Residential Real Estate Mexico Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

the Report Covers Mexico Residential Real Estate Housing Market Companies and is Segmented by Type (apartments and Condominiums and Landed Houses and Villas). the Report Offers Market Size and Forecast Values (USD) for all the Above Segments.

Mexico Residential Real Estate Market Size

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Mexico Residential Real Estate Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 14.51 Billion
Market Size (2029) USD 17.78 Billion
CAGR (2024 - 2029) 4.14 %
Market Concentration Low

Major Players

Mexico Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Mexico Residential Real Estate Market Analysis

The Residential Real Estate Market In Mexico Market size is estimated at USD 14.51 billion in 2024, and is expected to reach USD 17.78 billion by 2029, growing at a CAGR of 4.14% during the forecast period (2024-2029).

The market is driven by the demand for housing from new residents. Furthermore, the maket is driven by the huge flock of tourists residing in the country for longer vacations and second homes.

  • Mexico's destination markets are heating up, particularly as remote workers seek a year-round, resort-style living due to flexible, remote work policies. Buyers continue to snap up vacation homes that they can use more frequently and then rent out for income the rest of the year.
  • The global rental market has remained at an all-time high for the past two years as demand continues to outpace supply. Due to the constant demand and transactional complexities that may arise, high-profile real-estate firms have set up shops in Mexico's resort markets to assist buyers. One of these brokerages is The Agency, a global billion-dollar real-estate brokerage with more than 60 offices in luxury markets throughout the United States, Canada, Mexico, Europe and the Caribbean. The Agency now has seven office locations in Mexico, including Los Cabos, Todos Santos, La Paz, Puerto Vallarta, Punta de Mita, Riviera Maya and San Miguel de Allende.
  • Mexico's housing market is cooling again, with the nationwide house price index rising by a minuscule 0.41% year on year in Q1 2022, after rising by 2.5% year on year in Q1 2021. House prices remained nearly unchanged in each quarter. The housing market has gradually improved in recent years, with real house prices increasing by an annual average of 2.75% between 2016 and 2021. Before that, the Mexican housing market had been relatively stable for nearly a decade. Many Mexico City residents are selling their homes and relocating to more spacious areas or reinvesting in other countries.
  • After a brief pause during the pandemic, the housing market in Mexico City is reviving, fueled in particular by rising demand in the city's prime areas. There is no centralized database for real estate transactions in Mexico. However, according to the data platform Statista, the average home price in Mexico City in the first quarter of this year was around 2.9 million pesos (USD 148,000), making it Mexico's most expensive market. Condesa, Polanco, and Roma, a cluster of upscale districts prized for their architecture, culture, and culinary scenes, have some of the city's highest prices, ranging from USD 465 to USD 555 per square foot.

Mexico Residential Real Estate Market Trends

Increasing Residential Real Estate Demand by Young People

According to the Q4 of 2021, the generation of young adults between the ages of 27 and 40 is driving the growth in housing demand. Since they can now buy a home far from their workplaces or neighborhoods that fulfill their social and economic expectations, this sector has significantly benefited from adopting a new kind of working from home. For instance, closeness to work hubs has taken a backseat in Mexico City. Since the trend is now to have "home offices," that is, work from home on a property anywhere in the country, this change in working conditions opens up various opportunities for housing developers around the nation.

Real estate developments must respond to this new requirement by updating the complex's recreational areas and ensuring technical coverage while adjusting to recent market trends and preferences. With this innovative method of working, employees can conduct their tasks from wherever makes them feel most at ease, giving them the option of working in the heart of Mexico, the United States, Canada, or anywhere else in the world while conducting "home offices" from the Riviera Maya.

The Mexican residential real estate industry is growing due to young people demanding a place to live. The housing demand projected for the next few years will be driven by people under 30 (representing 55% of the country's population). The Bajio zone, formed by Aguascalientes, San Luis Potosí, Guanajuato, Querétaro, and the northern region of Mexico, is exciting. Cities like Monterrey are growing because of the demand for corporate and residential spaces. Tourism growth in destinations like Cancun, Los Cabos, and Puerto Vallarta also encourages real estate developments. The statistic shows Mexico's age distribution between 2011 and 2021. About 25.49% of Mexicans in 2021 were under 14, 66.68% were between 15 and 64, and 7.83% were 65 or older.

Mexico Residential Real Estate Market: Mexico Population Age Distribution, Mexico, in Percentage(%), 2014-2021

Increase in Average Housing Price in Mexico

The graph shows an increase in Mexico's average housing prices by State. Mexicans paid, on average, MXN 1.31 million (USD 6.76 million) to acquire a residential property. Compared to the same period of the previous year, the nominal price increased by more than 15%.
Mexico City registered the highest price for this type of property, with an average exceeding MXN 3 million (USD 1.54 million)per residential unit as of the first quarter of 2021. Compared to renting or borrowing, house ownership is Mexico's preferred form of housing tenure.

Mexico City was the most expensive city to buy a home in the first quarter of 2022. The average price of real estate in the nation's capital city is about MXN 3 million (USD 1.54 million), or roughly double the national average. With a contribution to the GDP of over 6%, the housing sector is one of Mexico's most essential and steady markets. With only 15% of homes being rented, the market is mainly an owner's market, with approximately 69% of properties in the nation being fully paid off by their owners. Nationally, housing costs had been rising until the start of 2021. The country saw a 15% increase in residential property prices between Q1 2020 and Q1 2021.

