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Tijuana's property market has experienced explosive growth with prices surging 27% in the past year alone, making it Mexico's fastest-appreciating real estate market as of September 2025.
The cross-border city offers strong fundamentals driven by nearshoring trends, manufacturing growth, and proximity to San Diego, though buyers should carefully consider safety factors and budget for significant closing costs when investing in this dynamic but complex market.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Tijuana property prices have surged 27% in 2025, making it Mexico's hottest real estate market, with apartments averaging $300-310 USD/sq ft and houses at $165-175 USD/sq ft.
While growth is expected to moderate to 3-7% annually, strong rental demand, nearshoring investments, and infrastructure development support long-term prospects for informed buyers.
| Key Factor | Current Status (Sept 2025) | Outlook |
|---|---|---|
| Property Prices | Up 27% in 12 months | 3-7% annual growth expected |
| Mortgage Rates | 9.4% minimum | Expected to remain elevated |
| Foreign Ownership | Allowed via fideicomiso trust | Process remains stable |
| Rental Yields | High single to double digits | Strong demand continues |
| Safety Concerns | High crime in peripheral areas | Central zones remain safer |
| Economic Growth | Strong due to nearshoring | Positive fundamentals |
| Development Projects | Major infrastructure underway | 750,000 sqft industrial expansion |
What are property prices like in Tijuana right now?
Tijuana property prices have reached unprecedented levels as of September 2025, with the market experiencing the fastest appreciation in Mexico.
Apartments in Tijuana currently average MXN 5,535 per square foot, which translates to approximately $300-310 USD per square foot. Houses are more affordable at MXN 3,201 per square foot, or roughly $165-175 USD per square foot.
A typical 65-square-meter (700 square foot) two-bedroom apartment now costs around 4 million pesos ($230,000 USD), while three-bedroom homes of 100 square meters approach 6 million pesos. Premium neighborhoods like Zona Centro, Zona Urbana RĂo, Calete, and Playas de Tijuana command the highest prices, ranging from MXN 75,000 to 84,700 per square meter.
Emerging areas such as Otay and Buena Vista offer more accessible entry points for buyers, though prices in these neighborhoods are rising rapidly as well.
Despite these high prices, Tijuana remains substantially more affordable than comparable properties across the border in San Diego, where similar apartments can cost $700,000 USD or more.
How have prices been trending over the past few years?
Tijuana's property market has experienced explosive growth over the past four years, with different property types showing varying appreciation rates.
Condominiums have surged by 50% over the four-year period, while houses have appreciated by 24%. The most dramatic growth occurred in the past 12 months alone, with prices jumping 27% from September 2024 to September 2025.
Central and premium neighborhoods have led this appreciation, driven by strong demand from cross-border workers, expats, and investors seeking proximity to the US border. The strongest price increases have been concentrated in established areas with good infrastructure and security.
This rapid appreciation has been fueled by several factors including nearshoring trends bringing manufacturing jobs to the region, increased cross-border economic activity, and growing international investor interest in Mexican real estate.
However, the pace of growth is expected to moderate significantly, with forecasts suggesting annual price increases of 3-7% in late 2025 and into 2026 as higher interest rates and increased inventory help cool the market.
What are the current mortgage interest rates in Mexico?
Mortgage interest rates in Mexico remain elevated as of September 2025, presenting a significant cost factor for property buyers.
Current mortgage rates in Mexico start at approximately 9.4% minimum according to Bank of Mexico data, though some commercial banks may offer slightly lower promotional rates for qualified borrowers. The average 30-year mortgage rate was reported at about 6.85% in early June 2025, but this represented a relief from previous highs and may only be available to select buyers with excellent credit.
These rates are substantially higher than what buyers might find in the US or Canada, making cash purchases more attractive for foreign investors. Mexican mortgage rates are expected to remain elevated in the near term as the central bank continues to manage inflation concerns.
For foreign buyers, securing financing in Mexico can be more complex than for Mexican nationals, with banks typically requiring larger down payments and more extensive documentation. Many international buyers choose to finance their purchases through their home country banks or pay cash to avoid the higher Mexican mortgage rates.
It's something we develop in our Mexico property pack.
How easy is it for foreigners to buy property in Tijuana?
Foreign nationals can legally purchase property in Tijuana, but the process requires navigating Mexico's specific ownership structure for border and coastal areas.
