This is one of those questions that is impossible to answer based on the wide range of possibilities. But to be brief, it is much cheaper in Mexico to construct a house. Labor costs are where you save the most. Depending on what part of Mexico you are building, a day of labor can cost 300 pesos to 1000 pesos. That is what an hour can cost in many countries of the world. Materials cost similar to global standards because of globalization, just in Mexico you usually use less materials in a home construction. Also, in Mexico there are always alternatives to most costly materials. 

The cost to build a house in Mexico can vary widely depending on several factors, including the location, size, materials used, labor costs, and the specific features of the property. Construction costs can differ significantly between urban and rural areas, and prices may also be influenced by the region’s availability of materials and local building codes. For example, in some places of Mexico the permits for construction can range from $0-$10,000 USD. Some rural areas have no permit process, while in cities like Playa Del Carmen, it can be extensive and thorough. 

As a rough estimate, construction costs in Mexico can range from $500 to $1,500 per square meter (approximately $46 to $140 per square foot), but these figures are generalizations. In more upscale areas or tourist-oriented areas, construction costs are higher.

How to save on building a house in Mexico

Here are some tips on how to save money when building in Mexico. 

• Work with local crafts people and architects that know the climate and how materials work in your climate. 
• Working with local materials and using what is available can cut cost considerably. 
• Mexico for the most part is a warm climate. There can be a lot of time spent outdoors. Have spaces that are open can help you cut cost and enjoy nature more. An example might be an outdoor cooking area or outside shower. 
• Take all the factors into consideration before buying property. Beachfront can come with many building restrictions and added costs for example. Colonial cities and towns all have different historical restrictions that have to be factored into the design. 
• Do it right the first time. This can mean doing it with quality the first time or just doing it right. It costs more to do the same things twice with cheap products than once with a good product. 
• Open floor plans, less doors, moldings, open kitchen cabinets, and details will all cut costs almost by 20%.
• Most homes in Mexico have tile floors. Tile can range from 150 pesos a square meter to 1000 pesos or more. Tile selection can change costs a lot. Or perhaps you would like polished concrete floors. This option can save thousands of dollars in materials and look good as well. 

In Mexico, foreigners can own property, including houses, within a restricted zone that extends 100 kilometers (about 62 miles) from the country’s borders and 50 kilometers (about 31 miles) from its coastlines. This restricted zone was established to protect national interests, and within this zone, foreigners traditionally could only acquire property through a bank trust known as a “fideicomiso” or through a Mexican corporation. This costs about $500-$800 USD a year in a payment to the bank. 

Under the bank trust system, a Mexican bank holds the legal title to the property on behalf of the foreign buyer. The buyer, however, maintains all ownership rights, can sell the property, and pass it on to heirs. The bank acts as a trustee, ensuring that the foreign owner’s interests are protected. There is a yearly fee for the fideicomiso that you pay to the bank. This added expense is offset by the low property taxes in Mexico. 

If you buy outside of the restricted zone (more in the center of Mexico), you do not need a fideicomiso and you hold the title directly. However, most foreigners like living near the beaches where many popular tourists’ resorts are.