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
Why is Toluca emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the city's growing economic landscape, or the competitive pricing compared to other Mexican markets? What makes Toluca a compelling choice for investors?
We often encounter these questions because we're actively engaged with local developers, real estate professionals, and investors like you. Given the rising interest in this market, we've decided to compile our insights into a detailed article for everyone's benefit.
Our aim is to present a clear argument for investing in Toluca's real estate market, supported by our firsthand experience and in-depth market understanding.
If you feel we've overlooked an important aspect or wish to learn more, please reach out (we respond very quickly). Your feedback enhances the quality of our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
1) In Toluca, you can find affordable properties with potential for appreciation compared to other major Mexican cities
Toluca's property prices are significantly lower than those in Mexico City and Guadalajara.
In 2023, buying an apartment in Toluca cost around MXN 16,890 per square meter, which is about USD 830. Compare that to Mexico City and Guadalajara, where prices soar to MXN 48,700 per square meter, or roughly USD 2,430. This makes Toluca a hotspot for those seeking affordable real estate.
What's more, Toluca is on the rise with steady economic growth and new infrastructure. A new 58-kilometer railway line is in the works, linking Toluca to Mexico City. This project is expected to give the local economy a boost and drive up real estate demand.
For investors, Toluca offers higher rental yields than other big cities. Renting an apartment in Toluca's city center costs about MXN 10,500 (USD 520) monthly, while in Guadalajara, it's around MXN 12,631 (USD 620). This means a strong rental market and promising returns.
With these factors in play, Toluca's real estate market is poised for growth, making it an attractive option for property buyers looking for value and potential appreciation.
Sources: Properstar Report on Toluca Housing Prices, Mexico Investing in Infrastructure to Boost Economy, Cost of Living Comparison Between Toluca and Guadalajara
2) Toluca offers affordable housing near Mexico City, making it a great choice for those wanting to stay close to the capital
Toluca is a great choice for affordable living near Mexico City.
Living in Toluca is much cheaper than in the capital, with the average cost, including rent and utilities, at just $844. This makes it a budget-friendly option for many who want to stay close to the hustle and bustle of Mexico City without breaking the bank.
Getting to Mexico City from Toluca is pretty straightforward. You can take a taxi, which takes about 45 minutes and costs between $50-$65. If you're looking for a cheaper option, direct buses are available, taking around 1 hour and 15 minutes, with prices ranging from $3 to $28. This makes commuting a viable option for those who work in the city but prefer to live in Toluca.
There's been a boom in affordable housing in Toluca, with 8,000 social interest homes sold in the State of Mexico in 2023. In contrast, Mexico City is facing a shortage, with only 2% of property sales in 2024 falling into the economic segment. This scarcity in the capital makes Toluca even more appealing for those seeking affordable housing.
For those who want to enjoy the benefits of living near Mexico City without the high costs, Toluca offers a compelling alternative. The city provides a balance of affordability and accessibility, making it an attractive option for many.
With its lower cost of living and convenient commuting options, Toluca stands out as a practical choice for those who want to be near the capital without the hefty price tag.
Sources: Rome2Rio, Livingcost.org, The Rio Times
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) Toluca’s diverse economy in manufacturing, services, and agriculture offers stability and growth potential
Toluca's economy is a powerhouse thanks to its diverse sectors like manufacturing, services, and agriculture.
In 2023, the manufacturing sector in Toluca saw a boom, with international sales hitting $4.35 billion, a 5.02% jump from the previous year. This surge is largely due to the high demand for motor vehicle parts and motors, which are attracting a lot of foreign investment. The State of Mexico, where Toluca is located, ranked second in the country for foreign investment announcements in early 2024, showing that investors are really confident in the area.
The services industry in Toluca is also thriving, supporting fields like technology, healthcare, and tourism. This variety helps create jobs and keeps unemployment low, acting as a safety net during tough economic times. While specific details about Toluca's agriculture aren't highlighted, the sector benefits from global trends in productivity growth, ensuring sustainable food production and boosting the local economy.
Another factor driving Toluca's economic strength is its growing population. Since 2010, the city has seen a 16.9% increase in population, which means there's a steady supply of workers for these booming sectors. This demographic growth is a key element in maintaining the city's economic stability and potential for growth.
Sources: Phys.org, ProMexico Industry, Economia.gob.mx
4) Toluca’s expanding industrial sector means more workers and professionals need housing
The city's booming industrial sector is fueling a surge in housing demand among workers and professionals.
In Toluca, international sales hit $4.35 billion in 2023, and this upward trend is set to continue. As industries like motor vehicle parts and plastics grow, they create more jobs, drawing workers to the area. This influx of workers is a key driver of the housing market.
The city is seeing a rise in new factories and industrial parks, making it a hot spot for commercial and industrial real estate. Developments like Nissan’s supplier park are part of this expansion, which naturally leads to a greater need for housing to accommodate the growing workforce.
