Buying real estate in Mexico City
People travel from all across the globe to reside in Latin America because of its cultural richness and usually relaxed lifestyle, and Mexico City is one of those places. It is a dynamic city that will leave you with a sense of tranquility as well as astonishment at what Mexican culture can exhibit and educate you about yourself. This is why looking for a permanent home should be a joyful and gratifying activity.
What does the real estate market look like in Mexico City?
There are several accommodation options in Mexico City. Nonetheless, choosing a suitable residence can be difficult due to high demand from outsiders, particularly in what people refer to as excellent locations such as San Angel, which maintains an old town elegance, Escandón, which provides access to iconic areas of the city such as Condesa, Roma, and Nápoles, and Del Valle, which is perfectly located if the city's southside appeals to you.
Buying an apartment in Mexico City is far easier than getting a detached house in the greater part of the district. This is particularly true if you're looking for a location that won't affect your budget too much. The most desirable are those in Polanco, southern Coyoacán, and Copilco, which are archetypal regions with cobblestoned streets, colonial-style influences, and more heritage than you could count.
Property prices in Mexico City
Just a few years back, in 2019, the average price for a two-bedroom apartment in Nápoles was four and a half million pesos, seven million pesos in Condesa, and seventeen and a half million pesos for a 160 m² flat in Polanco. However, as buying interest has increased in recent years, the local real estate market does vary, as it did when the city was devastated by an earthquake in 2017 and certain portions of the city were damaged far worse than others.
Prices have skyrocketed over the past few years. Buying an apartment in Mexico City, in the Cuauhtemoc district, which is just north of Condesa, will cost around 6 to 7 million pesos in 2022. In Condesa, count around 8 million if it's something small, a 3-bedroom place can be up to 15 million or more there. In comparison, a 3-bedroom apartment in Roma Norte, an equally hip district, can still be around 5 to 6 million pesos.
The current exchange rate (as of 2022) for USD would be around 19 pesos for a dollar and in EUR approximately 21-22 pesos for one Euro.
Additional costs you have to consider when buying property in Mexico City
Acquisition tax
This tax is paid upon the property value and is around 2%. This can vary depending on the state in which you purchase. This duty is payable regardless of whether the property is bought, exchanged, gifted, placed in a trust, divided, or merged.
Registry fee
The buyer must pay a 1.3 percent charge (depending on the transaction amount) to have the Public Records updated.
Notary fees
Buyers will be charged costs for service offered by the Notary Public. This is approximately 1.5 percent of the purchase value, plus the cost of the formal appraisal.
Maintenance costs
If you are purchasing a home or apartment in the building, inquire about the yearly service fees and have them in writing. Service costs can vary from $100 to $1,000 or more per year. This is based on the region and facilities provided.
Insurance
This will usually be paid once per year and depends on the insurance company, but it should be around 1500 USD.
Also, be aware of fees once you sell the property. It is best to ask a lawyer about it because the two options provided in Mexico can be a tough choice for a novice.
How to buy property in Mexico City?
As an expat in Mexico City, you can purchase a home, but you must work with a Mexican real estate agent. This is essential since they are quite helpful when it comes to talking you through the processes and constraints involved. For example, they cannot rely on government safeguards in property problems.
When you've found a suitable location, you may begin the acquisition process. It starts with making an earnest deposit, which is held by a real estate agent or the buyer's attorney. Then, a promissory agreement is drafted in which a payment schedule and fundamental parameters are specified.
Once this is signed, the seller contacts your bank to start the trust application form. Your attorney will then issue an order to the Ministry of Foreign Affairs to seek permission. A passport, a driver's license, and a recent utility bill with your name and address are required.
Once you have it, you will need to hire a public notary and a bank trust officer to review the written purchase agreement for the closing deed. The title is then given to the bank. It is strongly advised that you hire a lawyer to guarantee that all of these stages are followed appropriately.
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