Mexico's housing market demonstrates significant regional price variations, with Mexico City emerging as the most expensive area for residential property in the third quarter of 2025. The capital city's average house price of 3.93 million Mexican pesos far exceeds the national average of 1.86 million pesos, highlighting the stark contrast in property values across the country. This disparity reflects broader economic and demographic trends shaping Mexico's real estate landscape. Sustained growth in housing prices The Mexican housing market has experienced substantial growth over the past decade, with home prices more than doubling since 2010. By the second quarter of 2025, the nominal house price index reached 287 points, representing a 187 percent increase from the baseline year. Even when adjusted for inflation, the real house price index showed a notable 50 percent growth, underscoring the market's resilience and attractiveness to investors. The mortgage market is dominated by three main player types: Infonavit, Fovissste, and commercial banks including Sofomes. In 2023, Infonavit, a scheme by Mexico's National Housing Fund Institute which provides lending to workers in the formal sector, was responsible for the majority of mortgages granted to individuals. Challenges in mortgage lending Despite the overall growth in housing prices, Mexico's mortgage market has faced challenges in recent years. The number of new mortgage loans granted has declined over the past decade, falling by approximately 200,000 loans between 2008 and 2023. This decrease in lending activity may be attributed to various factors, including economic uncertainties and changing consumer preferences. The state of Mexico, which is home to 13 percent of the country's population, likely plays a significant role in shaping these trends given its large demographic influence on the national housing market.

The Mexico Residential Real Estate Market Report is Segmented by Business Model (Sales, Rental), by Property Type (Apartments & Condominiums, Villas & Landed Houses), by Price Band (Affordable, Mid-Market, Luxury), by Mode of Sale (Primary New-Build, Secondary Existing-Home Resale), and by States (Mexico City CDMX, Nuevo León, Jalisco, Querétaro, Rest of Mexico). The Market Forecasts are Provided in Terms of Value USD.

Key information about House Prices Growth

• Mexico house prices grew 8.9% YoY in Sep 2025, following an increase of 8.7% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2006 to Sep 2025, with an average growth rate of 10.2%.
• House price data reached an all-time high of 11.7% in Mar 2023 and a record low of 2.2% in Jun 2010.

Graph and download economic data for Real Residential Property Prices for Mexico (QMXR628BIS) from Q1 2005 to Q2 2025 about Mexico, residential, HPI, housing, real, price index, indexes, and price.

In the third quarter of 2025, Mexicans paid on average **** million Mexican pesos to acquire a residential property. Compared to the same period of the previous year, the nominal price increased by nearly ******* pesos. Mexico City registered the highest price for this type of property, with an average exceeding ***** million pesos per residential unit. Housing tenureCompared to renting or borrowing, house ownership is the favored form of housing tenure in Mexico. In 2022, nearly ** percent of all Mexican households owned their homes, while only ** percent rented them. Moreover, roughly ** percent of the owned households in the country were completely paid off, while the remaining households were still in the payment process. Mortgages in MexicoMortgages, or homeownership loans, are debt instruments used by individuals to acquire real estate property, without needing to pay the total cost upfront. Mortgages are universally common and important for Mexico’s residential real estate industry. In 2024, almost ********mortgage loans were granted in Mexico, increasing from the lowest amount the country had seen in the past decade a year earlier. From the mortgage value granted in 2022, approximately ** percent came from private banks.

The Mexican residential real estate market, valued at $14.51 billion in 2025, exhibits a promising growth trajectory with a Compound Annual Growth Rate (CAGR) of 4.14% projected from 2025 to 2033. This robust expansion is fueled by several key drivers. A growing middle class with increasing disposable income is a significant factor, alongside government initiatives promoting affordable housing and infrastructure development. Urbanization continues to drive demand, particularly in major metropolitan areas like Mexico City, Guadalajara, and Monterrey. Furthermore, the tourism sector's influence on secondary housing markets in coastal and resort regions contributes significantly to the overall market dynamism. However, challenges exist; fluctuations in the Mexican Peso against the US dollar can affect investment sentiment, and interest rate changes impact mortgage accessibility. Regulatory hurdles and bureaucratic processes related to land ownership and construction permits sometimes impede development. The market is segmented by property type, with apartments and condominiums likely holding the largest share, followed by landed houses and villas, reflecting diverse consumer preferences and housing needs. Competition is intense, with a mix of both large national developers like Grupo Lar and Grupo Sordo Madaleno, alongside smaller regional players vying for market share. The market's future success depends on navigating these challenges effectively while capitalizing on the underlying growth opportunities. The projected market expansion will likely see a more pronounced increase in higher-value segments (landed houses and villas) as rising incomes fuel demand for luxury properties. Geographical variations are expected; while urban centers will experience sustained growth, resort areas might see more volatile fluctuations influenced by tourism trends. The market's resilience will be tested by its ability to adapt to potential economic shifts and effectively address regulatory constraints. Continuous investment in infrastructure and supportive government policies will be pivotal in fostering sustainable and inclusive growth across all market segments within the forecast period. The presence of both large and small players ensures a competitive landscape, promoting innovation and diversification within the industry. Recent developments include: June 2023: Habi, a prominent real estate technology platform, is set to receive a substantial financial boost of USD 15 million from IDB Invest. This funding, spread over four years, aims to fuel Habi's expansion plans in Mexico. While the structured loan has the potential to reach USD 50 million, its primary focus is to cater to Habi's working capital needs. IDB Invest's strategic move is not just about bolstering Habi's growth; it also aims to leverage technology to enhance liquidity and agility in Mexico's secondary real estate markets. By addressing the housing gap in Mexico, this funding initiative is poised to elevate market efficiency, bolster transparency, encourage local contractors for home renovations, and expand Habi's corridor network., June 2023: Celaya Tequila, a premium tequila brand crafted in small batches and co-founded by brothers Matt & Ryan Kalil, is forging a philanthropic alliance with New Story, a non-profit dedicated to eradicating global homelessness. In a groundbreaking move, Celaya Tequila pledges to contribute a percentage of sales from every bottle towards an affordable housing endeavor in Jalisco, Mexico. This endeavor aims to empower underprivileged families in Jalisco by enhancing their access to homes and land ownership.. Key drivers for this market are: 4., Increasing Residential Real Estate Demand by Young People4.; Increase in Average Housing Price in Mexico. Potential restraints include: 4., Increasing Residential Real Estate Demand by Young People4.; Increase in Average Housing Price in Mexico. Notable trends are: Demand for Residential Real Estate Witnessing Notable Surge, Primarily Driven by Young Homebuyers.

