Whether you're looking for luxury in Buenos Aires or value in Bogotá, Latin America's capital cities offer diverse real estate opportunities.

In this article, we’ll compare prices across the region’s major capitals, highlighting trends, affordability, and investment potential.

Specifically we will be analyzing Mexico, Costa Rica, Panama, Colombia, Ecuador, Brazil, Argentina, Chile, Uruguay, Peru, and the Dominican Republic.

By the end of this article, you will have a clear view of the cost of living and property landscapes across Latin America.

Mexico City - Mexico

Highly regarded for its proximity to the U.S., affordable cost of living, and established expat communities (particularly in places like Playa del Carmen, Puerto Vallarta, and San Miguel de Allende. Mexico is an attractive destination for foreigners looking to buy real estate.

• Cost of living for an expat (with rent) in city center:
  $1,631 / month.
• Cost of living for a family of 4 (without rent):
  $2,563 / month.
• Total amount of savings needed to retire (4% rule):
  $489,300.
• Rent (1 bedroom apartment) in city center:
  $935 / month.
• Property cost (city center):
  $2,811 / sqm.

San José - Costa Rica

Known for its political stability, eco-friendly lifestyle and high quality of life. Costa Rica has strong healthcare and retirement programs (pensionado program) that attract retirees.

• Cost of living for an expat (with rent) in city center:
  $1,636 / month.
• Cost of living for a family of 4 (without rent):
  $3,274 / month.
• Total amount of savings needed to retire (4% rule):
  $490,800.
• Rent (1 bedroom apartment) in city center:
  $740 / month.
• Property cost (city center):
  $1,893 / sqm.

Panama City - Panama

Panama offers tax benefits and attractive residency options for foreigners, including the famous "Friendly Nations Visa." Panam City is also a major financial hub with a stable economy.

• Cost of living for an expat (with rent) in city center:
  $2,504 / month.
• Cost of living for a family of 4 (without rent):
  $2,979 / month.
• Total amount of savings needed to retire (4% rule):
  $751,200.
• Rent (1 bedroom apartment) in city center:
  $971 / month.
• Property cost (city center):
  $2,477 / sqm.

Bogotá - Colombia

Cities like Medellín have become hotspots for expats due to the pleasant climate, low cost of living and improving infrastructure. The country's vibrant culture also adds to the appeal for many people looking to settle there.

Cost of living for an expat (with rent) in city center:
$1,186 / month.

Cost of living for a family of 4 (without rent):
$1,809 / month.

Total amount of savings needed to retire (4% rule):
$355,800.

Rent (1 bedroom apartment) in city center:
$440 / month.

Property cost (city center):
$1,697 / sqm.

Quito - Ecuador

Affordable real estate, a low cost of living, and a welcoming visa program for retirees, makes Ecuador an ideal destination for all types of people. Cuenca and the coastal city of Salinas are just some of the top destinations.

• Cost of living for an expat (with rent) in city center:
  $1,643 / month.
• Cost of living for a family of 4 (without rent):
  $2,086 / month.
• Total amount of savings needed to retire (4% rule):
  $492,900.
• Rent (1 bedroom apartment) in city center:
  $448 / month.
• Property cost (city center):
  $1,494 / sqm.

Rio de Janeiro - Brazil

Although Brazil has more complex property ownership rules for foreigners, its famous beaches, culture, and growing economy draw people from all over the world. Cities like Rio de Janeiro, São Paulo, and coastal regions are especially popular.

• Cost of living for an expat (with rent) in city center:
  $2,407 / month.
• Cost of living for a family of 4 (without rent):
  $2,148 / month.
• Total amount of savings needed to retire (4% rule):
  $722,100.
• Rent (1 bedroom apartment) in city center:
  $440 / month.
• Property cost (city center):
  $1,999 / sqm.

Buenos Aires - Argentina

Despite recent times of economic volatility, Argentina offers vast landscapes and high quality real estate at relatively low prices. Buenos Aires is a major cultural hub that appeals to foreign buyers.

• Cost of living for an expat (with rent) in city center:
  $1,569 / month.
• Cost of living for a family of 4 (without rent):
  $2,070 / month.
• Total amount of savings needed to retire (4% rule):
  $470,700.
• Rent (1 bedroom apartment) in city center:
  $479 / month.
• Property cost (city center):
  $2,460 / sqm.

Santiago - Chile

Chile's strong economy, safety, and modern infrastructure make it a top destination. Santiago, the capital is a popular destination city for expats, and the country's wine regions also add to the appeal.

• Cost of living for an expat (with rent) in city center:
  $1,954 / month.
• Cost of living for a family of 4 (without rent):
  $2,671 / month.
• Total amount of savings needed to retire (4% rule):
  $586,200.
• Rent (1 bedroom apartment) in city center:
  $524 / month.
• Property cost (city center):
  $2,592 / sqm.

Montevideo - Uruguay

Uruguay is politically stable and has a high standard of living. Areas like Punta del Este are popular for beach properties, while Montevideo attracts urban investors.

• Cost of living for an expat (with rent) in city center:
  $2,695 / month.
• Cost of living for a family of 4 (without rent):
  $3,069 / month.
• Total amount of savings needed to retire (4% rule):
  $808,500.
• Rent (1 bedroom apartment) in city center:
  $568 / month.
• Property cost (city center):
  $2,824 / sqm.

Lima - Peru

Peru offers a rich cultural heritage, diverse climates, and relatively affordable real estate options. From the bustling capital of Lima to the ancient city of Cusco and the beautiful coastal and mountain regions, Peru provides a variety of living environments and is becoming increasingly popular for those seeking an authentic and affordable lifestyle.

• Cost of living for an expat (with rent) in city center:
  $1,331 / month.
• Cost of living for a family of 4 (without rent):
  $1,972 / month.
• Total amount of savings needed to retire (4% rule):
  $399,300
• Rent (1 bedroom apartment) in city center:
  $570 / month.
• Property cost (city center):
  $1,769 / sqm.

Santo Domingo - Dominican Republic

The Dominican Republic offers an affordable lifestyle, beautiful beaches, and real estate options that cater to a wide range of budgets. It's a popular vacation and retirement destination.

• Cost of living for an expat (with rent) in city center:
  $1,926 / month.
• Cost of living for a family of 4 (without rent):
  $2,785 / month.
• Total amount of savings needed to retire (4% rule):
  $577,800
• Rent (1 bedroom apartment) in city center:
  $802 / month.
• Property cost (city center):
  $1,845 / sqm.

The Results

Putting the above data into a table format we get something like this:

However, this doesn't give us a single best country overall. To get this, we first have to normalize all of the data (between 0 and 1) by assigning weights to each category:

For this article we have just assigned an even weight to each category (0.2) but if you want to adjust the weights yourself, due to prefering certain categories (like prioritizing the cost of living for a family of 4), you can make a copy of this table and edit the weights yourself here.

Final Table

From this final table we can see that Bogota comes out as the undeniable cheapest major city to live in all of Latin America (closely followed by Lima, Quito and Buenos Aires).

Footnote:

These numbers are approximates and are 'generous' in that they assume a comfortable lifestyle where you are not actively saving or attempting to live frugally.
If you are able to earn at least the numbers mentioned here in income per month, you should be able to afford a very luxurious lifestyle in these countries.

Disclaimer

This article is for informational purposes only and should not be considered as financial or legal advice. Investing in real estate, especially in foreign countries, carries risks, and it's important to consult with a qualified financial advisor or legal expert before making any investment decisions.