Real estate in Toluca is on the upswing, with more buyers interested in neighborhoods near industrial zones. This trend shows that workers and professionals are looking for convenient living options close to their jobs, further boosting housing demand.
For those considering buying property, Toluca offers a unique opportunity. The city's industrial growth is not just creating jobs but also transforming the real estate landscape. Neighborhoods near these industrial hubs are becoming increasingly desirable, offering potential for both living and investment.
As Toluca continues to grow, the demand for housing is expected to rise, making it an attractive option for property buyers. The city's strategic location and industrial expansion are key factors driving this trend, offering a promising outlook for the real estate market.
Sources: Economia.gob.mx, Geo-Mexico
5) Toluca’s focus on sustainability and green spaces improves residents’ quality of life
Toluca is a city that truly values sustainability and green spaces, enhancing the quality of life for its residents.
Imagine living in a place where 25% of the land is dedicated to natural reserves and green areas. In Toluca, this means each person enjoys about 6.9 square meters of lush, green space. These areas aren't just for picnics or strolls; they play a crucial role in conserving habitats for a diverse range of species, from birds and butterflies to reptiles and mammals.
Breathing easy is becoming a reality here, thanks to the city's efforts to improve air quality. Not long ago, air quality was a concern, but now the Air Quality Index (AQI) is at a moderate level of 58. This positive change is largely due to initiatives like green corridors, which not only cut down on air pollution but also help cool the city, making it a healthier place to live.
Toluca's government is serious about sustainable urban development. They use the City Biodiversity Index to keep track of their conservation efforts and have set aside funds specifically for biodiversity protection. With 18 integrated local projects under the Municipal Climate Action Plan and the 2030 Environmental Development Program, the city is clearly focused on sustainability.
These projects are more than just plans on paper; they are active steps towards creating a city that is both sustainable and livable. The commitment to these initiatives shows a dedication to not just maintaining, but enhancing the quality of life for everyone who calls Toluca home.
Living in Toluca means being part of a community that values green living and is actively working to ensure a better environment for future generations. The city's approach to urban planning is a model for how to integrate nature into everyday life, making it a place where residents can thrive.
Sources: ICLEI, AQI, Earth.org
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6) You’ll find unique investment opportunities in Toluca’s less crowded real estate market compared to other major cities
Toluca's real estate market offers unique investment opportunities due to its lower saturation compared to other major cities.
One standout feature is the significantly lower property prices. In Toluca, the price per square meter for apartments is about MXN 25,447 (around USD 1,200). In contrast, Mexico City sees prices ranging from MXN 50,830 to MXN 73,597 per square meter. This makes Toluca a more affordable option for investors.
There's also a lot of undeveloped land available in Toluca, which is a goldmine for developers. This means plenty of room to build new projects, catering to the growing demand for housing and commercial spaces. Plus, the Mexican government is investing in infrastructure projects to improve connectivity, like better roads and public transport, making the city even more appealing.
Investors in Toluca face less competition compared to those in bustling cities like Mexico City. This reduced competition can lead to better investment opportunities and potentially higher returns. Being close to Mexico City, a major economic hub, also gives Toluca a strategic edge, attracting businesses and investors.
For those looking to invest, Toluca's proximity to Mexico City is a big plus. It offers the benefits of being near a major economic center without the high costs and saturation. This makes it a smart choice for businesses and investors seeking opportunities in the region.
Sources: Properstar, Living Cost
7) Toluca’s urban development projects boost property values, thanks to local government investment
Toluca's property values are on the rise thanks to the local government's active investment in urban development.
One major push comes from the state government's "100 commitments for sustainable transport" under the Plan ColibrĂ, which is all about boosting the city's infrastructure and connectivity. This plan is not just about roads and bridges; it's about creating a more livable city with better public spaces and transport options.
Exciting new projects are on the horizon, like the construction of eight new bus corridors and metropolitan corridors that will link up existing transport lines. These developments are set to make getting around Toluca a breeze, which is a big win for residents and a boost for property values.
Urban renewal is also a big focus, with initiatives aimed at creating inclusive and sustainable urban spaces. The goal is to improve housing quality and make financing more accessible, which means better living conditions and, naturally, higher property values.
These efforts are part of a broader strategy to make Toluca a more connected and compact city, which is great news for anyone looking to invest in property here. The local government is clearly committed to making the city a better place to live, and that's reflected in the rising property values.
With all these developments, Toluca is becoming a more attractive place for potential homeowners and investors alike. The city's focus on sustainable and connected urban growth is a key driver behind the increasing property values.
Sources: Mexico News Daily, OECD Report
8) Toluca’s excellent transport links, like highways and an international airport, make it highly accessible
Toluca's transportation network is top-notch, making it easy to get around.
