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Peru's residential property market in 2025 shows significant price variations across regions and property types.
As of September 2025, the national average house price in Peru stands at approximately $180,000, with Lima's market commanding significantly higher prices at around $1,800 per square meter while secondary cities like Arequipa and Trujillo offer properties 30-50% below Lima's rates.
If you want to go deeper, you can check our pack of documents related to the real estate market in Peru, based on reliable facts and data, not opinions or rumors.
Peru's property market offers attractive investment opportunities with rental yields averaging 6.09% in Lima and higher rates in secondary cities. Prices range from $1,200 per square meter in affordable districts to $3,500 per square meter in premium areas like Miraflores and San Isidro.
Below is a detailed overview of average house prices, costs, and investment opportunities across Peru's major regions and property types.
| Location/Type | Price per m² (USD) | Typical Apartment Price | Annual Growth |
|---|---|---|---|
| National Average | $2,700 | $180,000 | 5% |
| Lima Average | $1,800 | $112,700 (60m²) | 5% |
| Miraflores (Premium) | $3,000-3,500 | $180,000-210,000 | 8-10% |
| San Isidro (Luxury) | $3,196 | $192,000 | 7-9% |
| Los Olivos (Budget) | $890 | $53,400 | 3-4% |
| Secondary Cities | $900-1,260 | $54,000-126,000 | 4-6% |
| Rural Areas | $400-800 | $24,000-80,000 | 2-3% |
What's the current average house price in Peru?
The current average house price in Peru stands at approximately $180,000 as of September 2025.
This national figure represents a significant variation across different regions and property types throughout the country. The average price per square meter is approximately $2,700, though this varies dramatically depending on location and market segment.
In Lima, the capital and largest real estate market, average apartment prices range from $112,700 for a 60-square-meter unit to $175,700 for a 100-square-meter apartment. These prices reflect the strong demand in urban centers where most economic activity and employment opportunities are concentrated.
Secondary cities like Arequipa, Trujillo, and Piura typically offer properties priced 30-50% below equivalent Lima properties, making them attractive options for budget-conscious buyers seeking better value for money.
Property prices in Peru have shown steady annual growth of approximately 5% over the past five years, with some premium districts experiencing higher appreciation rates of 8-10% annually.
How do prices differ between apartments, single-family homes, and luxury properties?
Property prices in Peru vary significantly across different property types, with apartments generally offering the most accessible entry points into the market.
Apartments in Lima typically range from $112,700 for a 60-square-meter unit to $175,700 for a 100-square-meter apartment, with prices per square meter averaging $1,800 across the city. Two-bedroom apartments commonly cost between $112,700-$168,000 depending on location and amenities.
Single-family homes command higher prices per square meter due to the inclusion of land and additional space. These properties typically start around $200,000 for modest homes in secondary cities and can reach $500,000-$1,000,000 for well-located family homes in Lima's desirable districts.
Luxury properties in premium districts like Miraflores and San Isidro reach price levels of $3,000-$3,500 per square meter, with exclusive penthouses and high-end developments commanding even higher premiums. Luxury apartments in these areas typically range from $300,000-$600,000, while luxury homes can exceed $1,000,000.
The luxury market has experienced some volatility due to political uncertainty, with wealthy buyers sometimes looking to international markets like Miami, creating opportunities for well-positioned buyers in Peru's high-end segment.
What's the breakdown of prices in Lima versus other major cities and regions?
Lima commands the highest property prices in Peru, with the capital's market significantly outpacing other major cities and regions across the country.
| City/Region | Average Price per m² (USD) | 60m² Apartment | 100m² Apartment |
|---|---|---|---|
| Lima (Overall) | $1,800 | $108,000 | $180,000 |
| Arequipa | $900-1,260 | $54,000-75,600 | $90,000-126,000 |
| Trujillo | $900-1,200 | $54,000-72,000 | $90,000-120,000 |
| Cusco | $1,000-1,400 | $60,000-84,000 | $100,000-140,000 |
| Piura | $800-1,100 | $48,000-66,000 | $80,000-110,000 |
| Chiclayo | $750-1,050 | $45,000-63,000 | $75,000-105,000 |
| Iquitos | $700-950 | $42,000-57,000 | $70,000-95,000 |
Secondary cities offer compelling value propositions with prices typically 30-50% below Lima equivalents while still providing good rental yields and growth potential. Cities like Arequipa and Trujillo have seen growing real estate development and infrastructure investment, supporting steady property appreciation.
Coastal cities generally command slightly higher prices than inland locations due to their climate and tourism appeal, while jungle cities like Iquitos offer the most affordable entry points but with limited liquidity and growth prospects.
