
Mexico is emerging as a top choice for property investors, retirees, and digital nomads alike. But with the property market constantly evolving, the question remains: is it still a great time to invest?
In this article, we review the Mexican property market and recent trends to help you make a balanced decision about buying property in this vibrant and beautiful part of the world.
The Mexican property market in 2024
By the end of 2024, Mexico’s residential property market is estimated to reach USD 14.51 billion showing strong continued demand. Much of this demand comes from people moving to Mexico from all over the world for a fresh start and new opportunities. The truth is that tourism is making a strong comeback, with more travellers eager to visit long-haul destinations post-pandemic, and remote working is quickly becoming the norm. This is good news for property investors considering buying second homes or primary residences in Mexico. The latest figures from January – September 2024 show a price increase in Mexican property of 9.4%. New properties represented 36.6% of sales in 2024, while second-hand properties were 63.4%.
The table below shows the evolution of real estate prices in % from one year to the next for the different regions of Mexico:
Region | Price Increase (%) |
---|---|
Baja California Sur | 13.9% |
Quintana Roo | 12.5% |
Baja California | 12.4% |
Puebla | 11.8% |
Oaxaca | 11.7% |
Sonora | 11.4% |
Nayarit | 11.4% |
Nuevo León | 11.3% |
Chiapas | 11.2% |
Guanajuato | 10.8% |
Campeche | 10.7% |
Colima | 10.7% |
San Luis Potosí | 10.5% |
Tabasco | 10.3% |
Morelos | 10.1% |
Chihuahua | 10% |
Durango | 10% |
Yucatán | 9.8% |
Querétaro | 9.6% |
The property market’s success in 2024 was supported by Mexico’s economic performance, with the Gross Domestic Product (GDP) growing by 1.5% in real terms during the third quarter of 2024.

Predictions for the 2025 Mexico property market
Residential housing is expected to see substantial growth in 2025, with investments increasing from 241 billion pesos ($14 billion) in 2024 to 364 billion pesos ($21 billion). This aligns with Mexico’s ambitious government plan, to build one million new homes.
Below is a summary of average property prices in Mexico in 2024 by type, and what you could expect to pay in 2025 with the predicted increase of 6.03% in 2025:
Type of Property | 2024 Price (MXN) | 2025 Price (predicted 6.03% increase) | 2025 Price (GBP – conversion Jan 2025) |
---|---|---|---|
Colonial Apartment (60 sqm) | 4,000,000 | 4,241,200 | £167,055 |
Modern Apartment (75 sqm) | 5,500,000 | 5,832,650 | £229,740 |
Luxury Penthouse (100 sqm) | 12,000,000 | 12,723,600 | £501,166 |
Studio (30 sqm) | 2,000,000 | 2,120,600 | £83,527 |
Loft (80 sqm) | 6,500,000 | 6,892,950 | £271,504 |
Townhouse (150 sqm) | 15,000,000 | 15,904,500 | £626,457 |
Investment Property (50 sqm) | 3,500,000 | 3,711,050 | £146,173 |
Trends in the Mexican property market
Several trends are predicted to influence Mexico’s property market in 2025, such as:
- sustainability – there is an increasing emphasis on eco-friendly developments, with a focus on sustainable building practices and energy-efficient properties,
- mixed-use developments – projects that combine residential, commercial, and recreational spaces are gaining popularity as they offer gyms, working spaces, communal pools and playgrounds,
- suburban growth – as urban areas become more congested, a noticeable shift towards the suburbs is taking place,
- luxury market expansion – there is a growing interest in high-end properties, particularly in prime locations such as Mexico City, which has attracted significant foreign direct investment in property.
Mortgage rates in Mexico can be relatively high, around 10%, which might deter some buyers but could also result in more available properties on the market. The average mortgage term is typically 15-20 years, compared to the 25 years common in other parts of the world.
Is it the right time to buy property in Mexico?
Yes! With prices expected to continue to rise, now is a good time to buy property in Mexico. The projected market growth, combined with a favorable economic outlook, creates a perfect climate for property investment.
If you don’t wish to live in the property, you could consider renting it as a seasonal rental. According to Banco de México, 17.5 million international tourists visited the country between January and October 2024 – a 2.28% increase over the previous year. This growth presents huge potential for profitable seasonal rentals.
Rental yield
Rental yields in Mexico vary by location and property type, but the average yield is around 6.13%. High-demand tourist destinations like Cancún and Mexico City can offer even higher returns.
Special regulations for foreign investors
Foreign investors should be aware of specific regulations when purchasing property in Mexico. In restricted zones—areas within 100 kilometres of international borders and 50 kilometres of coastlines—foreigners cannot directly own land.
However, they can purchase property through a bank trust, known as a fideicomiso, which grants all rights of ownership. It’s strongly recommended to consult with legal professionals who specialize in this area.
To offer seasonal rentals in Mexico, you’ll need to obtain a license. Be aware that each municipality has its own regulations, so make sure to reach out to the local authorities where your property is located for up-to-date advice.
As Mexico continues to flourish, buying a property here is a wise investment, especially if you plan to make this country your long-term home.
Want to learn more about buying property in Mexico?
Reach out to an iad Overseas property consultant today, and let us help you find your dream property in one of the most beautiful and exciting countries in the world.

3 key points to remember
- The Mexico property market is predicted to continue growing.
- Mexico attracts millions of international tourists each year, creating a high demand for seasonal rentals.
- It’s important to work with a professional property consultant when purchasing property in Mexico: The real estate advisors of iad overseas are waiting for you.
- https://www.mordorintelligence.com/industry-reports/residential-real-estate-market-in-mexico
- https://menafn.com/1108873976/Mexican-Housing-Price-Trends-In-2024-A-Closer-Look-At-State-Variations
- https://www.globalpropertyguide.com/latin-america/mexico/rental-yields
- https://www.statista.com/outlook/fmo/real-estate/residential-real-estate/mexico#value
- https://www.ceicdata.com/en/mexico/household-credit-interest-rates/interest-rates-on-household-credit-mortgage-rate-minimum