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What will happen in Monterrey’s real estate market? Will prices go up or down? Is Monterrey still a hotspot for foreign investors? How is Mexico’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Monterrey, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

1) Foreign investment in Monterrey’s residential properties will grow as international companies expand in the area
Monterrey is quickly becoming a hotspot for foreign investment in residential properties as international companies expand their operations in the region.
In 2023, Mexico saw a record-breaking influx of foreign direct investment, with Monterrey receiving a significant portion from the U.S. and Canada. This surge in investment highlights the city's growing allure for foreign investors. A major player in this trend is Intretech, which has poured $60 million into a new facility in Monterrey, creating 2,000 jobs. This not only boosts the local economy but also draws skilled foreign workers, increasing the demand for housing.
As more expatriates move to Monterrey for work, the need for residential properties rises, making it an attractive market for foreign investors. The city's improved infrastructure, like the expanded metro system, enhances its appeal as a place to live and work. Monterrey's strategic location near the U.S. border and its robust logistics infrastructure further cement its status as a prime spot for international business operations.
These factors collectively contribute to the rising interest in Monterrey's real estate market from foreign buyers. The real estate market in Monterrey has shown a surge in demand, particularly for high-quality spaces, with a low vacancy rate of 0.5% in 2022. This trend indicates strong interest from both local and foreign buyers, making Monterrey a competitive market for real estate investment.
Moreover, Monterrey's strategic location near the U.S. border and its well-developed logistics infrastructure further solidify its position as a prime destination for international business operations. These factors collectively contribute to the rising interest in Monterrey's real estate market from foreign buyers.
With the influx of international companies and the resulting demand for housing, Monterrey is poised to see a rise in foreign investment in residential properties. The city's strategic location, improved infrastructure, and booming economy make it an attractive destination for investors looking to capitalize on the growing demand for housing.
Sources: Mexico Business News, Intretech, Mexico Business News
2) Virtual reality will be used more for property viewings and transactions in the city’s real estate market
The real estate market is embracing virtual reality (VR) for property viewings and transactions.
Imagine exploring a potential new home without leaving your couch. Thanks to PropTech startups like Matterport, this is becoming a reality. These companies are pouring resources into developing 3D imagery platforms, transforming how we view properties. For instance, Redfin's collaboration with Matterport has led to a 600% increase in virtual walkthroughs, proving VR's power in real estate.
Buyers today crave convenience, and VR delivers. After a 3D tour, they're more likely to reach out to an agent, showing just how engaging these virtual experiences can be. It's not just about seeing a home; it's about feeling like you're already there.
VR isn't just for buyers. Sellers and inspectors benefit too, as they can conduct detailed remote inspections without stepping foot on the property. This tech-savvy approach saves time and broadens the market reach.
By 2025, the global market for augmented reality (AR) and VR is projected to hit $80 billion, with $2.6 billion earmarked for real estate. This surge underscores the growing role of VR in property dealings.
As VR technology becomes more integrated into real estate, expect to see more immersive experiences that make buying and selling homes easier and more efficient.
Sources: LandVault, Modula World, Dreamit Journal

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) Monterrey's residential real estate market will see more investment due to new property tax incentives
Monterrey is quickly becoming a prime spot for real estate investment, thanks to new property tax incentives.
The government of Nuevo León is rolling out enticing tax breaks, including exemptions from VAT and Income Tax, plus discounts on payroll and property taxes. These incentives are crafted to draw in nearshoring investments, especially in border areas like Anáhuac and Puerto Colombia. This move is expected to make Monterrey even more attractive to investors looking for strategic locations.
Monterrey has a history of construction booms, with 2023 marking a significant growth year due to earlier tax incentives. This pattern shows that such financial perks can positively impact real estate investments. With the latest incentives, the city is poised to see continued development, focusing on capital appreciation and lucrative investment opportunities.
Big projects like Tesla's gigafactory in Santa Catarina, which enjoyed substantial tax breaks, highlight the strong investor interest in the area. This enthusiasm is likely to spill over into the residential real estate market, as investors aim to take advantage of Monterrey's favorable tax climate and strategic location.
Insider knowledge suggests that Monterrey's real estate market is not just about industrial growth. The city offers a vibrant lifestyle, with a mix of modern amenities and cultural richness, making it a desirable place to live and invest. The new tax incentives are expected to further enhance this appeal, drawing more residential investors.
For those considering buying property in Monterrey, now might be the perfect time. The combination of strategic location, tax benefits, and ongoing development creates a promising environment for real estate investment. With these incentives, Monterrey is set to become an even more attractive destination for both local and international investors.
Sources: Mexico News Daily, WEL.mx
4) Luxury property prices in Monterrey will rise steadily due to high demand and limited supply
Monterrey's luxury real estate market is on the rise due to limited supply and high demand.
