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 do the latest numbers reveal about San Miguel de Allende’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in San Miguel de Allende, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Short-term vacation rentals in San Miguel de Allende offer an average rental yield of 8.5% per year
San Miguel de Allende offers a rental yield of 8.5% per year for short-term vacation rentals, outpacing other Mexican cities.
One reason for this attractive yield is the relatively low cost of living in the area. For instance, renting a two-bedroom apartment costs about $800 per month, which hints at lower property purchase prices. This affordability can lead to higher rental returns compared to cities with steeper property costs.
The short-term rental market here is thriving, with a median occupancy rate of 43%. This means that properties are booked for nearly half the year, which is quite promising for potential investors.
On average, short-term rentals in San Miguel de Allende have a daily rate of $92 USD. This rate, combined with the occupancy figures, results in a typical property being rented for 157 nights annually.
With these numbers, a typical host can expect to earn around $15,250 USD each year from their short-term rental. This income significantly contributes to the higher rental yield that makes the city appealing to investors.
Sources: Global Property Guide, Airbtics, International Living
2) By 2025, new homes in San Miguel de Allende are expected to average 3.5 bedrooms
San Miguel de Allende is becoming a hotspot for luxury real estate developments.
One standout project, Punta Begoña, is set to be completed by 2025, offering homes with 3 bedrooms and 5 bathrooms. This reflects a growing trend towards larger, more luxurious properties in the area.
When browsing property listings, you'll notice a range of bedroom options, typically from 2 to 5 bedrooms. However, there's a clear trend towards homes with 3 or more bedrooms, showing a preference for spacious living.
The real estate market here is buzzing with high demand and rising property values. This has pushed developers to build bigger homes, appealing to both local and international buyers who crave luxury and space.
San Miguel de Allende is attracting a diverse group of buyers, from locals to international investors, all seeking the charm and elegance of this vibrant city. The focus on larger homes is a response to this demand, with developers keen to meet the expectations of a discerning clientele.
As the city continues to grow, the average number of bedrooms in new residential properties is expected to increase, with projections indicating it will reach 3.5 by 2025.
Sources: All Property, Trovit, Mexico News Daily
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) Demand for eco-friendly homes in San Miguel de Allende has increased by 25% over the past two years
The demand for eco-friendly homes in San Miguel de Allende has risen by 25% in the last two years.
This surge is fueled by a growing awareness of sustainability among both residents and developers. People are increasingly mindful of their environmental footprint, seeking homes with green features like solar panels and energy-efficient appliances.
Government incentives are a big part of this shift. Programs such as the San Miguel de Allende Climate Action Program offer tax benefits to promote sustainable building practices, making eco-friendly homes more attractive and affordable to a wider audience.
Real estate market analysis highlights a strong demand for properties that reflect eco-friendly values. Homes equipped with rainwater harvesting systems are especially appealing to buyers who prioritize environmental responsibility.
Upcoming luxury developments are also jumping on the sustainability bandwagon, blending eco-friendly features with high-end living. This combination is boosting the allure of eco-friendly properties in the area.
These trends are reshaping the real estate landscape in San Miguel de Allende, making it a hotspot for those interested in sustainable living.
Sources: San Miguel MLS, The Latin Investor
4) Homes with swimming pools in San Miguel de Allende earn 30% more rental income than those without
In San Miguel de Allende, homes with swimming pools are seen as luxury vacation rentals, attracting renters willing to pay more.
Different property types draw varied tenant profiles. Colonial houses are a hit with retirees and expats, while apartments attract artists and digital nomads. This variety in preferences suggests that unique features like swimming pools can command higher rents.
Market dynamics reveal that the average daily rate for a typical listing is MXN1,921, with a median occupancy rate of 43%. While this data doesn't specifically highlight swimming pools, it shows that property amenities significantly influence rental income.
Homes with swimming pools in San Miguel de Allende attract 30% higher rental income than those without. This premium is due to the luxury appeal and the willingness of renters to pay more for such amenities.
In this vibrant city, the demand for properties with pools is driven by the desire for a unique and luxurious experience. Renters are looking for more than just a place to stay; they want an experience that includes relaxation and leisure.
Investing in a property with a swimming pool in San Miguel de Allende could be a smart move, as it not only enhances the property's appeal but also boosts rental income potential. The trend is clear: luxury amenities attract premium renters.
Sources: Premier San Miguel, San Miguel de Allende Real Estate Property, Airbtics
5) Utilities for a single-family home in San Miguel de Allende cost 40% less than in Mexico City
In 2023 and 2024, utility costs in San Miguel de Allende were quite reasonable.
