Mexico City, with its rich history, cultural offerings, and growing economy, remains a magnet for travelers from around the globe. Like any market, its short-term rental landscape is subject to fluctuations and changes. Keep reading for an analysis of the first quarter of the current year, exploring the trends shaping the market and the outlook for the next quarter.
Mexico City continues to exhibit an upward trend in the number of reserved nights, with an annual growth of 7%. However, the number of available listings continues to increase each year, by 19%.
This imbalance of supply surpassing demand has led to a decrease in year-on-year occupancy (-8%) and prices (-11%), adversely affecting unit incomes in the market, decreasing by -22% year-over-year.
Supply: Despite an ongoing increase in available nights (+11%), the growth rate in the first quarter has decreased compared to the previous year.
Demand: Although there is a year-on-year increase in the number of reserved nights, it has not been able to keep up with the growth of new listings, resulting in a continued decline in occupancy rates. This trend has contributed to a decrease in rates (-11%).
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