Building Costs Per Square Metre in Mexico – Turner & Townsend Statistics

PRICE $13,000,000
4 BEDROOM MANSION  with BEAUTIFUL LANDSCAPING and GARDENS
6 Full and 3 Partial BATHROOMS
INTERIOR GROSS FLOOR AREA – 22,690 Sq Ft.
LOT/YARD SIZE – 0.82 Acre(s) – 4 Bedroom Mansion in Mexico City, Ciudad de Mexico, 04100 Mexico (5)

Cost of building a house in Mexico

 The dream of having your own home is something shared by thousands of people in the world. But something even better is to have a house that you have been able to build yourself, according to your economic capabilities.

Building a house to your measure is not an easy task, and less in the cases of the middle or lower class. For this reason, in this article, we will tell you what the costs of building a house in Mexico are, what type of houses can be built, and what are the real estate projects that are already working in that country.

Types of dwellings found in Mexico and their building costs.

Mexico is one of the countries in the world that offers greater diversity in terms of the type of residential homes that can be built. This is because its population is very varied and has different types of income, which are constantly changing. Here we will show you what are the main types of homes that can be built and what their price is.

First and foremost are manufactured homes, which are very popular in middle-class residential neighbourhoods. These houses are made of bricks or other materials and are prefabricated, so they are built on the same land where you want to locate them. The maximum cost of this type of housing is 2 million Mexican pesos (101136 US dollars), although it is generally lower.

Then there are the typical brick and cement houses. These are used by the middle or upper class and are usually the most popular since they are resistant to any type of natural disaster. Mexico usually suffers from strong storms, and even earthquakes, so this is the ideal type of home to be protected. The cost can be up to 5 million Mexican pesos (252,397 dollars), in a standard size of up to 300 square metres, although this can change depending on the neighbourhood you are in.

Finally, there are houses built with wood, metal sheets, or even containers. Although they are well seen since it is a way of recycling and caring for the environment, these houses are usually built by middle-class people, who cannot afford another type of home. In addition, a problem with these homes is that they are susceptible to climate problems in Mexico. However, they have the great advantage of being very cheap, costing as little as 400 thousand Mexican pesos (20191 US dollars).

Cost of building a luxury, middle class, and low-class house.

 A residential house in Mexico City, which is the capital of the country, with a size of 400m² has an approximate value of 6 million Mexican pesos (303410 US dollars). This house would fall into the category of luxurious houses due to its large size and because it is located in the capital of the country. The cost is approximate and can increase due to different factors, such as if the people who build it prefer to use more expensive windows, or some type of imported material to carry out the construction.

A house for the middle class is usually approximately 200m² and can cost almost 2 million Mexican pesos (101136 US dollars). Again, the number may be higher or lower depending on the type of materials, but this is the average price.

Lastly, lower-class people often turn to the construction of economic houses or houses of social interest, which are approximately 100m² in size and can cost up to 600,000 Mexican pesos (30,341 US dollars). In these cases, there may even be smaller houses or mono rooms. In fact, in this calculation of 100m², it is estimated that an entire family lives, and in the case of the poorest neighbourhoods in Mexico City, it may be that members of more than one family live.

Major residential housing projects in Mexico (Proposed projects and those under construction)

 Mexico has more than 1000 real estate projects that are currently under development, some are already in the construction process or close to completion, and others are still waiting to start the construction process.

For example, there is the ODP Apartments apartment complex project that began in 2018 in Mexico City, promoted by the architects of the Michan Architecture group. There is also the CH-REURBANO project promoted by the architects Cadaval & Solà-Morales in Mexico City, and it also seeks to offer a large number of low-cost apartments. Finally, there is also the Sinaloa Building project. In all cases, real estate projects for buildings are the ones that are happening the most today, due to the needs of the Mexican population.

Real estate/residential market analysis in Mexico

 The COVID-19 Pandemic affected all parts of the economy worldwide, but in the case of Mexico, one sector that suffered was the real estate market. Still, even though there was a drop in home values, both new and used, it wasn’t as bad as expected. The values ​​fell momentarily during the year 2020 but immediately went up, favouring the owners and the real estate companies from all over the country. Especially those residential building projects in Mexico City, which saw a sales boom and an increase in their shares during the year 2021.

To give more exact examples, properties with prices not exceeding 3 million pesos experienced an increase in demand, consequently achieving increases of between 5% and 8% in their values, concentrating in turn 44% of the purchases made in the sector.

Thanks to the political measures of the Mexican government, and the support of the private sector, the Mexican real estate market is expected to grow even more during the next few years. The expectations of maintaining attractive interest rates for the real estate sector, together with the application of favourable monetary policies, encourage the approval of this type of credit, which in turn will be reflected in the growth of real estate prices.

This is how the Mexican real estate market is currently, and this is the type of homes that can be built and their different prices in the year 2022. However, this can be modified over time, and remember that at the end of the day one You can build any type of house you want, although costs can vary widely, especially in a country like Mexico.

Building Costs Per Square Metre in Mexico 2022

The cost of building residential, commercial, educational, hotel  and industrial buildings is shown below in Mexican Pesos (MXM) per square metre. The cost of building a house in Mexico ranges from MX$ 9,913 per m2 to MX$ 19,198 per m2.

Building Costs Per Square Metre in Mexico_Turner and Townsend 2019

Building Costs Per Square Metre in Mexico_2022

Airports (Building only)

Domestic terminal, full service – MXM 47,758 per m2

Low-cost carrier terminal, basic service – MXM 35,094 per m2

Car parks            

Multi-storey – above ground – MXM 8,522 per m2

Multi-storey – below ground – MXM 16,238 per m2

Commercial      

Offices – Business Park – MXM 11,920 per m2

CBD Offices – Up to 20 floors medium (A-Grade)               – MXM 19,198 per m2

CBD Offices – High Rise Prestige – MXM 27,910 per m2

Education           

Primary and secondary – MXM 15,614 per m2

University – MXM 23,001 per m2

Hospitals            

Day centre (including basic surgeries) – MXM 21,669 per m2

Regional hospital – MXM 28,170 per m2

General hospital (e.g. city teaching hospital) – MXM 40,630 per m2

Hotels 

3 Star travellers – MXM 19,624 per m2

5 Star luxury – MXM 34,000 per m2

Resort style – MXM 39,722 per m2

Industrial           

Warehouse/factory units – basic : MXM 10,557 per m2

Large warehouse distribution centre – MXM 11,730 per m2

High-tech factory/laboratory – MXM 50,056 per m2

Residential        

Individual detached or terrace style house – medium standard: MXM 14,417 per m2

Individual detached house – prestige: MXM 19,198 per m2

Townhouses – medium standard: MXM 12,440 per m2

Apartments – low-rise medium standard: MXM 9,913 per m2

Apartments – high-rise: MXM 13,917 per m2

Aged care/affordable units – MXM 12,159 per m2

Retail   

Large shopping centre including mall – MXM 19,800 per m2

Neighbourhood including supermarket – MXM 15,450 per m2

Prestige car showroom – MXM 24,551 per m2