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Yes, the analysis of Lima's property market is included in our pack
Lima's rental market offers diverse opportunities with average apartment rents ranging from $400 in emerging districts to $1,200 in prime areas like Miraflores and San Isidro. As of September 2025, rental yields remain competitive at 4-8% gross, making the city attractive for both long-term investors and short-term rental operators.
The capital's rental landscape varies dramatically by district, with upscale neighborhoods commanding premium prices while affordable areas like Los Olivos provide excellent value. Current market conditions show stable demand, moderate vacancy rates of 7-10%, and consistent rental growth of 3-5% annually.
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Lima's rental market shows strong fundamentals with apartments averaging $500-700 for one-bedroom units in central areas and $1,000-1,500 for three-bedroom properties. Prime districts like Miraflores and San Isidro command 40-60% higher rents than emerging areas, while rental yields range from 4-8% depending on location and property type.
The market benefits from steady demand driven by urban migration and foreign investment, with vacancy rates remaining manageable at 7-10% citywide and projected rental growth of 3-5% annually through 2026.
| District | 1BR Average Rent | 3BR Average Rent | Rental Yield | Key Features |
|---|---|---|---|---|
| Miraflores | $700-1,000 | $1,500-3,200 | 4-5% | Beachside, expat hub, short-term rental hotspot |
| San Isidro | $800-1,200 | $1,950-3,950 | 5% | Financial district, luxury market, stable tenants |
| Barranco | $680-1,100 | $1,100-1,500 | 5-6% | Artsy neighborhood, strong short-term yields |
| Surco | $500-900 | $1,000-1,700 | 6-8% | Family-friendly, schools, growing demand |
| Los Olivos | $300-500 | $1,596 | 6-8% | Most affordable, high local demand |
What's the current average rent in Lima for different property types like apartments, houses, and studios?
Lima's rental market shows distinct pricing tiers across property types as of September 2025.
Studio apartments in popular districts like Miraflores rent from PEN 2,665 (approximately $710), while suburban studios start around PEN 1,502 ($400). The price difference reflects location premium and amenities offered in upscale areas.
One-bedroom apartments in central Lima average $500-700 monthly, with prime locations commanding higher rates. Three-bedroom apartments range between $1,000-1,500 in central areas and $700-1,000 in suburban districts. These prices reflect the strong demand from both local families and expatriate professionals.
Houses represent the premium segment with average rents around $2,500 monthly in standard areas. Luxury neighborhoods exceed these prices significantly, often reaching $4,000+ for premium properties with additional amenities and security features.
The rental market benefits from steady urbanization and foreign investment, keeping demand consistent across all property types.
How do rental prices vary by neighborhood or district in Lima?
Lima's rental prices vary dramatically by district, creating distinct market segments for different tenant profiles.
Miraflores leads the premium market with one-bedroom apartments renting for $700-1,000 and three-bedroom units commanding $1,500-3,200. This beachside district attracts tourists, expatriates, and affluent locals seeking modern amenities and coastal lifestyle.
San Isidro, Lima's financial district, shows similar premium pricing with one-bedroom units at $800-1,200 and three-bedroom apartments ranging $1,950-3,950. The area's corporate presence and luxury developments justify these higher rates.
Barranco offers a cultural alternative with one-bedroom apartments at $680-1,100 and three-bedroom units between $1,100-1,500. This artsy neighborhood attracts creative professionals and generates strong short-term rental demand.
Mid-range districts like Surco provide better value with one-bedroom apartments at $500-900 and three-bedroom units between $1,000-1,700. These family-friendly areas offer excellent schools and growing commercial development.
Los Olivos represents the affordable segment with one-bedroom apartments from $300-500 and three-bedroom units averaging $1,596. High local demand keeps vacancy rates low despite lower absolute rents.
What's the typical rent per square meter for each property type and area?
Lima's rent per square meter varies significantly by location and property type, reflecting local market dynamics.
The citywide average stands at $1,800 per square meter for apartments, but ranges from $1,200 in affordable districts to $3,000 in upscale areas. This wide range reflects Lima's diverse economic geography and development patterns.
Prime districts including Miraflores, Barranco, and San Isidro command $10-11 per square meter monthly. These areas offer premium amenities, coastal access, and international business environments that justify higher rates.
Suburban and local districts typically charge $6-8 per square meter monthly. These areas provide good value for families and long-term residents seeking affordable housing with adequate infrastructure.
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Property type also influences per-square-meter pricing, with newer developments and high-rise buildings commanding premium rates compared to older constructions.
