Mexico City real estate market — prices, rental yield and trend

• Average price: $3,004 / m²
• Gross rental yield: 7.86%
• 12-month price change (USD): 5.9%
• Net rental yield: 5.9%
• Transaction cost: 10.3%
• Bubble-risk band: elevated
• Price basis: local-market average

Residential property in Mexico City averages $3,004 per square metre, +5.9% in dollar terms over the last twelve months. That makes it the 161st most expensive of the 264 markets in the set.

What a buyer pays in Mexico City

The $3,004 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well 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 $30,937 on top of the $300,360 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. Against the Mexico national average of $2,503, Mexico City carries a 20% premium — the gap between this market and the country as a whole. Among the other Mexico markets we track, Guadalajara at $3,173 is 5.3% dearer, and Los Cabos at $3,829 is 21.6% dearer.

What it earns

A square metre lets for about $19.7 a month. Against a purchase price of $3,004 per square metre that is 7.9% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 29th of 311 markets by gross yield. Rental income is taxed at 25%, which takes the yield down to 5.9% net. The 2-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 +57.8% over five years and +109.3% over ten in local terms. Glopra’s bubble-risk score for Mexico City is 69 out of 100 — elevated risk. Of the 65 markets scored, 17 read higher. It combines the deviation from trend, price-to-income and the pace of recent growth — a warning light, not a forecast.

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

Rebased to 100 in 2016, the index stands at 196 in 2026.

Who can buy in Mexico City

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 City is built from asking prices from listings. It was last refreshed on 2026-10-11. 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, which is what lets Mexico City be compared with a country average or another city.

Sources: tudepa.com · airbtics.com · ampilapaz.org. Snapshot: 2026-10-11.