Residential Real Estate Market In Mexico Market Size

Residential Real Estate Mexico 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 market is driven by the huge flock of tourists residing in the country for longer vacations and second homes.

• The Mexican 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 in 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.
• The Mexican housing market continues to be resilient, supported by strong demand. In 2022, after a Y-o-Y increase of 8.56% in 2021, 5.38% in 2020, 7.66% in 2019, and 9.35% in 2018, the national house price index shot up by 10.41%. Before that, the Mexican housing market had been relatively stable for nearly a decade. Many residents of Mexico City are selling their homes and relocating to more spacious areas or reinvesting in other countries. Home prices in Mexico fell by 57.8% over the previous year, with a median price of USD 128,000 in December 2023. House prices rose by 10.4% Y-o-Y to September 2023, after an increase of 11.5% during the preceding quarter. However, the price of real estate is generally rising, although this trend varies from one region to another.
• After a brief pause during the COVID-19 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 MXN 2.9 million (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 sq. ft.