Mexico City is solidifying its position as an attractive hub for foreign real estate investment, buoyed by entry prices significantly lower than those in other major international cities, substantial housing appreciation, and a clear legal framework enabling foreigners to directly acquire properties.
CDMX: A New Real Estate Hotspot for Foreign Investors
During the webinar “The new real estate hotspot for foreign investors,” experts highlighted that the price per square meter in the Mexican capital remains considerably below markets such as London, New York, Miami, Los Angeles, Paris, or Madrid. A comparison presented showed London with prices approximately five times higher and New York 4.6 times higher.
Adding to this appeal is the evolution of housing values. The discussion, referencing information from the Sociedad Hipotecaria Federal (SHF), stated that prices in Mexico City have increased by nearly 40% over the past five years. Historically, average annual capital gains of between 5% and 8% have been observed, though with significant variations based on location and project.
Limited Supply Fuels Appreciation
One of the key factors behind this appreciation is the limited generation of new housing supply. Difficulties in developing new housing in certain areas of the capital maintain pressure on a market where demand continues to concentrate in established locations.
For foreign buyers, interest is particularly focused on the Roma, Condesa, and Juárez neighborhoods. These areas offer a compelling combination of residential living, gastronomy, culture, and the convenience of conducting most daily activities on foot. Polanco, Nuevo Polanco, Anzures, and San Miguel Chapultepec are also prominent, while southern alternatives like San Ángel and Coyoacán offer options, albeit at a greater distance from the central corridors.
Legal Certainty Simplifies Acquisition for Foreigners
Another distinguishing element is the acquisition process. Unlike restricted zones-50 kilometers from coastlines and 100 kilometers from borders-in Mexico City, a foreigner can directly acquire ownership of a property. This requires fulfilling the corresponding procedure with the Ministry of Foreign Affairs.
The transaction must be formalized before a notary, who verifies ownership, registration, contributions, land use, and valuation before registering the transfer in the Public Registry of Property.
The combination of relatively lower prices, appreciation, demand in consolidated corridors, and legal certainty is thus broadening the capital’s appeal to international investors.
The webinar “The new real estate hotspot for foreign investors” was organized by University Tower and led by Enrique Tellez, Co-Director of Desarrolladora del Parque, with guest speakers Karim Goudiaby, CEO of iad México, and Public Notary Alfredo Bazua.
