Authored by the expert who managed and guided the team behind the Peru Property Pack
Everything you need to know before buying real estate is included in our Peru Property Pack
Peru's rental market offers attractive opportunities for both tenants and investors in 2025.
Lima dominates the market with average rents of $850 for a 100m² apartment, while provincial cities like Arequipa and Cusco offer more affordable options at 30-50% below Lima levels. Rental yields average 6.45% in Lima and 5.97% nationwide, making Peru competitive within Latin America.
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 rental market is led by Lima with average rents of $850 for 100m² apartments, while provincial cities offer 30-50% lower costs. Rental yields average 6.45% in Lima and 5.97% nationwide.
Short-term rentals command 20-40% premium but face higher vacancy risks, while long-term rentals provide stable returns for investors seeking consistent income streams.
| City | 1-Bedroom Apartment (USD) | 2-Bedroom Apartment (USD) | 3-Bedroom Apartment (USD) | Average Yield |
|---|---|---|---|---|
| Lima (Premium Districts) | $737 | $1,000 | $1,450 | 6.45% |
| Lima (Budget Districts) | $430 | $600 | $425 | 6.45% |
| Arequipa | $560 | $730 | N/A | 5.49% |
| Cusco | $400-500 | $650-700 | N/A | 5.5% |
| Trujillo/Piura | 30-50% below Lima | 30-50% below Lima | 30-50% below Lima | 5-5.5% |
What is the typical rent right now in Peru depending on the city and neighborhood?
Lima sets the benchmark for rental prices across Peru, with average monthly rent for a 100m² apartment reaching S/3,191 (approximately $850) as of September 2025.
Premium Lima districts command the highest rents in the country. Miraflores, Barranco, and San Isidro average S/3,500–S/4,200 for similar apartments, translating to $930–$1,120 monthly. These upscale neighborhoods attract both affluent locals and international tenants seeking modern amenities and prime locations.
Budget-friendly Lima districts offer significantly lower rental costs. Los Olivos provides three-bedroom apartments for around S/1,596 ($425), while other emerging neighborhoods offer similar value propositions for cost-conscious tenants.
Provincial cities present compelling alternatives to Lima's high rental costs. Arequipa averages $560 monthly for 2-bedroom apartments and $730 for 3-bedroom units, with property prices approximately 30-50% below Lima levels. Cusco offers 2-bedroom apartments in the $400–$700 range, while cities like Trujillo and Piura maintain rents 30–50% below Lima across all property types.
It's something we develop in our Peru property pack.
How does the rent differ between apartments, houses, condos, and luxury properties?
Apartment rentals dominate Peru's rental market, with clear pricing tiers based on size and location.
One-bedroom apartments in Lima range from $430 in budget districts like Los Olivos to $737 in premium areas like Miraflores and San Isidro. Two-bedroom units span $600–$1,000, while three-bedroom apartments command $425–$1,450 depending on neighborhood quality and amenities.
Houses with three or more bedrooms represent the premium segment, typically renting for $2,200–$3,000 in desirable Lima neighborhoods. These properties appeal to families and executives requiring additional space and privacy.
Luxury properties in Miraflores and similar high-end districts start at $3,000 monthly, with high-end penthouses and villas commanding significantly higher rents. These properties often feature premium finishes, panoramic views, and exclusive amenities.
Provincial cities maintain proportional pricing structures but at substantially lower absolute levels, making them attractive for investors seeking higher yields on more affordable properties.
What is the average rent per square meter for each property type?
Lima's high-end districts command the highest per-square-meter rental rates in Peru.
Miraflores, San Isidro, and Surco average $9–$12 per square meter monthly for quality apartments. These premium areas justify higher rates through superior infrastructure, security, and proximity to business districts and amenities.
Lima's middle-class neighborhoods including Lima Moderna, Jesús María, and Surquillo average $7–$8 per square meter monthly. These areas offer good value for tenants seeking quality accommodation without premium district pricing.
Arequipa averages approximately $5–$6 per square meter monthly, reflecting its position as Peru's second-largest city with growing economic activity and rental demand.
