San Miguel de Allende Neighborhood Home Value Guide

San Miguel de Allende Home Price Ranges by Neighborhood

Maya:

Hi viewers! welcome back to another video. I am Maya your interview host for Berkshire HathawayHome Services here in San Miguel de Allende, in central Mexico. Today we're with Greg Gunter, broker and co-owner of the sole Berkshire Hathaway Home Services office here in San Miguel de Allende. Hello Greg!

Viewers, for those of you searching for homes for sale in San Miguel de Allende, today we’d like to give you a feel for the range of prices in the various neighborhoods of our little town. Armed with that knowledge of price ranges, perhaps you’ll have a better feel for what neighborhoods to focus on when searching for a home to buy in San Miguel.

Now San Miguel has about 81 postal codes—that’s a lot for a little town of only 150,000 people—but as Greg will mention, the majority of home sales to American and Canadian expats only occur in about 13 neighborhoods of San Miguel, all of which are profiled on Greg’s web site. In fact, here’s a screen shot of the city map on his site, you’ll see them shown here and can get a feel for their proximity to the center of town.

Greg, let’s start with a general question: is there any sort of general rule of thumb buyers looking for homes in San Miguel can use as a basic guideline to pricing?

Greg:

Sure Maya, you know when I initially connect with my clients for the very first time, I always send them my Q&A Info Handbook, it’s 15 pages of questions accumulated from my clients over the years and all my buyers tell me they find it very informative. Watch for my contact at the end of the video, I’m happy to send it to you if you’ll ask.

Now, many of us expats living here—and most of my home buyers seem to look for this same home parameter—love the concept that we’re like a small European village where you can walk everywhere, and indeed that’s still true of much of San Miguel. There is substantial demand for living within about a 15-minute flat walking distance radius of the town square—here it’s called the Jardin, and it’s visually anchored by our large Eiffel-tower like icon, the pink-spired Parroquia church that you always see in tourist photos. Obviously the more demand for being within walking distance, the more expensive.

So the general rule of thumb I always tell my clients is that home values in San Miguel are based upon your sightline and walking distance to the Parroquia. If you live two blocks from the Parroquia but a big tree blocks your view, that might drop the price by $50K. And as far as walking distance, I tell my clients that even though it’s not a precise scientific calculation, home prices can drop by about $15K/$20K for every 30 seconds further walking distance you are from the Jardin! That’s why when buyers ask me how far the walking distance is for a house, I try to be as precise as possible!

Maya:

Yes, all of us locals love to walk, that’s what keeps us healthy! Ok Greg, let’s talk about price brackets and their corresponding neighborhoods. Let’s start with our real budget buyers, people that are on a lean budget. What defines a “lean” budget in San Miguel, and what neighborhoods and areas should those buyers search?

Greg:

Good point Maya, the definition of a “lean” budget can vary dramatically throughout Mexico. I sometimes get Buyers calling me hoping they can find a nice home in a good area close to Centro for $200K and I have to say we sold that home back in 1985—ha! San Miguel has been named the “#1 Small City in the World” five different years by Condé Nast Traveler, and those kind of accolades make everyone want to live here—understandably! And you know how supply & demand works—more demand means higher prices, our home values appreciate steadily every year. We’re widely considered the most expensive city in Mexico, but we’re still a value compared to the U.S., especially for cost-of-living expenses.

Let’s talk about two different home options for budget buyers. The first option would be a condominium, and the overwhelming majority of these options are on the outskirts of town, meaning they are not walking distance to the Jardin. We’ll flash some of the better known resale condo communities on screen, all these offer American style amenities, some even have on-site restaurants and spas. Condo prices for these complexes can begin at around $275,000 and run up to the mid-$300,000 range.

A minority of condo options might be found within walking distance of the Jardin, there are really only 3 or 4 larger complexes with amenities, and these can range from about $325K to $400K, I just sold a penthouse in Puente Viejo for $415K, as example. And then there are smaller 4-plex or 6-plex condo projects built as infill projects around town in areas like San Antonio or Guadalupe, they won’t have the common-area amenities but will run about the same prices.

And finally, for budget buyers let’s say below the $400K price range that don’t want to live in a condo but want a safe environment in an area of all-finished construction, look to the newer peripheral neighborhoods, like Paseo Real, parts of La Lejona, and Mesa del Malanquin, or further out of town like the villas of Rancho Los Labradores—these homes are all newer and have finished construction on all four sides of the home, making for a more attractive neighborhood environment.

Note that you will find what look on the internet like some amazing values for an attractive home and you wonder what the catch is, yes? Remember the old adage, “If it looks to good to be true, beware.” There are some rare finds like these sprinkled throughout peripheral, older indigenous communities surrounded by homes of unfinished construction—raw brick walls, rebar sticking from the roofs, more graffiti—and but these neighborhoods don’t meet the visual requirements or safety requirements of many of our buyers. Be sure you understand the neighborhood location when you see what you think is a real value!

