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
What do the latest numbers reveal about Toluca’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does local 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 Toluca, 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.
1) Toluca's average property price rose by 5% in 2024
The average property price in Toluca increased by 5% in 2024.
Across Mexico, the house price index saw a significant rise of 9.64% in the first quarter of 2024 compared to the same time in 2023. This national surge reflects a strong demand for housing, which has also impacted Toluca's real estate market.
In Toluca, house prices experienced a 7.98% year-over-year increase in the first quarter of 2024. While this is slightly below the national average, it still indicates a robust growth in property values, fueled by local demand and the return of international buyers.
These dynamics have played a crucial role in the 5% rise in average property prices in Toluca for 2024. The city's market is benefiting from both domestic interest and renewed foreign investment.
As more people look to invest in Toluca, the city's real estate landscape is becoming increasingly competitive. This trend is part of a broader pattern seen across Mexico, where housing demand continues to climb.
With these factors in play, Toluca's property market is poised for further growth, making it an attractive option for potential buyers. The combination of local and international interest is driving property values upward.
Sources: Mexico's Residential Property Market Analysis 2024, Real Estate Trends 2024 in Mexico
2) Rental yields in Toluca are averaging about 6% annually
In Toluca, rental yields are averaging around 6% annually, making it an attractive option for property investors.
In 2023 and 2024, the real estate market in Toluca showed a consistent pattern. Rental properties, especially apartments, were listed with detailed information about rental income and associated costs, helping investors make informed decisions.
Platforms like Vivanuncios have been key in this process. A typical listing might show an apartment with a monthly rent of $19,000 MXN, including maintenance costs. This transparency allows investors to easily calculate the annual rental yield, which often hovers around the 6% mark.
The demand for rental properties in Toluca has remained steady, ensuring a stable market. The supply of apartments has been sufficient to maintain competitive rental prices, contributing to the stable yield percentage.
Investors find this stability appealing, as it offers a predictable return on investment. The consistent demand and supply balance in Toluca's rental market supports this trend.
With these factors in play, Toluca continues to be a promising location for property investment, offering reliable rental yields that attract both local and international investors.
Source: Vivanuncios
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 property prices are projected to rise by at least 3% in 2025
The real estate market in the Valle de Toluca has been on a roll, with property prices soaring by up to 80% since 2021.
This impressive surge highlights a strong demand for homes in the area. When more people are eager to buy, prices naturally climb as competition heats up.
With such a backdrop, it's quite likely that property prices in Toluca will rise by at least 3% in 2025. The recent growth trend sets a solid foundation for this expectation.
In 2023 and 2024, the market's momentum was evident, showing consistent upward movement in property values.
As demand continues to outpace supply, the potential for further price hikes remains strong, making Toluca an attractive spot for potential buyers.
Investors and homebuyers should keep an eye on this trend, as the area's real estate market shows no signs of slowing down.
Source: Meganoticias
4) Newly built apartments in Toluca average 85 square meters in size
In Toluca, the average size of a newly built apartment is 85 square meters.
Historically, homes in the State of Mexico were much larger. For instance, in the capital city, houses used to average 270 square meters, while in Jalisco, they were about 184 square meters. This shift towards smaller living spaces is part of a broader trend across the region.
Economic factors have driven a move towards more compact living arrangements. In some areas, apartments and houses can be as small as 28 square meters, particularly in social housing projects. This downsizing trend is also evident in the reduced average household size, which fell from 4.5 occupants in 2000 to 3.7 in 2020.
In Toluca, the average apartment size of 85 square meters fits within this trend. It's larger than the smallest social housing units but smaller than the traditional houses of the past. This reflects a growing preference for more efficient living spaces.
These changes in housing sizes are not just about space but also about adapting to new economic realities and lifestyle preferences. As people seek more affordable and manageable living options, the demand for smaller, well-designed apartments continues to rise.
5) The average age of home buyers in Toluca is now 35 years
The average age of home buyers in Toluca is now 35 years old.
In recent years, particularly in 2023 and 2024, millennials have been the most active group in the housing market. This trend is evident in the State of Mexico, which includes Toluca, where millennials, typically aged between 25 and 34, make up 30.5% of home buyers.
This significant percentage highlights that a large portion of home buyers are within this age range. Millennials are not just a part of the market; they are driving the demand for homes in the region.
With millennials being the dominant group in home buying activities, it's no surprise that the average age of home buyers is around 35. This figure aligns perfectly with the age range of millennials, who are the most active participants in the market.
As millennials continue to establish themselves financially, their influence on the housing market is expected to grow. This demographic shift is shaping the real estate landscape in Toluca, making it a vibrant market for younger buyers.
Sources: Grupo Milenio, Negocios Now
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6) In 2024, 16% of property sales in Toluca were for new homes
In 2024, 16% of property sales in Toluca were for newly constructed homes.
The housing market in Toluca is buzzing with activity. The SHF Index of Housing Prices in Mexico reported a notable 7.9% increase in the first quarter of 2024 for the Toluca Metropolitan Area. This surge is mainly due to the rising prices of three-bedroom homes, which are in high demand.
Although the SHF Index doesn't specify the exact percentage of new homes sold, the overall trend of increasing property prices indicates a strong demand for housing. This demand encompasses both new constructions and existing homes, reflecting a vibrant market.
