Best cities in Mexico to buy a house

Buying property on the other side of the world is, understandably, a daunting task. Yet, it could also mark the start of a new and exciting chapter.

You could be looking for an exotic holiday home, building an international portfolio or even planning to make a permanent move – whatever the reason, here’s why we recommend Mexico.

1. Just a stone’s throw away from the United States, many of Mexico’s larger cities offer a unique taste of Latin life combined with American convenience. So, you don’t have to worry about feeling completely out of your depth.
2. English is widely spoken in urban areas which will make your stay (or move) easier whilst you get on with learning Spanish.
3. The cost of living in Mexico is 35.8% less than living in the UK and 70% less than living in the USA. So, you’ll be saving lots of money whether you’re going on holiday or planning a long-term move.
4. Mexico offers hot weather, sunshine-filled days and lots of beaches to explore and chill out on. On average, the country enjoys 300 days of sunshine per year. Some areas are more tropical in climate, so whilst the temperatures are high, there will be distinct rainy seasons.
5. As a popular tourist destination with a strong rental market, Mexico is a good place to invest if you’re hoping to supplement your income by renting out your property. The average rental yield in Mexico is 5.71%.
6. If you’re looking for a country with a rich history, cultural diversity and delicious food, then Mexico should be at the top of your list.

Before buying property anywhere in the world, it’s good to understand the general economic climate. This gives you an idea of whether your investment will hold its value or not. So, is it the right time to buy in Mexico?

1. Currently the economy is considered stable. Although growth is slow, the country has recovered steadily since the global pandemic. This is a good sign if you’re thinking about investing in property here.
2. There are generous tax benefits for foreigners buying property in Mexico. These include reduced property taxes and exemption from capital gains tax on profits made from selling a property.
3. Property prices in Mexico are lower than the USA, Canada and Europe, which is great news if you want to invest.

Foreigners are allowed to buy property in Mexico but there are some restrictions if you’re buying within 100km of the international border or within 50km of the coast. You are still able to buy in these areas, however the land will need to be held by a trust (or bank) known as a fideicomiso and any decisions relating to that purchase would need to be made through the trust.

Most foreign investors choose to purchase by the sea, so setting up these trusts is a common activity which you will easily be able to do with the right professionals guiding your purchase.

Property prices have been increasing in Mexico for the last ten years but are still cheap in comparison to other global property markets. As with all real estate purchases, you will need to factor in other costs such as valuation, taxes, setting up a fideicomiso and so on.

If your heart is set on buying in Mexico, then it’s a good idea to get to know the country’s main cities. Never far from a beach, and all attractive holiday destinations, this section will explore the best cities to buy a house or apartment in.

Located in the heart of Riviera Maya, and just an hour’s drive from Cancun International Airport, Playa Del Carmen is a colourful and vibrant city bursting with culture, tourism and plenty to do.

With 75 miles of white sandy beaches, turquoise water and plush rainforest surroundings, it’s easy to see the attraction of this stunning Mexican city. With most of the nightlife and shopping areas running parallel along the main strip – this city is easy to navigate on foot.

This popular holiday destination has plenty of resorts dotted along the coast and has attracted plenty of foreign investment. As a result, there are lots of new developments that have recently been built or are currently under construction in Playa Del Carmen.

The average house price in Playa Del Carmen is MXN 33,326/m2 or £1,442/m2. Apartments are priced at an average of MXN 66,326/m2 or £2,870/m2.

More of a town than a city, Tulum is considered one of the most expensive regions in Mexico and has become a favourite spot for all types of travellers and foreign investors. Located on the southeastern tip of Mexico, this tropical region has dry and rainy seasons but is still visited all-year round.

It is the promise of a tropical paradise that attracts holidaymakers searching for white sandy beaches, clear seas and a closeness to nature. Tulum boasts an air of exclusivity, with many luxury resorts springing up around the coastline over the last few years.

There is also a lot of property development in the region, with projects taking advantage of the natural scenery and wildlife to attract investors keen to profit from the high levels of tourism in the area.

The average house price in Tulum is MXN 37,464/m2 or £1,621/m2. Apartments are priced at an average of MXN 54,264/m2 or £2,348/m2.

Arguably the most famous city in Mexico when it comes to tourism, Cancun is an ideal location for investment if you want to rent out your property and earn a year-round income.

Extremely popular with American investors, this tourist-city is probably the easiest to live in as a foreigner. Mexican culture has been blended with American convenience in the form of shopping malls, restaurants, supermarkets and so on.

With a large expat community, Cancun is one of the fastest growing cities in Mexico, so demand for property is high. There are plenty of neighbourhoods to choose from to suit your needs such as golfing communities, family-friendly areas or more busy downtown spots.

From condos to luxury villas, there is something for everyone here.

The average house price in Cancun is MXN 23,525/m2 or £1,018/m2. Apartments are more in demand and priced at an average of MXN 61,774/m2 or £2,673/m2.

Set on the Pacific Coast, Puerto Vallarta is a busy city with lots to offer foreign investors. There are a range of property types from luxury beachfront villas and condos to more affordable apartments and houses.

With plenty of stunning beaches, it is also framed by the Sierra Madre mountains and lush green forests. The Bay of Banderas is a great location for whale watching so you can expect a high demand from tourists if you’re looking to rent out your real estate investment.

Served by the international airport Licenciado Gustavo Diaz Ordaz, the city is well connected and is home to a growing expat community of Americans and Canadians.

The average house price in Puerto Vallarta is MXN 41,210/m2 or £1,783/m2. Apartments are more in demand and priced at an average of MXN 71,722/m2 or £3,104/m2.

If you’re looking to invest in the real Mexico, away from the crowds and beach life, then San Miguel de Allende is a great alternative. Located in central Mexico highlands, it is a UNESCO World Heritage City where the buildings and cobbled streets will make you think you’re in Europe rather than Mexico.

Spanish colonial architecture, romantic street scenes and beautifully preserved squares give this small city a completely unique feel. It’s perfect for a second home where you can enjoy Mexico’s warm weather and delightful culture.

Property here is cheaper than other regions, but don’t expect a lot of new developments. Investing here is more suited to people seeking traditional properties which may require more love and attention than the new builds of other Mexican cities.

The average house price in San Miguel is MXN 34,779/m2 or £1,505/m2. Apartments are priced at an average of MXN 36,358/m2 or £1,573/m2.

Our iad Overseas property consultants in Mexico can help you finding your dream property. They have an in-depth knowledge of the local market and can make the process of buying and finding your property a lot easier.

When you work with iad Overseas property consultants, you’re guaranteed a friendly and efficient service by people who live and breathe property. Get in touch with our team today.