Buying or leasing a property—whether for living, opening a business, or developing a real estate project—goes far beyond location or price. One key element that is often overlooked is verifying the land use designation. Ignoring this can lead to financial losses, endless legal issues, or even being unable to open to the public and/or facing closures. But what exactly is land use, and why is it so important?
What is land use?
Land use is the legal authorization that determines what type of activities can take place on a specific plot of land or property, in accordance with the urban planning regulations applicable in that location. In other words, it is the classification that indicates whether a site can be used for residential, commercial, industrial, mixed-use purposes, or for urban infrastructure, green spaces, or public facilities, among others.
This tool is part of urban planning and aims to regulate city growth, avoid conflicts between incompatible uses (for example, a factory next to a hospital or a bar next to a school), and protect the environment.
What does land use regulate?
Land use regulates several key aspects of how a plot of land may be developed or used:
- Permitted activities: Whether you can establish a business, residence, office, warehouse, industrial facility, etc.
- Permitted construction levels: Defines the maximum building height (e.g., 3 stories or up to 15 meters).
- Population or construction density: Number of housing units, offices, or commercial spaces allowed on the property.
- Required open space: Portion of the land that must remain undeveloped (e.g., green areas or patios).
- Usage restrictions: Conservation areas, non-developable zones, or locations with historical value.
- Urban planning rules: How the property should integrate with surrounding infrastructure, roads, services, etc.
In cities like Mexico City, these criteria are set out in instruments such as the General Urban Development Program, Delegational or Partial Urban Development Programs, and at the national level through the various State Laws on Human Settlements and Urban Development.
Who issues land use authorizations?
Depending on the location, land classification, and type of property, land use authorization may fall under federal, state, or municipal authorities. For instance, in Mexico City, it is issued by the Secretariat for Urban Development and Housing (SEDUVI), while in the State of Mexico, it is handled by theSecretariat for Urban Development and Public Works (SEDUO).
Why is it important to verify land use?
Checking the land use designation before buying or leasing a property is not just a formality—it's a legal and financial safeguard. Here are a few key reasons:
- Avoids risky investments: You can ensure the property allows the type of business or project you intend to develop. For example, that you can open a restaurant or build an apartment tower.
- Prevents penalties: If the property is used inappropriately, you could face fines, closure orders, or even demolition of unauthorized construction.
- Simplifies future procedures: To obtain construction permits or business operating licenses, the land use must align with your intended project.
- Impacts property value: A lot with mixed-use or higher construction density permissions may be worth more on the market than one limited to single-family residential use.
- Avoids neighborhood or social conflicts: Starting an unauthorized business may lead to complaints from neighbors and administrative actions from the authorities.
How can you check land use?
Today, it is relatively easy to check a property's land use through online tools. However, to ensure legal certainty, it is always advisable to request an official certificate or permit (the name varies by state) of Zoning and Land Use.
Land use is not just a concern for developers or architects—it's a critical factor foranyone looking to invest in real estate in Mexico. Verifying it before signing a purchase or lease agreement can save you time, money, and major headaches. If you have questions, consult with an attorney who specializes in real estate and urban development matters.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
