July 31, 2025
On July 16, 2025, the Mexico City Government published a list of measures in the Official Gazette aimed at promoting a “livable, affordable city with local identity and roots”. According to the official text, these measures seek to lay the foundations for a comprehensive policy on housing, leasing, and the regulation of temporary accommodation. It should be noted that, although these measures have been announced, many of them will require the development of additional regulations, guidelines, and reforms for their implementation. These provisions are part of the reforms initiated in 2024, the key background of which is summarized in the following points:
Limit on the increase of housing rents
It is reaffirmed that the increase in housing rent may not exceed the annual inflation, as already established on the amendment to article 2448 D of the Civil Code for the Federal District, which was published on August, 29, 2024, which specified that said limit will be calculated based on the reported inflation by the Bank of Mexico with respect to the agreed monthly rent.
Stabilization of rent in priority areas and creating the Reasonable Rental Price Index
A Reasonable Rental Price Index will be established with the objective of stabilizing rental prices at the “Real State Tension Zones”, in other words, areas in which high speculating or displacement levels are present.
Regulation of temporary accommodation
One of the central issues discussed is the regulation of the offering of short-term housing, including those that operate through digital platforms. This measurement continues a series of structural reforms that began with the amendment to the Law of Tourism for Mexico City published on April 4th, 2024, which established obligations for hosts and platforms, including a registration requirement in a register set up by the Ministry of Tourism for properties used for temporary accommodation.
Creation of the Office of the Lessors’ Rights Ombudsman
The creation of a public and autonomous organization is announced, which aims to protect the rights of lessees and lessors with the use of functions such as mediation, legal defense, application of sanctions, and the prevention of abusive practices and illegal evictions.
Proposed Fair, Reasonable, and Affordable Rent Law
The Mexico City Government pointed out the drafting of a new integral regulation law for the leasing market, which will incorporate mechanisms to stabilize rental prices, the regulation of temporary and traditional accommodation, the protection of vulnerable communities, the supervision of digital platforms and the creation of a public oversight and sanctioning organization.
Other issues that were addressed include the amplification of the housing improvement program in low-income neighborhoods under progressive housing schemes, boosting the local economy by stimulating traditional businesses and trades with community roots, protecting cultural, historical, and artistic heritage in neighborhoods and districts, building a participatory master plan for vulnerable areas, and creating the Land and Housing Observatory to monitor the evolution of contracts, prices, and housing use dynamics.
On behalf of Corporate and Real Estate Lawyers at this Firm, we remain at your disposition to solve any questions and queries related to these matters.
Sincerely,
Juan José López de Silanes
lopez_de_silanes@basham.com.mx
Jesus Colunga
Ana Ocampo