenants?
The neighborhoods in Mexico with the strongest long-term rental demand in 2026 are Del Valle and Narvarte in Mexico City's Benito Juárez district, San Pedro Garza García in the Monterrey metro, Providencia and Americana in Guadalajara, and the Granada corridor in Miguel Hidalgo.
In these high-demand rental neighborhoods in Mexico, well-priced apartments typically rent within two to four weeks, and vacancy rates remain below 5% throughout the year.
Different tenant profiles drive demand in each of these Mexico neighborhoods:
- Del Valle (Mexico City): established families seeking good schools and metro access
- Narvarte (Mexico City): young professionals priced out of Roma and Condesa
- San Pedro Garza García (Monterrey): corporate executives and nearshoring managers
- Providencia (Guadalajara): tech workers and creative professionals seeking walkability
What makes these neighborhoods especially attractive to long-term tenants in Mexico is the combination of reliable public transit access, concentration of quality restaurants and services within walking distance, and perceived safety compared to surrounding areas.
Finally, please note that we provide a very granular rental analysis in our property pack about Mexico.
What are the average long-term monthly rents by neighborhood in Mexico in 2026?
As of early 2026, average long-term monthly rents in Mexico's main neighborhoods range from around MXN 17,000 in Doctores to over MXN 37,000 in premium areas like Juárez, with Roma and Condesa apartments averaging between MXN 22,000 and MXN 34,000 depending on size.
In the most affordable rental neighborhoods in Mexico like Doctores and Tlatelolco, entry-level one-bedroom apartments typically rent for MXN 14,000 to MXN 18,000 per month in 2026.
In mid-range Mexico City neighborhoods like Narvarte, Del Valle, and San Rafael, a standard two-bedroom apartment rents for approximately MXN 18,000 to MXN 26,000 per month.
In the most expensive rental neighborhoods in Mexico such as Polanco, Juárez, and Granada, high-end two to three bedroom apartments command monthly rents from MXN 35,000 to MXN 50,000 or more.
You may want to check our latest analysis about the rents in Mexico here.
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Which Are the Up-and-Coming Areas to Invest in Mexico?
Which neighborhoods in Mexico are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Mexico experiencing the strongest gentrification and investor interest are Santa María la Ribera, San Rafael, and Cuauhtémoc in Mexico City, along with the "containment zones" of Doctores, Anáhuac, and Anzures where displaced demand from premium areas is driving transformation.
These gentrifying neighborhoods in Mexico have experienced annual price appreciation of 8% to 12% over recent years, outpacing the national average, as new cafes, co-working spaces, and renovated buildings attract a younger demographic.
Which areas in Mexico have major infrastructure projects planned that will boost prices?
The areas in Mexico with major infrastructure projects expected to boost property prices include zones along Mexico City's expanded metro lines, areas near the Tren Maya stations in the Yucatán Peninsula, and neighborhoods benefiting from Monterrey's ongoing transit and highway improvements.
Specific projects driving price expectations in Mexico include the Tren Maya connecting Cancún, Playa del Carmen, and Tulum with improved accessibility, metro line extensions in Mexico City reaching underserved colonias, and industrial corridor improvements in Querétaro and the Bajío region supporting nearshoring employment growth.
Historically, areas in Mexico near completed major transit projects have seen price increases of 15% to 25% within three years of project completion, though results vary significantly based on neighborhood quality and existing amenities.
You'll find our latest property market analysis about Mexico 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 Should I Avoid as a Property Investor?
Which neighborhoods in Mexico with lots of problems I should avoid and why?
The neighborhoods in Mexico that present the most significant risks for property investors in 2026 include areas with high rental fraud reports like Clavería, Paseos de Taxqueña, and parts of Hipódromo, as well as oversupplied STR corridors in Tulum and low-liquidity peripheral developments far from employment centers.
Each problematic area in Mexico has specific issues investors should understand:
- Clavería and Paseos de Taxqueña (Mexico City): high concentration of rental fraud cases reported
- La Veleta (Tulum): STR oversupply with too many similar units competing for limited guests
- Distant peripheral zones (various cities): weak resale liquidity because local buyers avoid them
- Aging condo stock in Cancún Hotel Zone: high maintenance costs and declining competitiveness
For these problem areas in Mexico to become viable investments, they would need either a significant reduction in competing supply, major infrastructure improvements that change accessibility, or a sustained period of price correction that resets buyer expectations to realistic levels.
