Rental yields are moderate to good in Mexico City

Residential Valuation Specialist | March 16, 2022

Last Updated: Mar. 16, 2022
ALVARO OBREGON PRICE/ SQ.M.(US$) YIELD (p.a.) PRICE/SQ.FT. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Jardines del Pedregal 364,022 1,227 4.04% 229 0.97
Los Alpes 289,223 1,077 4.47% 246 0.96
San Angel 259,802 1,167 5.39% 206 0.86
Santa Fe 377,485 1,371 4.36% 190 1.01
BENITO JUAREZ apartments
Del Valle 244,842 908 4.45% 184 0.78
MIGUEL HIDALGO
Bosques de las Lomas 688,150 2,184 3.81% 231 0.73
Lomas de Chapultepec 708,097 1,960 3.32% 263 0.92
Polanco 782,896 2,209 3.39% 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

The Gross rental yield is the rent the landlord will earn - before taxation, vacancy costs, and other costs - compared to the property´s purchase price. Gross rental yields from houses in Mexico remain good.

 

In Jardines del Pedregal, one of the most expensive neighborhoods in Mexico City where there are luxurious properties and manicured gardens and which host some of Mexico´s affluent families, a typical house costs around USD 364,022 and is rentable for a return of about 4.04%. While in Santa Fe, known for its historical architecture and one of Mexico City´s central business districts, house prices cost around USD 377,485, with an average rental yield of 4.36%.

Del Valle is located in the neighborhood of Benito Juarez (which is considered to be the heart of Mexico City) and is essentially a residential area which the middle and upper-middle classes primarily occupy. A typical house in this area costs around USD244,842 and may yield a rental return of about 4.45%.

Bosques de las Lomas, Lomas de Chapultepec, and Polanco are highly-priced neighborhoods in the Miguel Hidalgo district.  Rental returns in these areas range from 3.32% to 3.81.%.

Round trip transaction costs range from low to high for foreigners buying residential property in Mexico. See our Residential transaction cost analysis for Mexico.

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