Cities outside Lima average around $5 per square meter for standard apartments, providing attractive opportunities for investors seeking affordable entry points into Peru's rental market.
What is the total cost for tenants once fees, taxes, and utilities are included?
Basic utilities represent a significant additional cost for tenants in Peru's rental market.
Electricity, water, and gas services typically cost S/180–S/200 ($48–$53) monthly for an 85m² apartment in Lima. These costs can vary based on usage patterns, property efficiency, and seasonal factors affecting electricity consumption.
Internet services add S/100–S/120 ($26–$32) monthly for reliable broadband connections. This expense has become essential for both residential and work-from-home requirements in the post-pandemic era.
Total additional costs including utilities, internet, and building maintenance fees range from $85–$140 monthly in Lima, excluding rent. Provincial cities typically offer lower utility costs, reducing the overall monthly burden for tenants.
Security deposits usually require 1–2 months' rent upfront, representing a significant initial cash requirement for new tenants entering the market.
Don't lose money on your property in Peru
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What financing or mortgage costs should an investor factor in when calculating returns?
Local currency mortgages in Peru averaged 7.44% annual interest as of June 2025, representing the primary financing option for property investors.
Down payment requirements typically range from 20–30% of the property value, creating a substantial upfront capital requirement for investors. Banks evaluate creditworthiness carefully, particularly for non-resident investors seeking financing.
Foreign currency loans offer rates between 6–7.5%, but require higher down payments and proof of income in dollars. These loans expose investors to currency risk while potentially offering lower interest costs.
Developer financing provides alternative funding at 8–12% rates depending on the specific project and investor profile. This option can facilitate purchases in new developments but typically comes with higher costs than traditional bank financing.
It's something we develop in our Peru property pack.
How do short-term rental rates compare to long-term rental rates?
Lima's Airbnb market generates average daily rates of approximately $42 (PEN 158) with annual occupancy around 54%.
Short-term rentals typically achieve 20–40% higher monthly rates than long-term leases when adjusted for occupancy. However, this premium comes with increased operational complexity, higher vacancy risks, and additional costs for cleaning, marketing, and property management.
Annual revenue per Airbnb listing averages $8,000 in Lima, equivalent to roughly $667 monthly. This compares to traditional long-term rents of $1,000 monthly for 2-bedroom apartments in Miraflores, suggesting long-term rentals may provide more stable returns despite lower peak rates.
Short-term rentals face seasonal demand variations, particularly in tourist-dependent areas like Cusco and central Lima. Investors must account for periods of low occupancy when calculating expected returns.
Long-term rentals offer predictable monthly income with lower management requirements, making them attractive for investors seeking passive income streams without active property management involvement.
Can you give examples of current rental prices for different property types and sizes?
| Neighborhood | 1-Bedroom Apt (USD) | 2-Bedroom Apt (USD) | 3-Bedroom Apt (USD) |
|---|---|---|---|
| Miraflores | $737 | $1,000 | $1,450 |
| San Isidro | $737 | $1,000 | $2,100 |
| Barranco | $685 | $820 | $1,300 |
| Surquillo | $521 | $655 | $699 |
| Los Olivos | $430 | $600 | $425 |
| Arequipa | N/A | $560 | $730 |
Who are the typical renter profiles in Peru right now?
Young professionals and university students form the largest segment of Peru's rental market, typically seeking 1–2 bedroom apartments or shared accommodation arrangements.
Middle-class Peruvian families represent a growing demographic, preferring 3-bedroom apartments, townhouses, or single-family homes in suburban areas and emerging districts with good transportation links to employment centers.
Expatriates and digital nomads increasingly choose central Lima districts, particularly seeking furnished short-term rentals in neighborhoods like Miraflores and Barranco that offer international amenities and reliable internet connectivity.
Affluent locals and foreign executives target luxury properties in premium districts like San Isidro and exclusive new developments, prioritizing security, modern amenities, and prestigious addresses.
Tourists create seasonal demand for short-term rentals, particularly in Lima's historic center, Cusco's tourist zones, and Arequipa's colonial districts, driving higher rates during peak travel periods.
