Mexico: the booming property market in one of the planet’s six cradles of civilisation

Ruth Bloomfield unpacks the reasons behind the flourishing property market in Mexico...

Price growth at the top end of the property market has boomed in Mexico City over the past year. A rush of remote workers keen to spend time there has joined the ranks of those who already appreciate its extraordinary wealth of architectural jewels, world-class museums and galleries and a buzzing contemporary arts and restaurant scene.

Laura de la Torre de Skipsey, luxury property specialist at Mexico Sotheby’s International Realty, attributes this growth to the “big influx” of North Americans keen to buy into this exciting – and comparatively affordable – city. “They want to be able to come and work from here for four or five months per year, and they will rent their homes out the rest of the time,” she says.

Despite the city’s reputation for violent drug cartels, de Skipsey says none of her buyers have ever expressed a concern about crime. She feels the city is as safe as any major capital can be. “Narcos only mess with narcos,” she says. “They do not mess with tourists and people on the street.”

Most of her buyers are aged 40-plus and looking for an apartment priced from around $700,000 (£550,000). Some do fall for one of the city’s iconic 1950s modernist houses, which sell for upwards of $15 million. The key neighbourhoods for these buyers are hipster-friendly La Condesa, with its bars and boutiques, and nearby Roma Norte, known for its restaurant and arts scene. “It is really trendy and metropolitan,” says de Skipsey. “It’s like hippy chic, and there are so many buyers from overseas. When you walk through the streets you can hardly hear any Spanish.”

Another option is Polanco, a little more suburban and upscale, close to the city’s main parks, and the focus of new buildings like the Rubén Darío 225 tower, where apartments cost up to $10 million. Prices in all three districts have increased by around 10 per cent in the past year, says de Skipsey.

This estimate tallies with the latest SHF House Price Index, compiled by the Mexican government, which found that house prices jumped by 10.3 per cent in the Valley of Mexico, the region which includes Mexico City, during the first nine months of 2023.

Of course, city life is not for everyone – and glorious sandy beaches flanked by the Sierra Madre mountains have made Puerto Vallarta, on Mexico’s Pacific coast, a go-to destination for those who want a coastal home. Its malecon – or boardwalk – is lined with bars, cafés and art galleries. There are golf courses, a lively cultural scene and plenty of nightlife.

It is also a mecca for sailors and superyacht owners, thanks to Marina Vallarta, a 354-slip facility for yachts up to 49 metres with on-site hotels, restaurants and bars.

Brock Squire, CEO and owner of Coldwell Banker La Costa, says overseas buyers purchase 60 to 70 per cent of the properties in the town. The majority are North Americans in their fifties and sixties looking for holiday homes,  as well as some younger families, he says. There is also a strong contingent of buyers from the UK and Europe.

The local market was red hot during the pandemic. “Our sales volume doubled over any other previous year,” Squire says. Since that peak in 2022, sale numbers – and prices – have slowed down, but Squire still estimates that sale prices are currently around 20 per cent higher than they were in 2020.

Most buyers want to live close to the water, and these homes come at a premium. Squire suggests that a two-bedroom waterfront apartment would cost $650,000 to $750,000 while a four-bedroom villa with water views would be around $1.5 million.

At the top end, buyers will pay $60 million for a sprawling villa in a gated community; the most upscale options are to be found in Punta Mita. This kind of super-prime home will typically have eight to 10 bedrooms, be extremely private, and have “all the bells and whistles” – spas, bowling alleys, multiple swimming pools and so on.

So far in 2024, Squire has been pleased by the level of demand his agents are reporting, but buyers are in a cautious mood. “Last week we had 10 offers. Six were accepted and four were not,” he says. “None were at the full price. Buyers are coming back in a healthy measure, but they are pretty savvy about where the real market is.”

So whether it’s a place in the city or by the sea, it seems “viva Mexico” is the way to go in 2024.

First published in the May 2024 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.