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
Where are the best places to invest in Mexico right now? Is Mexico City still the top pick, or are cities like Mérida, Tulum, and Guadalajara gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Mexico and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) La Paz is gaining interest with its growing expat community and rising demand for coastal properties driving property values up
La Paz is becoming a hot spot for property buyers, thanks to its vibrant expat community and the allure of coastal living.
In 2023, the median price for condos in La Paz was US$221,000, but by March, it had soared to US$406,000. Although the pace slowed a bit in early 2024, with prices inching from US$323,000 to US$335,000, the overall trend remains upward, making it a promising market for investors.
Foreign buyers are increasingly active in La Paz, with the active volume of condo properties jumping from US$29.6 million in January 2023 to US$47.9 million in January 2024. This surge reflects a robust market, with more listings and a higher market value, showing the growing international interest.
La Paz's population is on the rise, reaching an estimated 1,965,570 residents in 2024. This growth is fueled by expats attracted to the area's lifestyle and positive word-of-mouth. The demand for coastal properties is clear, with new listings skyrocketing from six in January 2023 to 19 in January 2024, and from two to 25 in February.
Sources: Berkshire Hathaway HomeServices Baja Real Estate, World Population Review, Ronival Real Estate
2) Puebla is gaining interest for its economic growth and strategic location, attracting residential and commercial investments
Puebla's real estate market is on fire, and it's not hard to see why.
In 2023, international purchases in Puebla hit $16 billion, a 10.6% jump from the previous year. This surge is fueled by strong investments in motor vehicles and automotive parts, showcasing Puebla's robust industrial scene. The city's economic growth is a magnet for investors, making it a hot spot for real estate.
Puebla's strategic location is another big draw. It's close to Mexico City, which means easy access to the capital's economic and demographic benefits. This proximity makes Puebla a prime choice for both residential and commercial investments, offering a blend of urban convenience and growth potential.
Infrastructure is also a game-changer here. Projects like the San Ignacio-Tayoltita Highway are almost done, boosting connectivity and accessibility. This improved infrastructure is a boon for real estate, supporting new developments and making Puebla even more appealing to investors.
With these factors in play, Puebla is not just a place to live; it's a smart investment. The city's economic vitality and strategic advantages are turning it into a real estate hotspot. Whether you're looking to buy a home or invest in commercial property, Puebla offers a promising landscape.
Sources: Mexico Business News, Visit Mexico, Economía.gob.mx
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.
3) Bacalar is gaining attention for its stunning lagoon and eco-friendly projects, attracting investors looking for unique vacation properties
Bacalar is quickly becoming a hotspot for property investors, thanks to its breathtaking lagoon and eco-friendly developments.
In recent years, property prices in Bacalar have surged, especially for those with lagoon views, which have jumped by about 20% in just the past year. This spike is driven by the stunning views and the rental potential these properties offer.
The area is buzzing with eco-friendly and sustainable projects, attracting buyers who value a conscious lifestyle. Developments like Ecoparque Bacalar and Namaste Bacalar focus on environmental preservation, making Bacalar a magnet for international buyers.
Tourism is booming, with a 20% increase in visitors expected for summer 2023. The village's beautiful freshwater lake, eco-friendly hotels, and relaxed atmosphere are major draws. Plus, the nearly finished Mayan Train is making Bacalar more accessible, pulling in more tourists and investors.
Investors are particularly interested in Bacalar's unique vacation properties, which offer a blend of natural beauty and sustainable living. The combination of a stunning lagoon and eco-conscious developments is hard to resist.
With its growing popularity, Bacalar is not just a place to visit but a promising spot for investment. The area's commitment to sustainability and its natural allure are key factors in its rising appeal.
Sources: Experienciabacalar.com, Travel Weekly, Colibri Property
4) Tulum is booming with rapid development and high demand for vacation rentals, offering strong rental yields
Tulum's real estate market is booming thanks to rapid development and a surge in vacation rental demand.
