Upcoming Cities in Mexico to Invest in Real Estate in 2025 – Were you aware that individuals are now investing more in real estate in Mexico? It was made known through a survey organized by HelloSafe, a financial product comparison platform, that 40.4% of Mexicans trust investing in real estate.
Mexico’s real estate sector has experienced consistent growth in housing and commercial property demand over the last several years. The Federal Mortgage Society (SHF) registered a 6.3% increase in price in 2023 compared to the previous year. It is driven by factors like property value appreciation, inflation hedging, and overall investment security. Mexico’s diverse tourist destinations and developing cities also offer good opportunities for investors.
According to Mexican financial portal Dinero.mx, “real estate properties have a physical value and can generate up to 30% during the first year,” states the Ministry of Economy.
While demand remains strong in main cities like Mexico City, Guadalajara, and Monterrey, urbanization and economic growth have turned several emerging cities into the most convenient places to invest.
Top 5 Emerging Cities for Real Estate Investment in 2025
In case you’re considering purchasing property for residential or investment purposes, Dinero.mx identified five emerging cities with excellent growth potential in 2025.
1. Mérida, Yucatán
Mérida has seen strong demand for housing due to its safe and quality of life, rich cultural and gastronomic activity, and growing labor market fueled by tourism. New residential and luxury property developments are being built to satisfy the demand.
Inmuebles24 states that the price per square meter in Mérida increased by 36.3% in two years, from 26,490 pesos in 2022 to 36,125 pesos in 2024. A few of the in-demand neighborhoods include San Ramón Norte, Monterreal, and Santa Gertrudis Copo. A pool house in Mérida can cost around three million pesos, depending on the location.
2. Tulum, Quintana Roo
Being a favorite destination for beachgoers, Tulum has recorded consistent appreciation in property values, increasing by 8% year on year since 2015. With investments being poured into the hotel and residential sectors, rental properties return approximately 28,000 pesos monthly.
The price of apartments in Tulum averages 1,552,252 pesos, based on Dinero.mx data, while houses sell at approximately 2,976,180 pesos. Sought-after neighborhoods include La Veleta, Benito Juárez, and Solidaridad.
3. Los Cabos, Baja California Sur
The Baja California Peninsula is a hot spot for upscale investors, including business executives, visitors, and celebrities. Los Cabos saw a 15.7% increase in property value in 2024, making it one of the top destinations for capital appreciation.
Although fairly upscale, with the average price pegged at around two million pesos, real estate here has excellent income-generating potential with holiday and long-term rentals. Its location near the U.S. also contributes to its investment appeal.
4. Querétaro, Querétaro
Being a UNESCO World Heritage Site, Querétaro has also emerged as a thriving industrial and technological hub, making it a perfect real estate investment destination. The city offers a high quality of life, favorable climate, well-developed infrastructure, and geographical centrality.
SHF recorded an 11.6% housing price appreciation in the metro area of Querétaro early this year, 2024. The average house price currently stands at 2,128,503 pesos, which is a sound long-term investment.
5. San Luis Potosí, San Luis Potosí
San Luis Potosí has emerged as a desirable place to invest in and live because of its quality of life and economic opportunities. The Mexican Institute for Competitiveness (IMCO) ranked it as the second-best city in Mexico in terms of quality of life last year.
It is a city endowed with architecture, culture, and gastronomy. The cost of a house averages 4,676,586 pesos, while apartments sell for approximately 3,074,154 pesos.
Key Points to Consider When Investing in Real Estate in 2025
“If you’re planning to be in the real estate business in the coming year, consider trends like greenhouses in terms of renewable energy and recycled materials. The new generations also look for smart homes with multifunctional spaces in suburban or rural areas,” says Alejandro Sena, general director of Dinero.mx.
Because of the complexity of real estate investment and the large amount of financial investment involved, Dinero.mx recommends seeking advice from real estate advisors and serious property websites before deciding.
Investment in real estate in 2025 is very lucrative, especially in Mexico’s emerging cities. For either a home or a lucrative investment with high returns, these cities have good potential for appreciation and profitability.
At HomeReady Global, we are your best ally to have your pre-sale or in-construction property delivered 100% completed with satisfaction for the developer, seller, and new owner.
