The price and cost of living in Mexico, part 2

Back in 2014, a great many of you reacted to our first article on the cost of living in Mexico. Just as many of you still want to know the price of this or that, and more and more of you are coming over to try settling here.

But is it really worth it financially? In this article we are only talking about Playa del Carmen and, more broadly, the Riviera Maya. It will be very different in the rest of the country: as this region is extremely touristy, prices are higher here than elsewhere, but it is also where there are the most opportunities to build a business when you come from Europe or Canada.

We arrived in Playa del Carmen in 2007 and we have watched the town and the standard of living change exponentially. You can find our first survey in part 1 of this guide.

We used the same data from two chains, Chedraui in Mexico and Carrefour in France, for Mexican and French products, taking the basic product when the brand is not specified. The exchange rate used is 1 € = 22 pesos, an average, as the peso is not a stable currency.

We end up with a gap of about 30% between the two baskets. Rather surprisingly: in 2014, the gap was close to 50%. The Mexican basket has stayed almost identical, while the French basket has clearly come down, by about 42 €. Contrary to what we often hear, not everything has gone up everywhere.

On the salary side, in Mexico as in France, they have changed little. A low salary is around 320 € in Mexico, and 700 € for an “average” salary. The number of hours is not the same (43 h in Mexico against 35 h in France), nor is the number of days off (2 weeks in Mexico against 5 weeks in France).

Property

In the Riviera Maya, this is what has changed the most. To give you an idea: when we arrived in 2007, the rent for a flat in a new building in the centre, which seemed very expensive to us at the time, was 10 000 pesos a month, the equivalent of 666 €. Today, the same building, which is no longer new, is at 900 € a month.

In the centre, it has become very hard to find somewhere to live at a good price, because most flats are rented out as short stays, which pushes rents up for locals. Today most “Playenses” live in residential areas outside the centre, behind the motorway. Count on about 450 € for a two-bedroom in those neighbourhoods, getting around by car for the shops or the beach.

Work

If you are not Mexican and have no particularly sought-after skills, it will not be easy to find a well-paid job. For expats, the best option is often to work for yourself and open your own business, which is fairly simple administratively. It is up to you to find the right idea and the right location, because competition is tough in many fields.

Healthcare and schooling

There is a public hospital if you pay into the Mexican social security system, but the care is not always the best, especially in the Riviera Maya. In the Yucatán, in Mérida in particular, the public hospital has a far better reputation. Otherwise, you will need private insurance, bearing in mind that not everything will be reimbursed: insurance covering hospital stays costs about 680 € a year.

As for schooling, state school is free, but many Mexicans prefer private schools, where the level is considered better. Count on a little under 200 € a month per child.

Our conclusion after more than fifteen years in Playa del Carmen: the cost of living has risen enormously here. It is no longer as attractive financially if you do not have a good budget to settle in. There are still opportunities, but you need to come with a solid project. For our part, we remain very happy to live in Mexico.