Depending on the location, the average price for a two-bedroom apartment in Mexico City could exceed ******* U.S. dollars in 2024. In Miguel Hidalgo, the most expensive borough to buy an apartment in Mexico City, the average apartment price was nearly ******* U.S. dollars for a two-bedroom apartment, while a three-bedroom apartment cost over ******* U.S. dollars. Among the boroughs ranked in the statistic, Coyoacán had the most affordable prices for a one-bedroom apartment, averaging ******* U.S. dollars. Overall, Mexico City has the highest average house price per square meter in Mexico.

In December 2023, the monthly rent for a one-bedroom apartment in the city center of Mexico City amounted to ****** U.S. dollars, whereas a three-bedroom apartment averaged ******* U.S. dollars. Meanwhile, Mexico City is the most expensive place to buy residential property in Mexico.

After Mexico City, Guadalajara was the most expensive city in Mexico to rent an apartment in 2024. As of the first quarter of the year, the average monthly rent for a two-bedroom apartment in Guadalajara amounted to ***** U.S. dollars. Rents in the different boroughs in Mexico ranged widely. Miguel Hidalgo, the most expensive borough, had an average monthly rent of almost ***** U.S. dollars.

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.

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.

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.

The rental cost for office real estate in Mexico City has decreased in recent years and in 2022 stood at less than ** U.S. dollars per square meter per month. The highest rents were achieved in 2015 at ** U.S. dollars per square meter.

The Latin American residential construction market, currently valued at approximately $XX million (estimated based on available data and market trends), is projected to experience steady growth with a Compound Annual Growth Rate (CAGR) of 4.50% from 2025 to 2033. This expansion is driven by several key factors. Firstly, increasing urbanization across the region is fueling demand for new housing, particularly in major metropolitan areas like Sao Paulo, Mexico City, and Buenos Aires. Secondly, a growing middle class with increased disposable income is creating a larger pool of potential homebuyers. Furthermore, government initiatives promoting affordable housing and infrastructure development in several Latin American countries are contributing positively to market growth. The market is segmented by housing type, including villas/landed houses, condominiums/apartments, and prefabricated homes, each catering to different consumer preferences and income levels. While prefabricated homes are gaining traction due to cost-effectiveness and faster construction times, the traditional villa and apartment segments continue to dominate the market. Growth, however, faces challenges like economic instability in certain regions, fluctuating material costs, and regulatory hurdles in obtaining construction permits. Competition amongst major players such as Hogares Eden S A de C V, Constructora VDZ SpA, and others, drives innovation and efficiency within the sector. The forecast period from 2025 to 2033 anticipates continued market expansion, despite potential headwinds. The consistent CAGR of 4.50% suggests a significant increase in market value by 2033. However, the market’s trajectory will depend significantly on macroeconomic stability, consistent government support, and the successful mitigation of construction challenges. Further segmentation analysis considering factors like building material type and technological advancements in construction methods will provide a more granular understanding of this dynamic market. Specific regional variations are expected, with countries experiencing robust economic growth exhibiting faster market expansion compared to those facing economic challenges. Continuous monitoring of these factors will be critical for accurately projecting future market performance. Recent developments include: January 2023: Modularis is set to break ground in May of 2023 for new residential development in Sao Paulo, Brazil, made possible by modular construction and will be comprised of two concrete floors with commercial spaces and 11 floors of modular apartments and is set to be complete by the end of the 2023., September 2022: A new Las Colinas housing community planned to bring about six dozen high-end homes next to the headquarters building for Fluor Corp. The more than 22-acre single-family home neighborhood is estimated to have a value of USD 140 million and will be constructed at Las Colinas and La Villita boulevards in Irving.. Notable trends are: Social Rental Drive.

The average monthly rent for a square meter of office real estate was highest in Lomas Palmas among other submarkets in Mexico City in the first quarter of 2023. The asking rent was ** U.S. dollars per square meter per month for real estate in Lomas Palmas compared to ***** U.S. dollars in Norte which had the highest net absorption, but also the highest vacancy rate in Mexico City.