What's the total monthly cost for a rental including fees, taxes, and other charges?
Total monthly rental costs in Lima extend beyond base rent to include various fees and charges that tenants must consider.
Maintenance and condominium fees add $50-200 monthly depending on building services and amenities. Modern developments with security, gyms, and common areas typically charge higher maintenance fees than basic buildings.
Agent fees equal one month's rent when using real estate agencies, representing a significant upfront cost for tenants. Direct landlord arrangements can eliminate this expense but may limit property options.
Utilities including electricity, water, and internet average $50-120 monthly. Air conditioning usage during summer months can increase electricity costs significantly in coastal districts.
Property taxes are typically paid by property owners rather than tenants, but this cost impacts overall returns for landlords and may influence rental pricing decisions.
Security deposits usually equal 1-2 months' rent, creating additional upfront costs for tenants but providing landlord protection against damage or non-payment.
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If you have a mortgage, what's the monthly outlay compared to rental income for different property types?
Lima's mortgage-to-rent ratios vary significantly by district and property type, affecting investment viability.
A typical $175,000 apartment in upscale districts requires approximately $1,000 monthly mortgage payments assuming a 25-year loan at prevailing interest rates. This payment level requires careful consideration of rental income potential.
Gross rental yields in Lima range from 4-8%, with prime districts on the lower end (4-6%) and emerging areas achieving higher returns (6-8%). Net yields after fees and taxes typically fall between 2-5%, impacting mortgage coverage ability.
Owners can generally cover mortgage payments with rental income in affordable or emerging districts where yields exceed 5%. These areas provide positive cash flow opportunities for leveraged investors.
Upscale and luxury areas tend to generate lower net yields, making mortgage coverage more challenging. However, these properties often offer superior capital appreciation potential, balancing lower rental yields with long-term value growth.
Financing strategies should consider both rental coverage and appreciation potential when evaluating different Lima districts and property types.
Which areas and property types offer the best returns for short-term rentals versus long-term rentals?
Lima's rental market offers distinct opportunities for short-term and long-term rental strategies depending on location and property type.
Short-term rentals through Airbnb perform exceptionally well in Miraflores, Barranco, and San Isidro. These tourist and expatriate districts achieve 41% average occupancy rates with $62 average daily rates, generating approximately $6,349 annual revenue per property.
Miraflores leads short-term rental performance due to beachside location, restaurant scene, and international business presence. Properties near the malecĂłn and shopping centers command premium rates from business travelers and tourists.
Long-term rentals show stronger performance in affordable and emerging districts like Los Olivos, Surco, and San MartĂn. These areas provide higher yields and lower vacancy rates, offering stable monthly income for investors seeking consistent returns.
Family-oriented districts like Surco attract long-term tenants seeking schools, parks, and community amenities. These tenants typically sign longer leases and maintain properties well, reducing turnover costs and vacancy periods.
Studio and one-bedroom apartments work best for short-term rentals, while larger family units generate better returns in long-term rental markets where space requirements drive tenant decisions.
Can you give example rental prices for various property sizes and styles in different parts of Lima?
| Property Type/Size | Miraflores (Prime) | Surco (Mid-range) | Los Olivos (Affordable) |
|---|---|---|---|
| Studio (45 sqm) | $710 | $450 | $350 |
| 1BR (60-70 sqm) | $900 | $600 | $400 |
| 3BR (100-120 sqm) | $1,500-3,200 | $1,050-1,700 | $1,596 |
| House (200+ sqm) | $2,500-4,000 | $1,800 | $1,200 |
| Luxury Penthouse | $4,000+ | $2,500+ | $1,800+ |
What are the main profiles of tenants in Lima and how do they differ by property type and location?
Lima's tenant profiles vary significantly by district and property type, reflecting the city's diverse economic and social landscape.
Miraflores and Barranco attract expatriates, diplomats, professionals, and digital nomads seeking modern amenities and international lifestyle. These tenants typically prefer furnished units and shorter lease terms, making these areas ideal for short-term rental operations.
San Isidro appeals to executives, professionals, diplomats, and upper-income Peruvians working in the financial district. These tenants usually sign longer leases and prefer luxury amenities including security, parking, and building services.
Surco and San Borja attract families, long-term foreign residents, and professionals seeking better value and family-friendly environments. These tenants prioritize schools, parks, and community amenities over nightlife and tourist attractions.
Los Olivos and San Juan de Lurigancho house local families, younger professionals, and students seeking affordable housing with good transportation links. These tenants typically sign longer leases and maintain strong payment consistency.
