Mayo 20, 2025
Sales Department
Investing in real estate in Mexico isn’t just about buying a beautiful property — it’s about return, profitability, and long-term strategy. One of the most important indicators to evaluate a real estate investment is ROI (Return on Investment). But what kind of ROI can you realistically expect in key markets like Oaxaca, Mexico City, or beach destinations?
What is ROI in Real Estate?
ROI measures how profitable your investment is. In real estate, it’s typically calculated as:
ROI = (Net annual income / Total investment cost) x 100
A “good” ROI varies depending on location, property type, rental strategy (long-term vs. Airbnb), and appreciation potential.
Average ROI by Location in Mexico
Mexico City (CDMX)
- Investment type: Apartments in areas like Roma, Condesa, Polanco.
- Long-term rental: ROI between 4% and 6% annually.
- Short-term (Airbnb): ROI from 8% to 11%, depending on occupancy and seasonality.
- Pros: Constant demand from professionals, students, and tourists.
- Risks: Higher acquisition costs and growing regulations on short-term rentals.
Beach Destinations (Puerto Escondido, Tulum, Playa del Carmen)
- Investment type: Villas, condos, and vacation rentals.
- Airbnb (well managed): ROI between 10% and 14% annually in high-occupancy zones.
- Appreciation potential: 6% to 9% annually in emerging areas.
- Pros: High tourism demand and attractive lifestyle appeal.
- Risks: Off-seasons and higher operational costs (maintenance, utilities, marketing).
Oaxaca City
- Investment type: Colonial homes, modern condos in the city center.
- Short-term rental: ROI from 9% to 12%, especially in historic areas like Centro and Xochimilco.
- Appreciation: 7% to 10% annually in restored buildings and presale developments.
- Pros: Year-round cultural tourism, limited competition in the luxury segment.
- Risks: Lower inventory and more artisanal real estate processes.
What Factors Influence ROI?
✔️ Strategic location — Close to attractions, restaurants, and transportation.
✔️ Design & Furnishing — Well-decorated properties perform better on Airbnb.
✔️ Professional management — Maximizes occupancy and reduces wear.
✔️ Seasonal pricing — Smart dynamic pricing improves yearly returns.
Final Thoughts
If you’re looking for high returns and growth potential, Oaxaca and beach destinations offer excellent opportunities, especially for short-term rentals. On the other hand, if you prefer stability and liquidity, Mexico City remains a solid market for long-term rentals and capital appreciation.
Pro Tip: Always calculate ROI based on actual data, not assumptions. If you want support analyzing or choosing the right investment, SILMÉXICO is here to guide you every step of the way.
