If you’re exploring Mexican real estate, one of the biggest decisions you’ll face is whether buying land in Mexico to build your dream home makes more sense than buying property in Mexico that’s move-in ready. In this post, we’ll walk through the pros and cons of both options, based on a deep-dive conversation with real estate expert Angie Lizard, who works with our relocation clients at Entrepreneur Expat.
Why Buying Property in Mexico Is So Popular Right Now
The Mexican real estate market is booming, with over 100 properties sold to foreigners every day. Americans and Canadians lead the charge, but investors from Europe, Asia, and South America are also jumping in. With Mexico’s deregulated economy, growing infrastructure, and expanding access to credit, it’s no surprise people are increasingly buying property in Mexico as a lifestyle upgrade or investment opportunity.
The Case for Buying Land in Mexico
Buying land in Mexico offers flexibility and long-term potential. Here are the most common reasons investors choose this route:
- Customization: Build your dream home to your exact specifications.
- Price Advantage: Raw or communal land can be significantly cheaper than developed property.
- Investment Opportunity: Land purchased in earlier development phases can appreciate significantly.
However, communal land (known locally as ejido) presents unique challenges. While it can be the most profitable stage to buy, the land isn’t initially titled for private ownership. You’ll have to wait 4-5 years for services like water, electricity, and legal title conversion. Some people opt to live off-grid with solar panels and water wells, but for others, this wait is a dealbreaker.
Buying Property in Mexico That’s Ready to Go
For many people, the benefits of a turnkey home outweigh the potential upsides of buying land:
- Speed: You can move in right away, without dealing with the long development timeline.
- Certainty: All due diligence has already been done.
- Convenience: Especially for expats new to the country, buying a finished home simplifies the relocation process.
These properties typically come with all legal paperwork, utilities, and access to financing or legal support.
What to Know About Building on Mexican Land
If you go the land route, there are two paths:
- Do-It-Yourself: You buy raw land and handle everything from permits to contractors.
- Buy Into a Development: You invest in a pre-structured community where infrastructure is being installed for you.
Land prices vary widely. Near Guadalajara, you might pay millions of pesos. But 90 minutes outside the city, in tequila country, you could find plots for as little as $20,000 USD.
Key Considerations for Buying Land in Mexico as a Foreigner
Buying land in Mexico as a foreigner comes with legal considerations, especially in “restricted zones” (within 50 km of the coast or 100 km of the border). In these cases, you’ll need to use a fideicomiso (bank trust) or establish a Mexican corporation. These structures allow you to enjoy rights similar to direct ownership.
Additionally, in states like Yucatán and Quintana Roo, ecological zoning laws may restrict how much of your land you can build on (e.g., 20%-40% construction allowance).
What About Commercial vs. Residential Use?
Land development isn’t limited to homes. Many buyers in Mexico build mixed-use properties with shops on the first floor and residences above. This model is common in cities like Guadalajara, where walkable neighborhoods are the norm and zoning allows for creative mixed-use builds.
Mexico’s Real Estate Growth Is Driven by a Global Shift
From retirees and entrepreneurs to remote workers and corporate relocations, Mexico attracts a diverse crowd. Whether it’s the low cost of living, safety improvements (yes, even Mexico City is now statistically safer than Los Angeles), or business opportunities, the country is quickly becoming a global hub.
Many who buy property in Mexico find they’re not sacrificing quality of life. In fact, they’re gaining better weather, food, community, and lifestyle freedom.
Final Thoughts: Should You Buy Land or Property in Mexico?
Here’s the takeaway: if you want full customization and long-term upside, buying land in Mexico might be right for you—especially if you’re okay with delays and some red tape. If you’re more interested in ease, speed, and certainty, buying property in Mexico that’s ready to move into is the smarter move.
Whatever your preference, make sure you’re working with professionals who understand the ins and outs of Mexican real estate law and local market trends.
Need help navigating your move or investment in Mexico? Apply for a free consultation at EntrepreneurExpat.com/consult. Whether you’re buying land in Mexico or just exploring your options, we’ll help you make smart, strategic decisions.
Additional Resources:
- Start looking at properties over at Expat Property Search.
- Need help creating remote income so you can be approved for residencies and visas? Check out all of our business training programs here.