Move to Mexico 2025: Is It A Good Time To Buy in Mexico?

2025-01-17 by My Casa

Main post image

2025 Market Insights & Forecast


Is it a good time to buy property in Mexico? As of 2025, the market conditions suggest that now's a great time. The Mexican real estate market is flourishing, with rising property values and growing demand from both locals and foreigners. Whether you’re looking for an affordable investment, a rental property, or a vacation home, this article will guide you through the current trends, benefits, and legal considerations of buying property in Mexico.


Utilize one of Mycasa's expert buyer's reps to ensure a smooth process from start to finish. We have teams in place for everything from legal advice and due diligence down to interior design, furniture shopping and landscaping. Need a nanny? We've got a referral network there too. Need residency advice, our legal teams are top notch and have helped many clients navigate that process successfully.
Be Fearful When Others Are Greedy and Be Greedy Only When Others Are Fearful
- Warren Buffett

Table of Contents


Key Takeaways

  • Rising Property Values: Mexico’s real estate market is seeing steady growth, with increased property prices and growing demand from both domestic and foreign buyers.
  • Foreign Buyer Appeal: 2025 offers favorable conditions for foreign investors, with affordable prices, high rental income potential, and beneficial exchange rates.
  • Legal and Financial Navigation: Foreign buyers must navigate specific legal frameworks and financing options, including mortgages, while considering currency exchange risks.


Overview of the current property market in Mexico, highlighting key trends and opportunities.


Current Property Market Overview in Mexico

As of 2025, the Mexican real estate market is thriving, with significant growth in property values. Nationwide, the average home price has increased to approximately 1,734,535 pesos. This trend signals a competitive housing market, especially in areas like Tijuana, where home prices have surged by 12.8% annually due to strong demand from both domestic and foreign buyers.


Benefits of Buying Property in Mexico Now

Investing in real estate in Mexico offers compelling advantages. Whether you’re seeking a vacation home, rental property, or long-term investment, here are key benefits:

Affordable Prices Compared to Other Markets

Property prices in Mexico remain significantly lower than in many Western countries, providing an excellent investment opportunity. From urban apartments to beachfront homes, there is a range of affordable property types to suit various buyer needs.

High Rental Income Potential

Tourist hotspots like Puerto Vallarta and Tulum offer high rental demand, especially in areas like the Romantic Zone. Urban apartments can command long-term rental rates of approximately $2,500 a month, attracting digital nomads and expatriates.

Favorable Exchange Rates for Foreign Buyers

The USD to MXN exchange rate currently favors U.S. investors, allowing them to stretch their dollar further. This dynamic makes Mexico an even more attractive market for foreigners looking to capitalize on the exchange rate.


Benefits of buying property in Mexico now, including favorable conditions for foreign buyers.


Foreigners can legally purchase property in Mexico, but they must understand the required legal framework, especially in restricted zones such as beachfront and border areas.

Property Ownership Laws

Foreign buyers must establish a fideicomiso (trust agreement) with a Mexican bank if purchasing in restricted areas. Outside these zones, foreigners can buy property directly.

Required Documentation

  • Valid passport
  • SRE permit
  • Signed purchase-sale agreement
  • Proof of legal capacity to engage in transactions
  • A certificate of no encumbrances (to ensure the property is free of legal claims)

Legal Fees and Costs

  • Legal fees: 1% to 4% of the property’s value
  • Additional costs: Notary and registration fees, closing cost can be up to 10% of price


Financing Options for Purchasing Property


Financing options for purchasing property in Mexico, including mortgages and alternative methods.


Foreign investors have multiple financing options when purchasing property in Mexico, including:

Mortgage Loans for Foreign Buyers

Mexican brokers offer mortgage loans to foreign buyers, typically requiring a 30% down payment and proof of income. For those earning in U.S. dollars, cross-border USD mortgages are available, which makes financing easier.

Alternative Financing Methods

  • Seller Financing: Buyers can make payments directly to the seller, bypassing traditional banks.
  • Developer Financing: Some developers offer financing options, often after a significant down payment.

Currency Considerations

Foreign investors must consider the impact of currency fluctuations when securing financing. Borrowing in pesos can be advantageous for those earning in U.S. dollars, particularly if the peso depreciates over time.


Investment Potential and Future Growth

The Mexican property market is expected to grow significantly, driven by strong demand and increasing foreign interest. The real estate sector is projected to be valued at $5.74 trillion by 2025, with significant growth in residential properties.

Predicted Property Value Trends

As Mexico continues to recover economically, property values are predicted to rise. Key infrastructure projects such as railways and new highways are expected to increase property values by improving accessibility and amenities in various regions.

Government Policies and Incentives

The Mexican government is fostering a favorable investment environment with initiatives like the issuance of 120,000 property deeds in 2025, which will help formalize land ownership and enhance the real estate market’s stability.

Investment potential and future growth in the Mexican property market.

Summary

The Mexican real estate market in 2025 offers numerous benefits: affordable property prices, high rental income potential, favorable exchange rates, and positive future growth. With steady property appreciation and supportive government policies, Mexico presents a strong investment opportunity for those looking to diversify their portfolio or secure a dream home.


Articles About Relocating and the Cost of Living In Mexico


Tired of the US? Your Ultimate Guide to Moving From the U.S. to Mexico

Discover Affordable Beach Bliss: Your Guide to the Cheapest Beachfront Property in Mexico

How to Buy Property in Mexico 2024: Closing Costs, Laws and Tips

Cost of Living In Playa Del Carmen: What to Expect

Cost of Living in Tulum 2024: Budget, Rent and Lifestyle Guide

Mexico Real Estate Prices: Trends in Quintana Roo & Beyond


What Are Clients Saying About Mycasa Real Estate?


"We have been beyond pleased...we felt in good hands the entire process." Jodi Ribar. Google Review


"...and within 5 minutes, she called me." Leanne Knox. Google Review


"He is incredibly knowledgeable about the area, knows all the details about the property..." Claudia Ruiz. Google Review


"She listened to every single detail of what I was looking for in a property..." Kendra Mangana-Adams. Google Review


Ready to book a trip and shop for your dream home, plan your trip with Google Travel


Frequently Asked Questions

What is the housing outlook in Mexico in 2024?

The housing market in Mexico is forecasted to rise by 10.8% for economic and social housing categories, with residential properties appreciating by 8.6%. This growth is supported by favorable economic conditions and a growing middle class.

Where should I buy property in Mexico in 2024?

Consider prime investment locations such as Tulum, Playa del Carmen, Cancun, and Puerto Morelos, all of which are recognized for strong growth potential and unique attractions.

Can foreigners legally own property in Mexico?

Yes, foreigners can legally own property in Mexico, though those purchasing in restricted zones must establish a fideicomiso with a Mexican bank.


Updated 1/25/25

Tags :