When it comes to investing in real estate in Mexico, one of the first questions that arises is: which type of property is best for me? Houses, apartments, land, or commercial spaces—each option has advantages and risks that can directly impact your profitability.
In this guide by Coldwell Banker México, we explain each type of property in depth so you can make smart decisions aligned with your budget, investor profile, and objectives (capital appreciation, rental income, resale, etc.).
Before selling your property, learn about the challenges you may face.
Houses: comfort and long-term appreciation
Investing in a house may seem like a traditional option, but it remains one of the most stable ways to build wealth. Especially in high-demand areas such as Querétaro, Mérida, León, or the metropolitan area of Mexico City, houses offer space, privacy, and higher perceived value for families.
Before continuing—are you from Mexico? If not, and you’re unsure whether you can invest in real estate in Mexico as a foreigner, learn about the advantages of doing so.
Advantages:
- More land = greater appreciation over time.
- Attractive to families seeking stability.
- Easy to remodel or expand, which increases value.
Disadvantages:
- Higher maintenance costs than an apartment.
- Higher initial purchase price.
- Not always as profitable for short-term or vacation rentals.
Ideal if: you are looking for long-term wealth, want to resell at a profit in 5–10 years, or plan to rent to families under long-term contracts.
Apartments: liquidity and high rental demand
Apartments are a favorite among many investors for a reason: they are easier to buy, maintain, and rent. In cities like Mexico City, Guadalajara, and Monterrey, demand for apartment rentals has increased by 14% annually (Lamudi, 2024).
Advantages:
- More affordable initial price.
- High demand for monthly rentals, especially in central areas.
- Maintenance managed by the building administration.
Disadvantages:
- Monthly maintenance fees.
- Lower appreciation than a house with its own land.
- Restrictions on renovations.
Ideal if: you want stable monthly income, prefer low maintenance, or want to start investing with less capital.
Land: future investment with high potential
Buying land is like planting a seed—it requires patience, but it can yield significant returns. Especially in growing areas such as Tulum, Bacalar, San Miguel de Allende, Huatulco, or Mérida, land can double in value within 5 years if you choose the right location.
Advantages:
- Lower acquisition price.
- Almost no maintenance costs.
- Maximum appreciation if located in developing urban areas.
Disadvantages:
- Does not generate immediate rental income.
- Possible legal issues if not properly researched (zoning, ejido land).
- Longer investment recovery period.
Ideal if: you have a medium- to long-term vision, can hold the land without renting it, and want to multiply your investment without urgency.
Commercial spaces: higher profitability but greater risk
Commercial properties can generate higher income than residential properties, but they also involve greater risk: they depend on foot traffic, the type of business, and the local economy.
Advantages:
- Higher returns (6%–10% annually on average).
- Longer leases with automatic rent increases.
- Lower tenant turnover if the business succeeds.
Disadvantages:
- Higher risk during economic recessions.
- Higher legal and tax costs.
- Prolonged vacancies if there is low demand.
Ideal if: you already have investment experience, know the local market, or want to diversify your portfolio beyond residential properties.
You’ve decided to invest in a house, but you should know the 5 best real estate investment areas.
Which property suits you best according to your profile?
| Investor Profile | Best Option |
|---|---|
| First-time investor with little capital | Small apartment in a central area |
| Long-term focused | Land in a high-appreciation area |
| Seeking immediate rental income | Apartment in Mexico City or Guadalajara |
| Prefer security | House in a residential gated community |
| High return appetite | Well-located commercial property |
What do the experts say?
According to the 2025 Real Estate Report by Lamudi and data from Propiedades.com:
- Apartments: offer an average return of 5.5% in Mexico City and up to 7% in tourist areas like Playa del Carmen or Puerto Vallarta.
- Land: increased in value between 8% and 12% annually in areas such as Tulum, Mérida, and the Bajío over the last 3 years.
- Commercial spaces: post-pandemic recovery has been slow in some cities, but in corridors like Polanco, Satélite, or Santa Fe, prices have returned to pre-2020 levels.
Coldwell Banker México advises you to choose your best option
At Coldwell Banker México, we understand that there is no single “best” property—only the one that fits your life plan and investment goals. That’s why our advisors are trained to help you compare real options in the most profitable areas of the country.
Whether you want to buy to rent, resell, or secure your retirement, we guide you step by step.
🔗 Want to learn more about available mortgage loans? Read our article: How to obtain a mortgage loan in Mexico
🔗 Want to know the best areas to invest in Mexico City? Discover them here: Top neighborhoods to buy an apartment in Mexico City
🔗 Are you a foreigner and want to know if you can buy? Don’t miss: How to buy a house in Mexico as a foreigner
🔗 Prefer to start with something more affordable? Read: How to buy land in Mexico without mistakes
If you’re looking to invest for your retirement, nothing beats the beach—learn about the 5 advantages of investing in tourist real estate in Mexico.
Conclusion: it’s not about the type of property, but your strategy
Each type of property has its moment, its investor profile, and its ideal context. The key is to define your goals: do you want to rent, resell, or hold long term? From there, the best real estate investment in Mexico will be the one that provides security, appreciation, and real profitability.
Don’t be swayed by trends or myths. Let yourself be guided by those who know the market.
👉📞 Schedule an appointment with a Coldwell Banker México advisor and find the best property for you
Sources:
Coldwell Banker México – internal information
