How is the Mexico Real Estate Market? 

Are you thinking about moving to paradise? Maybe you’ve caught word of the success the Mexico real estate market has had and want to invest in a beautiful, tropical waterfront property. According to the experts, now is an incredible time to buy a home in Mexico, whether you’re a Mexican-born resident, a remote worker, or an overseas investor. 

Continue reading for a general overview of the Mexican real estate market and discover what drives this recent takeoff. 

The Mexico Real Estate Market is Thriving! 

Mexico is among many nations that have struggled with the real estate industry for many years until recently. It experienced a slight takeoff in the brief years before the pandemic, and as with other areas, the pandemic impacted the market. 

But as the pandemic has faded, the Mexico real estate market is rising again and better than ever before! After record-breaking sales in 2021 and a repeat of success in 2022, the housing market in Mexico is resilient, driven by strong demand. There are four primary drivers for the recent success of the market: 

1. Young People 
2. An Increasing Middle-Class Population 
3. Early Retirement 
4. Overseas Demand and Wise Investments 

1 | Young Families Looking for Better Lives 

Housing demand in Mexico is growing partly due to adults between 27 and 40 years old. As more people have the freedom of remote working, they are looking for ideal places to live for better financial situations and overall lifestyle. In the past, young families were limited to living where they worked. But, since the pandemic, remote jobs have increased significantly, allowing professionals to have far more options to call home. 

2 | The Rising Middle Class 

Many say the rise of the housing market in Mexico is primarily caused by the mirrored increase of the middle class. Nearly half of households in Mexico include middle-class families, which is predicted to continue increasing for the next five years or so. 

3 | Retiring in Paradise 

The recent shift in society involving people retiring earlier is prompted by an overall value in life. In other words, life is simply too short not to make the most of it! And what better place to retire than Mexico? More and more people see the value in the Mexican lifestyle. The bright open skies and tropical coasts are most desired by those looking to retire, but other areas of the country are also attractive.  

4 | Investing and Foreign Demand 

Investors are always looking for beachfront properties, and Mexico is full of them! Due to the rising real estate market, people are buying homes on the Mexican coast with confidence. Americans and Canadians make up the majority of overseas investors, and some of the most popular areas are Puerto Vallarta and San Miguel de Allende. 

Additionally, the housing demand increases because of the tourist industry. More people are interested in living in the country for longer periods than a typical vacation and buying second homes in the beautiful nation. 

Real Estate Market in Mexico FAQs  

Discover more details about the current state as we answer some of the most common inquiries about the real estate market in Mexico.  

What is the Real Estate Outlook for Mexico? 

The Mexico Real Estate Market is predicted to continue its positive growth, with residential housing at the forefront. The trends show that investors will see significant profits, and there will be golden opportunities for homeowners. 

Are Home Prices Dropping in Mexico? 

Depending on who you ask, you will get different answers. The house prices in Mexico also greatly rely on the particular area, making overall statistics slightly misleading. The best way to check on a particular area is to check with the local realtors. 

Is it a good time to buy real estate in Mexico? 

According to many real estate investors, the next five years are promising. According to the expected increase in inflation, now is an excellent time to buy properties in Mexico. However, several other factors are at play when considering an investment, so baing it off of the inflation rate alone may be unwise. 

What is the average price of a house in Mexico? 

In the first quarter of 2023, the average house price in Mexico was over $90,000. 

CITED: Mordorintelligence.com, Globalpropertyguide.com, Benoitproperties.com