Mexico City Approves 22-Story Mixed-Use Tower in CBD District

Mexico City’s Urban Development Commission on Wednesday evening approved the construction of a 22-story mixed-use tower just three blocks from Metro Chabacano, paving the way for one of the most significant new projects near the city’s historic centre in years. The development, to rise at the corner of Calzada de Tlalpan and Eje Central, will combine residential units, office space, and ground-level retail in a bid to transform a long-neglected stretch of the southern perimeter of the CBD.

Strategic Location and Intense Interest

The decision lands at a pivotal moment for Mexico City’s real estate sector. With the average sale price in the area now topping MXN 55,000 per square meter, major institutional investors-including Grupo Lar and Fibra Uno-are racing to snap up land within striking distance of the CBD. The approved site sits along a key transit corridor, linking the Juárez and Doctores neighborhoods, both of which have seen sharply rising rents and new waves of café-bar openings since the pandemic. Urban planners say the triangle between Tlalpan, Viaducto Miguel Alemán, and Isabel La Católica is emerging as the next frontier for high-rise construction as space in Roma, Condesa, and Santa María la Ribera dries up.

The commission’s documents show the project will include 180 apartments, 24,000 square meters of office space across 14 floors, and a two-level shopping gallery anchored by national chain Chedraui Selecto. The public approvals process drew more than 1,200 written comments, mainly over fears of gentrification and additional traffic at the notoriously congested Chabacano-Eje axis.

By the Numbers: Prices and Demand

According to the city’s Secretaría de Desarrollo Urbano y Vivienda, the Tlalpan corridor has seen property prices jump nearly 18% in two years, driven by speculative buying and the migration of digital nomads and start-up tenants from pricier bastions like Polanco. Rental listings on Inmuebles24 show new-build apartments already topping MXN 34,000 in monthly rent, a steep climb from pre-pandemic averages. Meanwhile, the local government’s own estimates expect nearly 4,000 new residents in the immediate area by late 2028 if all planned projects are realized.

City officials confirmed new infrastructure measures for the Chabacano metro interchange are under review, with a tender for improved pedestrian walkways opening in September. Local watchdogs at Vecinos por el Centro have called for a monitoring panel to oversee construction standards and tenancy rules, citing recent difficulties with illegal Airbnb conversions in neighboring Doctores and Obrera.

Construction is expected to break ground in November, with delivery scheduled in stages, starting summer 2028. Current tenants at adjacent commercial lots, like the family-run Panadería Manolo on Calle José T. Cuéllar, have until next spring to vacate. The commission advised residents to follow updates from the Alcaldía Cuauhtémoc, which has pledged monthly public forums as designs are finalized. For buyers and renters seeking space near the city’s core, this latest approval signals both new opportunities and heightened competition as Mexico City’s inner neighborhoods continue to churn.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.