Residential Property Prices in Mexico increased 8.71 percent in June of 2025 over the same month in the previous year. This dataset includes a chart with historical data for Mexico Residential Property Prices.

In 2023, the Mexico Real Estate Market reached a value of USD 116.8 million, and it is projected to surge to USD 152.7 million by 2030.

The Mexico Commercial Real Estate Market is Segmented by Property Type (Office, Retail, Logistics, and More), by Business Model (Sales and Rental), by End User (Individuals / Households, Corporates and SMEs and More), and by States (Mexico City (CDMX), Nuevo León, Jalisco, Querétaro, México State (Edomex) and Rest of Mexico). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

The real estate transaction value in the 'Residential Real Estate Transactions' segment of the real estate market in Mexico was modeled to stand at ************* U.S. dollars in 2024. Following a continuous upward trend, the real estate transaction value has risen by ************* U.S. dollars since 2017. Between 2024 and 2029, the real estate transaction value will rise by ************ U.S. dollars, continuing its consistent upward trajectory.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Residential Real Estate Transactions.

Discover the booming Mexican residential real estate market! This in-depth analysis reveals a $14.51B market with a 4.14% CAGR, driven by urbanization & foreign investment. Learn about key players, market trends, and future projections for Mexico's housing sector. Explore market segmentation, regional breakdowns, and key growth drivers. Recent developments include: June 2023: Habi, a prominent real estate technology platform, is set to receive a substantial financial boost of USD 15 million from IDB Invest. This funding, spread over four years, aims to fuel Habi's expansion plans in Mexico. While the structured loan has the potential to reach USD 50 million, its primary focus is to cater to Habi's working capital needs. IDB Invest's strategic move is not just about bolstering Habi's growth; it also aims to leverage technology to enhance liquidity and agility in Mexico's secondary real estate markets. By addressing the housing gap in Mexico, this funding initiative is poised to elevate market efficiency, bolster transparency, encourage local contractors for home renovations, and expand Habi's corridor network., June 2023: Celaya Tequila, a premium tequila brand crafted in small batches and co-founded by brothers Matt & Ryan Kalil, is forging a philanthropic alliance with New Story, a non-profit dedicated to eradicating global homelessness. In a groundbreaking move, Celaya Tequila pledges to contribute a percentage of sales from every bottle towards an affordable housing endeavor in Jalisco, Mexico. This endeavor aims to empower underprivileged families in Jalisco by enhancing their access to homes and land ownership.. Key drivers for this market are: 4., Increasing Residential Real Estate Demand by Young People4.; Increase in Average Housing Price in Mexico. Potential restraints include: 4., Lack of Affordable Housing Inhibiting the Growth of the Market4.; Economic Instability Affecting the Growth of the Market. Notable trends are: Demand for Residential Real Estate Witnessing Notable Surge, Primarily Driven by Young Homebuyers.

In Mexico Prefabricated Housing Market is projected to grow from USD 21.5 billion in 2025 to USD 38.6 billion by 2031, at a CAGR of 10.1%

The Mexican housing market has grown notably since 2010, with home prices more than doubling by 2023. The third quarter of 2023 saw the nominal house price index reach 255.54 index points, implying a growth rate of 146 percent since 2010, the baseline year for the index. Adjusted for inflation, the increase was more modest, with the real house price index amounting to 139.75 index points in 2023, or a growth rate of approximately 40 percent.

The Mexico Residential Real Estate Market size is USD 14.6 billion in 2023, driven by market analysis, future outlook, and growth opportunities. Explore top players and industry insights.

