The Mexico real estate market is really many markets at once. Beach towns, inland capitals, and border cities each move on their own clocks. Tourism and nearshoring fuel demand in different ways. That’s why prices can cool in one region while cranes rise in another. Reading a listing is only the start; the rules underneath—zoning, permits, and tenure—decide what is possible.

Zoning sets the ground truth. Cities publish land-use plans that define height, density, parking, and noise limits by block. A property’s use today may not match what the plan allows tomorrow, especially in fast-growing districts. Before buying, check the municipal plan, the cadastral record, and recent permits on the lot and its neighbors. A quiet street can shift once a corridor is up-zoned or a transit project lands nearby.

Construction quality varies. You’ll find excellent builders and also rushed projects. Ask for structural drawings, soil studies, waterproofing details, and warranties—on paper. Pre-sales can offer price gains, but they transfer risk to the buyer. Verify the developer’s track record, escrow conditions, and delivery milestones. In condos, review the bylaws, reserve fund, and pending repairs; fees that look low may hide deferred work on roofs, pumps, or elevators.

Foreigners can own property, including homes and condos. Inside the coastal and border “restricted zone,” title typically sits in a bank trust (fideicomiso) with the buyer as beneficiary, or within a Mexican company used for investment. Either path is routine. What matters is clean chain of title, accurate boundaries, and recorded liens. A notario público oversees the closing and registers the deed; treat their file review as the baseline, not the ceiling. Independent counsel and a survey are still smart.

Rents follow jobs, schools, and access. Long-term leases in major cities hinge on transit, safety, and internet reliability more than sea views. Coastal rents swing with seasons and airline capacity. Short-term rentals add another layer. Some cities welcome them with registration and taxes; others restrict them by zone or building. HOAs may ban nightly stays even when the city does not. Read both the municipal rules and the condo bylaws before you model income.

Costs are broader than the purchase price. Closing brings taxes, notario fees, bank-trust setup where applicable, and registry charges. Property tax is often modest but varies by municipality and assessed value. Utilities and HOA dues depend on building systems—think chilled water, generators, and seawall maintenance. Insurance for wind, flood, or quakes can be a small line inland and a major one on the coast.

Red flags deserve daylight. Ejido land requires extra care; regularization is possible but not automatic. Unpermitted additions can block a sale or a mortgage. Oceanfront parcels may carry federal maritime setbacks. If a seller promises “papers in process,” assume delays and price accordingly. Good deals survive due diligence; bad ones don’t.

For investors, discipline beats hype. Match the asset to your plan: personal use, long-term rental, or hospitality. Stress-test revenue against lower occupancy and higher rates. Keep cash for repairs and vacancies. For residents, focus on livability—noise, drainage, sunlight, and services on a Tuesday, not just a Saturday walk-through.