In recent years, property prices have climbed as more people seek luxury homes, but there's not much land left for new builds. Back in 2023, the wealthiest in Monterrey earned nearly 13 times more than the lowest earners, highlighting a strong economic base that supports high-end real estate. This economic disparity is a key driver for the luxury market.
Monterrey is attracting more high-net-worth individuals, both local and international, who are keen on luxury properties. This influx of wealthy buyers is pushing prices up. The city's economic stability and top-notch universities make it a magnet for affluent residents, further boosting demand for luxury homes.
Land scarcity is a big deal here. With limited plots available for new luxury developments, developers are in fierce competition, which naturally drives prices higher. Urbanization and population growth are squeezing the available land even more, making it tough to find space for new projects.
Luxury properties in Monterrey are often selling above asking price, a clear sign of strong buyer interest and limited supply. The luxury real estate market in Mexico, especially in hotspots like Monterrey, is booming with rising sales and prices. As Monterrey continues to grow economically, more investors are expected to jump in, further increasing demand for luxury properties.
Sources: The Rio Times, Wealth Briefing, RethinkQ
5) Demand for homes with office spaces in Monterrey will grow as remote work becomes more common
In Monterrey, the demand for homes with office spaces is on the rise due to changing work habits.
By 2023, 80% of Mexicans were working from home at least part-time, and this trend is only growing. This shift is pushing more people in Monterrey to seek homes that offer dedicated office spaces, making it a hot spot for such properties.
Young professionals are driving the real estate boom in Mexico, eager to find homes that fit their new work-from-home lifestyles. Developers are catching on, creating properties with "home offices" that are quickly becoming essential for many buyers.
Monterrey's residential real estate market is set to grow, with projections reaching USD 18.51 billion by 2030. This growth is largely fueled by the increasing demand for homes with office spaces as more companies embrace remote work policies.
Investments in technology infrastructure, like the new DWDM route from Monterrey to Querétaro, are making remote work more viable. Reliable internet connectivity is crucial for home-based work, further boosting the demand for properties with office spaces.
As Monterrey continues to adapt to these trends, the city is becoming a prime location for those seeking homes that accommodate remote work needs.
Sources: BIP Search, PR Newswire, Mordor Intelligence
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6) Demand for properties with wellness amenities in Monterrey will grow as health-conscious living becomes a priority
Monterrey is seeing a growing interest in health-focused living as people prioritize their well-being.
In the city, there's a noticeable shift towards high-quality living spaces that cater to health-conscious individuals. This trend is part of a larger movement in Mexico, where the health and wellness sector is expanding rapidly. For instance, in 2021, retail sales in this sector hit $18.1 billion, and they're expected to keep climbing.
Residents in Monterrey are increasingly looking for homes that support a healthy lifestyle. A 2022 survey found that 59% of Mexicans, including those in Monterrey, are interested in healthier food and drink options. This mindset is pushing the demand for properties with wellness amenities.
Developers in Monterrey are catching on, adding features like air purification systems, wellness-focused gyms, and natural design elements to their projects. These additions are not just trends; they're becoming essential as more people seek environments that promote well-being.
The Global Wellness Institute forecasts a 15.8% annual growth in the wellness real estate market from 2023 to 2028. This suggests a strong future demand for properties that offer these health-focused features.
As Monterrey continues to evolve, the demand for homes with wellness amenities is expected to rise, reflecting a broader shift towards health-conscious living.
Sources: Mexico Business News, Agriculture Canada, GlobeNewswire, BeautyMatter
7) Monterrey's population will grow as young professionals move in for job opportunities
Monterrey is booming with young professionals flocking to the city for job opportunities.
Big names like Facebook, Microsoft, Google, and Tesla are on the hunt for tech talent, actively recruiting graduates from top local universities. Schools like Tecnologico de Monterrey, Universidad de Monterrey, and Universidad Autonoma de Nuevo Leon are churning out skilled grads, making the city a tech hotspot.
Monterrey's charm isn't just about jobs; multinational companies are setting up shop, adding to the job pool. The government is also pouring money into infrastructure—think new metro lines and highways—making the city even more livable and attractive.
Housing demand is on the rise, a clear sign that young professionals are not just working here but choosing to make Monterrey their home. Surveys and media often spotlight the city for its urban vibe, job prospects, and lively culture.
Social media is buzzing with Monterrey's reputation as a hub for innovation and entrepreneurship. Internal migration trends show that Monterrey is a top pick for young professionals across Mexico, thanks to its robust economy and quality of life.
With all these factors, it's no wonder Monterrey is a magnet for young talent, cementing its status as a thriving urban center.
Sources: Nearshore Americas, Mexico Business News, World Population Review
8) Interest from U.S. buyers in the city’s real estate market will grow as they seek investment opportunities
Monterrey is becoming a hotspot for U.S. real estate investors.
