Rising Interest from Foreign Buyers in Mexico
More and more foreigners are choosing Mexico as a destination to invest, settle, or diversify their assets, pointing towards a strengthening relationship between Mexico and the United States in the real estate market.
According to Realty One Baja & Pacific, over 40,000 properties in Mexico were purchased by foreigners in 2024, with approximately 65% of these buyers being U.S. citizens.
Foreign Buyers’ Impact on Mexico’s Real Estate Market
Foreign buyers account for roughly 10% of the total real estate transactions in Mexico, estimated at around 400,000 annual sales. The international interest is concentrated in destinations like Tijuana, Mexicali, Monterrey, and Los Cabos, where foreign participation ranges from 15% to 60%, as reported by Realty One Baja & Pacific.
This trend is also reflected in international real estate portals, where 98% of searches in Tijuana and 87% in Monterrey originate from U.S. users.
Reciprocal Real Estate Investment Between Mexico and the U.S.
The real estate dynamics between Mexico and the U.S. are mutual. According to data from the National Association of Realtors, between April 2024 and March 2025, foreign buyers acquired approximately 78,100 homes in the U.S., totaling around $56 billion.
Mexico ranks third in foreign investment, only behind China and Canada. Geographically, Texas attracts 40% of Mexican investment, followed by California and Arizona.
Mariza Alvarado, commercial director of Dividenz, a firm specializing in investments, noted that with reduced interest rates and controlled inflation, U.S. real estate presents a stable asset with long-term appreciation.
“Amid global volatility, multi-family real estate remains a tangible asset that safeguards capital and generates dollar-based income. It’s an investment backed by genuine demand and solid fundamentals transcending financial fluctuations,” Alvarado emphasized.
Boosting Cross-Border Real Estate Trade
Alfredo Hernández Sotelo, General Director of Realty One Baja & Pacific, highlighted that macroeconomic factors and commercial regulations directly influence decision-making.
“This exchange fosters investment, employment, and local development; its impact on Mexico is particularly significant,” Hernández stated.
Hernández Sotelo further explained that the reconfiguration of production chains (nearshoring) has bolstered demand for assets in Mexico, not just residential but also industrial and logistical properties.
In 2024 alone, warehouse and industrial park occupancy surpassed 2 million square meters, stimulating housing and service demand in strategic corridors across Mexico’s northern regions.
Given this growing real estate exchange, Hernández Sotelo stressed the need to elevate sector standards, as seven out of ten real estate transactions originate from personal recommendations.
“International operations require trained agents, standardized processes, and trusted networks. Strengthening the agent community strengthens the market,” he pointed out.
Key Questions and Answers
- Q: Who are the primary foreign buyers in Mexico’s real estate market? A: Approximately 65% of foreign buyers in Mexico’s real estate market are U.S. citizens.
- Q: What percentage of Mexico’s real estate market sales are attributed to foreign buyers? A: Foreign buyers account for roughly 10% of Mexico’s real estate market sales.
- Q: How does the U.S. rank in terms of foreign investment in Mexico’s real estate sector? A: Mexico ranks third in foreign investment, behind China and Canada.
- Q: What factors influence foreign buyers’ decisions in Mexico’s real estate market? A: Macroeconomic factors and commercial regulations directly impact foreign buyers’ decisions.
- Q: How does the real estate market dynamics function between Mexico and the U.S.? A: The real estate dynamics are mutual, with both countries experiencing significant foreign investment.
