Are real estate prices dropping in Mexico?
Matthew Wilson
Updated on February 25, 2026
Mexico’s housing market remains healthy, amidst improving economic conditions. The nationwide house price index rose by 7.72% during the year to Q2 2021, following y-o-y increases of 6.59% in Q1 2021, 5.38% in Q4 2020, 5.02% in Q3, and 4.78% in Q2, according to the Sociedad Hipotecaria Federal (SHF).
Is now a good time to buy real estate in Mexico?
“It’s a good time to buy there and a cheaper place to live.” With changes in the constitution over the years, the Mexican government has made it easier for foreigners to buy land. Foreigners can buy property within 60 miles of the border and 30 miles of the coast but must do so through what’s called a “fideicomiso.”
How much does the average house cost in Mexico?
On average, a property in the country’s capital city would cost more than three million Mexican pesos, approximately 1.7 million pesos above the national average….Average housing price in Mexico in 1st quarter 2021, by state (in 1,000 Mexican pesos)
| Characteristic | Price in thousand Mexican pesos |
|---|---|
| Mexico City | 3,038.39 |
Why is real estate in Mexico so expensive?
Property prices have been rising steadily in Mexico over the last decade—driven by a range of forces including the country’s stable macro-economics, foreign residents moving here and buying property for retirement, and the emergence of residential mortgages offered by Mexican banks making home ownership a possibility …
Is there a housing crisis in Mexico?
Inequalities, lack of homes and slums. More than 59.8 million Mexicans do not have the economic means to buy or build adequate housing. Through 2015, the demand for housing will be 3.2 million homes. The total housing backlog is 9 million households, representing 31.1% of occupied private dwellings in the country.
Is it worth buying a house in Mexico?
If you’ve ever wondered, “Is buying property in Mexico a good investment”, the short answer is a resounding “Yes!” In fact, owning a vacation home in a popular destination can provide incredible ROI and portfolio diversification, but first you have to know where to look!
What is the real estate market in Mexico like?
The Mexican residential real estate market was valued at USD 30.98 Billion in 2018, and it is projected to value USD 60.0 billion by 2025, With a CAGR of more than 9.91% from 2019 to 2025.
How much does it cost to buy a house in Mexico?
Mexico City registered the highest price for this type of property, with an average exceeding three million pesos per residential unit as of the second quarter of 2019. The Mexican residential real estate market is fragmented due to the presence of many players in the market.
What is happening to Mexico’s housing market?
In Valle de México, house prices increased modestly by 2.9% (0.14% inflation-adjusted). What’s even stranger is that this sudden takeoff of the housing market comes after Mexico’s housing market has suffered prosaic growth for a decade, in real (inflation-adjusted) terms, despite strong nominal growth:
Where can foreigners buy real estate in Mexico?
The Foreign Investment Law of 1973 allowed foreigners to purchase real estate anywhere in Mexico except the restricted zone that consists of areas within 100 km (64 miles) of international borders or within 50 km (32 miles) from the coastline at high tide.
