Last updated on June 21st, 2023
best places to airbnb in mexico
Key Takeaways
• Mexico City is a leading economic hub in Latin America that offers an attractive real estate market and a solid tourist market. Thanks to this, many Airbnb hosts can earn a good passive income by owning short-term rental properties.
• Discover the advantages that real estate investors can enjoy when investing in the real estate market in Mexico City.
• Get to know the top 10 most profitable areas in Mexico City along with their recommended property types, average prices, and specific Airbnb data.
Introduction
Nestled in the Valley of Mexico lies the capital and largest city of the United Mexican States, Mexico City, also known as CDMX. The city is one of the most important economic centers in Latin America as well as a bustling tourist destination.
Mexico City is home to impressive natural resources, rich culture, important heritage sites, and of course, one of the most delicious cuisines in the world. Thanks to the stable financial situation, solid tourist market, and the arrival of digital nomads to the city, the rental market in Mexico City remains strong.
Furthermore, the Mexico City Government is working alongside Airbnb and UNESCO to position the city as a global hub for remote workers and develop its experiences as the Capital of Creative Tourism.
Still, there’s an important factor that you should consider before taking the next step in your journey – where are the most profitable areas for real estate investments in Mexico City?
In this article, we’ll reveal the best places to Airbnb in Mexico City and some of the expectations when investing in real estate around this location. Eager to learn more? Continue reading!
Why should you consider owning a rental property in Mexico City?
Buying investment properties in Mexico City is an amazing way to build your path toward financial freedom because it offers a good return to investors. Mexico has an impressive cultural heritage and a rich historical background. But aside from that, what are the advantages that CDMX offers to real estate investors?
Check out some of the reasons why buying real estate in Mexico City is a profitable idea:
Leading economic hub
CDMX is an important economic hub in Mexico and the rest of Latin America, contributing over 15% to the country’s GDP. The city is home to a variety of major corporations across various sectors and is also regarded as the best city in Central America for startups.
Mexico City concentrates most of the important national companies and international organizations are also headquartered here. This allows the city to have a strong job market with a wide variety of employment opportunities. This includes the services, manufacturing, commerce, agriculture, energy production, tourism, and financial sectors.
Attractive real estate market
Mexico City offers a wide variety of housing options with different price ranges that go from 1,200,000MXN ($66,274) to 15,000,000MXN ($828,427). The city enjoys a robust economy with a healthy labor market and steady population growth. Thanks to this, the real estate sector and the rental market remain strong.
If you’re a foreigner eyeing this rental market, you should know that is perfectly legal to buy an investment property in Mexico City. However, it’s prohibited to own properties in restricted zones (areas close to the coast or national borders) unless you purchase it through Fideicomiso.
Plenty of things to do
Looking for exciting sporting, cultural, or artistic events? Because you will love to learn that Mexico City is an epicenter for a plethora of renowned festivals such as the Day of the Dead!
As one of the most visited cities worldwide, Mexico City can cater to everyone’s taste! From rich cultural and historical heritage to an extraordinary arts and cuisine scene. In fact, we can all agree that CMDX is indeed a foodie’s paradise since it owns one of the most exquisite gastronomies. Aside from magnificent restaurants, there’s also no lack of museums, theaters, art galleries, and iconic landmarks.
Is Airbnb Profitable in Mexico City?
Are you wondering if investing in real estate in Mexico City could eventually lead you to a financially rewarding experience? The answer is yes! That being said, we must point out that the level of profitability depends on other factors such as your property type and location.
Based on Airbtics’ data, an Airbnb host can expect an average annual revenue of $15,517 (281,837 MXN) and a median occupancy rate of 76% for operating a 2-bedroom property in Centro, Mexico City.
Best Places to Invest in Real Estate in Mexico City
CDMX is the largest city in Mexico and is divided into 15 municipalities, which in turn include over 300 neighborhoods. Hence, it’s understandable if you’re struggling to choose the best place to set up your rental property in Mexico City.
Check out the best places to invest in rental properties in Mexico City and are recommended for starting an Airbnb business:
1. Colonia Condesa
- Total Number of Airbnb Listings: 739
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $320,703 (5,800,000 MXN)
- Airbnb Annual revenue: $30,680 (555,510 MXN)
- Gross rental yield: 9.6%
2. Polanco
- Total Number of Airbnb Listings: 640
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $439,584 (7,950,000 MXN)
- Airbnb Annual revenue: $27,769 (502,924 MXN)
- Gross rental yield: 6.3%
3. Roma
- Total Number of Airbnb Listings: 2,281
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $287,527 (5,200,000 MXN)
- Airbnb Annual revenue: $27,749 (502,562 MXN)
- Gross rental yield: 9.7%
4. Juarez
- Total Number of Airbnb Listings: 963
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $232,233 (4,200,000 MXN)
- Airbnb Annual revenue: $19,421 (351,734 MXN)
- Gross rental yield: 8.4%
5. Napoles
- Total Number of Airbnb Listings: 380
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $237,762 (4,300,000 MXN)
- Airbnb Annual revenue: $18,827 (340,976 MXN)
- Gross rental yield: 8%
6. Doctores
- Total Number of Airbnb Listings: 194
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): $87,364 (1,580,000 MXN)
- Airbnb Annual revenue: $17,108 (309,843 MXN)
- Gross rental yield: 19.6%
7. San Rafael
- Total Number of Airbnb Listings: 193
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $182,469 (3,300,000 MXN)
- Airbnb Annual revenue: $16,359 (296,278 MXN)
- Gross rental yield: 9%
8. Centro, Mexico City
- Total Number of Airbnb Listings: 1,036
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): $150,399 (2,720,000 MXN)
- Airbnb Annual revenue: $14,061 (254,597 MXN)
- Gross rental yield: 9,4%
9. Del Valle Centro
- Total Number of Airbnb Listings: 238
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $212,880 (3,850,000 MXN)
- Airbnb Annual revenue: $13,064 (236,602 MXN)
- Gross rental yield: 6.1%
10. Del Carmen
- Total Number of Airbnb Listings: 268
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): $176,663 (3,195,000 MXN)
- Airbnb Annual revenue: $11,756 (212,913 MXN)
- Gross rental yield: 6.7%
Summary
Overall, CDMX’s real estate market offers a variety of housing options, prices, and plenty of profitable locations that can help investors to obtain a good return on investment by setting up an Airbnb listing.
After finding out the best places to Airbnb in Mexico City, go ahead and check Airbtics’ Airbnb profit estimator. Stand out among your competitors and maximize your profitability by improving your strategies!
