Oaxaca

Oaxaca de Juarez, the UNESCO-listed colonial capital of southern Mexico, has become one of the country's most magnetic inland investment stories. Its Centro Historico, gastronomy scene, and 20,000-strong expat and digital-nomad community have pushed values up 8-12% annually through 2025-2026, well above the national 6% average. Colonial homes in the Centro range from roughly USD 150,000 to USD 800,000, while restored or modern properties in Reforma and Xochimilco sit between USD 80,000 and USD 400,000. Average residential pricing works out near MXN 30,000-34,000 per m2 (about USD 1,650/m2) in the core. Gross rental yields run 6-9%, with furnished short-term lets in the Centro commanding USD 900-1,600 per month and calmer Reforma units USD 700-1,200. Because Oaxaca is fully inland and over 50 km from any coast, it lies OUTSIDE Mexico's constitutional restricted zone: foreigners can buy and hold property in direct fee-simple (escritura) title with no fideicomiso bank trust required, a meaningful saving over coastal markets. Closing costs run 5-8%, and acquisition tax (ISAI) is roughly 2-4%. With limited new supply in the protected historic core, mezcal tourism, and steady domestic in-migration, Oaxaca offers heritage scarcity plus solid cash flow.