It´s hard not to fall for the style and life in Oaxaca due to its cost of living, vast culture, exquisite and mouthwatering gastronomy, world architecture, historical sites, vibrant local festivals, breathtaking landscapes, relaxing beaches, weather, safety, multicultural environment and friendly communities. Intrepid expats had begun trickling into this amazing and colorful city. They had founding a pretty colonial town, miles of golden-sand beaches, a Mexican climate tempered by offshore ocean currents and the mountain terrain to make it spring- like year around.

You will find great bang for your buck here. Daily essentials such as groceries and household items are markedly less expensive than in the U.S.A. and Canada. An expat couple can live comfortably on around $1500[1] month, depending on their lifestyle.

The same holds true real estate. Though prices are rising, they remain affordable due the depression of the peso during the last years. In fact Oaxaca offers some of the best value real estate prices in Mexico, especially compared to San Miguel de Allende and Puerto Vallarta.

There are many benefits to purchasing real estate in Mexico. The property taxes in Mexico are minuscule compared with the U.S. and Canada, usually costing just a few hundred dollars per year. It is also very easy to be exempted from paying the capital gains tax. The appreciation in many areas, especially on the coasts, can be very high, with 50% or more per annum being a realistic number. And above all, buying Mexican real estate is safe and easy, with more and more financing sources available to U.S. and Canadian residents through both U.S. and Mexican banks.

Foreigners can legally own property in Mexico, and the Mexican legal system protects the rights of foreign property owners. That means you can enjoy owning the kinds of property in Mexico that might be priced out of your budget in the U.S., including beachfront property.

Heightened interest in Oaxaca is why now the time to jump on the state´s real estate bandwagon is. You can still find reasonable priced, good value properties. But this won’t be the case for long since prices increased by 15% in last year alone. What´s more, with the U.S.A dollar at its current strength against the Mexican peso, you have even more purchasing power right now. Take a two bedrooms house to do flipping starting at $135,000 see:

Oaxaca is an eminent touristic city, there´s high demand for short term rentals right now. If you are looking to buy to rent out, the right property could yield very strong returns. You can buy and renovate a property with stunning harbor views for $200,000 -it depends of your budget- and rent it on for around $165 per night (more during high season, less during low season). If the house or apartment is booked for just seven months a year-perfectly possible, thanks to Oaxaca´s year-round mild weather- you can earn $34,574 a year: a very respectable gross yield of 8.82%. The right property could yield strong rentals returns.


With a population of 3, 801, 962 and an average annual growth rate of inhabited private homes of 2.4% Oaxaca is ranked on the seventh place of the most populated states in Mexico.  Oaxaca is the most diversified state in the country. The caves, the nice forests, the sunny valleys and the beaches make this state a very important tourist attraction. Here tourists come from all over the world to spend holidays in the warm waters of the state.

Oaxaca de Juárez has its own international airport. It can be reached by air, non-stop, from San Antonio and Houston.  Accordingly, from virtually all major cities in Canada and the US, there are two flights to get to Oaxaca; the first into the southern US, and the final leg right into Oaxaca.

There are also non-stop flights from North American cities to Huatulco and Puerto Escondido, enabling expats to arrive in the state of Oaxaca with only one flight, and then relax on the beach before flying, driving or taking public transportation to the state capital.

Oaxaca has been able to develop its own modern, cosmopolitan network of goods and services providers.

Properties in Oaxaca downtown tends to be priced at a premium, as the entire city is a UNESCO World Heritage site and is considered a prestigious address, but there are still good deals to be found.

Currently at the market there are exquisitely modernized one bedroom or two bedrooms condos in Huatulco and Puerto Escondido starting at $215,000 with a living room, kitchen, and many classic features from Oaxaca, including wood beams, beautiful worked limestone walls and diverse amenities that are part of a private and exclusive residential community characterized to be modern retreats, see:

In Oaxaca you will find also luxurious and new villas located in an exclusive development in Puerto Escondido, beach and view front, garden, pool, three bedrooms  starting at $339,000, a good deal since is part of a development with pre-construction prices.

There are also elegant and unique houses for $500,000 ready to do flipping in downtown with magnificent colonial fronts, balconies from the XVIII and XIX centuries, adobe, beautiful terraces surrounded by chic boutiques, cafés, mezcal bars, restaurants, galleries, all of them with an air of “real life”

“The right property could yield strong rentals returns”.

In Oaxaca there are plenty of options to invest in properties. For example, in Oaxaca downtown starting at $135,000 for a house ready to do flipping, in the north neighborhoods as San Felipe and Col. Reforma- recognized to be the most prestigious residential communities- for around $250,000.

Puerto Escondido and Huatulco with the best options of condos, villas, lots and residences starting at $75,000.

Properties could range from single family or multi-family homes, to flats or condos. Rental options may be available too. If you’re interested in home values, keep in mind that values might vary due the location and property type. Call SILMÉXICO to help you to find the best option for you. Contact us 51 58957, 205 6372 or at our toll free 01 800 368 2174,,

[1] All prices in USD


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