The Mexican housing market has grown notably since 2010, with home prices almost tripling by 2025. The second quarter of 2025 saw the nominal house price index reach ****** index points, implying a growth rate of *** percent since 2010, the baseline year for the index. Adjusted for inflation, the increase was more modest, with the real house price index amounting to ****** index points in 2024, or a growth rate of approximately ** percent.

The Mexico Commercial Real Estate market, valued at $53.60 billion in 2025, exhibits robust growth potential, projected to expand at a Compound Annual Growth Rate (CAGR) of 7.23% from 2025 to 2033. This expansion is fueled by several key drivers. Mexico's burgeoning economy, particularly in sectors like manufacturing and tourism, is creating significant demand for office, retail, and logistics spaces. Furthermore, increasing urbanization and a growing middle class are driving demand for multi-family residential and hospitality properties. Infrastructure development initiatives by the Mexican government are further bolstering the sector. However, challenges remain, including potential economic volatility and regulatory hurdles that could impact investment decisions. Competition within the sector is intense, with both established international players like Hines and Savills Mexico, and dynamic domestic companies such as Grupo Sordo Madaleno and Grupo Posadas, vying for market share. The market is segmented across various property types: offices, retail, industrial, logistics, multi-family residential, and hospitality, each with its unique growth trajectory and influencing factors. Emerging technology, such as PropTech platforms like Flat and Reonomy, are also transforming the sector, improving efficiency and transparency in transactions. The forecast period of 2025-2033 promises continued growth, driven by ongoing economic development and targeted infrastructure improvements. However, prudent risk management and adaptation to evolving market conditions are crucial for companies operating within the Mexican commercial real estate landscape. The diverse range of companies involved, from large international developers to innovative startups, indicates a dynamic and competitive environment with ample opportunity for strategic players. Sustained growth hinges on managing factors like inflation, interest rates, and ensuring alignment with government policies to navigate challenges and capitalize on the expansive opportunities presented by Mexico's evolving economic landscape. Recent developments include: • June 2023: Prologis, Inc. and Blackstone announced a definitive agreement for Prologis to acquire nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for USD 3.1 billion, funded by cash., • April 2023: Colliers announced it has acquired a controlling interest in Greenstone Group Ltd (“Greenstone”), a leading New Zealand project management and property advisory firm. The Greenstone senior leadership team will remain significant shareholders of the business under Colliers’ unique partnership model. Greenstone offers project management and property advisory services to a diverse range of end markets, including commercial and residential developers and the government, education, and infrastructure sectors. Greenstone’s professional services are delivered by more than 55 professionals across four offices in New Zealand., . Key drivers for this market are: 4., Increasing foreign investments driving the market4.; Increasing urbanization driving the market. Potential restraints include: 4., Increasing foreign investments driving the market4.; Increasing urbanization driving the market. Notable trends are: The Offices Segment is Occupying the Significant Market Share in the Market.

Residential real estate prices in Mexico have been on an upward trend for more than a decade. In the fourth quarter of 2024, the average house price decreased by **** percent annually. Accounting for inflation, the increase was slightly lower, at **** percent. Across the different states, Mexico City was the most expensive location to buy a home.

Discover the booming Latin American residential real estate market! This in-depth analysis reveals a $477.77M (2025) market with an 8.32% CAGR, driven by urbanization and economic growth. Explore key trends, challenges, and top players in Mexico, Brazil, Colombia, and beyond. Invest wisely with our comprehensive market insights. Recent developments include: November 2023: CBRE, a prominent global consultancy and real estate services firm, unveiled its latest initiative, the Latam-Iberia platform. The platform's primary goal is to reinvigorate the real estate markets in Europe and Latin America while fostering investment ties between the two regions. By enhancing business collaborations and amplifying the visibility of real estate solutions, CBRE aims to catalyze growth in the sector., May 2023: CJ do Brasil, a subsidiary of multinational firm CJ Bio, completed its USD 57 million plant expansion in Piracicaba, 160 km from Brazil's capital. CJ Bio is renowned for its expertise in amino acid production. The expansion is projected to create 650 new job opportunities, and the investment also encompasses the establishment of residential, research, and development centers.. Key drivers for this market are: Increase in Population is Boosting the Residential Real Estate Market, Rapid Growth in Urbanization. Potential restraints include: Accelerated Increase in Construction Costs. Notable trends are: Increase in Urbanization Boosting Demand for Residential Real Estate.

Mexico Average House Price: Puebla data was reported at 1,155,664.000 MXN in Mar 2019. This records an increase from the previous number of 940,177.000 MXN for Dec 2018. Mexico Average House Price: Puebla data is updated quarterly, averaging 844,101.000 MXN from Dec 2014 (Median) to Mar 2019, with 18 observations. The data reached an all-time high of 1,155,664.000 MXN in Mar 2019 and a record low of 665,014.000 MXN in Dec 2014. Mexico Average House Price: Puebla data remains active status in CEIC and is reported by Federal Mortgage Society. The data is categorized under Global Database’s Mexico – Table MX.EB005: Average House Price.

USD 22.31 Billion in 2024; projected USD 39.16 Billion by 2033; CAGR 6.47%.