Mexico City plans to regulate real estate market amid gentrification

“Living in Mexico City should not become a luxury,” said the mayor of the Mexican capital, Clara Brugada. In response to the anti-gentrification march held on July 4 , the city council presented a series of measures on Wednesday, July 16, aimed at regulating the rental market at a “reasonable” level, reports La Jornada .

This municipal initiative comes amid tensions surrounding property prices, fueled by the growing presence of foreigners in the city's central districts. This real estate pressure, which has risen sharply since the Covid-19 pandemic, is causing the forced departure of many residents, particularly in the emblematic districts of Condesa, Roma, and Doctores, which are gradually being transformed into tourist and residential hotspots.

Quoted by the Spanish-language version of CNN , the mayor of Mexico City specified that an “objective and rigorous methodology would be put in place to regulate temporary rentals and prevent the exodus of residents” from certain neighborhoods to more remote areas, contributing to the “loss of community identity.”

“Gentrification is one of the most significant issues in the city, and in the world, contributing to the displacement of thousands of families.”

However, according to El País América , the implementation of the program, as well as the presentation of a possible draft law, will be preceded by a broad consultation process with “social and political actors, universities, associations, and members of civil society.” The Spanish-language newspaper adds that the project will also include “negotiations” with private initiatives to combat land speculation. The newspaper notes, however, a “lack of details,” particularly on how this future law will intend to control “the activity of accommodation platforms like Airbnb.”

Although the announcement appears to be well received so far, some voices are raising concerns. This is the case of Mauricio Tabe, mayor of the Miguel Hidalgo district, which includes the highly sought-after Polanco neighborhood. Mentioned by Infobae , he warned of the potential economic consequences of the program, believing that the regulation of rental housing could slow private investment in the capital's construction and real estate sectors.

As reported by El Economista As of September 2024, Mexico City's tourism in 2022 surpassed pre-pandemic levels, with arrivals up 103% and tourist spending up 117% compared to 2019.