Since Tijuana is located within 100 kilometers of the US border, foreigners must purchase property through a bank trust called a fideicomiso. Under this arrangement, a Mexican bank holds the property title in trust on behalf of the foreign buyer, who maintains all beneficial ownership rights including the ability to use, rent, sell, or transfer the property.
The fideicomiso trust is renewable every 50 years and has become a routine, well-established process for foreign property ownership. The typical purchase timeline ranges from 30 to 60 days and includes selecting a property, establishing the fideicomiso, conducting a title search, paying applicable taxes and fees, and registering the transaction with a notary public.
Foreigners enjoy the same purchase rights as Mexican nationals once the trust structure is in place. However, property ownership does not automatically grant residency, visa benefits, or citizenship rights in Mexico.
Working with experienced local real estate agents and legal professionals familiar with the fideicomiso process is essential for a smooth transaction.
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What kinds of taxes, fees, or legal costs should I expect?
Property buyers in Tijuana should budget for substantial closing costs and ongoing fees beyond the purchase price.
| Cost Type | Percentage/Amount | Description |
|---|---|---|
| Acquisition Tax | 2-5% of property price | State transfer tax on property sale |
| Notary & Registration | 1-2% of property price | Legal fees and title registration |
| Fideicomiso Setup | $500-1,500 USD annually | Bank trust administration fee |
| Property Tax (Predial) | 0.1-0.3% annually | Based on cadastral value |
| VAT (if applicable) | 16% | On new construction only |
| Capital Gains Tax | Up to 35% | On future sale profits |
| Total Closing Costs | 5-10% of purchase price | Including all taxes and fees |
How strong is the rental demand in Tijuana today?
Rental demand in Tijuana remains exceptionally strong despite some recent market adjustments, driven by the city's unique position as a cross-border economic hub.
The primary drivers of rental demand include cross-border workers who live in Tijuana but work in San Diego, a growing expat community, digital nomads attracted by lower costs and proximity to the US, and an expanding local population due to job growth in manufacturing and services.
Rental prices experienced significant increases in 2024, rising approximately 30%, but are expected to decrease around 8% in 2025 as new inventory comes to market. Despite this correction, demand remains high, particularly in central and premium neighborhoods where two-bedroom apartments typically rent for $1,000-1,300 USD per month.
The strongest rental markets are in neighborhoods with good security, proximity to the border, and amenities that appeal to international tenants. Properties in Zona Centro, Zona RĂo, and Playas de Tijuana command premium rents due to their location and infrastructure.
Long-term rental demand is supported by ongoing economic development, including new industrial parks and infrastructure projects that continue to attract workers to the region.
What are the average rental yields in different neighborhoods?
Tijuana offers attractive rental yields for property investors, particularly in well-located neighborhoods that appeal to cross-border workers and expats.
Prime central zones including Zona Centro, Zona RĂo, and Playas de Tijuana can generate monthly rents of $1,000-1,500 USD for well-appointed condominiums. When purchased below current market peaks, these properties can deliver high single-digit or even double-digit annual gross rental yields.
The best yields are typically found in neighborhoods with strong expat and digital nomad communities, good security infrastructure, and convenient access to the US border. Properties that cater to cross-border commuters often command premium rents due to their strategic location.
Emerging neighborhoods like Otay and Buena Vista may offer higher percentage yields due to lower purchase prices, though rental demand may be less consistent than in established premium areas. These areas are attracting increasing attention as central neighborhoods become more expensive.
It's something we develop in our Mexico property pack.
Is the local economy growing, stable, or slowing down?
Tijuana's economy is experiencing robust growth as part of Baja California's emergence as a major cross-border manufacturing and logistics hub.
The region is benefiting significantly from nearshoring trends, as companies move manufacturing operations closer to the US market. This has resulted in heavy investment in industrial facilities, with new projects including up to 750,000 square feet of Class A industrial space currently under development.
Baja California continues to outpace national GDP growth, driven by its strategic location and manufacturing capabilities. The state leads Mexico in private investment attraction for 2025, reflecting strong business confidence in the region's economic prospects.
While Mexico's national economy is showing positive growth, the pace is decelerating with some risks on the horizon. However, Tijuana's cross-border position and industrial base provide additional economic resilience compared to other Mexican markets.
Major infrastructure investments are supporting continued economic expansion, including transportation system improvements, new industrial parks, and municipal infrastructure upgrades that enhance the city's competitiveness as a business destination.
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.
What safety or security factors should I consider when buying there?
Safety considerations are a critical factor when investing in Tijuana real estate, as crime rates vary dramatically between different neighborhoods and areas of the city.