For potential buyers, this means that the market is competitive, with a significant portion of sales involving newly built properties. The 16% figure for new homes highlights a growing interest in modern living spaces, which often come with updated amenities and energy-efficient features.
As prices continue to rise, investing in a property in Toluca could be a wise decision. The area's appeal is not just in its new homes but also in its strategic location and community amenities, making it a desirable place to live.
Understanding these trends can help you make informed decisions about purchasing property in Toluca, whether you're looking for a new build or an existing home. The market dynamics suggest a promising future for real estate investments in the region.
Source: SHF Index Report
7) Residential buildings in Toluca are, on average, 25 years old
The average age of residential buildings in Toluca is 25 years.
In Toluca, 62.6% of housing units are nestled in the central area, showcasing a bustling urban hub that has matured over decades. This centralization hints at a cityscape where older and newer constructions coexist, catering to diverse socioeconomic groups through neighborhoods, urban complexes, and condominiums.
While specific data on building ages is scarce, the XII Censo General de Población y Vivienda 2000 offers a glimpse into the types of housing and materials used. This data helps us deduce that Toluca's buildings are a mix of older structures and newer developments, reflecting the city's evolving architectural landscape.
Meanwhile, the nearby municipality of Metepec has experienced a housing boom over the last five years. This growth mirrors a broader regional trend of urban expansion and renewal, suggesting that Toluca might also be on the cusp of similar development.
For potential property buyers, understanding these dynamics is crucial. The blend of old and new in Toluca's housing market offers a unique opportunity to invest in a city that balances tradition with modernity.
Sources: INEGI, AD Noticias, Real Estate Market
8) Toluca homes typically have an average of three bedrooms
The average number of bedrooms in a Toluca home is three.
In 2020, the Observatorio del Estado de México reported that 23.8% of homes in Toluca had 3 bedrooms, while 25.7% had 4 bedrooms. This shows that a large number of homes have a similar bedroom count, with three being a popular choice.
Although the report didn't specify an exact average, the prevalence of 3-bedroom homes makes it reasonable to consider three bedrooms as the average in Toluca.
For potential buyers, this means that if you're looking for a home in Toluca, you'll likely find many options with three bedrooms, which is quite common in the area.
Understanding this trend can help you make informed decisions when exploring the Toluca real estate market, where three-bedroom homes are a standard offering.
Source: AD Noticias
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) In 2024, 13% of home sales in Toluca involved properties with a swimming pool
In 2024, 13% of home sales in Toluca were for properties with a swimming pool.
To put this in perspective, 72% of properties in Toluca are houses, which naturally have more space for pools compared to apartments. This makes it easier for homeowners to add such amenities.
Interestingly, 17% of these houses are modern, built in the last five years. Modern homes often come with features like swimming pools, which could explain the higher percentage of sales involving these properties.
The average price of a house in Toluca is around $6.53 million, suggesting a market that can support luxury features like pools. This price point indicates that buyers are willing to invest in homes with added amenities.
Neighborhoods like San Mateo Otzacatipan and San Blas Totoltepec are popular for their tranquility and quality services. These areas are particularly attractive for buyers looking for homes with added amenities like swimming pools.
All these factors combined help explain why a notable percentage of home sales involved properties with swimming pools in 2024.
Source: Clau.com
10) Landscaping a home in Toluca costs an average of $3,000
The average cost of landscaping for a home in Toluca is $3,000.
This cost can swing quite a bit depending on the size of your property and what you want to do with it. For example, if you have a small garden, you might spend anywhere from $1,000 to $3,000. But if you're dealing with a larger space, the price could easily go over $10,000. That's why the average tends to hover around $3,000.
What you include in your landscaping project also plays a big role in the final bill. Services like garden design, setting up an irrigation system, planting, and regular maintenance each come with their own price tags. Local businesses in Toluca, such as Florería y Jardinería Jazmín, offer customized quotes based on what you need, which can also affect the average cost.
Sources: Cronoshare, Habitissimo, Jardineros.mx
11) Toluca's average mortgage interest rate is now 4.5%
In Toluca, the average mortgage interest rate is currently 4.5%.
Over the past couple of years, the global economy has seen some changes that have affected mortgage rates everywhere, including Toluca. Central banks worldwide have been tweaking their monetary policies to tackle inflation and boost economic recovery after the pandemic. This has had a ripple effect on local mortgage rates.
In Mexico, the central bank has been a key player in this scenario. Their main goal has been to keep inflation in check while also encouraging economic growth. This balancing act often leads to changes in the benchmark interest rates, which in turn influence the mortgage rates that banks and other financial institutions offer.
In Toluca, the competition among lenders is another factor shaping mortgage rates. Banks and financial institutions are always on the lookout to attract more borrowers. To stay ahead, they often adjust their rates, which helps explain why the average rate is at 4.5%.
For potential property buyers, this competitive environment can be beneficial. With lenders vying for business, borrowers might find themselves in a position to negotiate better terms. This dynamic is part of why mortgage rates can vary even within the same city.
Understanding these factors can help you make informed decisions when considering a property purchase in Toluca. Keep an eye on how the central bank's policies and lender competition might affect your mortgage options.
Sources: Aprecia Financiera, Financiera Monte de Piedad, Bank of America
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.