Which areas are the most expensive, which ones are up-and-coming, and which are the most budget-friendly?
Peru's property market shows clear segmentation between premium, emerging, and budget-friendly areas, each offering distinct investment characteristics and price points.
Most Expensive Areas:
- Miraflores: $3,000-3,500 per m² - Premium coastal district with beaches, shopping, and restaurants
- San Isidro: $3,196 per m² - Business and financial hub with embassies and luxury amenities
- La Molina: $2,200-2,800 per m² - Upscale residential area popular with families
- Surco: $2,200-2,600 per m² - Modern district with shopping centers and universities
- San Borja: $2,000-2,400 per m² - Well-planned district with parks and good infrastructure
Up-and-Coming Areas (Highest Growth Potential):
- Lince: Experiencing 17.5% annual price growth with good connectivity
- Chorrillos: Recording 19% annual growth, coastal location with development projects
- Surquillo: 11.5% annual growth, central location with improving infrastructure
- San Miguel: Growing appeal due to proximity to airport and commercial areas
- Magdalena del Mar: Affordable coastal properties with urban renewal programs
Most Budget-Friendly Areas:
- Los Olivos: $890 per m² - Most affordable Lima district with basic amenities
- San Juan de Lurigancho: $1,200 per m² - Large district with ongoing development
- Villa El Salvador: $950-1,150 per m² - Industrial area with affordable housing
- Comas: $800-1,100 per m² - Northern district with metro connectivity
- Secondary cities: $750-1,200 per m² - Best value outside Lima
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How have average house prices changed compared with 5 years ago and 1 year ago?
Peru's property market has demonstrated consistent growth over both short and medium-term periods, though with varying rates across different districts and property types.
Over the past five years, national and Lima property prices have increased by approximately 5% annually on average. This steady appreciation reflects Peru's economic stability and ongoing urbanization trends that continue to drive housing demand in major cities.
Year-over-year growth from 2024 to 2025 shows Lima's average apartment prices increased by approximately 5%, with significant variations across districts. The most dynamic areas experienced much higher growth rates, with Chorrillos leading at 19% annual increase, followed by Lince at 17.5%, and Surquillo at 11.5%.
Some years within the five-year period saw more dramatic movements, particularly 2021 which experienced a price spike, followed by a modest correction in 2022. However, the overall trend has remained consistently upward, supported by steady economic fundamentals and controlled inflation.
Premium districts like Miraflores and San Isidro have shown more stable but steady appreciation, typically in the 7-9% annual range, while emerging areas have demonstrated higher volatility but greater upside potential for investors willing to accept additional risk.
The peso's depreciation against the dollar over this period has made Peruvian property more attractive to foreign buyers, contributing to sustained demand and price support in the upper segments of the market.
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What are the forecasts for house prices over the next 1 year, 5 years, and 10 years?
Property price forecasts for Peru show moderate but steady growth expectations across different time horizons, with varying outlooks depending on location and market segment.
1-Year Outlook (2025-2026): Modest price growth is expected, with high-single digit increases anticipated in high-demand Lima districts. Some premium areas may see 8-12% growth while the national average may experience slight real-term decreases when adjusted for inflation, suggesting nominal growth of 3-5%.
5-Year Outlook (2025-2030): Continued urbanization and infrastructure development, particularly new Metro lines and coastal projects, are expected to drive robust growth in selected districts. Prime areas and emerging neighborhoods near major infrastructure projects should outpace inflation, with annual appreciation of 6-8% expected in Lima's growth corridors.
10-Year Outlook (2025-2035): Long-term projections suggest sustained appreciation in prime areas and luxury properties, supported by Peru's growing middle class and continued economic development. However, national averages may lag due to affordability constraints in secondary markets. Infrastructure improvements and urban development projects will likely create significant value appreciation in well-positioned areas.
Key factors supporting these forecasts include Peru's housing deficit of nearly 2 million units, steady economic growth, and ongoing infrastructure investments. However, political uncertainty and global economic conditions could impact these projections, particularly for the luxury segment which has shown sensitivity to political developments.
Secondary cities are expected to benefit from decentralization trends and may offer better value appreciation for investors seeking emerging market opportunities outside Lima's increasingly expensive market.
How do prices in Peru compare with similar big cities in Latin America or globally?
Peru's property prices position the country as a relatively affordable option within Latin America, offering attractive value compared to regional capitals while remaining far below global city standards.
Within Latin America, Lima's average price of $1,710-$1,800 per square meter in the city center compares favorably to Mexico City ($2,664 per m²), Buenos Aires ($2,664 per m²), and Santiago ($2,400-2,800 per m²). This pricing advantage makes Peru particularly attractive for investors seeking regional exposure at accessible price points.
