Merida, the capital of Yucatan, has transitioned from a colonial gem to a top destination for international real estate investors. Its unique blend of safety, culture, and modern amenities has captured the attention of U.S. and Canadian buyers seeking both lifestyle and financial returns. But with a market that has seen significant growth, the critical question for 2026 is: does Merida still offer a compelling investment opportunity?
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. All investment decisions should be made with the guidance of qualified professionals.
Unpacking Property Appreciation in Mérida
Merida's real estate market has demonstrated robust and sustained growth, consistently outpacing national averages. In 2025, property prices increased by approximately 9%, a trend driven by strong in-migration and a growing expatriate community. Projections for 2026 indicate continued growth of around 7%.
Certain neighborhoods are experiencing even more accelerated appreciation. Areas like Temozón Norte, Cholul, and Conkal have seen annual growth rates between 15% and 20%, fueled by luxury gated community development and proximity to modern hospitals, shopping centers, and international schools. These areas are forecasted to grow between 10% and 15% in 2026.
Over the long term, a 5-year forecast predicts cumulative growth of around 45%, and a 10-year forecast suggests a potential 110% increase in property values. This sustained growth is underpinned by a population growth rate of 3.3% annually, adding over 9,000 new households to the city each year.
Analyzing Long-Term Rental Yields
For income-focused investors, Merida offers attractive rental yields. As of early 2026, the average gross rental yield for residential properties is approximately 5.8%, with most properties falling within a 5.0% to 6.8% range. After accounting for taxes, insurance, maintenance, and management fees, the average net rental yield stands at a solid 4.2%.
Yields vary significantly by neighborhood. The highest returns are found in mid-ring family neighborhoods where purchase prices have not outpaced rental demand. Areas like Chuburná de Hidalgo, Francisco de Montejo, and Las Américas offer gross yields in the 6.5% to 8% range. Prestige neighborhoods in the north, such as Montebello and Altabrisa, typically see compressed yields between 4% and 5.5%.
The Short-Term Rental Market: An Airbnb Deep Dive
The rise of remote work and experiential travel has made the short-term rental market viable and often lucrative in Merida. According to AirROI data, the median annual revenue for an Airbnb listing in Merida is $9,481, with an average daily rate (ADR) of $80 and a median occupancy rate of 43%.
Top-performing properties (the top 10%) can achieve occupancy rates of 84% or higher and command an ADR of over $156. The peak season is December, while May represents the low season.
Infrastructure, Tourism, and Future Growth
Merida's investment appeal is significantly enhanced by major infrastructure projects. The Tren Maya, a transformative railway connecting the entire Yucatan Peninsula, is set to increase tourism and accessibility. The expansion of the Port of Progreso and local infrastructure improvements are creating jobs and attracting new residents.
Tourism is on a strong upward trajectory. In 2025, Yucatan saw an 11% increase in overnight visitors, with international arrivals jumping by 25.1%.
Mérida vs. Other Mexican Markets
Merida vs. Puerto Vallarta:* Puerto Vallarta's cost of living, including rent, is approximately 31.7% higher than Merida, with rent prices being as much as 66.7% higher. Merida provides a significantly more affordable entry point.
Merida vs. San Miguel de Allende:* San Miguel's market is more mature and in many segments more expensive. Merida, with its ongoing infrastructure development, offers greater potential for emerging opportunities and value appreciation.
Merida vs. Tulum:* Tulum has experienced a market correction due to rapid, often unregulated development leading to oversupply. Merida's growth has been more organic and sustainable, providing a more stable environment for long-term investment.
Realistic Investment Scenarios
**Scenario 1: Long-Term Rental in a Growth Neighborhood**
A two-bedroom townhouse in a privada in Cholul at $150,000 USD with 8% closing costs ($12,000) yields a total investment of $162,000. At $860 USD monthly rent, gross yield is 6.8%. After operating expenses of approximately $3,000 annually, net yield is 4.8%. Combined with 7% annual appreciation, total Year 1 ROI reaches approximately 11.0%.
**Scenario 2: Luxury Short-Term Rental (Airbnb)**
A two-bedroom colonial home in Centro at $242,000 USD plus $81,000 renovation and $19,400 closing costs totals $342,400. At a $160 ADR with 65% occupancy, gross annual revenue is $37,920. After operating expenses of approximately $19,300, net income is $18,600 — a 5.4% net yield. With 5% appreciation, total Year 1 ROI is approximately 8.9%.
Key Legal and Financial Considerations
The Fideicomiso:* Foreigners purchase property through a bank trust, which grants full ownership rights. The trust is established for a 50-year renewable term.
Closing Costs (5–8%):* Include acquisition tax (2.5%), notary fees, trust setup fees, and registration fees.
Financing Options:* Developer financing, seller financing, Mexican bank mortgages, and cross-border mortgage specialists like Global Mortgage (MoXi) are available.
A Market of Strategic Opportunity
Merida's real estate market in 2026 remains compelling for the strategic investor. The key is buying the right property in the right location with a clear strategy. For those willing to do their due diligence and take a long-term view, Merida offers a unique opportunity to build wealth in a market that is both growing and resilient. The team at Yucatan Real Estate Group can provide the expert guidance necessary to navigate this dynamic market and achieve your financial goals.