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9 Best Places To Invest In Real Estate In Mexico

9 Best Places To Invest In Real Estate In Mexico

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).


If you want to invest in real estate or find the best places to invest in real estate in Mexico, but you are perplexed or troubled in selecting a terrific place that is both affordable and has desirable features, this article is for you.

Mexico has some of the top real estate settings in the world. It possesses many of the characteristics that distinguish other countries in the region. It does, however, have a few distinct selling qualities.

The first advantage is the near proximity to the United States. In most circumstances, you can just drive there. Another advantage is how simple it is to communicate with friends and family. It also makes Mexico an excellent choice for a part-time retirement.

Mexico is a well-known tourism destination. Furthermore, there are several regions where real estate investment may produce a high rental return. Furthermore, the location is ideal for snowbirds or those wishing to diversify their holdings.

Here are the best places to invest in real estate in Mexico:

9 Best Places To Invest In Real Estate In Mexico

1. Bahia de Navidad 

Bahia de Navidad is one of the best places to invest in real estate in Mexico.

The town receives a good amount of visitors. However, you have to pay attention to the retirees from America and Canada who opt to reside here. Others go there yearly on vacation as a habit.

Here, there is a healthy rental market that is expanding annually. Don’t be concerned that a language barrier will isolate you. Although the people are nice, you should try to learn Spanish.

The largest promise is in homes on the beach and in coastal areas. These are the primary areas that new retirees and visitors choose to visit.

The town receives a good amount of visitors. However, you have to pay attention to the retirees from America and Canada who opt to reside here. Others go there yearly on vacation as a habit.

Here, there is a healthy rental market that is expanding annually. Don’t be concerned that a language barrier will isolate you. Although the people are nice, you should try to learn Spanish.

The largest promise is in homes on the beach and in coastal areas. These are the primary areas that new retirees and visitors choose to visit.

Bahia’s regional economy is built on tourism, farming, fishing, and ranching. Barra de Navidad and Melaque both rely significantly on tourism. There is a well-defined tourism season. 

The busiest time of year is from November through March. North American snowbirds swarm the communities during this time. There are a few Europeans as well.

Most full-year expats have smaller circles of close friends. The social circle is often larger in other expat destinations. This makes logical given that the whole expat population is dispersed across two quite distinct locales.

Additionally, a sizable influx of seasonal foreigners enters and exits the region. You may claim that the majority of the seasonal guests are not foreigners.

They are short-term visitors that stay for a few of weeks and enjoy eating, drinking, and basking in the sun. But unlike the full-time expats, they don’t make an effort to fit in or spend much time learning Spanish.

The majority of homes for sale in the Bahia de Navidad region are advertised with agents; the unofficial, word-of-mouth market is very limited. There are occasionally inexpensive homes available, but they are rapidly sold to other Mexicans by word-of-mouth.

They never show up on the open market as a result. If you’re prepared to put in the effort to build relationships with Mexicans, you can locate and buy these deals. By doing so, you’ll be able to tap into the word-of-mouth network and then put in the effort to find these deals.

You must be extremely sociable and at least speak basic Spanish to get started. Be bold while chatting to store owners and random passersby on the street. Find out whether they are aware of anyone who is considering selling their home.

Always make an effort to obtain the owners’ direct contact information to prevent intermediaries. Ask a Mexican friend to first get in touch with the owner and inquire about the price before you go see the place to obtain the best deal.

2. Durango

The state of Durango still has a lot of authentic Mexican flavor and attitude. It is without a doubt one of the best places to invest in real estate in Mexico because it is surrounded and governed by woods, deserts, and mountains.

Be prepared to start payments of as little as US$419/m2 for luxury properties in one of the areas of Mexico with the greatest real estate pricing. The town may be the most well-known in all of Mexico.

There were more than 140 Hollywood films filmed there. Because few people in Durango understand English, there is a sizable language barrier for tourists and expats.

When you consider the way of life in Durango, real estate is an incredible value. In fact, a brand-new, two-bedroom house is sold for less than 387,000 pesos (about $19,000 USD), in case you’re a die-hard cheapskate.

Even though it was just 45 square meters (484 square feet) in size, the price is less than that of a secondhand automobile.

One-bedroom apartments begin at less than 330,000 pesos ($16,000 USD) and increase in price from there. The most costly apartment is listed at 1.39 million pesos (US$67,000), for a contemporary 163 square meter flat with two bedrooms and two bathrooms (1,750 square feet).

There is less liquidity and it will take longer to rent or sell your Mexico City real estate due to the limited expat presence in this area. However, homes in the historic district will sell more quickly than those outside of it.

9 Best Places To Invest In Real Estate In Mexico
Camino de Plata, Durango. Photo from Wikimedia Commons.

3. Guanajuato 

One of the best places to invest in real estate in Mexico is in Guanajuato due to the town’s reasonable costs. Guanajuato’s ancient town center is immobile; there aren’t many places to develop, and those that are frequently occupied by remains of 200–300-year-old homes.

