Mexico: rental yields are moderately good
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|
|BENITO JUAREZ apartments|
|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|
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.