Authored by the expert who managed and guided the team behind the Peru Property Pack
Yes, the analysis of Lima's property market is included in our pack
Lima's rental yields average 6.1% to 6.45% gross as of September 2025, making it one of the most attractive property investment destinations in Latin America.
The Lima property market offers strong returns across different neighborhoods, with yields ranging from 4% in premium areas like San Isidro to over 7% in emerging districts like Surquillo. Property investors can expect solid rental income from both apartments and houses, though apartments typically perform better.
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.
Lima's rental yields are currently attractive at 6.1-6.45% gross, with apartments outperforming houses and emerging neighborhoods offering higher returns than premium districts.
Property investors should expect net yields 1.5-2% lower after expenses, with short-term rentals potentially delivering 8-10% gross yields but requiring higher management costs.
| District | Gross Yield (%) | Property Type |
|---|---|---|
| Surquillo | 5.9 - 7.5 | Apartments |
| Miraflores | 4.5 - 5.6 | Premium apartments |
| Barranco | 4.8 - 6.3 | Artistic district apartments |
| San Isidro | 4.0 - 5.6 | Business district units |
| La Molina | 3.5 - 5.3 | Family homes |
| San Borja | 3.8 - 5.7 | Residential apartments |
What's the current average rental yield in Lima overall?
Lima's average gross rental yield stands at 6.1% to 6.45% as of September 2025, making it one of the strongest performing property markets in Latin America.
The Lima residential property market has seen yields decline slightly from 6.13% in late 2024 to 5.97% by mid-2025, but this still represents solid returns for property investors. These figures represent gross yields before deducting expenses like property management, maintenance, and taxes.
Apartments consistently deliver the strongest yields in Lima, averaging 6.1% gross across the city. The apartment market benefits from high rental demand from young professionals, students, and expatriates who prefer the convenience and security of modern apartment complexes.
Houses typically yield 1-2% lower than apartments due to higher purchase prices relative to rental income. However, houses in emerging neighborhoods can still deliver competitive returns of 5-6% gross.
It's something we develop in our Peru property pack.
How do rental yields differ by property type in Lima?
Apartments dominate Lima's rental market with gross yields ranging from 4.4% to 7.8%, averaging 6.1% across the city.
Houses generally underperform apartments by 1-2 percentage points due to their higher purchase prices and lower rent-to-price ratios. Single-family homes in Lima typically yield between 4% and 6% gross, depending on location and size.
Commercial units often outperform residential properties by 1-3% in emerging markets like Lima, though specific data for Lima's commercial rental market is limited. Office spaces and retail units in prime business districts can deliver yields of 7-9% gross.
Studio and one-bedroom apartments offer the highest yields per square meter, often reaching 6-7% gross because smaller units command higher rent per square meter while having lower absolute purchase prices.
Luxury properties in premium districts typically yield the lowest returns, often below 5% gross, due to their high acquisition costs relative to rental income potential.
What are the average yields in the most popular neighborhoods?
| District | Gross Yield Range (%) | Market Characteristics |
|---|---|---|
| Surquillo | 5.9 - 7.5 | Affordable, high rental demand |
| Miraflores | 4.5 - 5.6 | Premium location, tourist area |
| Barranco | 4.8 - 6.3 | Artistic district, growing popularity |
| San Isidro | 4.0 - 5.6 | Business district, embassies |
| La Molina | 3.5 - 5.3 | Family-oriented, suburban feel |
| San Borja | 3.8 - 5.7 | Green spaces, middle-class families |
| Los Olivos | Below 5.0 | Affordable housing, lower rents |
How do yields vary by property size in Lima?
Smaller properties consistently deliver higher gross yields in Lima, with studio and one-bedroom units often yielding 6-7% gross.
One-bedroom apartments perform exceptionally well because they command premium rents per square meter while having lower absolute purchase prices. These units are highly sought after by young professionals and students.
Two and three-bedroom apartments typically yield 5.5-6.5% gross, offering a good balance between rental income and capital appreciation potential. These properties attract small families and sharing tenants.
Large apartments with four or more bedrooms can reach yields up to 7.6% in certain segments, particularly in emerging neighborhoods where purchase prices remain reasonable relative to rental potential.
The sweet spot for Lima property investors appears to be one to three-bedroom apartments, which combine strong yields with good liquidity and broad tenant appeal.
What's the average total purchase price for each property type in Lima?
Lima property prices vary significantly by size and location, with average costs including all fees and taxes running 5-7% above the base property price.
| Property Type | Average Price (USD) | Miraflores Premium (USD) |
|---|---|---|
| 1-bedroom apartment | $115,000 | $180,000 |
| 2-bedroom apartment | $150,000 | $250,000 |
| 3-bedroom apartment | $201,000 | $310,000 |
| 4+ bedroom apartment | $349,000 | $530,000 |
| Houses (average) | $220,000 | $400,000 |
Foreigners can purchase property freely in Lima without additional taxes or restrictions, making the process straightforward for international investors.