Why? Well, the city is buzzing with economic growth and stability, thanks to its booming industrial sector and cross-border trade. Being so close to the U.S. border makes it super convenient for international travel, which is a big plus for businesses and investors.
Monterrey also boasts a thriving expat community, one of the fastest-growing in Mexico. This mix of cultures makes it a lively place to live and invest. Plus, the city's infrastructure is getting a facelift to keep up with the demand for high-end real estate, which means low vacancy rates and high rental prices—music to any investor's ears.
Property values in Monterrey are on the rise, with a surge in demand for Class A spaces. This has led to higher prices and even lower vacancy rates, signaling that Monterrey is a prime spot for investment with promising returns.
For U.S. investors, Monterrey offers a stable and profitable opportunity. The city's strategic location and economic dynamism make it an attractive choice for those looking to expand their investment portfolios.
With all these factors in play, it's no wonder that Monterrey is drawing increased interest from U.S. buyers seeking lucrative investment opportunities.
Sources: Mexico Business News, Moving Countries 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) Demand for residential properties in Monterrey will grow as it becomes a popular spot for foreign retirees
Monterrey is quickly becoming a hotspot for retirees from abroad.
In 2023, Mexico was ranked as a top retirement destination, drawing expats with its promise of a high quality of life. Monterrey, in particular, stands out due to its unique blend of modern amenities and cultural richness. The city offers a vibrant lifestyle with a mix of traditional Mexican culture and contemporary living, making it an attractive place for those looking to enjoy their golden years.
One major draw is the affordable cost of living. Take San Pedro Garza García, a suburb of Monterrey, where living expenses are much lower compared to big U.S. cities like New York. This affordability allows retirees to make the most of their savings, enjoying a comfortable lifestyle without breaking the bank.
Healthcare is another big plus. Monterrey boasts excellent healthcare facilities, with both public and private options available. Private hospitals in the city are equipped with state-of-the-art technology, ensuring retirees have access to top-notch medical care. This is a crucial factor for many when deciding where to retire.
Beyond the practicalities, Monterrey offers a warm and welcoming community. The city is known for its friendly locals and a growing expat community, making it easier for newcomers to settle in and feel at home. This sense of community is invaluable for retirees looking to build new social connections.
With its combination of affordability, quality healthcare, and a vibrant lifestyle, Monterrey is poised to become a top choice for retirees seeking a fulfilling and enjoyable retirement experience.
Sources: Pacific Prime, Expatriate Consultancy
10) Monterrey’s home prices will keep rising due to strong demand from local and international buyers
Monterrey's real estate market is on the rise, with property prices steadily climbing due to strong demand.
Monterrey's strategic location near the U.S. border and its role in nearshoring activities make it a hotspot for international companies. This influx of businesses means more employees are looking for homes, driving up housing demand.
The city's economic significance is a magnet for multinational companies, which are setting up shop in the region. As these companies establish their operations, the demand for nearby housing increases, further pushing property prices upward.
Monterrey's population is growing rapidly, with over 78,000 new residents in the past year alone. This surge in population heightens the need for housing, contributing to the upward trend in property prices.
Urbanization is another factor, as more people move to the city, the limited availability of land for new developments becomes a challenge. This scarcity means that as demand continues to outstrip supply, prices are likely to keep rising.
With Monterrey's appeal to both local and international buyers, the residential real estate market shows no signs of slowing down. The combination of strategic location, economic growth, and population increase ensures a robust demand for housing.
Sources: Properstar, World Population Review, Frontier Industrial Blog
11) Suburban property prices will drop moderately as urban living gains popularity in the city
Monterrey is becoming a hotspot for urban living, with its population growing by 78,710 in 2024.
This shift is part of a larger trend where people are moving towards more compact urban areas, leading to a 56% increase in population density and fewer empty homes. The rise of remote work is a big factor here, as many remote workers are looking for affordable housing and a vibrant city life, especially younger folks.
Monterrey's public transport is getting a major upgrade, making city life even more appealing. The city is expanding its electric transport routes, which will soon connect to a new subway line, promoting clean mobility and economic growth. This makes getting around the city easier and more attractive for potential residents.
There's also a buzz in Monterrey's city center with new commercial and cultural spots popping up. These developments are drawing more people to urban areas, which means less interest in suburban living. As the city becomes more desirable, commuting from the suburbs might get pricier, making city life even more appealing.
With all these changes, it's no surprise that urban living is on the rise. The city's suburban areas are expected to see a moderate decline in property prices as more people opt for the convenience and excitement of city life.
Monterrey is clearly on the move, and these developments are reshaping where people want to live. The city's focus on improving infrastructure and creating vibrant urban spaces is making it a top choice for those seeking a dynamic lifestyle.