Colombia's Bogotá and Ecuador's Quito offer similar or slightly lower pricing, but Peru generally provides better infrastructure and economic stability. Brazil's São Paulo commands higher prices, typically $2,500-3,000 per m², making Peru more accessible for entry-level investors.
Globally, Lima remains highly affordable compared to major world cities where prices often exceed $10,000 per square meter. Cities like New York, London, Paris, and Sydney command prices 5-8 times higher than Lima, highlighting Peru's value proposition for international buyers.
From an affordability perspective, Lima's price-to-income ratio of 14.4 compares well to Mexico City (17.6), São Paulo (17.9), and Buenos Aires (16.8), indicating relatively better affordability for local buyers and suggesting room for continued price appreciation as incomes grow.
Peru's competitive rental yields of 6.09% in Lima exceed most regional markets including Chile (3-6%) and Brazil (3-5%), making it particularly attractive for income-focused investors seeking both appreciation and cash flow.
What is the average price per square meter and how does it vary by area and property type?
Price per square meter in Peru varies dramatically based on location, property type, and market segment, creating diverse investment opportunities across different budget ranges.
| Area/District | Price per m² (USD) | Property Type | Market Segment |
|---|---|---|---|
| Miraflores | $3,000-3,500 | Luxury Apartments | Premium |
| San Isidro | $3,196 | Business/Luxury | High-end |
| La Molina | $2,200-2,800 | Family Homes | Upper-middle |
| San Borja | $2,000-2,400 | Modern Apartments | Middle-class |
| Lince | $1,200-1,300 | Emerging Area | Growth potential |
| San Miguel | $1,400-1,600 | Mixed Residential | Developing |
| Los Olivos | $890 | Budget Housing | Affordable |
Apartments generally command higher prices per square meter than single-family homes due to land efficiency and urban location premiums. New construction typically adds 10-15% to prices compared to existing properties of similar specifications.
Luxury properties with amenities such as rooftop terraces, gardens, or ocean views command 12-15% premium pricing. Properties in gated communities with security features have seen notable appreciation, particularly in response to security concerns in Lima.
Commercial-residential mixed developments in business districts like San Isidro achieve the highest per-square-meter pricing, often exceeding $3,500 per m² for premium units with business center access and upscale amenities.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Peru versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the typical total purchase costs including taxes, fees, and other expenses?
Total purchase costs in Peru are moderate by Latin American standards, typically ranging from 4.5% to 6% of the purchase price when including all taxes, fees, and associated expenses.
| Cost Component | Rate/Amount | Payment Timing |
|---|---|---|
| Transfer Tax (Alcabala) | 3% of purchase price | At closing |
| VAT (IGV) - New Properties | 18% of construction value | Primary sales only |
| Notary Fees | 0.3-0.5% | At closing |
| Registry Fees (SUNARP) | 1% | At closing |
| Legal Fees (Optional) | 0.5-1% | At closing |
| Property Tax (Annual) | 0.2-1% | Ongoing annual |
| Real Estate Agent | 3-5% | At closing |
The 3% transfer tax applies to all property transactions and represents the largest single cost component. VAT of 18% applies only to new construction purchases from developers, not to resale properties, making existing properties more cost-effective from a tax perspective.
Notary fees cover document preparation and validation, while SUNARP registration ensures proper title transfer and legal ownership. These fees are standardized and represent essential steps in the property acquisition process.
Annual property tax is assessed on the property's official value, which is typically below market value, resulting in relatively low ongoing carrying costs. This makes Peru attractive for long-term property holding strategies.
Foreign buyers face the same tax structure as local buyers, with no additional penalties or discriminatory fees, making Peru one of the more foreign-investor-friendly markets in Latin America.
What do mortgages in Peru look like in terms of rates, terms, and eligibility?
Peru's mortgage market offers financing options for both local and foreign buyers, though terms and rates vary significantly based on residency status and currency denomination.
As of September 2025, mortgage rates in Peru range from 7.42% for peso-denominated loans to 6.32% for foreign currency-denominated mortgages. These rates have remained relatively stable, with peso rates averaging 7.41% in 2024 compared to 7.22% in 2023.
Standard mortgage terms typically extend 15-20 years for most borrowers, with some institutions offering up to 30 years for Peruvian citizens with strong credit profiles. Foreign borrowers often face shorter maximum terms and stricter qualification requirements.
Down payment requirements vary by borrower type: Peruvian citizens typically need 10-15% down payment, while foreigners usually must provide 20-30% down payment. Some government programs like MiVivienda can reduce down payment requirements to as low as 10% for qualifying properties.
