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 |
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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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