Since 2015, property prices in Tulum have been on the rise, with an average annual appreciation of 15%. This is especially true for luxury beachfront properties, which are seeing even higher increases. Imagine owning a piece of paradise that not only offers stunning views but also appreciates in value year after year.
The town is buzzing with new real estate developments. In just one year, from 2022 to 2023, Tulum added 1,500 new rooms, mainly in the hotel sector. This expansion has pushed the total number of rooms past the 12,000 mark, with most places fully licensed and meeting all necessary regulations. It's a clear sign of Tulum's growing appeal as a top tourist destination.
Vacation rentals here are a hot commodity, consistently achieving occupancy rates over 70%. With an average daily rate of $245, these rentals are generating impressive income for property owners. It's no wonder investors are flocking to Tulum, eager to tap into this lucrative market.
Adding to the allure, the Revenue per Available Rental (RevPAR) has seen a 6% increase over the past year. This means more money in the pockets of those who invest in Tulum's vacation rental market. The combination of high occupancy and rising rates makes it a compelling opportunity for anyone looking to invest in real estate.
Sources: Home Tulum, Frank Ruiz Realty Group, Tulum Times
5) Merida is gaining interest for its affordable homes and growing expat community, offering strong appreciation potential
Merida is a rising star for property investors, thanks to its affordable prices and growing expat community.
In the last decade, property prices in Merida, especially in the north, have skyrocketed. Homes are now selling for at least four times their price from ten years ago. This surge is fueled by the influx of expats and retirees. With over 1 million Americans living in Mexico and more than 500,000 owning homes, Merida's real estate market is booming.
Compared to other Mexican cities like Mexico City, Merida offers a bargain. A one-bedroom apartment in Merida's city center costs about 10,568 MXN, while the same in Mexico City is 17,968 MXN. This 63.9% price difference makes Merida a smart choice for budget-conscious investors.
Merida's potential for appreciation is impressive. The nationwide house price index in Mexico has increased by 9.64%, and Merida is seeing even more dramatic growth. Its popularity among tourists and retirees is driving real estate prices up, suggesting that investing here could bring substantial returns.
With its charm and affordability, Merida is attracting more expats every year. This trend is not just about buying a home; it's about investing in a lifestyle. The city's vibrant culture and welcoming community make it a desirable place to live and invest.
For those looking to invest in a promising market, Merida offers both affordability and potential for growth. The city's real estate market is on the rise, and getting in now could mean reaping the benefits in the future.
Sources: Numbeo, Yucatan Magazine
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6) Querétaro is booming with strong industrial growth and new residents driving a robust housing market
Querétaro is buzzing with a real estate boom thanks to its thriving industrial scene and a wave of new residents.
Big players like General Motors and Google have set up shop here, drawn by the booming automotive, aerospace, and tech sectors. This has turned Querétaro into one of Mexico’s industrial powerhouses, attracting significant investments and creating a bustling business environment.
By the end of 2022, the industrial sector was a major force, contributing 41.8% to Querétaro’s GDP. Companies like Amazon and Microsoft have also jumped in, especially in the data center space, making Querétaro a global hub. This industrial surge has opened up a wealth of job opportunities, pulling more people into the area.
With more people moving in, the population of Querétaro has grown by 21% over the last decade. This influx has sparked a flurry of new residential projects to keep up with the housing demand. As more folks look for homes, property prices have naturally climbed.
In the first quarter of 2024, house prices in Querétaro shot up by 11.56% compared to the previous year. This rise in prices reflects the strong demand and the region's growing appeal as a place to live and work.
Querétaro's real estate market is thriving, driven by its industrial growth and increasing population. The city is becoming a hotspot for both businesses and new residents, making it an exciting place for potential property buyers.
Sources: ProMexico Industry, Mexico Daily Post, Global Property Guide
7) Guadalajara’s Colonia Americana is trending with its vibrant cultural scene and rising demand for urban living, boosting property prices
Colonia Americana in Guadalajara is now a hotspot for urban living thanks to its vibrant cultural scene.