Eligibility requirements for foreigners include valid residence permit, proof of stable income (typically 4x monthly payment requirement), local bank account, and comprehensive income documentation. Major banks including Banco de Crédito del Perú (BCP), Interbank, and Scotiabank Peru actively lend to foreign buyers.
Government programs such as Nuevo Crédito MiVivienda offer financing for properties valued between $17,100-$130,500, covering up to 90% of property value with favorable terms including the Bono del Buen Pagador reward program for timely payments.
It's something we develop in our Peru property pack.
What are the smartest options today if you want to live in the property, rent it out short-term, rent it long-term, or buy to resell later?
Investment strategy in Peru's property market should align with your specific goals, risk tolerance, and market positioning, as different approaches offer distinct advantages in the current market environment.
Owner-Occupier Strategy: Best value is found in Lima Moderna districts or emerging areas like Lince, Surquillo, and San Miguel. These areas offer good connectivity, amenities, and appreciation potential while remaining more affordable than premium districts. Properties in these areas typically offer 15-25% better value than Miraflores or San Isidro while providing similar lifestyle benefits.
Short-Term Rental Strategy: Focus on tourist-heavy areas including Miraflores, Barranco, and San Isidro where short-term rental demand is highest. Ocean-view properties in Miraflores can command $80-150 per night, while business-oriented apartments in San Isidro appeal to corporate travelers. Be aware of increasing regulations and higher initial investment costs in these premium areas.
Long-Term Rental Strategy: Target middle-income districts popular with young professionals and families. Areas like San Borja, La Molina, and emerging districts offer favorable rental yields averaging 6-8% annually. Properties near universities and business centers maintain consistent occupancy rates and steady rental income growth.
Buy-to-Resell Strategy: Focus on emerging areas near infrastructure projects, particularly districts along new Metro lines or coastal development zones. Lince, Chorrillos, and areas near planned transportation improvements offer the best appreciation potential. Properties in these areas have shown 15-19% annual growth, significantly outpacing the market average.
Secondary cities like Arequipa and Trujillo offer excellent value for all strategies, with lower entry costs and growing demand from domestic migration and business development.
Can you give concrete examples of recent purchase prices in different neighborhoods and property types?
Recent property transactions across Peru provide clear insight into current market pricing and help buyers understand realistic expectations for different neighborhoods and property types.
| District | Property Type | Size | Recent Price | Price per m² |
|---|---|---|---|---|
| Miraflores | 3BR Apartment | 120 m² | $420,000 | $3,500 |
| San Isidro | 2BR Business Apt | 100 m² | $320,000 | $3,200 |
| La Molina | 4BR Family Home | 200 m² | $480,000 | $2,400 |
| Surco | 3BR Modern Apt | 110 m² | $275,000 | $2,500 |
| Lince | 2BR Growing Area | 80 m² | $104,000 | $1,300 |
| Los Olivos | 2BR Budget Apt | 70 m² | $62,300 | $890 |
| Arequipa | 3BR Secondary City | 120 m² | $144,000 | $1,200 |
In premium districts, recent sales show luxury properties with amenities commanding significant premiums. A penthouse in Miraflores with ocean views recently sold for $750,000 (150 m²), while a similar-sized standard apartment without views sold for $525,000, demonstrating the 15-20% premium for desirable features.
Emerging areas show strong value propositions with recent transactions in Chorrillos including a 90 m² apartment selling for $135,000 ($1,500 per m²), while similar properties in established areas cost 40-50% more. Properties near planned Metro stations are selling at 10-15% premiums to comparable properties further from transportation infrastructure.
Foreign buyer activity has been notable in the $200,000-500,000 range, with recent purchases including a $380,000 3-bedroom apartment in San Borja by North American retirees and a $280,000 2-bedroom in Surquillo purchased by European investors seeking rental income.
It's something we develop in our Peru property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Peru's property market in 2025 presents compelling opportunities for diverse investor profiles, from budget-conscious first-time buyers to luxury property investors seeking premium locations.
With rental yields averaging 6.09% in Lima and significant price variations across districts, the market offers clear value propositions for both owner-occupiers and investors. The combination of steady economic growth, infrastructure development, and affordable pricing compared to regional markets makes Peru an attractive destination for real estate investment in Latin America.
Sources
- Global Property Guide - Peru Property Market
- TheLatinvestor - Lima Apartment Prices
- TheLatinvestor - Lima Real Estate Areas
- Statista - Lima Apartment Prices by Neighborhood
- TheLatinvestor - Peru Property Investment Guide
- TheLatinvestor - Peru Foreign Property Guide
- Aparthotel - Peru Property Financing
- The Global Economy - Peru Mortgage Rates