Mexico Residential Real Estate Market: Average housing price in Mexico, by state, In 1,000 Mexican pesos, in 1st quarter 2023

Mexico Residential Real Estate Industry Overview

The residential real estate market in Mexico is fragmented due to the presence of many players in the market. Speculators do not drive the housing market. Some of the major players are Ruba, Consorcio Ara, Sab de CV, Grupo Garza Ponce, Groupo Lar, and Grupo Jomer. There are many developers, and the market is highly competitive. Access to financing has become an indispensable component of the Mexican residential market, with public institutions and private banks having a key role.

Mexico Residential Real Estate Market Leaders

  1. Ruba

  2. Consorcio Ara, Sab de Cv

  3. Grupo Garza Ponce

  4. Group Lar

  5. Grupo Jomer

*Disclaimer: Major Players sorted in no particular order

Mexico Residential Real Estate Market Concentration
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Mexico Residential Real Estate Market News

  • June 2023: The real estate technology platform Habi will receive USD 15 million in finance from IDB Invest over four years to support its expansion in Mexico. The structured loan, which might reach USD 50 million, will pay for Habi's working capital requirements. IDB Invest hopes to increase the liquidity and agility of the secondary real estate markets with the help of technology by assisting in reducing the housing gap in Mexico with this funding. The project will also increase the market's efficiency and transparency, promote the use of local contractors for home renovations, and expand the Habi corridor network.
  • June 2023- Celaya Tequila, the premium, small-batch tequila brand founded by brothers Matt & Ryan Kalil, is proud to announce a charitable partnership with New Story. This non-profit organization aims to end global homelessness. Through this unique partnership with New Story, Celaya Tequila will donate a portion of the proceeds from each bottle sold to an affordable housing project in Jalisco, Mexico. The initiative will make home and land ownership more accessible for vulnerable families throughout Jalisco.

Residential Real Estate Market In Mexico Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study


    1. 2.1 Analysis Method

    2. 2.2 Research Phases



    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

        1. Increasing Residential Real Estate Demand by Young People

        2. Increase in Average Housing Price in Mexico

      2. 4.2.2 Restraints

        1. Lack of affordable housing inhibiting the growth of the market

        2. Economic instability affecting the growth of the market

      3. 4.2.3 Opportunities

        1. Growing middle class population acting as a catalyst

        2. Increased urbanization contributing to the growth of the market

    3. 4.3 Value Chain / Supply Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights

    6. 4.6 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector

    7. 4.7 Insights on Size of Real Estate Lending and Loan to Value Trends

    8. 4.8 Insights on Interest Rate Regime for General Economy, and Real Estate Lending

    9. 4.9 Insights on Rental Yields in the Residential Real Estate Segment

    10. 4.10 Insights on Capital Market Penetration and REIT Presence in the Residential Real Estate Market

    11. 4.11 Insights on Affordable Housing Support Provided by Government and Public-Private Partnerships

    12. 4.12 Insights on Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    13. 4.13 Impact of COVID-19 on the Market


    1. 5.1 By Type

      1. 5.1.1 Apartments and Condominiums

      2. 5.1.2 Landed Houses and Villas


    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Ruba

      2. 6.2.2 Consorcio Ara, Sab de CV

      3. 6.2.3 Grupo Garza Ponce

      4. 6.2.4 Groupo Lar

      5. 6.2.5 Grupo Jomer

      6. 6.2.6 Grupo HIR

      7. 6.2.7 Inmobilia

      8. 6.2.8 Groupo Sordo Madaleno

      9. 6.2.9 Aleatica

      10. 6.2.10 Ideal Impulsora Del Desarrollo*

    3. *List Not Exhaustive

  8. 8. APPENDIX

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Mexico Residential Real Estate Industry Segmentation

Residential real estate is an area developed for people to live in. As local zoning ordinances define, residential real estate cannot be used for commercial or industrial purposes. A complete background analysis of the Residential Real Estate Market in Mexico, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

Mexico's residential real estate market is segmented by type (apartments and condominiums, and landed Houses and villas). The report offers market size and forecast values (USD) for all the above segments.

By Type
Apartments and Condominiums
Landed Houses and Villas
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Residential Real Estate Market In Mexico Market Research Faqs

The Residential Real Estate Market In Mexico Market size is expected to reach USD 14.51 billion in 2024 and grow at a CAGR of 4.14% to reach USD 17.78 billion by 2029.

In 2024, the Residential Real Estate Market In Mexico Market size is expected to reach USD 14.51 billion.

Ruba, Consorcio Ara, Sab de Cv, Grupo Garza Ponce, Group Lar and Grupo Jomer are the major companies operating in the Residential Real Estate Market In Mexico Market.

In 2023, the Residential Real Estate Market In Mexico Market size was estimated at USD 13.93 billion. The report covers the Residential Real Estate Market In Mexico Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Residential Real Estate Market In Mexico Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Residential Real Estate Market In Mexico Industry Report

Statistics for the 2024 Residential Real Estate In Mexico market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Residential Real Estate In Mexico analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Residential Real Estate Mexico Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)