Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of San Miguel de Allende's property market is included in our pack
What will happen in San Miguel de Allende’s real estate market? Will prices go up or down? Is this charming city still a hotspot for foreign investors? How is the local 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 local real estate agents, property developers, and clients who buy properties in San Miguel de Allende, 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.
How this content was created 🔎📝
1) Rental yields in San Miguel de Allende will rise as more digital nomads flock to the city
Rental yields in San Miguel de Allende are on the rise as the city gains popularity among digital nomads.
With the global surge in remote work, more digital nomads are seeking affordable destinations, and San Miguel de Allende fits the bill perfectly. The city offers a lower cost of living, making it an attractive option for those looking to stretch their dollars while enjoying a vibrant cultural scene.
San Miguel de Allende has made significant strides in improving its internet connectivity and establishing co-working spaces, key factors for digital nomads who need reliable work environments. The local government is also on board, actively promoting the city as a remote work haven by enhancing infrastructure and services tailored to this new wave of workers.
The buzz around San Miguel de Allende is evident in the short-term rental market. Platforms like Airbnb have seen a spike in listings, with 3,110 active listings as of 2024. This uptick reflects the growing interest in the city as a temporary home for digital nomads.
These Airbnb listings boast a median occupancy rate of 43% and an average daily rate of MXN1,921, highlighting the demand for short-term rentals in the area. This trend underscores the city's increasing allure for those seeking a blend of work and leisure.
As San Miguel de Allende continues to attract digital nomads, rental yields are expected to climb, offering promising opportunities for property investors looking to tap into this burgeoning market.
Sources: Raices y Propiedades, Airbtics
2) Rents in San Miguel de Allende will increase as more international residents settle long-term
San Miguel de Allende's property market is booming, with prices climbing steadily.
In 2023, the average price for properties under contract hit $602,126, while those sold averaged $561,097. This indicates a strong demand for housing, pushing property owners to raise rents to boost their returns.
The city is buzzing with a surge in rental demand, fueled by tourists and folks looking for second homes. This competition for rentals means rental prices are on the rise, offering property owners a chance to cash in.
San Miguel de Allende is a magnet for international residents, especially from the US, Canada, and Europe. With an estimated 20,000 to 25,000 foreign residents, half of whom are from the United States, the local economy is shifting to cater to these newcomers.
This influx has transformed the city, with businesses and services now tailored to tourists and retired foreigners. As a result, the demand for rental properties is climbing, making it a hot spot for investors.
Sources: San Miguel Real Estate, Raices y Propiedades, Wikipedia
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.
3) Property prices on the outskirts of San Miguel de Allende will rise more slowly than in the city center due to limited infrastructure
The outskirts of San Miguel de Allende are seeing slower property price increases compared to the bustling city center.
In recent years, the city center has been the focus of major infrastructure upgrades, like improved roads and enhanced public services. This has made it a more attractive area for buyers. Meanwhile, the outskirts haven't seen the same level of investment, which limits their growth potential.
Reports from 2023 and 2024 highlight that property prices in the city center are rising faster than those in the outskirts. The city council is channeling funds into the city center, making it even more appealing to potential buyers.
The city center's charm lies in its rich cultural and historical offerings, which naturally drive up property prices. People love being close to restaurants, shops, and cultural events, all of which are abundant in the city center. The outskirts, on the other hand, have fewer commercial developments and a lower population density, which contributes to their slower property appreciation.
Transportation is another factor. The outskirts lack direct and efficient transportation options, making them less attractive to buyers who value convenience. This further slows down the increase in property prices in these areas.
So, if you're considering buying property in San Miguel de Allende, keep in mind that the city center offers more immediate growth potential due to its ongoing development and appeal.
Sources: TAO Mexico, Discover SMA
4) Demand for gated communities in San Miguel de Allende will rise due to their safety and amenities
San Miguel de Allende has been experiencing a rise in crime rates, including homicides and other violent incidents.
This has made many residents and potential homebuyers feel uneasy, pushing them to seek safer living environments.
Gated communities are becoming a popular choice because they offer enhanced security features and modern amenities.
Media coverage has shone a spotlight on these benefits, attracting buyers who value safety and luxury.
In 2023, real estate reports showed that properties in gated communities were selling at higher prices than those in non-gated areas.
The influx of retirees and expatriates looking for secure living spaces has further boosted demand for these communities.
Sources: Numbeo, Paraiso Wedding Blog, San Miguel Real Estate
5) Virtual reality tours will attract more international buyers as they become standard in San Miguel de Allende real estate transactions
Virtual reality tours are revolutionizing how people buy homes, especially in San Miguel de Allende.
In this charming Mexican town, there's been a noticeable uptick in international buyers, particularly from the United States, Europe, and Canada. Many are seeking retirement or second homes, and VR tours make it easy for them to explore properties without hopping on a plane. This is a game-changer for those who want to make smart choices from a distance.
The demand for remote property viewing is skyrocketing. Over 50% of adults have already taken a virtual tour, and a whopping 67% of home buyers want this option when checking out properties. It's clear that people love the convenience and detail VR tours offer.