As a result, all new development occurs on the town’s outskirts, which are frequently unattractive regions. Finding a good home to buy in the historic core of Guanajuato might be difficult due to the city’s geography.

The historic district has naturally risen up the canyon walls on winding alleyways, and each home is unique.

Before you begin a serious housing hunt, you should first rent a place for a number of months. To get you started, Guanajuato offers an excellent selection of short-term rental accommodations.

Make sure you truly enjoy the environment and the town before buying a property since it’s easy to become rather thrilled with Guanajuato’s beauty and romance. Both the dry season (mid-May through mid-October) and the rainy season should be covered by your rental agreement.

Purchasing real estate in Guanajuato looks like a fantastic idea right now. Prices have changed nationwide as a result of reports of narco-violence in other regions of Mexico. The effects can be felt even by the most secure Mexicans. When the narco problem is rectified, expect a huge increase in value.

In Guanajuato, there are a ton of foreigners! To the point that it is impossible for Mexican citizens to find an inexpensive residence due to the significant price increases in real estate. For you, the language barrier shouldn’t be a problem. English is spoken fluently by the bank, public notary, and management services.

4. Puerto Vallarta

One of the best places to invest in real estate in Mexico is considered to be Puerto Vallarta. This area has a number of lovely coves with lovely beaches and upscale homes and condominiums constructed on the hillside with some of the most impressive views of the sea. In this region are the exclusive Conchas Chinas and Amapas communities.

The Centro, Old Town, and Zona Romantica are the three main areas of Puerto Vallarta. Since this is the old town, it is where practically all of the tourist activities takes place. Additionally, it is where foreigners are most likely to invest.

Puerto Vallarta has a rental market that welcomes foreigners. Most properties are furnished in accordance with North American norms. In comparison to vacation regions in the US or Canada, rental prices are quite affordable.

Vacation rentals make up the majority of housing in the Vallarta region. Additionally, pricing for daily, weekly, and monthly rentals are offered. The peak travel period runs from November to April, with holiday fares being much higher from December 20 to January 3.

For a one-year lease, some leases provide a flat monthly payment. Others provide prices for six months during either the busy or slow season.

Depending on size and facilities, a two-bedroom, two-bath apartment in a popular neighborhood may be rented for US$750 to US$1,500 per month on a one-year lease. The price often includes water, potential gas, and potentially even internet.

The tianguis is another Mexican custom. sometimes referred to as an open market. The idea behind this is comparable to the already well-liked farmer’s markets in the north. You’ll be astounded at the range of items you may discover in Mexico, though.

Nearly every day of the week, you can find a tianguis in one of the zones in the Vallarta region. The typical closing fees for many years were roughly 6% of the transaction price, or around 10 Mexican pesos to 1 U.S. dollar.

The average closing expenses are just 2.5% to 3.5% of the real estate’s U.S. dollar worth since the majority of licenses and fees are now charged in pesos, which are now trading at 19.4 pesos to the dollar. Sales commissions and capital gains taxes are typically paid by the seller. However, the remainder is covered by the buyer.

5. Tulum

For people who enjoy the finer things in life, Tulum is one of the best places to invest in real estate in Mexico.

Tulum is not one of the low-cost standouts for expat living as a result. Numerous international tourists are there, and suitable lodging is in short supply. Real estate costs have skyrocketed as a result of this.

Due to this, commercial real estate is expensive and limited, especially along the highway that runs through the town. As a result, pricing in local restaurants and businesses are not significantly lower than those in the United States.

Depending on where you’re from, Tulum’s cost of living may be comparable to your own city.

The expat population in Tulum is modest. Although there is no accurate figure, numerous experienced people believe there to be about 2,000 expats. There are around 400 Americans and 1,600 people from other countries, broadly split into three groups:

  • Expats with second homes or who are semi-retired. The majority of these people are homeowners, with around one-third of them located in the town center and the remainder in the nearby areas. Although some of these people run side enterprises, the majority make their living from pensions and investments made back home.
  • Up to 50% of expats only stay for two to six months a year, often the pleasant winter months.
  • people who come here on extended stays from a few weeks to a year. Apartments or holiday homes are frequently accepted.

The real estate market in Tulum is complicated. Large tracts of undeveloped land surround Tulum on all sides. The retiree or small investor cannot access many of these regions.

They can be ejidos (land grants held jointly), ecologically limited, have title issues, or already be acquired by land speculators. together with properties that native families have long owned.

The greatest real estate along the beach road is either built out or subject to environmental restrictions. A World Heritage Site, a biosphere reserve, and an archaeological park are on opposite sides of the area. Older homes and priceless empty lots make up the town core.

One of the most well-liked beach vacation spots in Mexico is Tulum. This is your chance to acquire a piece of desirable property in this community that is rapidly expanding.

Real estate investors should be interested in its popularity. Tulum real estate purchases have the possibility to be rented out. There is a strong likelihood your house value may increase as the region is rapidly expanding.