Sources: WRI, C40 Cities Finance Facility, Capita Works
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12) Rental yields in Monterrey will rise as rental demand exceeds supply
Monterrey is booming, with a population increase of 78,710 people just last year.
This growth means more folks are looking for places to rent, pushing up demand. As Monterrey's urban areas expand, more people are flocking to the city for housing, making rentals even more sought after.
New housing developments aren't keeping up, especially in the MX$2 million to MX$4 million price range, according to 4S Real Estate. This shortage is making rentals a hot commodity.
Monterrey's thriving industrial scene, particularly in automotive and manufacturing, is a magnet for workers from other regions. Plus, students and young professionals are pouring in for education and job opportunities, adding to the rental demand.
With property prices climbing, buying a home is getting tougher, so more people are opting to rent. This shift, along with reports of a housing shortage, shows just how competitive the rental market is in Monterrey.
Sources: World Population Review, Mexico Business News
13) Yields in Monterrey's luxury rental market will drop as more high-end properties become available
The city's high-end rental market is bracing for a dip in yields as luxury properties flood the scene.
In Monterrey, there's a buzz of construction activity with 1.1 million m² of luxury apartments and homes in the pipeline. This surge is reshaping the landscape, with 456,000 m² of new projects kicking off just this quarter. It's a clear sign that luxury living is on the rise.
With more luxury options popping up, landlords are feeling the heat. Increased competition is nudging rental prices down as they vie for tenants. It's a classic case of supply and demand, where too many high-end choices can lead to price cuts.
Landlords might start sweetening the deal with rental concessions. Offering incentives or slashing rents becomes a strategy to keep properties occupied. This, however, can chip away at their rental income.
Occupancy rates could take a hit too. As the market swells with luxury options, keeping properties filled becomes a challenge. This struggle to maintain high yields is a growing concern.
For those eyeing a property investment, it's a double-edged sword. While there's a chance to snag a luxury spot at a lower price, the potential for lower rental returns looms large.
Sources: Mexico Business News
14) Student housing yields in the city will drop because of too many new developments
Monterrey's student housing market is facing a challenge due to a recent boom in new developments.
With so many new buildings popping up, there's now an oversupply of student housing units. This situation is reminiscent of the $285M project at the University of California, Riverside, which added 429 units to their market. The influx of new properties is making it tough for existing ones to keep their rooms filled.
Occupancy rates are feeling the pinch, with the 2024-2025 season seeing a drop to 94.5%. This slight dip from last year shows how the new supply is squeezing the older properties. It's a bit like having too many seats at a concert—some are bound to stay empty.
Landlords are also adjusting their strategies, with rental prices taking a hit. The average rent per bed fell from $901 in May to $896 in September. This drop is a clear sign that property owners are cutting prices to lure in students, which might not be great news for their bottom line.
For those considering investing in Monterrey's student housing, it's crucial to understand that lower rental yields could be on the horizon. The market is competitive, and with more options available, students have the upper hand in choosing where to stay.
Sources: Fannie Mae Multifamily Market Commentary - June 2024, McCarthy Breaks Ground on UC Riverside Student Housing, Yardi Matrix National Student Housing Market Report - October 2024

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.
15) Property values in Santa Catarina will rise significantly as new tech companies set up offices nearby
The Santa Catarina area is on the brink of a property value boom, thanks to the influx of new tech companies.
With Tesla's gigafactory setting up shop as its first in Latin America, the region is buzzing with activity. This move has drawn in Tesla suppliers like Noah Itech, Vertiv, and Quanta Computer, signaling a burgeoning business hub. As these companies settle in, the demand for office space is skyrocketing, creating a ripple effect throughout the local economy.
As tech firms grow, so do job opportunities, particularly in the tech sector. This is expected to attract a wave of professionals to Santa Catarina, driving up the demand for homes. The area is also seeing a facelift with projects like the New North Coastal Corridor, which promises to enhance transportation and economic growth, making it a hot spot for both businesses and future residents.
Looking at similar scenarios, areas with tech growth often see a spike in property values. Take Guadalajara, for instance, often dubbed Mexico's Silicon Valley, where the tech boom has led to a real estate surge. Local government incentives, such as the $50,000 Set-Aside grant to Asset Technology Group, Inc., show a commitment to nurturing tech investments, further boosting the area's appeal.
Santa Catarina is not just about tech; it's about transformation. The local government's proactive stance, coupled with the arrival of major players, is setting the stage for a vibrant economic landscape. The infrastructure upgrades are not just about convenience; they're about creating a thriving community where businesses and families can flourish.
For potential property buyers, this means getting in on the ground floor of a rapidly evolving market. The combination of tech industry growth, infrastructure improvements, and government support is a recipe for rising property values, making Santa Catarina a promising investment opportunity.
Sources: Bloomberg Linea, SAI SC, Nucamp Blog
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.