It is commonly said that the prices of homes in Mexico City are the highest in the country and in a way it is true; however, each municipality registers average values that do not necessarily fit into the logic that everything is expensive in the capital.
According to an analysis of the real estate portal Lamudi, 10% of the apartments that are offered in Mexico City, which are considered to have the highest values, manage a price above 12 million pesos; however, there are municipalities with cheaper values which are equal to or less than 1 million 290,000 pesos.
According to the Sociedad Hipotecaria Federal housing price index, the average value of a home purchase and sale operation in Mexico City was 3 million 716,235 pesos in the first half of 2023, that is, the highest average price of all the entities of the country in said period.
In Lamudi’s analysis, each municipality presents certain limits to define whether it is a cheap or expensive area in terms of apartment prices. For example, in Miguel Hidalgo and Cuajimalpa de Morelos, which are areas of high added value, the most expensive apartments are considered to be from 17 million pesos; however, in Iztapalapa and Tláhuac, which have the lowest average values, the most affordable properties are below 700,000 pesos.
For Lamudi, these data describe the price gap that exists in the real estate market in Mexico City, which is why he prepared a report to try to determine the value from which an apartment is considered to be very expensive or cheap in each area.
In this scenario, his report covered 15 municipalities in Mexico City and compares the total price at which an apartment is sold, without counting the price per square meter.
According to the analysis, the municipalities with the most expensive apartments are also the ones with the widest gap between the 10% cheapest and the 10% most expensive. For example, in Miguel Hidalgo and Cuajimalpa, an apartment is considered expensive if it exceeds 17 million 500,000 pesos, while in the first it is cheap if it has an average value of 2 million 145,000 pesos and in the second, of 3 million pesos.
Likewise, in the Álvaro Obregón delegation the most expensive apartments of the city are also presented, which can be expensive from 12 million 300,000 pesos and cheap below 2 million 200,000 pesos.
According to Lamudi’s analysis, the municipalities of Iztapalapa and Tláhuac have the most affordable prices in Mexico City, since in both, an apartment is considered cheap starting at 700,000 pesos; However, in Iztapalapa a cheap property is when its price is above 4 million pesos, while in Tláhuac it is expensive from 6 million pesos.
In this context, in at least a quarter of the municipalities, apartments are considered cheap if they are below 700,000 and 800,000 pesos, such as: Gustavo A. Madero, Iztacalco, Venustiano Carranza and Xochimilco.
Of these four municipalities, only in Gustavo A. Madero apartments considered expensive must exceed 3 million 900,000 pesos, while in the others the range for expensive departments is between 2 million 500,000 pesos and 3 million 300,000 pesos.
On the other hand, in Coyoacán and Azcapotzalco an apartment is cheap from 930,000 pesos; but the difference in prices considered high is almost double.
“While in Azcapotzalco an apartment has a high price of 3 million 200,000 pesos, in Coyoacán it must exceed 6 million 200,000 pesos,” the report reads.
Within the analysis, a quarter of the 15 municipalities analyzed manage low prices that barely exceed 1 million pesos, but their high prices remain far from the levels of exclusive areas.
For example, in the Benito Juárez district, an apartment is considered cheap starting at 2 million 400,000 pesos and begins to be expensive when it costs 7 million 400,000 pesos.
In Cuauhtémoc, the most central of the city, it is cheap from 1 million 100,000 pesos and it is expensive if it costs more than 9 million 200,000 pesos.
In the case of the Magdalena Contreras and Tlalpan delegations, an apartment is considered cheap from 1 million 200,000 pesos and 1 million 460,000 pesos, respectively. Likewise, an apartment is already expensive in Magdalena Contreras when it costs more than 10 million 750,000 pesos and in Tlalpan, from 10 million 500,000 pesos.
“This data is valuable for anyone interested in buying a property in any of its municipalities, as it allows them to understand what is expensive and cheap in each one and thus make informed decisions” Lamudi noted.
Source: El Economista
