Mexico City: capping rent increases at inflation is constitutional
Cap on rent increases. Article 2448 D, second paragraph, of the Civil Code for the Federal District, applicable in Mexico City, is constitutional.
Official heading (Spanish): LÍMITE AL INCREMENTO DE RENTAS. EL ARTÍCULO 2448 D, PÁRRAFO SEGUNDO, DEL CÓDIGO CIVIL PARA EL DISTRITO FEDERAL, APLICABLE PARA LA CIUDAD DE MÉXICO ES CONSTITUCIONAL.
The ruling
A residential leasing company challenged the amendment to article 2448 D of the Civil Code for the Federal District, which caps annual rent increases at the prior year's inflation. Applying deferential review, the SCJN Plenary concluded that the measure protects the right to housing without nullifying freedom of contract.
Our take
With binding Plenary precedent, the cap stops being a litigation bet and becomes a business-model variable. It affects funds, developers and companies with residential rental portfolios in Mexico City. Real increases are limited to preserving purchasing power; margin must come from the starting rent, occupancy and cost control. We expect other states to adopt similar measures, now with constitutional backing. Review existing leases: an escalation clause above inflation is a dispute risk.
What to do
- Review escalation clauses in current Mexico City residential leases.
- Adjust rental portfolio projections to the inflation cap.
- Monitor similar bills in other states where the company holds property.
Details
- Court
- SCJN Plenary
- Type
- Binding precedent (jurisprudencia)
- Identifier
- P./J. 210/2026 (12a.)
- Digital registry
- 2032808
- Published
- October 23, 2026
- Area
- Administrative and other
- View official source ↗
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Prepared by Artegia for information only; not legal advice. Headings in English are unofficial translations. The official text is the one published in the Semanario Judicial de la Federación or the TFJA journal.