Mexico Real Estate

Mexico’s real estate market is booming on the back of surging tourism and strong Airbnb demand. Investors are flocking to prime destinations where visitor numbers are hitting record highs and new developments are reshaping the landscape. Below, we explore the top Mexican markets for real estate investment in 2024 – from world-famous hotspots to emerging gems – focusing on commercial and investment properties such as boutique hotels, multifamily buildings, vacation rentals, and development land.

Tulum (Riviera Maya)

Tulum has transformed from a laid-back beach town into a global destination renowned for its boho-chic vibe, Mayan ruins, and eco-friendly retreats. Tourism here is soaring – about 2.5 million visitors annually as of 2023  – with new infrastructure on the way. A new international airport slated to open in 2024 and the Maya Train project will make Tulum more accessible . The real estate scene is vibrant: jungle resorts, condo complexes, and luxury villas dot the landscape. Home values have tripled over the last decade, yet a recent wave of new construction has created short-term buying opportunities before the next upswing. Investors can find entry-level condos in the mid-$100Ks to $300K range, while high-end beachfront villas and boutique hotels command prices well into the millions.

Investment Highlights:

  • Trendy boutique hotels and eco-resorts catering to wellness tourists and digital nomads.
  • High occupancy for vacation rentals – thousands of Airbnb listings serve ever-growing demand.
  • New infrastructure (international airport, rail link) set to boost connectivity and long-term property values.
Tulum's beachfront with Mayan ruins overlooking the sea
Tulum’s iconic beachfront, where ancient Mayan ruins overlook modern eco-chic resorts.

Playa del Carmen (Riviera Maya)

Just up the coast from Tulum, Playa del Carmen is a lively resort city known for its white sand beaches and famous 5th Avenue pedestrian strip. Playa has been one of Latin America’s fastest-growing communities , with a thriving expat scene and over a million tourists passing through annually. The city offers a more developed infrastructure than Tulum, including international schools, hospitals, and shopping, which adds to its appeal for long-term residents and investors. Real estate options range from modern condos (many in the $200K–$500K range) to luxury beachfront homes exceeding $1M. The rental market is well-established year-round, buoyed by both vacationers and winter “snowbirds,” ensuring solid occupancy. As Playa continues to expand outward at roughly 7.5% annual growth, new residential and commercial developments in the outskirts offer promising investment potential alongside the bustling city center.

Investment Highlights:

  • Turnkey rental condos and apartments popular with tourists and long-term foreign residents.
  • Opportunity for boutique hotels and hostels in the downtown core to serve the steady flow of visitors.
  • Development land in growing peripheral neighborhoods as Playa’s population and footprint continue to expand.

Mexico City (CDMX)

Mexico City is the country’s capital and economic powerhouse – a mega-metropolis where colonial charm meets modern skyscrapers. In 2023, the city’s tourism sector roared back to life, with 14.4 million hotel guests recorded, exceeding pre-pandemic levels. Popular districts like Polanco, Condesa, and Roma are buzzing with trendy restaurants, co-working spaces, and an influx of digital nomads, all of which drive demand for quality housing. Real estate here spans from historic casonas (mansions) to sleek high-rise condos. Prices vary widely by neighborhood: upscale areas see two-bedroom apartments starting around $250K–$300K, while luxury penthouses and townhouses in Polanco or Lomas often exceed $1–2M. For investors, Mexico City offers relatively affordable prices compared to other global capitals, but with strong rental yields thanks to the city’s massive population and continuous stream of domestic and international visitors. The government’s focus on infrastructure and safety in key zones also makes commercial investments (offices, retail, hotels) increasingly attractive.

Investment Highlights:

  • High demand for multifamily buildings and rental apartments in trendy neighborhoods (e.g., Condesa, Roma) fueled by young professionals and expats.
  • Potential to convert historic properties into boutique hotels or chic co-living spaces, leveraging the city’s cultural tourism.
  • Consistent rental income from a diverse economy – government, corporate, and tourism sectors keep occupancy rates and rents stable in prime areas.

Puerto Vallarta (Jalisco)

Puerto Vallarta, set on the picturesque Bay of Banderas and backed by lush mountains, has long been a favorite for beach vacations and retirement living. The city welcomed a record 6.04 million visitors in 2023 , and its popularity shows no signs of waning. PV’s charm lies in its mix of old-world character – cobblestone streets and a historic seaside Malecón boardwalk – and modern amenities including a major international airport and cruise port. This robust tourism has translated into a booming real estate market: ocean-view condos, especially in the Romantic Zone and Marina Vallarta, are hot commodities, often ranging from $250K up to $600K depending on proximity to the beach. Luxury villas in hillside neighborhoods like Conchas Chinas or Punta de Mita (to the north) can go for several million dollars, attracting celebrities and affluent buyers. After rapid price increases in recent years, the market has leveled off slightly – the median sale price around ~$400K – creating a more buyer-friendly environment with increased inventory. However, high season hotel occupancy still tops 80% , indicating strong rental demand for any investment property. Puerto Vallarta’s large expat community and ever-improving infrastructure (new highways, a forthcoming cruise terminal upgrade) promise continued growth and solid returns.

