Mexico: rental yields are moderately good

Residential Valuation Specialist | January 14, 2019

Last Updated: Jan. 14, 2019
ALVARO OBREGON PRICE/ SQ.M.(US$) YIELD (p.a.) PRICE/SQ.FT. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Jardines del Pedregal 2,463 10.49 5.11% 229 0.97
Los Alpes 2,645 10.28 4.66% 246 0.96
San Angel 2,213 9.29 5.04% 206 0.86
Santa Fe 2,049 10.85 6.35% 190 1.01
BENITO JUAREZ apartments
Del Valle 1,984 8.35 5.05% 184 0.78
MIGUEL HIDALGO
Bosques de las Lomas 2,489 7.83 3.78% 231 0.73
Lomas de Chapultepec 2,834 9.86 4.18% 263 0.92
Polanco 4,817 13.51 3.37% 447 1.26
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Propiedades.com Definitions: Data FAQ See also: Update Schedule

Gross rental yields in Mexico City - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - are moderately attractive.

In previous years we have found that rental yields in Mexico City were moderate, at between 4.9% to 5.4%. To buy a 120 square metre (sq. m.) apartment in an upscale area of Mexico City costs around USD 3,000 per sq. m., or USD 350,000 - a not unreasonable price.

This year we were able to find enough research results to establish reliable purchase prices, but not rentals. Sorry about that.

 

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