Property prices have been climbing, fueled by its status as a "Magical Neighborhood" by Mexico's Tourism Ministry. This designation has sparked increased interest and investment in the area. The neighborhood's charm is further enhanced by the influx of new businesses, including trendy cafes and boutiques. A standout is Cervecería Chapultepec, famous for its unique pricing concept, drawing both locals and tourists.
The area is buzzing with cultural events and festivals, like the GDLuz Festival, which attracts large crowds and adds to the lively atmosphere. This vibrant scene has not gone unnoticed, with Time Out magazine naming it the world's coolest neighborhood, a title that has only increased its allure to visitors and investors.
Real estate activity is booming, with a noticeable uptick in property sales and rentals. This surge reflects the high demand for living and working spaces in Colonia Americana. The neighborhood's appeal is not just in its cultural offerings but also in its growing business landscape, making it a desirable place to settle.
Insider knowledge suggests that the neighborhood's transformation is partly due to its strategic location, offering easy access to Guadalajara's main attractions. This convenience, combined with its cultural richness, makes it a prime spot for those seeking a dynamic urban lifestyle.
As more people discover Colonia Americana, the demand for property continues to rise, making it a smart investment for those looking to tap into Guadalajara's thriving urban scene.
Sources: Marriott Traveler, PRWeb, We Are Mitú, Mexico News Daily
8) Valle de Bravo is gaining interest as a weekend retreat for Mexico City residents, boosting property values
Valle de Bravo is quickly becoming a favorite weekend escape for Mexico City residents.
With its stunning landscapes and endless recreational activities, Valle de Bravo is drawing in more visitors and potential buyers. This surge in interest is pushing property values higher, making it a hot spot for real estate. The town's charm is often highlighted in media, adding to its allure.
Real estate agencies are buzzing with activity, reporting a notable increase in property listings. Over 174 houses are currently on the market, a clear sign of high demand. Prices are climbing, with some areas seeing costs of up to $200 USD per square meter, reflecting the growing interest in this picturesque region.
Tourism is thriving in Valle de Bravo, with millions of tourists visiting each year. This influx of visitors not only boosts the local economy but also enhances the town's appeal to potential property buyers. The vibrant tourism scene is a key factor in the rising property values.
Infrastructure is keeping pace with demand, as new luxury developments offer modern amenities that make Valle de Bravo even more attractive. Local government initiatives to promote tourism are also playing a part in this growth. These efforts are contributing to the area's increasing popularity among buyers.
Social media is abuzz with images and stories of Valle de Bravo's beauty, further fueling its popularity. This online presence is a powerful tool in drawing attention to the town, making it a trendy choice for property investment.
Sources: Properstar, Amura World, Global Property Guide
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.
9) Puerto Escondido is attracting interest with its growing tourism scene and affordable property prices, offering high investment returns
Puerto Escondido is catching eyes for its booming tourism and affordable property prices.
In recent years, the city has seen a surge in visitors, jumping from an average of 244,737.5 to 367,301 tourists in 2016. This uptick shows that more people are discovering Puerto Escondido as a hot travel spot. The buzz around this place is growing, and it's not just because of the beautiful beaches.
Compared to other Mexican beach destinations like Cancun or Tulum, property prices in Puerto Escondido are much lower. Renting a one-bedroom apartment in the city center is a bargain, making it appealing for tourists and investors alike. This affordability, along with rising property values, hints at the potential for solid returns on real estate investments here.
Hotels and vacation rentals are seeing more bookings, which means there's a rising demand for places to stay. Real estate agents are noticing more interest from foreign buyers, especially Americans. The Mexican government is also pushing to boost tourism and attract foreign real estate investments, creating a welcoming atmosphere for investors.
Sources: CEIC Data, Numbeo, OSAN Puerto
10) Valle de Guadalupe is gaining interest for its growing wine tourism, attracting wine enthusiasts and investors, boosting property demand and values
Valle de Guadalupe is a magnet for wine lovers and investors thanks to its major role in Mexico's wine scene.