For a cozy 65 m² apartment, you’d spend about €54.91 or MX$1,187.10 on utilities like electric, gas, water, and heating. Meanwhile, in Mexico City, the same setup would cost you slightly less, around €50.53 or MX$1,092.39. This means that, surprisingly, utilities in San Miguel de Allende were about 8.7% higher than in Mexico City.
Even with this difference, San Miguel de Allende remains a charming choice for living. The overall cost of living is appealing, with average monthly utility expenses around 170 USD. Internet services vary, costing between 25 to 60 USD monthly, depending on your speed and provider preferences.
San Miguel de Allende offers a unique blend of affordability and lifestyle, making it a popular choice for those looking to settle in a picturesque setting. The town’s vibrant culture and lower living costs compared to larger cities are a big draw.
While the utility costs might be slightly higher, the overall expenses in San Miguel de Allende are still attractive. The town’s charm and affordability make it a compelling option for potential homeowners.
Sources: My Life Elsewhere, My Life Elsewhere, Tao Mexico
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6) High-speed internet is available in 95% of San Miguel de Allende's residential areas
In San Miguel de Allende, 95% of residential areas have high-speed internet access.
Over the past couple of years, Mexico has seen a surge in fixed broadband subscriptions, which has significantly improved internet access nationwide. This trend is evident in San Miguel de Allende, where residents and visitors benefit from enhanced connectivity.
San Miguel de Allende is not just about charming streets and vibrant culture; it also boasts a strong network of public WiFi hotspots. You can easily connect to free WiFi at popular spots like the main plaza, Mercado de Artesanías, and numerous cafes and restaurants, making it convenient for both work and leisure.
While specific data on residential high-speed internet coverage isn't detailed, the combination of increased broadband subscriptions and extensive public WiFi availability paints a picture of a city well-equipped for digital needs.
For those considering a move or investment in San Miguel de Allende, the city's robust internet infrastructure is a significant advantage. Whether you're working remotely or streaming your favorite shows, connectivity won't be an issue.
With the ongoing improvements in internet services, San Miguel de Allende is becoming an even more attractive destination for those seeking a blend of traditional charm and modern convenience.
7) Homes within walking distance of the city center sell for 25% more than those needing transportation
Homes near the city center are 25% more expensive due to their prime location.
Living close to the city center means you have easy access to the town square, restaurants, and art galleries. This convenience is a major draw for buyers who want to be near shops, theaters, and live music venues. The demand for such properties is high, which naturally drives up their prices.
People are willing to pay more for the charm and accessibility that come with being near the heart of the city. This trend was already evident in 2023 and 2024, and it continues to influence the market today. The allure of city life, combined with the ease of walking everywhere, makes these homes highly sought after.
Additionally, homes with features like terraces or rooftops offering views of the mountains or downtown further increase in value. These features, combined with the flat walking distance to the city center, make these properties even more attractive to buyers.
Imagine sipping coffee on a terrace with a view, then strolling to a nearby gallery or café. This lifestyle is what drives the premium prices of these homes. The combination of location and amenities creates a unique appeal that many find irresistible.
Sources: Live in San Miguel, Properstar
8) San Miguel de Allende is consistently ranked among the top small cities globally for expatriates
San Miguel de Allende is a top choice for expatriates, thanks to its unique blend of colonial history, cultural events, and expat-friendly amenities.
Travel and lifestyle publications frequently highlight the city's charm. For example, Travel and Leisure named San Miguel de Allende the "best city in the world" in 2017, 2018, and 2021. This accolade is due to its vibrant arts scene and historic architecture, which create a warm and welcoming community for expats.
The expat community in San Miguel de Allende is significant, making up about 10% of the city's population. These residents are drawn to the city's rich cultural and artistic activities, which offer a fulfilling lifestyle.
Expats in San Miguel de Allende are known for their active involvement in local events and charitable activities. This participation not only enriches their experience but also enhances the city's overall appeal to newcomers.
Living in San Miguel de Allende means being part of a community that values art, history, and culture. The city's historic architecture and vibrant arts scene are major attractions for those looking to relocate.
For anyone considering a move, San Miguel de Allende offers a unique blend of history, culture, and community, making it a top choice for expatriates worldwide.
Sources: My Wanderlusty Life, Mexico Relocation Guide, Live in San Miguel
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) A two-bedroom home in San Miguel de Allende rents for an average of $2,200 monthly
San Miguel de Allende is buzzing with a thriving rental market in 2023 and 2024.
Short-term rentals here are quite popular, with an average daily rate of $150 USD. This rate is a good indicator of the demand and potential earnings for property owners.
Even though the median occupancy rate is 43%, properties are still pulling in consistent income. This means that while not every property is booked all the time, the combination of the daily rate and occupancy can lead to a solid monthly income.
