Mexico City Residential Market Sees Contrasting Trends: Sales Dip, Prices Climb
Mexico City’s residential real estate market presented a mixed picture during the first half of 2026. While new home sales recorded their most significant deceleration since the pandemic, prices continued their upward trajectory, fueled by a scarcity of supply and dwindling available inventory.
Sharp Decline in New Home Sales
During the presentation of the Residential Vision 2026 by Justino Moreno, Head of Accumin Intelligence Mexico, it was revealed that the capital city registered a 6.4% drop in new home sales during the second quarter of the year. Approximately 2,600 units were sold in the city, marking the lowest level since 2020. Across the entire Metropolitan Zone of the Valley of Mexico, just over 7,000 homes were sold.
Double-Digit Price Growth Persists
Despite the reduced absorption, prices maintain an upward trend. In the Metropolitan Zone of the Valley of Mexico, housing values increased by 8.1% annually, while in Mexico City, the increment reached 10.8%. According to Moreno, this apparent contradiction is due to the persistent lack of inventory and the strong performance of specific corridors that continue to concentrate demand.
As of the end of June, housing prices in Mexico City and the Valley of Mexico reported 55,062 pesos per square meter, with an 8.1% annual increase and a 2.7% quarterly advance. However, considering Mexico City exclusively, prices stood at 80,922 pesos per square meter, recording an annual increase of 10.8% and a 3.5% quarterly rise.
In the capital, notable increases included a 9.2% annual rise in mid-range housing and a 7.5% increase in the luxury segment, which reached a price of 125,495 pesos per square meter. The residential plus segment saw a 6.9% annual advance, settling at 93,174 pesos per square meter, while the residential segment grew by 7.2% to 74,414 pesos.
Shrinking Inventory and Limited New Projects
The specialist highlighted that available inventory continues to shrink rapidly. Currently, there are approximately 18,000 new homes on offer, and at the current sales rate, they could be depleted in just 20 months. In some boroughs, the estimated absorption time is even as low as 16 months.
Although 57 new projects entered the Mexico City market during the second quarter, this figure remains well below pre-pandemic levels when 115 to 120 developments were incorporated per quarter. The market currently maintains around 720 active projects, less than half of those registered just two years ago.
Key factors limiting supply include the scarcity and high cost of land, as well as lengthy development times for new projects. These conditions make it difficult to produce affordable housing and compel developers to focus on larger-scale, mixed-use projects.
Cuauhtémoc Leads, Benito Juárez Slows Down
By borough, Cuauhtémoc continues to be the most dynamic market in the capital, with 886 homes sold in the quarter and prices nearing 100,000 pesos per square meter, driven by corridors such as Reforma, Roma, Condesa, and Juárez. In contrast, Benito Juárez shows a loss of dynamism compared to previous years, while Miguel Hidalgo maintains some of the highest market values, especially in Polanco and its surrounding areas.
For Accumin Intelligence, the main characteristic of the capital’s residential market in 2026 is insufficient supply in the face of active demand. This imbalance is expected to continue putting pressure on prices unless the incorporation of new developments significantly increases.
Source: https://realestatemarket.com.mx/noticias/mercado-inmobiliario/51195-caen-las-ventas-de-vivienda-en-la-cdmx-los-precios-crecen-a-doble-digito