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.
Which areas in Mexico have stagnant or declining property prices as of 2026?
As of early 2026, Mexico does not have broad-based price declines at the national level since the official SHF index shows continued growth in the high single digits, but specific micro-markets with stagnation include oversupplied new condo corridors in parts of Tulum, aging buildings in certain Cancún Hotel Zone sections, and car-dependent suburban developments with weak amenities.
In these underperforming pockets of Mexico, prices have either remained flat or declined by 5% to 10% in real terms over the past two to three years while surrounding areas appreciated.
Each stagnant area in Mexico faces specific underlying challenges:
- Off-core Tulum developments: too much identical condo inventory chasing limited buyer pool
- Older Cancún Hotel Zone buildings: rising maintenance fees and dated finishes reduce appeal
- Car-dependent suburban zones: weak walkability means only a narrow tenant base interested
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Which Areas in Mexico Have the Best Long-Term Appreciation Potential?
Which areas in Mexico have historically appreciated the most recently?
The areas in Mexico that have appreciated the most over the past decade are Condesa, Roma, Juárez, and Granada in Mexico City, along with prime locations in San Pedro Garza García near Monterrey.
Each of these top-performing Mexico neighborhoods achieved remarkable appreciation:
- Juárez (Mexico City): grew from MXN 30,000 to over MXN 87,000 per square meter from 2015 to 2025
- Roma (Mexico City): more than doubled from MXN 35,000 to MXN 75,600 per square meter
- Condesa (Mexico City): increased from MXN 45,000 to over MXN 76,000 per square meter
- Doctores (Mexico City): jumped from MXN 15,000 to over MXN 37,000 per square meter
The main driver of this exceptional appreciation in Mexico was the combination of constrained supply of walkable, amenity-rich housing stock meeting growing demand from both local professionals and international remote workers seeking quality urban living.
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.
Which neighborhoods in Mexico are expected to see price growth in coming years?
The neighborhoods in Mexico expected to see the strongest price growth in coming years are the "containment zones" of Doctores, San Rafael, and Santa María la Ribera in Mexico City, executive submarkets in San Pedro Garza García, and Zapopan's Puerta de Hierro corridor in Guadalajara.
Projected growth rates vary by neighborhood in Mexico:
- Doctores (Mexico City): 8% to 12% annually as gentrification spreads from adjacent Roma
- San Rafael and Santa María la Ribera (Mexico City): 7% to 10% as creative class migration continues
- San Pedro Garza García (Monterrey): 6% to 9% driven by nearshoring employment growth
- Zapopan executive corridor (Guadalajara): 5% to 8% from tech sector expansion
The single most important catalyst for future price growth in these Mexico neighborhoods is the continued spillover of demand from already-expensive premium zones, combined with employment growth in high-income sectors like technology, finance, and nearshoring manufacturing.
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?
Which areas in Mexico do local residents consider the most desirable to live?
The areas in Mexico that local residents consider most desirable to live in 2026 are Roma, Condesa, and Juárez in Mexico City, San Pedro Garza García in Monterrey, and Providencia and Puerta de Hierro in Guadalajara.
Each desirable area in Mexico attracts locals for specific qualities:
- Roma and Condesa (Mexico City): tree-lined streets, walkable cafes and parks, vibrant cultural scene
- San Pedro Garza García (Monterrey): top-rated schools, low crime perception, executive amenities
- Providencia (Guadalajara): established trees, local restaurants, strong community feeling
- Granada (Mexico City): modern towers, corporate proximity, upscale retail and dining
These locally-preferred areas in Mexico typically attract upper-middle-class families, established professionals, and business owners who prioritize safety, schools, and quality of daily life over investment returns.
Local preferences in Mexico largely align with foreign investor targets in premium areas like Roma and Condesa, but locals also value family-oriented neighborhoods like Del Valle and Coyoacán that receive less attention from foreign buyers focused purely on rental yields.
Which neighborhoods in Mexico have the best reputation among expat communities?
The neighborhoods in Mexico with the best reputation among expat communities in 2026 are Roma Norte and Condesa in Mexico City, Playacar in Playa del Carmen, Aldea Zama in Tulum, sections of Polanco in Mexico City, and the Centro and Guadalupe areas of San Miguel de Allende.