On the outskirts of the town, there is a constant new development, much of it in contemporary styles. Lots are available in the southeastern neighbourhood of La Veleta, where foreigners and native Mexicans are constructing residences and vacation properties.

In this neighbourhood, we stayed at a holiday property where everything was brand-new and up to North American standards. Water, sewage, and electricity are just a few of the vital services that are currently in short supply in this region.

Buying holiday rental properties in this area is the ideal investment. Apartments for holiday rentals in this neighbourhood rent for between $150 and $200 per night.

9 Best Places To Invest In Real Estate In Mexico
Gran Cenote in Tulum, Mexico. Photo from Flickr.

6. San Miguel de Allende 

San Miguel’s ancient town centre is unchanging. There aren’t many areas that can be built on and those that can frequently contain the remnants of 200- to 300-year-old homes.

All new development occurs on the outside of towns, in often upscale neighbourhoods devoid of any traditional character.

Finding a good home to purchase in the historic core of San Miguel might be difficult due to the city’s popularity. The cost is enormous, and each home is unique.

As a result, you will need to check out every potential home in a good area. This will enable you to evaluate the suitability of the residence, location, and pricing.

Foreign buyers of real estate always make cash transactions. Very few situations are an exception.

Loans are available to foreigners, however, qualifying is challenging and the interest rates (between 11% and 17%) are excessive by North American standards. Although uncommon, seller financing is a possibility.

Possibly now is an excellent moment to acquire San Miguel real estate. Prices have been stabilized by growing demand from both Mexicans and foreigners. The United States’ economy has reached its lowest point, barring another devastating recession. Prices should increase, notably in the section of homes under US$500,000.

Some tendencies in real estate buyers are observed by Joanie Barcal of Allende Properties. She is observing more Canadians buying as well as younger American families, wealthy Mexicans, baby boomers, and more. She has also noticed homes purchased with the intention of holding them.

There are no language hurdles in the area because of the regular visitors and expats. Additionally, there are no power outages in this region. The mild and lovely weather is to blame for this. Utility costs are reasonable. The reputation of the city instils fear among the San Miguel de Allende expat population. Your tenants will thus require some guarantee.

7.  Playa del Carmen

Playa del Carmen is a town in the Riviera Maya region of Mexico. This town is popular because to its palm-lined beaches, coral reefs, and carnivals. Playa del Carmen has become one of the peninsular region’s most prominent cosmopolitan lifestyle cities.

The high number of tourists in this town makes it the finest spot to acquire real estate. In the past year, this place has had almost 12 million visitors.

Investors in real estate may make a sizable profit from renters and guests.

The fact that Playa Del Carmen is a part of the Riviera Maya is a compelling enough justification for purchasing real estate there.

You may choose from a variety of pastimes, activities, and lifestyles in Playa del Carmen. This location provides you with a variety of environments, including serene, tranquil, amusing, enjoyable, night outing, chilling, clubbing, dancing, romantic, and more.

This location provides you a taste of both the village and high-class standard cities. So it’s entirely up to you what kind of life you want to live here.

This trait makes this town appealing to innovators looking to invest in Riviera Maya real estate. Playa Del Carmen is the best and most affordable place to buy a beachfront home in 2021.

Expats and retirees flock to this location to spend the remainder of their lives.

8. Cancun

Cancun has recently become the most desirable city in Mexico for real estate investment. It is a Mexican city on the Yucatan peninsula that borders the Caribbean Sea.

Cancun city is well-known for its stunning turquoise-blue sea, captivating beaches with fine white sand, superb land and air connectivity, first-rate hotels, opulent resorts, high-profile structures infrastructure, and unrivalled weather.

Cancun city provides both a cheap and a lavish way of living. Cancun is a well-liked vacation resort because of its feature.

You can find affordable real estate in Cancun. The Cancun rental rate gives you a reliable stream of income. You may benefit from both short-term and long-term investments in Cancun real estate.

9. Los Cabos

Cabo San Lucas is well-known for its world-class golf course, beaches, stunning coastline, water-based activities, nightlife, and opulent hotels and resorts. Los Cabos is one of Mexico’s top five tourist destinations and one of the best places to invest in real estate in Mexico.

Los Cabos is a magnificent vacation city located on Mexico’s Baja California peninsula’s southern edge.

It is Mexico’s most well-known tourist attraction worldwide. The nicest and greatest city in Mexico to purchase real estate is Los Cabos.

The infrastructure of the structures is fantastic and outstanding. The location is great for purchasing luxury real estate in Mexico.

Pained by financial indecision? Want to invest with Adam?

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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.

This website is not designed for American resident readers, or for people from any country where buying investments or distributing such information is illegal. This website is not a solicitation to invest, nor tax, legal, financial or investment advice. We only deal with investors who are expats or high-net-worth/self-certified  individuals, on a non-solicitation basis. Not for the retail market.



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