Mexico real estate market — prices, rental yield and trend

• Average price: $2,503 / m²
• Gross rental yield: 6.74%
• 12-month price change (USD): 8.2%
• Net rental yield: 5.06%
• Transaction cost: 10.3%
• Bubble-risk band: elevated
• Price basis: national average

Residential property in Mexico averages $2,503 per square metre, +8.2% in dollar terms over the last twelve months. That makes it the 199th most expensive of the 264 markets in the set.

What a buyer pays in Mexico

The $2,503 figure is a national average across all residential property types, which flattens a wide spread — the capital typically runs far above it and small towns far below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 10.3% of the price here. On a 100 m² apartment at the average price that is roughly $25,781 on top of the $250,300 purchase price. That is close to the 9.5% median across the set. Of that, the transfer tax alone is 2–7.6% depending on the buyer and the property; the rest is notary, registration and agency fees. Inside Mexico we track 5 local markets separately: Playa del Carmen at $3,882 (55.1% above the national figure) down to Mexico City at $3,004.

What it earns

A square metre lets for about $14.1 a month. Against a purchase price of $2,503 per square metre that is 6.7% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 54th of 311 markets by gross yield. Rental income is taxed at 25%, which takes the yield down to 5.1% net. The 1.7-point difference between the gross and net figure is the part most listing sites leave out. On the way out there is a third tax: a non-resident seller pays 25–35% on the gain, depending on how long the property was held and who is selling.

How the tax works. Flat 25% on the gross rent 'without any deduction' (LISR art. 158), withheld by the payer and final (art. 153), with no bracket or allowance, so the rate is independent of the rent level. The 35% net-basis option in art. 159 concerns timeshares, not ordinary letting, and the net election in the US–Mexico treaty is available only to US residents. Unfurnished residential letting is VAT-exempt (LIVA art. 20 II); furnished or short-term letting adds 16% VAT. Source: LISR.

Where the price sits against its own history

Prices are +74.7% over five years and +133.9% over ten in local terms. Glopra’s bubble-risk score for Mexico is 64 out of 100 — elevated risk. Of the 65 markets scored, 24 read higher. It combines the deviation from trend, price-to-income and the pace of recent growth — a warning light, not a forecast. This is a simplified reading: fewer than three index components are available for this market, so treat it as indicative rather than comparable with fully scored markets.

Mexico house price index, 2016–2026 (2016 = 100)

Rebased to 100 in 2016, the index stands at 219.1 in 2026.

Who can buy in Mexico

Fideicomiso trust in the coastal and border strip; freehold elsewhere. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for Mexico is built from asking prices from listings. It was last refreshed on 2026-10-29. We rate our confidence in this market’s data low — treat the figures as indicative and check them before acting. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.

Sources: mudafy.com.mx · ampilapaz.org · globalpropertyguide.com · banorte.com · diariodetabasco.mx · noti.mx. Snapshot: 2026-10-29.