Expats prefer these Mexico neighborhoods for practical reasons:
- Roma Norte and Condesa (Mexico City): English-friendly services, international restaurants, walkability
- Polanco (Mexico City): high-end shopping, international schools nearby, perceived safety
- Playacar (Playa del Carmen): gated community security, beach access, established expat network
- San Miguel de Allende Centro: artistic community, colonial architecture, retirement-friendly pace
The expat profiles vary by location in Mexico: Mexico City neighborhoods attract younger remote workers and business professionals, coastal areas draw retirees and lifestyle migrants, and San Miguel de Allende has a strong concentration of North American retirees seeking cultural immersion.
Which areas in Mexico do locals say are overhyped by foreign buyers?
The areas in Mexico that locals commonly say are overhyped by foreign buyers in 2026 are certain new condo developments in Tulum, branded luxury towers in Cancún's Puerto Cancún, and some heavily marketed buildings in Playa del Carmen's newer zones away from the beach.
Locals believe these Mexico areas are overvalued for specific reasons:
- New Tulum developments: prices reflect international marketing budgets more than actual local demand
- Puerto Cancún condos: high HOA fees and limited walkability make them impractical for daily living
- Off-beach Playa del Carmen: foreigners pay premium prices for locations locals would avoid
What foreign buyers see in these Mexico areas that locals do not value as highly is the lifestyle branding and Instagram aesthetics, while locals focus more on practical considerations like daily commute, grocery access, and whether they could resell to another Mexican buyer if needed.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Mexico.
Which areas in Mexico are considered boring or undesirable by residents?
The areas in Mexico that residents commonly consider boring or undesirable in 2026 are car-dependent suburban developments on the far peripheries of major cities, gated communities far from urban centers with limited services, and some older industrial-adjacent zones that lack restaurants, parks, or cultural amenities.
Residents find these Mexico areas unappealing for straightforward reasons:
- Far suburban developments: require driving everywhere with no walkable services or social life
- Remote gated communities: isolation means limited dining options and long commutes
- Industrial-adjacent zones: truck traffic, limited green space, and few lifestyle 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, 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 |
|---|---|---|
| SHF House Price Index | Mexico's federal development bank publishes the official house price indicator. | We used SHF data to calibrate national price growth rates going into 2026. We applied their 8-9% annual pace to roll forward neighborhood estimates. |
| Propiedades.com Radiografía Q2 2025 | Major property marketplace with transparent median-per-square-meter methodology. | We extracted neighborhood-level price and rent data for specific colonias. We used their gentrification mapping to identify up-and-coming areas. |
| AirDNA | Leading short-term rental analytics provider with consistent metrics across markets. | We used AirDNA for occupancy rates and revenue benchmarks in Mexico City. We translated their data into gross yield estimates for STR properties. |
| SECTUR DataTur | Official federal tourism data system for occupancy and arrivals metrics. | We used DataTur to validate tourism demand in coastal markets. We identified where STR supply might be outpacing actual visitor numbers. |
| BBVA Research | Major bank research arm with consistent housing and credit analysis methodology. | We used BBVA for mortgage market context and affordability trends. We cross-checked employment-driven demand in industrial metros. |
| Banco de México | Mexico's central bank provides authoritative macro and inflation data. | We used Banxico reports to frame interest rate conditions affecting mortgages. We incorporated their inflation outlook into affordability analysis. |
| SRE (Foreign Affairs Ministry) | Administers the legal process for foreign property ownership in restricted zones. | We used SRE documentation to explain the fideicomiso requirement. We clarified the 50km coastal and 100km border restricted zone rules. |
| InsideAirbnb | Open dataset widely used by researchers for Airbnb supply analysis. | We referenced their methodology for assessing STR saturation. We explained how to verify listing density and multi-host concentration. |
| CONAVI Open Data | Government source for registered housing supply by municipality. | We used CONAVI data to assess new supply pipeline risks. We identified municipalities where oversupply could pressure prices. |
| CBRE Mexico | Global real estate consultancy with tourism investment analysis. | We used CBRE reports to identify tourism investment hotspots. We flagged coastal markets with high new supply risk. |
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