Tijuana has one of the highest crime and homicide rates in Mexico, with violent crime concentrated primarily in peripheral and low-income neighborhoods. However, central and upscale areas such as Zona RĂo and Playas de Tijuana are typically considered much safer, especially for foreign property owners.
Gated communities with private security are strongly preferred by expat and investor communities, offering significantly better security than standalone properties. These developments often include 24-hour security, controlled access, and surveillance systems that provide peace of mind for residents and rental tenants.
Insurance costs are notably higher in areas with elevated security risks, which should be factored into the total cost of ownership. Properties in safer neighborhoods command premium prices and rents, but also offer better long-term value retention and lower security-related expenses.
International investor interest is increasingly concentrated in neighborhoods with established reputations for safety and security infrastructure, making location selection crucial for both investment returns and personal safety.
Are there any major development projects planned in Tijuana?
Tijuana is experiencing a significant infrastructure and development boom with multiple major projects currently underway or planned for completion in the coming years.
- Industrial Expansion: New industrial parks totaling up to 750,000 square feet of Class A space are under development to meet growing nearshoring demand.
- Transportation Infrastructure: An expanded Bus Rapid Transit (BRT) system is being implemented to improve mobility across the metropolitan area.
- Road Infrastructure: Major roadworks and highway improvements are underway to handle increased cross-border traffic and economic activity.
- Municipal Infrastructure: Comprehensive upgrades to water, sewage, and utility systems are being implemented citywide.
- High-Rise Development: New luxury residential and mixed-use projects are being constructed in central zones, particularly in Zona RĂo and downtown areas.
How does buying property in Tijuana compare to other nearby markets like San Diego or Rosarito?
Tijuana offers a compelling value proposition compared to nearby markets, though each location serves different investor profiles and objectives.
Compared to San Diego, Tijuana properties cost approximately 60-70% less for similar-sized units, making it attractive for investors seeking lower entry costs and higher rental yields. While San Diego offers greater stability and appreciation potential, Tijuana provides access to a dynamic, rapidly growing market with strong rental demand from cross-border workers.
Rosarito presents a more affordable alternative to Tijuana, with a vacation-oriented market that has less economic development but growing international investor interest, particularly following the Tianguis TurĂstico expo in 2025. However, Rosarito lacks Tijuana's economic dynamism and rental demand strength.
Tijuana ranks as Mexico's fifth most expensive real estate market but remains substantially more affordable than comparable US properties. The city offers a cosmopolitan lifestyle, lower cost of living, and stronger rental demand than vacation-focused markets like Rosarito.
For investors prioritizing rental income and economic growth, Tijuana offers superior fundamentals compared to leisure-oriented markets, while still providing significant cost savings compared to US alternatives.
What do local experts or real estate agents say about the outlook for the next 2–3 years?
Local real estate experts maintain a cautiously optimistic outlook for Tijuana's property market over the next 2-3 years, expecting continued growth at a more sustainable pace.
Price appreciation is expected to moderate significantly from the recent 27% annual surge to a more sustainable 3-7% annually through 2026-2027. This cooling is attributed to higher interest rates, increased inventory, and the natural moderation that follows rapid appreciation cycles.
No serious risk of broad price correction is predicted unless the US or Mexican economies fall into recession. The strong fundamentals supporting the market—including ongoing infrastructure development, nearshoring trends, cross-border migration, and persistent foreign demand—are expected to sustain property values long-term.
Experts particularly favor premium neighborhoods and emerging areas near infrastructure improvements, which offer the best combination of value and future upside potential. Central zones with established security and amenities are expected to outperform peripheral areas.
It's something we develop in our Mexico property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Tijuana represents one of Mexico's most dynamic real estate markets, offering strong fundamentals driven by cross-border economic activity and nearshoring trends.
While recent price appreciation has been dramatic, the long-term outlook remains positive for investors who carefully select neighborhoods and work with experienced local professionals to navigate the unique challenges of this border market.
Sources
- The LatinVestor - Tijuana Price Forecasts
- The LatinVestor - Tijuana Property
- CEIC Data - Mexico Mortgage Rates
- Riviera Maya Cozy - Property Purchase Guide
- Veles Club - Mexico Property Guide
- The LatinVestor - Mexico Property Taxes
- AOL - Tijuana Rent Trends 2025
- Mexico News Daily - Economic Growth
- Dallas Fed - Mexico Economic Update
- Business Wire - Tijuana Development Projects