Property size also influences tenant profiles, with studios and one-bedroom units attracting young professionals and couples, while larger apartments serve families and sharing arrangements among students or young workers.
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What are the current vacancy rates for different areas and property types?
Lima's vacancy rates vary by district and reflect local market dynamics and tenant demand patterns as of September 2025.
Miraflores and Barranco show higher vacancy rates of 10-15% due to intense competition and short-term rental churn. The abundance of available units and seasonal demand fluctuations contribute to these elevated vacancy levels.
San Isidro and Surco maintain moderate vacancy rates of 7-10%, reflecting stable demand from professionals and families. These areas benefit from consistent employment opportunities and family-oriented amenities that encourage longer tenancies.
Los Olivos and San Juan de Lurigancho achieve the lowest vacancy rates at 3-5%, driven by high demand for affordable housing and limited supply relative to population growth. Strong local employment and transportation improvements support consistent occupancy.
The citywide average vacancy rate ranges 7-10%, indicating healthy market balance between supply and demand. This level allows property turnover while maintaining income stability for landlords.
Property type influences vacancy rates, with well-located one and two-bedroom apartments typically achieving faster lease-up than larger units or properties in secondary locations.
Which properties and areas are considered the smartest investment choices right now?
Lima's smartest real estate investments focus on emerging districts and specific property types that offer optimal risk-return profiles.
Emerging districts including Surco, Los Olivos, and Pueblo Libre provide high yields, affordable entry prices, and rising demand driven by infrastructure improvements and urban development. These areas offer the best combination of current returns and future appreciation potential.
Prime districts like Miraflores, San Isidro, and Barranco remain attractive for capital appreciation and short-term rental demand. These established areas provide stable long-term value growth and premium rental rates from international tenants.
Compact apartments including studios and one-bedroom units achieve the highest occupancy rates and rental yields across all districts. These property types match current demographic trends toward smaller household sizes and urban living preferences.
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Short-term rental properties in tourist districts offer superior returns for active management strategies, while long-term rentals in family areas provide passive income opportunities with lower management requirements.
What's the current gross and net rental yield breakdown by property type and area, and how do they change compared to previous years?
| Area/Type | Gross Yield 2025 | Net Yield 2025 | Gross Yield 2024 | Gross Yield 2020 |
|---|---|---|---|---|
| Miraflores | 4-5% | 2-3% | 4-5% | 5-6% |
| Barranco | 5-6% | 3-4% | 5-6% | 6-7% |
| San Isidro | 5% | 3% | 5% | 6% |
| Surco/Olivos | 6-8% | 5% | 7-8% | 8-10% |
| Citywide Average | 5-6% | 3-4% | 6% | 7% |
What's the forecast for rents and yields over the next one, five, and ten years, and how do they compare with other major cities in the region?
Lima's rental market outlook shows continued growth with moderate yield compression over the forecast period.
Short-term projections for 2026 anticipate rent increases of 3-5% driven by ongoing urbanization and economic growth. Yields are expected to remain stable or decline slightly as property prices continue climbing and affordability pressures persist in prime districts.
Medium-term forecasts through 2030 project annual rent growth of 3-5% with continued migration toward affordable and emerging districts. New rental regulations could moderate yields in tourist-heavy areas while supporting tenant protection and market stability.
Long-term projections through 2035 suggest Lima will align with regional cities like Bogotá, Santiago, and Buenos Aires. Peru's stable economic fundamentals indicate attractive returns will continue, though increased competition and urban growth may gradually lower yields while maintaining solid capital appreciation.
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Regional comparison shows Lima's current yields of 4-8% remain competitive with Bogotá, Santiago, and Buenos Aires (typically 3-7%). Lima's rent levels exceed Quito and La Paz but remain below São Paulo and Santiago for prime properties, while affordable districts offer regional bargains for value-conscious investors.
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.
Lima's rental market presents compelling opportunities across multiple segments, from high-yield emerging districts to stable premium areas with strong appreciation potential.
Smart investors can capitalize on the city's diverse tenant profiles and growing urban economy by selecting appropriate property types and locations aligned with their investment objectives and risk tolerance.
Sources
- Global Property Guide - Peru Price History
- Rentberry - Lima Peru Apartments
- The LatinVestor - Lima Market Data
- Fazwaz - Peru Property for Rent
- The LatinVestor - Lima Which Area
- Expatistan - Cost of Living Lima
- Home Ready Global - Cheapest Rental Lima
- The LatinVestor - Lima Average Apartment Prices
- Global Property Guide - Peru Rent Yields
- AirROI - Lima Metropolitan Area Report