Mexico City is still in vogue as a real estate destination, and its property supply is expected to remain sustainable until 2026. In fact, the demand for housing is so high that there has been a significant increase in the second-hand sector. According to Marisol Becerra, Regional Partner for Mexico-Centro at 4S Real Estate, 52% of the sales transactions registered in the city involve second (or third) hand properties.
According to Federico Taboada, director of Mexico City’s Institute for Democratic and Prospective Planning, the city’s peripheral boroughs are emerging as key hubs to address the growing demand for housing in a structured and sustainable way. Areas like Tláhuac, Gustavo A. Madero, Magdalena Contreras, and even Iztapalapa are increasingly capturing attention as promising urban expansion zones.
But what do the figures indicate? Currently, boroughs such as Cuauhtémoc and Benito Juárez are experiencing the greatest growth, according to information collected by DD360, a financing platform for residential projects. Most of the city’s rental supply is also concentrated in areas such as Miguel Hidalgo, Cuauhtémoc, Cuajimalpa, Benito Juárez, Álvaro Obregón and Coyoacán.
Several factors, such as new housing developments, accessibility and connectivity, dining and entertainment options, security, the cost-benefit ratio of rent, and proximity to amenities, contribute to the increased value and real estate opportunities in a given area. In this sense, Mexico City is undergoing a transformation in its housing supply.
Neighborhoods on the rise and new promises
There are new points of interest on the CDMX property map. “Emerging areas combine modern infrastructure, quality of life and options for different stages of life, from young people becoming independent to families seeking larger and safer spaces,” explains Melisa Gaitán, Director of Growth and Sales at Homie.mx.
According to the specialized website Propiedades.com, the 16 boroughs of Mexico City have shown an increase in rental housing value over the last five years. However, some areas are experiencing extraordinary growth, including Iztacalco (22%), Cuajimalpa (22%), Xochimilco (21%) and Iztapalapa (19%). Additionally, Azcapotzalco and Venustiano Carranza have each seen a 15% increase, along with Magdalena Contreras.
Iztacalco
This residential area is characterized by the presence of the Autódromo Hermanos Rodríguez, the venue for the Mexico City Grand Prix, and the Palacio de los Deportes, a large indoor stadium built for the 1968 Olympic Games. It is one of the oldest neighborhoods in Mexico City, even predating the city center, and boasts significant historical heritage with buildings dating back to the 16th century.
Its booming neighborhoods in terms of property value include Agrícola Oriental, which has excellent connections to the rest of the city through Eje 4 Sur, Eje 4 Oriente, Eje 5, Eje 6 and Viaducto: In recent years, a large number of condominiums have been built there. Agrícola Pantitlán, located southeast of Mexico City International Airport, and Granjas México, characterized by an abundance of small shops, warehouses, and apartment blocks, also boast good security.
Cuajimalpa
Located to the west of the Mexican capital, Cuajimalpa is known for its low, forested hills within the Desierto de los Leones National Park, as well as the modern area of Lomas de Santa Fe. Its booming neighborhoods include Lomas de San Pedro, which is known for its quality of life, safety, and family-friendly atmosphere. San Lorenzo Acopilco is surrounded by nature and historic buildings and San Mateo Tlaltenango combines the comforts of urban life with the tranquility of nature, as does San Pablo Chimalpa, which offers a cool climate and scenic forests.
Xochimilco
Xochimilco is famous for its canals — the last vestiges of the extensive transportation system created by the Mexicas — and for its chinampas, an intricate system of water-based agriculture. Its most promising neighborhoods are San Lucas Xochimanca and Lomas de Tonalco, both close to natural beauty and charming villages.
The area’s real estate growth is closely linked to its economic development. One advantage of buying here is that property offerings primarily consist of houses rather than apartments. Furthermore, the prices of these homes are generally on the lower end of the scale, ranging from four to five million pesos (US $195.000-$242,000).
Azcapotzalco
Located in the northwestern part of Mexico City, this district is home to Tezozómoc Park, Bicentenario Park, and Arena Mexico City, a venue that hosts a wide variety of shows, concerts, and sporting events. El Rosario neighborhood features a large concentration of residential units, whose construction adheres to the standards proposed by renowned architects Teodoro González de León and Pedro Ramírez Vázquez. Other neighborhoods experiencing an increase in property values include Colonia Pasteros Clavería, known for its quiet environment and proximity to Bicentennial Park, just 10 minutes away, and Colonia Arenal, recognized for its family-friendly atmosphere and well-planned urban design.
Azcapotzalco has hospitals, public and private clinics, reliable basic services, several universities, and is safe in general, making it a great real estate option outside of the usual expat areas.
Magdalena Contreras
This borough is rich in natural beauty and is home to the magnificent Dinamos Park and the Cumbres del Ajusco National Park. The San Jerónimo Lídice neighborhood is characterized by its quality of life and proximity to nature. Las Cruces is also on the rise, primarily due to its safety and pleasant climate.
Like Azcapotzalco, Magdalena Contreras has plenty of amenities as well as access to some of Mexico’s most exclusive and prestigious international schools. The borough also offers a signficant range of properties, meaning that whether you’re looking for a regular apartment or a spacious property within a gated community, Magdalena Contreras is sure to have something for you.
Venustiano Carranza
This borough is located in the center-east of Mexico City and is home to the capital’s International Airport. The Civil Aviation Extension neighborhood sees new real estate developments every year, thanks to its affordable prices. Also, Jardín Balbuena is an easily accessible area whose greatest advantage is its central location; here, you will find the markets of La Merced and Sonora, as well as the Ciudad Deportiva in the southern part.
While some districts of the borough have less than stellar reputations, there has been extensive development on the western edge of the area. Prices for new apartments in the region, which borders both the historic center and Benito Juárez districts, begin at around two million pesos (US $96,000).
What about capital gains?
The borough of Venustiano Carranza has experienced the fastest growth in property value over the last five years, with a remarkable 55% increase. According to 4S Real Estate, Iztacalco has achieved 30% capital gains.
Focusing on specific neighborhoods, the specialized real estate site Houm reported that the area with the highest capital gains in the capital is Del Valle Norte, with an impressive 31%, followed by Narvarte (29%), Roma Norte (28.97%), Escandón (26.69%), and Anzures (17.48%).
Other up-and-coming neighborhoods include Santa María la Ribera, which features many houses of significant historical value and was considered one of the first modern neighborhoods in Mexico City. Additionally, Portales, located in the southeast of the borough of Benito Juárez, is gaining attention.
What other areas in Mexico City do you think show potential for organized growth?
Ana Paula de la Torre is a Mexican journalist and collaborator for various outlets including Milenio, Animal Político, Vice, Newsweek en Español, Televisa and Mexico News Daily.
