On August 28, 2024, Mexico City Official Gazette published several amendments to Mexico City’s Civil Code (Código Civil para el Distrito Federal) and Mexico City’s Housing Law (Ley de Vivienda para la Ciudad de México).
Based on official data, local lawmakers claim that rent prices in Mexico City have increased twice the annual inflation rate on average and, in some areas, they have tripled in value. This has generated a gentrification phenomenon. In this context, Mexico City’s legislature hopes for the approved reforms to curve this phenomenon and solve the claimed excessive rent prices increase.
For this purpose, article 2448 in sections D and F of the Civil Code for the Federal District were amended:
- The maximum annual rent increase will never be greater than the inflation rate reported by Mexico’s Central Bank in the previous year.
- Lease agreements would have to be registered in a digital platform at least 30 days after entering into the agreement. This obligation will be borne by the lessor.
Amendments will be applicable to residential Real Estate leases, only and thus will not apply to commercial lease or leases for other purposes.
In addition, provisions in Mexico City Housing Law were amended to expand the Government’s obligations in the face of housing shortages for certain sectors of the population to guarantee them housing.
If you have any questions regarding the contents of this Alert, please contact:
Omar Aguilar (oaguilar@pcga.mx)
Matisse Flores (mflores@pcga.mx)
1 Based on data from the Housing Price Index of Sociedad Hipotecaria Federal and Banco de México.
