Mexico real estate market — prices, rental yield and trend

• Average price: $1,908 / m²
• 12-month price change (USD): 11.2%
• Transaction cost: 10.3%
• Bubble-risk band: elevated
• Price basis: national average

Residential property in Mexico averages $1,908 per square metre, +11.2% in dollar terms over the last twelve months. That makes it the 65th most expensive of the 83 markets in the set.

What a buyer pays in Mexico

The $1,908 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 $19,652 on top of the $190,800 purchase price. That is close to the 10.2% median across the set. Inside Mexico we also track Mexico City separately, where the average is $3,004 — 57.4% above the national figure.

What it earns

We publish a price for Mexico but no rental yield. No public rent figure exists for this market at the same geographic level and from the same source as the price, and we do not estimate one: a yield built from two unrelated sources would describe no real property.

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 58 markets scored, 22 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. The series is in local currency, and the twelve-month numbers above show how much of that a dollar buyer actually keeps.

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 2026-09-28. We rate our confidence in this market’s data medium: the series is usable, but thinner or less current than our best-covered markets. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.

Sources: Mudafy CDMX · mudafy.com.mx · ampilapaz.org · globalpropertyguide.com · banorte.com · diariodetabasco.mx. Snapshot: 2026-09-28.

Latest Mexico market analysis

• Mexico Holds Its Policy Rate at 6.50% for a Fourth Meeting in September 2026 — 2026-09-26
• Mexican construction output slips 2.2% in July but holds 4.6% annual growth — 2026-09-25
• Mexican Home Prices Rose 7.3% in Q2 While Banxico Held Rates at 6.50% — 2026-08-11
• Mexico Property Taxes and Buying Costs: What a Foreign Owner Actually Pays (2026) — 2026-08-03
• Mexico Property Market 2026: Prices, Yields and the Restricted Zone — 2026-07-03
• Foreign Property Ownership in Mexico: The Restricted Zone, the Fideicomiso and the Buying Process — 2026-07-03
• Mexico's Property Market in 2026: Prices, Yields and Honest Risks — 2026-07-03

Related markets: Mexico City · Tulum

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