Listings with virtual tours are getting a lot more attention. They receive 87% more views than those without, and potential buyers spend much more time on these listings. This shows a strong preference for the immersive experience that VR provides.
By 2025, the global market value of VR in real estate is expected to hit $2.6 billion, a huge jump from $800 million in 2020. This growth underscores how VR is becoming a staple in real estate, including in San Miguel de Allende.
With VR tours becoming more common, San Miguel de Allende is set to attract even more international buyers, making it a hot spot for real estate investment.
Sources: Realtyna, Raices y Propiedades, PhotoUp
Don't buy the wrong property, in the wrong area of San Miguel de Allende
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) Rental prices in less central areas of San Miguel de Allende will drop slightly as new developments boost supply
In 2023 and 2024, San Miguel de Allende saw a boom in new housing developments, especially in areas away from the city center.
With more homes popping up, rental prices in these less central areas are expected to dip. When landlords have more properties than tenants, they often lower prices to fill those spaces.
Construction permits and approvals have surged, signaling a big jump in new housing stock. This can lead to higher vacancy rates, meaning more empty homes, which usually results in lower rental prices.
Recent demographic studies show that population growth isn't matching the rapid increase in housing supply. This mismatch can lead to a surplus of available rentals, causing rental prices to drop.
Surveys also reveal a shift in demand towards central areas, meaning less interest in properties further out, which can also lead to lower rental prices.
Sources: Raices y Propiedades, Zillow, BHHS Colonial Homes
7) Eco-friendly homes in San Miguel de Allende will become more attractive due to government incentives for sustainable building practices
The government is actively boosting sustainable building projects in San Miguel de Allende.
Thanks to initiatives like the San Miguel de Allende Climate Action Program, backed by agencies such as Conafor, Semarnat, and the UNDP, there's a clear push for environmental sustainability in the area. This means potential funding is available for those interested in eco-friendly construction.
Architects in San Miguel de Allende are increasingly using eco-friendly materials like recycled wood, bamboo, and adobe. This shift reflects a growing trend in sustainable home construction, driven by consumer demand for green features like solar panels and energy-efficient appliances.
The government is also offering tax incentives to promote green building practices. These include tax rebates and credits for energy-efficient upgrades, making it easier and more attractive for homeowners to invest in eco-friendly improvements.
With these incentives, sustainable living is becoming more accessible to a wider audience, enhancing the appeal of eco-friendly homes in San Miguel de Allende. The combination of government support and consumer interest is creating a vibrant market for sustainable properties.
Sources: Discover SMA, Mario Lopez Arquitectura, The Madrona Group
8) Demand for senior-friendly housing in San Miguel de Allende will grow as the population ages
San Miguel de Allende is increasingly becoming a hotspot for retirees, especially from the U.S. and Canada.
With this influx, the city has seen a significant rise in its population aged 65 and above, transforming the local real estate market. Many older buyers are on the hunt for single-story homes and low-maintenance properties that suit their lifestyle. These homes often come with added perks like healthcare facilities and community amenities, making them highly sought after.
Interestingly, the demand for such properties often outpaces supply, creating a competitive market. This trend is largely driven by retirees who are looking for accessible and senior-friendly housing options. As a result, developers are increasingly focusing on building homes that cater to these needs.
Moreover, the need for healthcare and assisted living facilities is on the rise, thanks to the growing number of older residents. This demographic shift is not just shaping real estate trends but also boosting the demand for senior-friendly amenities in the area.
For those considering a move, it's worth noting that San Miguel de Allende offers a unique blend of cultural richness and modern conveniences. The city's charm, combined with its focus on senior-friendly living, makes it an attractive option for retirees.
As the population continues to age, the demand for homes that offer both comfort and accessibility is expected to grow. This makes San Miguel de Allende a promising destination for those looking to invest in property that caters to an aging demographic.
Sources: City Population, Real Estate Market Trends, Migration Policy Institute Report
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.
9) Interest in historic properties in San Miguel de Allende will remain high because of their unique charm and cultural importance
San Miguel de Allende's historic properties are a hot commodity thanks to their charm and cultural significance.
Being a UNESCO World Heritage site has put San Miguel de Allende on the map for buyers who crave unique, historically rich homes. The city's colonial architecture and vibrant arts scene make it a magnet for those seeking something special.
Property values here are on the rise, with a projected increase of 3% to 7% by 2025. This is largely due to the high demand and limited supply of housing. The city's cultural allure and UNESCO status have made these properties not just appealing but also a smart investment.
Tourism is booming, with more visitors flocking to San Miguel de Allende for its historical and cultural treasures. This influx of tourists only adds to the city's charm, making it even more attractive to potential buyers.
The local government is actively working to preserve and promote cultural heritage sites, which bodes well for the future of historic properties. Plus, there are plenty of real estate agencies, both local and international, that specialize in these unique homes.
All these factors point to a strong market demand for historic properties in San Miguel de Allende, ensuring their continued appeal and value.
Sources: Revistas UM, Hello Holt
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.