Producing over three-quarters of Mexico's wine, this region naturally draws those keen on the wine industry. The area is buzzing with wine tourism, bringing in US$180 million annually for Baja California. This boom is partly due to the many wine festivals and events, like those at El Cielo Resort & Winery, Mexico’s most awarded winery.
Visitor numbers to wineries and tasting rooms are soaring, showing just how popular wine tourism has become here. This trend is backed by the rise of boutique hotels and luxury stays, perfect for tourists wanting a high-end experience.
Valle de Guadalupe's charm isn't just in its wine; it's in the whole experience. The region offers a unique blend of rustic charm and modern luxury, making it a prime spot for property investment. Investors are eyeing this area not just for its wine but for its potential as a tourism hub.
With its stunning landscapes and vibrant wine culture, Valle de Guadalupe is more than just a wine region; it's a lifestyle destination. The combination of natural beauty and a thriving wine industry makes it a hot property market.
Sources: Food Tank, PRWeb, Wine Industry Advisor
11) Mazatlán is gaining interest as a coastal destination with better infrastructure and affordable beachfront properties, offering strong investment potential
Mazatlán is catching eyes as a top coastal spot, and it's not hard to see why.
In 2024, over 1.5 million visitors flocked to Mazatlán, arriving by both air and sea. This was a big jump from the previous year, showing just how much more popular the city is becoming. The buzz around Mazatlán is growing, and it's not just the sun and sand drawing people in.
One major reason for this uptick is the significant improvements in local infrastructure. The government has been busy upgrading the airport and working on transportation projects. These changes are making it a breeze for tourists to get to Mazatlán, and this ease of access is expected to pull in even more visitors down the line.
On the real estate front, Mazatlán's market is booming. There's a noticeable rise in demand for beachfront properties, largely because they're more affordable here than in other Mexican coastal areas. This affordability is a magnet for investors who are on the hunt for promising returns.
For those considering a property purchase, Mazatlán offers a unique blend of opportunity and charm. The combination of improved infrastructure and attractive real estate prices makes it a compelling choice. Investors are particularly drawn to the potential for good returns, thanks to the city's growing popularity.
With all these factors in play, Mazatlán is positioning itself as a prime investment destination. The city's appeal is only set to increase as more people discover its potential. The ongoing developments and the surge in tourism are clear signs of a bright future for this coastal gem.
Sources: Pax News, Visit Mexico, MZT Real Estate
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12) San Miguel de Allende is thriving with its UNESCO status and strong international demand, ensuring steady property appreciation
San Miguel de Allende is a hot property market thanks to its UNESCO World Heritage status.
With its rich cultural and historical significance, the city attracts visitors from all over the globe, boosting its economy and ensuring steady property appreciation. The historic district, known for its charming colonial architecture, is a major draw for tourists. This influx of visitors not only supports local businesses but also keeps the real estate market vibrant.
About 10% of the population in San Miguel de Allende consists of expats, highlighting the strong demand from international buyers. The city's lively atmosphere and cultural appeal make it a desirable place to live and invest. Real estate agencies often spotlight San Miguel de Allende as a top investment location, emphasizing its unique charm and potential for property appreciation.
The city is committed to preserving its historic downtown area, which enhances its appeal. Strict building codes and ongoing infrastructure improvements, like the development of luxury hotels, show a dedication to maintaining the city's allure. These efforts ensure that San Miguel de Allende remains a prime destination for property buyers.
San Miguel de Allende's UNESCO status not only boosts tourism but also attracts international buyers, ensuring a steady demand for properties. This demand is further supported by the city's vibrant cultural scene and historical significance, making it a sought-after location for both living and investing.
With its unique blend of history, culture, and modern amenities, San Miguel de Allende continues to be a top choice for property buyers looking for a place with both charm and potential for appreciation.
Sources: Rosewood Hotels, Mexico Relocation Guide, Atención San Miguel
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.