What are the current vacancy rates by property type and location?
Lima's residential market maintains approximately 5% vacancy rates as of 2025, indicating healthy demand-supply balance across most property segments.
Prime districts including Miraflores, San Isidro, and Barranco exhibit the lowest vacancy rates due to consistent demand from affluent tenants and international renters. These areas benefit from superior infrastructure and amenities that maintain tenant retention.
Office and commercial properties show lower vacancy rates in top-tier buildings due to Peru's economic rebound and increasing business activity in Lima's financial districts.
Provincial cities generally experience higher vacancy rates than Lima due to slower population growth and economic development, though specific data remains limited for smaller markets.
Seasonal variations affect tourist-dependent areas, with Cusco and other tourism-focused cities experiencing higher vacancy during off-peak months but strong occupancy during tourist seasons.
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 average rental yields today, and how do they vary across areas?
Lima delivers 6.45% gross rental yields on average, positioning it competitively within Latin America's major real estate markets.
Prime Lima areas typically achieve 5–7% gross yields, with net yields settling at 4–5% after accounting for property taxes, maintenance costs, and vacancy allowances. These districts benefit from consistent demand and premium rental rates.
Arequipa generates 5.49% gross yields, reflecting its growing economic importance and more affordable property prices relative to rental income potential.
Cusco and Trujillo average 5–5.5% gross yields, offering attractive returns for investors willing to consider markets outside Lima's premium segments.
Peru's national average reaches 5.97% gross yields, representing a slight decrease from 6.13% in Q4 2024 but maintaining stability within the 5–7% range observed over the past five years.
How have rents and yields changed compared to five years ago and one year ago?
Lima rents increased 3.9% year-to-date through September 2025, with premium areas experiencing faster appreciation than budget districts.
Over the five-year period since 2020, Lima rental prices appreciated approximately 5% annually, resulting in cumulative rent increases of 12–20% depending on specific neighborhoods and property types.
Rental yields have compressed slightly from 2020–2021 levels, declining approximately 0.2–0.3 percentage points due to rapid property price appreciation outpacing rental growth in some market segments.
Provincial cities experienced similar rental growth patterns but with higher volatility based on local economic conditions and development projects affecting supply-demand dynamics.
It's something we develop in our Peru property pack.
What is the forecast for rents and yields in one year, five years, and ten years, and how do they compare with other major Latin American cities?
Lima rental prices are projected to increase 3–7% in 2026, driven by continued urbanization and limited supply in desirable neighborhoods.
Nationwide rental growth is expected to reach 4–6% in 2026, with provincial cities potentially achieving 5–9% increases due to supply constraints and economic development initiatives.
Five-year projections through 2030 anticipate 4–5% annual nominal rental growth, supported by Peru's expanding middle class, infrastructure investments, and continued urban migration patterns.
Ten-year forecasts suggest sustained growth similar to Colombia and Chile, contingent on political and economic stability. However, yields may compress as property prices appreciate faster than rental income in established markets.
Compared to regional competitors, Lima's 6–6.5% yields exceed Santiago, Chile, while matching Bogotá and Mexico City. Peru's property prices remain more affordable than Chile or Brazil, offering better entry points for international investors seeking Latin American exposure.
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 rental market offers compelling opportunities for both investors and tenants in 2025, with Lima leading rental rates while provincial cities provide attractive value propositions.
The combination of steady yields, affordable property prices compared to regional peers, and growing demand from both local and international tenants positions Peru as an attractive emerging market for real estate investment.
Sources
- Global Property Guide - Peru Rental Yields
- Home Ready Global - Lima Rental Prices 2025
- Aparthotel.com - Peru Market Analysis
- Armenian Lawyer - Living Costs Peru 2025
- The Latinvestor - Peru Price Forecasts
- Travel Safe Abroad - Lima Cost of Living
- Exiap - Cost of Living Peru
- The Global Economy - Peru Mortgage Rates
- Global Property Guide - Peru Price History
- The Latinvestor - Peru Property Purchase Guide