Unlike many other large cities across the world, the real estate market in Mexico City hasn’t experienced an especially sharp downturn. While prices have dropped from their peak last year, the loss of value has been small, in the neighborhood of 2.5% to 6.5%. Because the market is largely both local and cash-based (the country doesn’t have a formal mortgage system), the downturn in the global economy has had less of an impact here.
However, the decrease in value of the peso means that real estate in Mexico City is now more affordably priced for foreign buyers looking to take advantage of a relatively stable market. Many affluent neighborhoods, such as Polanco and Coyoacán, are particularly attractive to buyers from North America, Spain, France, and China, among others. The prices in neighborhoods such as these start as low as $200 per square foot, though they rise quickly from that point.