Investment Highlights:

  • Ocean-view condos and apartments that generate robust short-term rental income in popular tourist zones.
  • Hillside and beachfront luxury villas catering to high-end vacationers and retirees (many with property management services in place).
  • Opportunities in development land and value-add properties as nearby areas (e.g., Riviera Nayarit) see new resorts and spillover demand.
Sunset over Puerto Vallarta bay with beachfront hotels
Sunset over Puerto Vallarta’s bay – this Pacific gem blends old-town charm with modern luxury real estate.

Cabo San Lucas (Los Cabos, Baja California Sur)

Cabo San Lucas, at the tip of the Baja Peninsula, is synonymous with luxury and world-class tourism. Together with its sister city San José del Cabo, “Los Cabos” saw a record 3.86 million travelers in 2023 – about one million more than in 2019  – making it one of Mexico’s most booming resort areas. Famed for the dramatic Arch rock formation and desert-meets-ocean landscapes, Cabo attracts a high-end clientele (the average hotel room rate here is the highest in Mexico, reflecting its upmarket status ). The real estate market is correspondingly upscale: lavish oceanfront villas in gated communities (Pedregal, Palmilla, etc.) often range from $2M to $10M+, and luxury condos or townhomes can start around $500K and quickly climb past $1M depending on view and amenities. Despite the hefty price tags, demand remains strong – many properties double as income-generating vacation rentals, thanks to Cabo’s year-round popularity for fishing tournaments, golf getaways, and celebrity sightings. Additionally, ongoing development along the tourist corridor between Cabo San Lucas and San José (including new resorts and golf course communities) continues to open opportunities for investors. From trendy marina-front entertainment complexes to boutique hotels and high-yield rental villas, Cabo offers a slice of the premium market with global appeal.

Investment Highlights:

  • Exclusive beachfront villas and estates that cater to affluent international buyers and luxury rental clientele.
  • Upscale condominiums and resort residences (many with rental programs) yielding solid returns in a market with high nightly rates.
  • Development parcels and land along the Los Cabos Corridor, ideal for new luxury hotels, golf resorts, or mixed-use projects targeting this booming destination.
The coastline of Cabo San Lucas with luxury resorts and the famous Arch
The Cabo San Lucas coastline – a playground of luxury resorts, golf courses, and high-end real estate amid stunning natural scenery.

Cabo Pulmo (East Cape, Baja California Sur)

On the quieter side of Baja Sur’s “East Cape” lies Cabo Pulmo, a tiny village renowned for its national marine park – one of the most vibrant coral reefs in North America. This UNESCO-protected area offers spectacular diving and snorkeling, and an escape from the bustle of Los Cabos. Real estate in Cabo Pulmo is about embracing eco-conscious living and future appreciation. Development is carefully managed due to environmental protections, but the market has been growing steadily over the past decade seek out off-grid beach homes, bungalows, or small parcels to build sustainable retreats. Prices here can be more accessible: for example, lots have been available from around $100K, and cozy beach casitas or bungalows often fall in the mid six figures – a bargain for ocean proximity. The economic upside is promising: as more people discover Cabo Pulmo’s unspoiled beauty, rental demand for eco-lodges and vacation homes is climbing. Investors who value preservation and tranquility are drawn to opportunities like small eco-resorts, dive shops, or solar-powered villas. While you won’t find mega-developments here (and that’s a good thing), Cabo Pulmo represents a chance to get in early on an emerging market where nature sets the pace and property values gradually rise alongside sustainable tourism.

Investment Highlights:

  • Eco-tourism lodges and dive-centric guesthouses capitalizing on the area’s protected coral reef and marine life attractions.
  • Private vacation homes and casitas appealing to retirees and adventure travelers seeking a serene, off-grid lifestyle.
  • Relatively affordable land parcels (compared to Cabo proper) for development, with real estate values in Baja Sur rising ~8-9% annually in recent years.

Los Barriles (East Cape, Baja California Sur)

About an hour north of Cabo Pulmo on the Sea of Cortez is Los Barriles, another East Cape gem quickly shedding its “sleepy fishing village” past. Los Barriles is famous among windsurfers and kiteboarders for its steady winds, and it’s gaining popularity as a laid-back alternative to Cabo’s hustle. The town offers miles of tranquil beaches, and its surrounding hills are dotted with a mix of modest casitas and upscale second homes. A new marina and a luxury resort (the Four Seasons in nearby La Ribera) have recently put the East Cape on the luxury map , raising interest and property values in Los Barriles and environs. Even so, prices remain attractive relative to Los Cabos: you can find beachfront lots and single-family homes here at a fraction of Cabo prices. Quaint two-bedroom homes can be found in the $300K–$500K range, while larger ocean-view villas might range from $600K up to $1M depending on size and finish. The real estate market is evolving from purely local to more international – retirees from the U.S. and Canada are increasingly calling Los Barriles home, drawn by the relaxed lifestyle and lower cost. With infrastructure improving (paved roads, fiber internet) and tourism growing, Los Barriles offers investors a chance at both capital appreciation and rental income, especially during the winter high season when wind sports enthusiasts and anglers flock to town.