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What are the main ongoing costs that impact rental income in Lima?
Property maintenance typically costs 0.5-1% of the property value annually in Lima, covering repairs, servicing, and general upkeep.
Property management fees range from 5-10% of annual rental income for long-term rentals, while short-term rental management can cost 15-20% due to higher service requirements.
Condominium fees for apartment buildings vary significantly, averaging $40-$200 monthly depending on building amenities, security, and maintenance services included.
Property taxes and insurance costs remain relatively low in Peru compared to other Latin American countries, but investors should budget for these ongoing expenses.
Agent fees for securing new tenants typically equal one month's rent, representing a periodic cost when tenants change.
What's the difference between short-term and long-term rental yields in Lima?
Short-term rentals through platforms like Airbnb generate average annual revenue of $6,349 in Lima Metropolitan Area as of 2025.
Lima's short-term rental market shows an average daily rate of $62 per night with 41% occupancy, potentially delivering gross yields of 8-10% for well-managed properties.
Long-term rentals offer more stability and lower management costs, typically yielding 5-7% gross with net yields of 3.5-5% after expenses.
Short-term rentals require significantly higher management involvement, with cleaning, guest communication, and maintenance costs reducing net yields despite higher gross returns.
It's something we develop in our Peru property pack.
What are the current vacancy rates in Lima by area and property type?
Lima's overall vacancy rate ranges from 5-8% across most residential areas, with peaks of 10-12% in oversupplied luxury segments.
Premium districts like Miraflores and San Isidro maintain lower vacancy rates of 3-5% due to consistent demand from expatriates and high-income professionals.
Emerging neighborhoods experience slightly higher vacancy rates of 6-9%, but this is offset by lower purchase prices and higher potential yields.
Apartment buildings typically maintain lower vacancy rates than standalone houses due to better security, amenities, and location advantages.
Seasonal fluctuations affect vacancy rates, with lower vacancy during peak business months (March-November) and slightly higher rates during summer holidays.
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 kind of renters are most common in Lima?
Young professionals aged 25-35 represent the largest tenant segment in Lima, typically earning $800-$1,500 monthly and seeking modern apartments in well-connected areas.
- Young professionals and entrepreneurs preferring apartments in Miraflores, Barranco, and San Isidro
- University students sharing accommodations, particularly near major educational institutions
- Expatriate workers from multinational companies seeking furnished properties in premium districts
- Middle-class families looking for 2-3 bedroom apartments with parking and security
- International tourists and business travelers using short-term rentals
Can you show example rental yields from purchase to net yield?
| Property Example | Purchase Price | Annual Rent | Gross Yield | Annual Expenses | Net Yield |
|---|---|---|---|---|---|
| 1-bed Miraflores | $180,000 | $9,600 | 5.3% | $2,400 | 4.0% |
| 2-bed Barranco | $150,000 | $9,000 | 6.0% | $2,100 | 4.6% |
| 3-bed Surquillo | $130,000 | $8,400 | 6.5% | $1,950 | 5.0% |
| Studio San Borja | $85,000 | $5,400 | 6.4% | $1,350 | 4.8% |
| House La Molina | $280,000 | $13,200 | 4.7% | $3,500 | 3.5% |
How have rents and yields changed in Lima over time?
Lima rental yields have remained relatively stable over the past five years, with minor fluctuations between 5.8% and 6.5% gross.
Compared to five years ago (2020), yields have increased by approximately 0.5-1% due to rising rental demand outpacing property price growth during the economic recovery period.
Over the past year, yields have declined slightly from 6.13% to 5.97% as property prices increased faster than rental rates in some premium districts.
The forecast for the next year (2026) suggests yields will stabilize around 6-6.5% as the market finds equilibrium between supply and demand.
Five-year projections (2025-2030) indicate potential yield compression to 5.5-6% as Lima matures as an investment market and property prices appreciate. Ten-year forecasts suggest yields stabilizing around 5-5.5% as the market reaches full maturity.
How does Lima compare to other similar cities for rental yields?
Lima's 6.1-6.45% gross yields significantly outperform most Latin American capital cities, making it an attractive regional investment destination.
Compared to regional peers, Lima yields exceed Santiago (4-5%), Buenos Aires (3-4%), and Bogotá (5-6%), while remaining competitive with Mexico City (6-7%).
- Lima offers higher yields than mature markets like Santiago and Buenos Aires
- Political stability in Peru provides more security than some regional alternatives
- The sol's relative stability against the dollar protects international investors
- Growing middle class and urbanization trends support long-term rental demand
- Infrastructure improvements continue to enhance property values across the city
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.
Lima presents compelling rental yield opportunities for property investors, with gross returns of 6.1-6.45% outperforming most Latin American markets.
The key to success lies in choosing the right neighborhood and property type, with apartments in emerging areas like Surquillo offering the best risk-adjusted returns for investors.