In recent years, Mexico City has experienced an increase in both sales and rental prices in certain areas of the city, due to a number of factors that increase demand over supply.
In the real estate market in Mexico City, it is a fact that there are fewer homes than are required to meet the needs of the population. Every day there are more young people who come to work in Mexico City and more young people who want to leave their parents' home to start an independent life.
If we add to the above that in recent years building housing in Mexico City has been complicated by issues of permits and feasibility (access to basic services such as water and electricity) and we add the growing demand of foreigners to live in certain areas of the city, it is clear that prices have been affected by the increase in this demand that has exceeded the current supply.
From the point of view of rental prices, the arrival of COVID attracted more than 40,000 foreigners or commonly known as “digital nomads” who took advantage of remote work to settle in certain areas of the city, creating an effect called “gentrification” displacing the inhabitants who commonly occupy neighborhoods such as Condesa, Roma, Juárez and Cuauhtémoc.
In accordance with our market report for the second quarter of 2024, the price per square meter of rent in Mexico City has evolved as follows in recent months:
Polanco is currently the most expensive area to rent in Mexico City, slightly above Condesa, however, in the last year the two neighborhoods have shared the first place as the most expensive area in Mexico City and the metropolitan area. In the last year, starting prices in Polanco have grown 10.3% while in Condesa they have decreased 6.6%.
Today, renting a 200 square meter property in Polanco and Condesa is around 73 thousand and 66 thousand pesos, respectively.
As for sale prices, demand in Mexico City usually comes from investors and end users looking to acquire a property to rent or as their own residence.
When an investor or user chooses a certain area to acquire a property, they usually base their decision on factors that have to do with the quality of the infrastructure (streets, water, electricity, etc.), schools, universities, shopping centers, entertainment and of course the added value (increase in the value of the properties) that is generated over time.
According to our market report for the second quarter of 2024, the price per square meter of sale has evolved as follows in recent months:
Polanco at the end of the second quarter of 2024 is the most expensive area to purchase a property, followed by Lomas de Chapultepec.
Today, the average price in Polanco is around 104 thousand pesos per square meter with an annual growth of 4.5%. This is equivalent to a sale price of approximately 21 million pesos for a 200 square meter property.
Polanco is, today, the most expensive neighborhood to live in Mexico City and the metropolitan area and according to the trend of recent years, prices will continue to increase in the future.
If you want to know more about Polanco, do not hesitate to consult our section dedicated to the area of the city where you will find images, recommendations and properties available for both sale and rent.