Maya:

Yes Greg, I think the visual appeal of our city radiates out from the Jardin, too—the further out you get, the less attractive the neighborhood in some cases. Well let’s jump to what we might call our middle-tier buyers, what might they expect and where should they look?

Greg:

I think it would be fair to say our “middle-tier” would be about the $400K to $750K range, and you’ll find a far broader selection of neighborhoods with this offering, many within that magical walking distance radius. While you’ll still rarely find a home in Centro or Guadiana under that range, look to neighborhoods like the affordable parts of San Antonio and Guadalupe—because they both have areas that run higher than that—and newly gentrifying neighborhoods like Obraje and Azteca, both of which border Centro. And if you don’t mind a bit of an uphill climb, you can on occasion find homes in this price range in Balcones or Atascadero, as well as further-afield neighborhoods like El Paraiso.

Maya:

Yes Greg, I recall you saying that the uphill neighborhoods can offer better value simply because they’re uphill. Ok, what might you consider the upper-tier of the market?

Greg:

I’d say that upper-tier would range from that $750K mark up to about $1.5MM. At that price range, you clearly get closer to the Jardin and you can find smaller homes in Centro in that range. Again, the further out from the Jardin, the more value, so that might buy you an amazing estate uphill in Atascadero, Balcones and sometimes Ojo de Agua—our Beverly Hills of San Miguel—simply because it’s not a flat walk to the Jardin. And you can certainly get some great homes in the tony parts of San Antonio and Guadalupe, even in Guadiana, always in Vista Antigua.  This price range will get you better customized finishes—more natural stone, more carved cantera, more-detailed wrought iron, nicer cabinetry, better doors & windows, even some designer homes that have been upgraded by a designer’s touch.  Note that homes in this price range will be all-custom, very little will be from Home Depot, and for the size of the home it will run about 1/5th of the cost of homes on the coasts in the U.S. and about 1/3 of the costs of the central parts of the U.S.

Maya:

We used to think there were rarely homes above $1.5MM dollars in San Miguel de Allende, but that’s not so much the case anymore, is it Greg?

Greg:

My last interview with the Wall Street Journal I was saying how pre-pandemic the city only sold a dozen seven-figure homes a year, post-pandemic we are selling 35-40 seven-figure homes each year, with prices climbing to $7MM USD. I remember the first $3MM home sold in the city years ago when I stared my career here, we thought that was amazing, and we’ve sold 4 or 5 homes in just the last year alone above that figure.

I tell my clients that while we are going through the Aspenization process—getting pricier like Aspen, Colorado, another world-class destination—at least the artists, teachers and firefighters can still live in the same city here in San Miguel. And also unlike Aspen, you can still find homes here in every price range, you just need to work with a good Realtor who will show you homes within your budget range. I must advise, however, be honest with your Realtor about your expectations versus your budget. You can’t ask for a home in an all-gentrified neighborhood with a yard and garage and granite countertops and say your budget is only $400K. Search the MLS—your Realtor will share that link with you—and get accustomed to price ranges and what the homes look like and various price levels.

Maya:

Great feedback, Greg. Do you have any other parting advice for our viewers ready to buy a home?

Greg:

Yes, I’d probably stress that old real estate adage about “Location, location, location” being the overriding factor in San Miguel de Allende, more so than in the U.S. Like in the U.S., better locations are safer investments that appreciate more and will sell quicker, but the flip side is being aware of the micro-neighborhoods within a larger neighborhood. For instance, San Antonio is one of our biggest neighborhoods here—there are areas super popular with expats and areas that I will not even show to my clients, all within the neighborhood called “San Antonio.” Even within the “good” areas of a neighborhood, the safety and quality of the street can vary from one block to the next. Be sure you’re working with a very knowledgeable and trustworthy Realtor who will steer you away from those questionable areas. That’s why I always tell my Buyers, “I want you to like me three months and even three years after your purchase, that’s why I won’t show you areas that I wouldn’t buy a home for my mama.”

Maya:

And you’ve owned multiple homes here yourself Greg, so I know you have personal experience with your own pocketbook, not just as a Realtor! It seems best if home buyers always work with a homeowner Realtor, they’ve got skin in the game, so to speak!

Ok viewers, you’ve heard from Greg about four price ranges in San Miguel and what neighborhoods to focus on to meet your budget needs. Be sure to also see his video titled “The Range of Home Prices in San Miguel de Allende: From Nada to Prada” where Greg actually takes you inside a home representative of each of those price ranges, it’s a visual treat to see today’s topic in real life.

Team, be sure to visit Greg’s YouTube channel, like this video and subscribe to see more of these fun and informative videos. Great to see you again, Greg—until next time!