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.

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.

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.

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 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.

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.

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.

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.

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 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.

The real estate transaction value in the real estate market in Mexico was modeled to be ************* 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 Real Estate.

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

Discover the booming Latin American residential real estate market! This comprehensive analysis reveals a CAGR of 8.32%, driven by urbanization and economic growth. Explore market size, key players (JLL, CBRE, MRV Engenharia), and regional trends in Mexico, Brazil, Colombia, and beyond. Invest wisely with our insightful forecast to 2033. 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: Increase in Population is Boosting the Residential Real Estate Market, Rapid Growth in Urbanization. Notable trends are: Increase in Urbanization Boosting Demand for Residential Real Estate.

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.

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.

Mexico Commercial Real Estate Market size was valued at USD 269.62 Billion in 2023 and is projected to reach USD 355.03 Billion by 2031, growing at a CAGR of 3.5% from 2024 to 2031.

Mexico Commercial Real Estate Market Dynamics

The key market dynamics that are shaping the Mexico Commercial Real Estate Market include:

Key Market Drivers

Economic Growth: Mexico's GDP increased by 5% in 2022, indicating a solid economy that is driving up demand for commercial real estate. The services sector, which includes real estate, grew by 4.9% during the same period, according to Mexico's National Institute of Statistics and Geography (INEGI). This expansion is mostly driven by increased foreign investment, urbanization, and the growing demand for commercial space as businesses expand and adapt to changing customer demands. Population Increase: Mexico's population increased by 1.1% in 2022, leading to 126 million people, and forecasts show that it will reach 138 million by 2030.

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Residential Real Estate Market Size 2025-2029

The residential real estate market size is valued to increase USD 485.2 billion, at a CAGR of 4.5% from 2024 to 2029. Growing residential sector globally will drive the residential real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 55% growth during the forecast period.
By Mode Of Booking - Sales segment was valued at USD 926.50 billion in 2023
By Type - Apartments and condominiums segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 41.01 billion
Market Future Opportunities: USD 485.20 billion
CAGR : 4.5%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and ever-evolving sector that continues to shape the global economy. With increasing marketing initiatives and the growing residential sector globally, the market presents significant opportunities for growth. However, regulatory uncertainty looms large, posing challenges for stakeholders. According to recent reports, technology adoption in residential real estate has surged, with virtual tours and digital listings becoming increasingly popular. In fact, over 40% of homebuyers in the US prefer virtual property viewings. Core technologies such as artificial intelligence and blockchain are revolutionizing the industry, offering enhanced customer experiences and streamlined processes.
Despite these advancements, regulatory compliance remains a major concern, with varying regulations across regions adding complexity to market operations. The market is a complex and intriguing space, with ongoing activities and evolving patterns shaping its future trajectory.

What will be the Size of the Residential Real Estate Market during the forecast period?

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How is the Residential Real Estate Market Segmented and what are the key trends of market segmentation?

The residential real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Sales
  Rental or lease


Type

  Apartments and condominiums
  Landed houses and villas


Location

  Urban
  Suburban
  Rural


End-user

  Mid-range housing
  Affordable housing
  Luxury housing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    Australia
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Mode Of Booking Insights

The sales segment is estimated to witness significant growth during the forecast period.

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The Sales segment was valued at USD 926.50 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 55% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region holds a significant share and is projected to lead the global market growth. Factors fueling this expansion include the region's rapid urbanization and increasing consumer spending power. Notably, residential and commercial projects in countries like India and China are experiencing robust development. The residential real estate sector in China plays a pivotal role in the economy and serves as a major growth driver for the market.

With these trends continuing, the APAC the market is poised for continued expansion during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

In the Residential Real Estate Market, understanding the impact property tax rates home values and effect interest rates mortgage affordability is essential for buyers and investors. Key factors affecting home price appreciation and factors influencing housing affordability shape market trends, while the importance property due diligence process and requirements environmental site assessment ensure informed decisions. Investors benefit from methods calculating rental property roi, process home equity loan application, and benefits real estate portfolio diversification. Tools like property management software efficiency and techniques effective property marketing help tackle challenges managing rental properties. Additionally, strategies successf

North America Luxury Residential Real Estate Market Report is Segmented by Property Type (Apartments & Condominiums, Villas & Landed Houses), by Business Model (Sales and Rental), by Mode of Sale (Primary (New-Build) and Secondary (Existing-Home Resale)), and by Geography (United States, Canada, Mexico). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

Technological advancements in the Mexico Residential Real Estate industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.