The SCJN has approved the amendments regulating rent increases and the digital registration of lease agreements in Mexico City, confirming a framework that protects affordable housing and provides legal certainty to businesses and landlords in managing their properties.
On February 25, 2026, the Plenary of the Supreme Court of Justice of the Nation (Suprema Corte de Justicia de la Nación, SCJN) ruled on Amparo in Review 546/2025, declaring the constitutionality of the amendments to the Civil Code for Mexico City regarding housing leases, published in August 2024.
Background
On August 28, 2024, a decree amending Articles 2448 D and 2448 F of the local Civil Code was published in the Official Gazette of Mexico City. These amendments introduced: (i) a cap on the annual increase of rent for residential properties, which may not exceed the previous year’s inflation rate; and (ii) the obligation to register lease agreements in a digital registry administered by the Government of Mexico City.
As a result, a company engaged in leasing residential properties filed an amparo lawsuit against the Congress of Mexico City, the Head of Government of Mexico City, the Legal and Legislative Studies Director General, and the Secretary of Government. The company argued that the amendments violated its rights to property, contractual freedom, freedom of commerce, legal certainty, and personal data protection.
SCJN’s decision
The SCJN determined that both measures are constitutional. Regarding the limit on rent increases, it concluded that the provision pursues a legitimate purpose: protecting the right to adequate housing and preventing disproportionate rent hikes that affect affordability. It further clarified that the rule does not eliminate contractual freedom or property rights, as parties may still freely determine the initial rent and other terms of the lease agreement. The SCJN emphasized that the rule neither prohibits increases nor freezes rents; it merely sets boundaries based on an objective parameter.
Regarding the digital registry of lease agreements, the SCJN held that its purpose is to collect only the information strictly necessary to identify leased properties and to verify that rent increases comply with the permitted threshold. It also stressed that the information entered into the registry must be handled under strict confidentiality and in full compliance with personal data protection regulations.
Implications
With this ruling, the SCJN confirms the validity of the regulatory framework governing residential leases in Mexico City, providing legal certainty to both landlords and tenants regarding permissible annual rent adjustments. For landlords, this requires ensuring that any rent increase aligns with annual inflation and registering their lease agreements in the digital registry. For tenants, the decision strengthens the protection of their right to affordable housing by ensuring that rents cannot rise above the inflation rate, preventing unjustified or excessive increases.
This decision not only establishes an important precedent in rent regulation but also reaffirms that legislative amendments can balance contractual freedom with the need to maintain reasonable housing affordability. The result is a clear and predictable legal framework that prevents excessive rent increases, protects tenants from unjustified variations, and contributes to greater stability and transparency in Mexico City’s housing market.