Super regional malls in Mexico City had the highest rental rate in Mexico in the fourth quarter of 2022. A square meter in a super regional mall cost on average *** Mexican pesos in that quarter, *** Mexican pesos higher than the average for the area. In Monterrey, regional malls were the retail real estate type where renting retail space was most expensive.

Montevideo, Uruguay's capital, leads Latin American cities with the highest apartment sale prices in 2025, averaging ***** U.S. dollars per square meter. This figure surpasses other major metropolitan areas like Mexico City and Buenos Aires, highlighting significant disparities in real estate markets across the region. The data underscores the varying economic conditions and housing demand in different Latin American urban centers. Regional housing market trends While Montevideo tops the list for apartment prices, other countries in Latin America have experienced notable changes in their housing markets. Chile, for instance, saw the most substantial increase in house prices since 2010, with its nominal house price index surpassing *** points in early 2025. However, when adjusted for inflation, Mexico showed the highest inflation-adjusted percentage increase in house prices, growing by nearly *** percent in the first quarter of 2025, contrasting with a global decline of one percent. Home financing in Mexico The methods of home financing vary across Latin America. A breakdown of homeownership by financing method in Mexico reveals that about two-thirds of owner-occupied housing units were financed through personal resources in 2022. Nevertheless, government-backed loans such as Infonavit (Mexico’s National Housing Fund Institute), Fovissste (Housing Fund of the Institute for Social Security and Services for State Workers), and Fonhapo (National Fund for Popular Housing), play an important role for homebuyers, with just over ** percent of home purchases relying on such finance. Bank credit, which offers mortgage loans with interest rates ranging between **** and ** percent, appeared as a less popular option.

Panama City, Mexico City, and Guadalajara had the highest average apartment rents in 2022 among the selected Latin American cities. To calculate the average rent, the source only considered mid-income areas. To rent an apartment in Panama City, renters would have to pay on average *** U.S. dollars.

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 average housing price per square meter in Mexico City's metropolitan area increased by over **** percent between 2013 and 2018, reaching over ****** Mexican pesos in the latter year. In comparison to 2017, housing prices in the Mexican region decreased by one percent. Greater Mexico City reported the highest average housing prices amongst the country's largest metropolitan areas.

Greater Mexico City, Tijuana, and Guadalajara had the highest annual rent per square foot of industrial real estate among select cities in Mexico in 2024. In the second half of the year, the annual rent for a square foot of industrial space in Monterrey, the second-largest market in the country, stood at **** U.S. dollars per square foot.

Montevideo, Uruguay's capital, leads Latin American cities with the highest apartment sale prices in 2024, averaging 3,454 U.S. dollars per square meter. This figure surpasses other major metropolitan areas like Mexico City and Buenos Aires, highlighting significant disparities in real estate markets across the region. The data underscores the varying economic conditions and housing demand in different Latin American urban centers. Regional housing market trends While Montevideo tops the list for apartment prices, other countries in Latin America have experienced notable changes in their housing markets. Chile, for instance, saw the most substantial increase in house prices since 2010, with its nominal house price index surpassing 342 points in early 2024. However, when adjusted for inflation, Mexico showed the highest inflation-adjusted percentage increase in house prices, growing by nearly five percent in the first quarter of 2024, contrasting with a global decline of one percent. Home financing in Mexico The methods of home financing vary across Latin America. A breakdown of homeownership by financing method in Mexico reveals that about two-thirds of owner-occupied housing units were financed through personal resources in 2022. Nevertheless, government-backed loans such as Infonavit (Mexico’s National Housing Fund Institute), Fovissste (Housing Fund of the Institute for Social Security and Services for State Workers), and Fonhapo (National Fund for Popular Housing), play an important role for homebuyers, with just over 20 percent of home purchases relying on such finance. Bank credit, which offers mortgage loans with interest rates ranging between nine and 12 percent, appeared as a less popular option.

In 2018, more than ************ households in Mexico were living in a rented property, up from **** rental households reported in 2016. In Mexico city, the monthly rent for a one-bedroom apartment ranged from ****** U.S. dollars in downtown to ****** U.S. dollars in the suburbs.

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.