In 2023, Toluca International Airport welcomed over 1.5 million passengers, a clear sign of its growing importance. This airport is a key player, connecting travelers to popular spots like CancĂşn, Guadalajara, and Tijuana. It's not just about passenger flights; the airport is a bustling hub for cargo too, with airlines like FedEx Express running regular flights.
Major highways link Toluca to Mexico City and other big cities, making travel a breeze. While we don't have exact commute times, the short distance to Mexico City means quick trips are the norm. This highway system is a lifeline for both personal travel and business logistics, ensuring smooth movement of people and goods.
The airport's cargo operations are a big deal, especially for local businesses. With efficient transport options, businesses can thrive and new ones are drawn to the area, boosting the local economy. This setup is a magnet for trade and commerce, making Toluca a strategic location for business growth.
For anyone considering buying property here, the ease of access to major cities and trade routes is a huge plus. Whether you're commuting for work or planning a weekend getaway, the infrastructure supports a convenient lifestyle.
With all these transport perks, Toluca is not just a place to live, but a gateway to opportunities. The city's connectivity is a major selling point, offering both comfort and economic potential.
Sources: Toluca International Airport Statistics, Cargo Volume Statistics
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) Toluca’s location in the State of Mexico makes it a key center for commerce and trade
Toluca's prime location near Mexico City makes it a hotspot for business activities.
Being so close to the capital, Toluca is perfect for business meetings and conferences, drawing in numerous business aviation missions over the years. The city's strategic position within the State of Mexico turns it into a bustling hub for commerce and trade.
With major highways and solid transportation infrastructure, moving goods and people around Toluca is a breeze. This ease of movement boosts business efficiency, paving the way for the growth of industrial parks and logistics centers, which are vital for trade.
Industrial parks in Toluca are booming, offering vast spaces for warehouses and manufacturing. Businesses eager to expand find these parks ideal, with projects like Lema Park and Toluca Park II adding even more industrial space.
These developments are not just about space; they are about opportunity. Companies are drawn to Toluca because of its infrastructure and strategic location, making it a key player in the region's economic landscape.
As these industrial parks grow, they continue to attract businesses looking for a strategic advantage, further cementing Toluca's role as a commercial powerhouse.
Sources: Universal Weather, Mexico Business News
10) With more jobs in Toluca’s growing retail and commercial sectors, the population is increasing
Toluca's retail and commercial sectors are booming, attracting attention from potential property buyers.
New shopping malls and retail spaces are popping up everywhere, with more expected by the end of 2025. This surge is not just about buildings; it's about the buzz of consumer activity, especially noticeable in March and June 2024, when foot traffic soared.
With new players entering the market, the demand for retail space is skyrocketing, pushing rental prices higher. This isn't just about numbers; it's about the jobs these businesses bring, needing more hands to keep things running smoothly. Vacancy rates in shopping centers are dropping, a clear sign that businesses are eager to establish themselves in Toluca.
All this activity is drawing people in. The metro area has seen a 1.72% population increase from 2024 to 2025, a testament to the job opportunities sprouting from this retail and commercial growth.
For those considering a move, Toluca offers more than just a place to live; it's a city on the rise, with opportunities around every corner. The expanding sectors are not just reshaping the skyline but also the community, making it a vibrant place to call home.
Sources: Mexico Business News, Macrotrends
11) With Toluca’s cultural heritage and historical sites, you can easily rent out your property short-term to tourists
Toluca is becoming a hot spot for tourists, thanks to its rich cultural heritage and historical sites.
While we don't have the exact numbers for 2023 and beyond, the buzz around Mexico's tourism scene is undeniable. The Mexican Ministry of Tourism predicted a US$46.4 billion boost from tourists in the summer of 2023. This shows a growing love for cultural and historical gems, which likely benefits Toluca.
Short-term rentals in Mexico are on the rise, with listings jumping from 191,213 in January 2021 to 295,339 by September 2023. Although this isn't specific to Toluca, it hints at a trend that could easily apply to the city. Occupancy rates have also been climbing, hitting 40% during peak months like December and February, suggesting more people are choosing short-term stays in culturally rich places like Toluca.
Rental prices in Mexico range from $113 to $152 USD per day, with the highest rates seen in December. While we don't have exact figures for Toluca, this gives a ballpark idea of what property owners might earn. The Mexican Ministry of Tourism highlights the pull of cultural heritage, which indirectly supports the idea that Toluca's historical sites are a big attraction.
For those considering buying property in Toluca, the city's cultural allure could mean a steady stream of tourists looking for short-term rentals. This trend is not just a fluke; it's part of a larger movement where travelers are seeking authentic experiences in places rich with history and culture.
Investing in Toluca could be a smart move, especially if you're looking to tap into the growing market of tourists eager to explore Mexico's cultural landscapes. With the right property, you could benefit from the increasing demand for unique, culturally immersive stays.
Sources: PriceLabs, Mexico Business News
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.