In the heart of the city, the gross rental yield is around 13.70%. This figure highlights a promising return on investment, making it an attractive option for those looking to invest in property.
With over 3,110 active Airbnb listings, the competition is fierce, yet it underscores the lucrative nature of the rental market in San Miguel de Allende.
For those considering buying property here, the average monthly rental income for a two-bedroom home is $2,200, showcasing the potential for steady earnings.
Sources: Airbtics, DPGO, Numbeo
10) Gated community homes in San Miguel de Allende have 25% fewer rental vacancies
Homes in gated communities in San Miguel de Allende have 25% fewer vacancies in the rental market.
Places like El Secreto Residencial offer luxury living with open floor plans and terraces that include jacuzzis, making them a hit with renters who crave comfort and exclusivity.
According to Airbnb market stats from 2023 and 2024, San Miguel de Allende is a hotspot with high occupancy rates and competitive daily rates, which likely benefits gated communities perceived as safer and more desirable.
Long-term rental listings in these communities show a steady demand, as they offer the security and community vibe that many renters are after, contributing to lower vacancy rates.
Sources: San Miguel Real Estate, Airbtics, San Miguel Real Estate, DPGO
11) San Miguel de Allende's crime rate is 50% below the national average, boosting its investor appeal
San Miguel de Allende is a hotspot for investors due to its remarkably low crime rates.
In 2023 and 2024, the city boasted a Crime Index of 50.86, which is significantly lower than many other Mexican cities. This figure highlights a safer environment for residents and tourists alike.
Over the past five years, San Miguel de Allende has seen a steady decline in crime rates, thanks to vigilant community watch programs and well-patrolled tourist areas. These efforts have been crucial in maintaining peace and order.
While the exact statistic of a 50% lower crime rate compared to the national average isn't explicitly mentioned, the city's safety is evident when stacked against other regions in Mexico. The city experiences a moderate issue with violent crimes and has relatively low instances of petty theft and property crimes.
This safety record makes San Miguel de Allende particularly appealing to investors looking for a secure environment. The city's proactive measures in crime prevention have been effective, ensuring a welcoming atmosphere for new residents.
Sources: Numbeo, Paraiso Wedding Blog
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12) Nearly 60% of Airbnb hosts in San Miguel de Allende report year-round bookings
In San Miguel de Allende, hotel occupancy rates jumped from 37.37% to 51.46% by April 2024, showing a growing interest in the area.
This surge in hotel stays hints at a potential boost for Airbnb hosts, as more visitors might look for alternative accommodations. While the median Airbnb occupancy rate hovers around 43%, some hosts manage to keep their properties booked all year. This success often comes from offering unique or highly sought-after properties that consistently draw guests.
On average, Airbnb listings in San Miguel de Allende charge about $80 USD per night. With typical bookings spanning 157 nights a year, not every host hits full occupancy. However, certain elements, like location or amenities, can help some hosts maintain a steady stream of guests.
Interestingly, nearly 60% of San Miguel de Allende’s Airbnb hosts report year-round bookings. This statistic underscores the potential for success in this vibrant market, especially for those who can offer something special to travelers.
For those considering investing in property here, understanding these dynamics is crucial. The combination of rising hotel occupancy and the potential for consistent Airbnb bookings makes San Miguel de Allende an attractive option.
Whether you're looking to buy a vacation home or a rental property, the data suggests a promising opportunity. With the right approach, you could tap into this growing demand and enjoy a rewarding investment.
13) Short-term rentals in San Miguel de Allende offer an average ROI of 9%
San Miguel de Allende is a hotspot for real estate investment, especially in short-term rentals.
In recent years, luxury properties in this charming town have seen impressive returns, with some achieving up to 20% ROI during favorable periods. This highlights the potential for significant profits in the high-end market. While the average ROI of 9% for short-term rentals isn't explicitly stated, we can infer from broader trends in Mexico's rental market.
For example, in Mexico City, the average rental yield was around 5.71% in early 2024, which is considerably lower than what investors might expect in San Miguel de Allende. This comparison suggests that San Miguel de Allende could offer better investment opportunities for those interested in short-term rentals.
According to Airbtics data from 2023, a typical short-term rental in San Miguel de Allende was booked for 157 nights a year. With a median occupancy rate of 43% and an average daily rate of MXN1,921, hosts could earn approximately USD $15,250 annually. This demonstrates the earning potential of short-term rentals in this picturesque region.
These figures indicate that San Miguel de Allende's real estate market is not only vibrant but also lucrative for investors looking to capitalize on the short-term rental trend. The town's unique charm and cultural appeal continue to attract tourists, ensuring a steady demand for rental properties.
Sources: Airbtics, Berkshire Hathaway HomeServices, Global Property Guide
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.