Investment Highlights:

  • Beachfront and hillside homes that appeal to kitesurfers, sport fishermen, and retirees seeking tranquil Sea of Cortez views.
  • Small boutique resorts or B&Bs catering to adventure tourists (fishing charters, windsurfing) in a less crowded setting.
  • East Cape growth catalysts (new marina, luxury resorts in La Ribera) boosting regional profile, making Los Barriles real estate a timely investment.

Todos Santos (Baja California Sur)

On the Pacific coast of Baja Sur, about an hour from Cabo San Lucas, lies Todos Santos – a designated “Pueblo Mágico” celebrated for its art galleries, surf breaks, and the historic Hotel California. This charming town offers a serene, bohemian atmosphere that has been luring investors away from the overly developed Cabo area. Todos Santos’ real estate market saw a remarkable surge during the pandemic era: home prices in the region more than tripled between 2019 and 2022  as remote workers and expats “discovered” the town’s magic. Although the market corrected slightly (prices dipped about 20% from their peak by 2024 ), the long-term trajectory remains strong. Boutique hotels and upscale B&Bs have sprung up in the historic center, catering to travelers seeking authenticity and tranquility. Meanwhile, luxury home developers have picked up large lots in the hills and along the coast near Cerritos Beach to create high-end villas and retreats with panoramic ocean views. The average home in Todos Santos now costs around the high six figures to over $1M, depending on location and style, but smaller casitas can sometimes be found in the $300K–$500K range. Notably, Todos Santos and the surrounding area accounted for about 28% of all land sales in Baja Sur over the last five years , as the government has earmarked it (and the East Cape) for further growth to relieve pressure on Cabo. This means improved infrastructure (roads, utilities) is on the horizon, which will only enhance property values. For investors interested in boutique hospitality, upscale second homes, or even organic farm-to-table ventures, Todos Santos offers a fertile ground.

Investment Highlights:

  • Charming boutique hotels and inns taking advantage of the town’s artsy reputation and growing tourist numbers.
  • Upscale homes and ranch properties with Pacific Ocean views, attracting luxury buyers seeking a peaceful retreat.
  • Untapped development parcels around the town and nearby beaches (e.g., Cerritos) as infrastructure improves and government incentives encourage sustainable growth .

San Pancho (San Francisco, Nayarit)

North of Puerto Vallarta in the lush Riviera Nayarit lies San Francisco – affectionately known as “San Pancho.” This idyllic beach town, with its golden sands and tight-knit community, was once a well-kept secret. In recent years, however, San Pancho’s profile has skyrocketed as an upmarket alternative to its busier neighbor, Sayulita. The town retains a tranquil, authentic vibe (no big resorts or chain stores in sight), which is exactly its appeal. Real estate in San Pancho has consequently become an exclusive market: inventory is limited and demand is high. In fact, local property prices increased roughly 200% over the last 10 years , and in 2021 the average home sale price here was about $925K USD. Expect to find stunning bespoke villas, chic bungalows, and a few small condominium projects tucked into the jungle and hillsides. Many homes feature traditional Mexican design blended with modern luxury – think infinity pools overlooking the ocean and open-air palapa living spaces. San Pancho’s rental market is “on fire,” with very few hotels and a thriving vacation rental scene that commands premium nightly rates (the median is around $150/night on Airbnb). Investors focusing on luxury vacation rentals or eco-boutique hospitality can achieve success here, but should be prepared for higher upfront costs given the town’s exclusive reputation. The payoff is owning a piece of a true gem on the Pacific coast, where growth is steady and carefully managed to preserve the magic that makes San Pancho so special.

Investment Highlights:

  • High-end vacation villas and estates that offer seclusion and luxury – ideal for upscale rentals or second homes.
  • Small eco-boutique hotels or retreat centers catering to yoga, wellness, and surf enthusiasts, leveraging the town’s serene vibe.
  • Strong short-term rental demand with limited supply – affluent travelers are willing to pay top dollar for accommodations in San Pancho’s exclusive setting.

References

Back To Articles >

Latest Articles

Brevitas Farm Properties Investing in Specialty Crop Agricultural Properties: A Guide for Real Estate Investors
Real Estate Marinas Top Real Estate Investment Markets Near the World’s Best Marinas
NNN Properties The Most Internet-Resistant NNN Properties for Long-Term Investment