Investing in the Heart of Mexico: 2026 Oaxaca Real Estate Guide

Oaxaca is no longer just Mexico’s most vibrant cultural destination; it is a goldmine for the real estate sector. Whether you are seeking the colonial charm of the capital or the laid-back lifestyle of its coasts, the state offers competitive Returns on Investment (ROI) and an unparalleled quality of life.

Oaxaca City: Heritage and Appreciation

The state capital is a magnet for digital nomads and art lovers. The Historic Center remains the most prestigious area, where restored colonial mansions are ideal for boutique hotels or luxury rentals.

• Average Sale Price: Properties in the city average approximately $4,654,804 MXN.
• High-Demand Areas: Colonia Reforma and San Felipe del Agua lead the modern market, with homes ranging between $120,000 and $450,000 USD.

The Xochimilco and La Noria neighborhoods have also seen an increase in property value and have become a hub for various investors.

• San Felipe del Agua: Renowned for its tranquil atmosphere and safety, its average rents are the highest in the city, with luxury apartments exceeding $25,000 MXN per month for long-term leases.
• Xochimilco Neighborhood: This artisanal neighborhood, located near the Historic Center, offers properties with high vacation rental potential (Airbnb) thanks to its authenticity. The average vacation rental return on investment (ROI) in this area is estimated at 7–9% annually.
• La Noria: Ideal for vertical housing developments or co-living projects due to its excellent connectivity. Land values here have increased by an average of 15% year-over-year during the last two years.

•  
• Why Invest: The city has seen a boom in co-living spaces and mixed-use developments catering to a growing international community.

Puerto Escondido: The New Global “Hotspot”

Once a quiet surf town, Puerto Escondido has transformed into a dynamic market with an accumulated appreciation of over 100% in the last five years.

• Average Sale Price: Houses average $3,906,000 MXN in areas like San Pedro Mixtepec. Oceanfront condos typically range from $150,000 to $400,000 USD.
• Yields: Properties in areas such as La Punta and Bacocho generate annual rental yields between 8% and 12%.
• Key Insight: Puerto offers entry costs up to 40-60% lower than destinations like Playa del Carmen, but with similar or higher growth potential.

Huatulco: Sustainable Luxury and Exclusivity

Huatulco stands out for its 9 bays and its eco-friendly, planned urban development. It is the preferred destination for those seeking safety and impeccable infrastructure.

• Average Sale Price: The average property value is $2,326,516 MXN. However, the price per square meter is among the highest in the state ($42,115/m²), reflecting its exclusivity.
• Luxury Market: Condos with ocean views average $580,000 USD, while luxury villas in gated communities can exceed $1.2 million USD.
• Profile: Ideal for retirees and families looking for a stable investment with access to internationally certified beaches.

Why Buy Now?

The opening of new highways and the expansion of the city’s airport are significantly reducing travel times and skyrocketing land values in the Central Valleys and along the Coast. Buying in Oaxaca is not just a real estate transaction; it is an investment in culture, gastronomy, and a future of steady growth.