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Yes, the analysis of Lima's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Miraflores? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like San Isidro or Barranco where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Peru Property Pack.
Will property prices increase in Lima in 2025?
Yes, property prices in Lima are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Lima remains an attractive city for both domestic and international investors.
While there are some economic challenges like inflation and potential political instability, the main drivers behind Lima’s price growth remain strong.
Demand, especially in prime areas, continues to outpace supply, making significant price drops unlikely. Additionally, Lima's status as a cultural and economic hub in Peru continues to attract buyers.
Signals pointing to a property price increase in Lima
Here are some factors suggesting prices could increase:
The ongoing urbanization and population growth in Lima are expected to continue, leading to increased demand for housing. As more people move to the city, the pressure on the housing market is likely to drive prices up.
Lima's infrastructure development projects, such as new transportation links and urban renewal initiatives, are set to enhance connectivity and livability, making certain areas more attractive and potentially increasing property values.
The limited availability of land for new developments in central areas of Lima is expected to constrain supply, which, coupled with steady demand, could lead to higher property prices.
Foreign investment in Lima's real estate market is anticipated to grow, driven by the city's economic prospects and strategic location, which could further boost property prices.
Government policies aimed at promoting homeownership and real estate investment, such as tax incentives or subsidies, could stimulate demand and contribute to rising property prices.
The trend of remote work and digital nomadism is likely to continue, attracting more professionals to Lima who seek affordable yet vibrant urban living, thereby increasing demand for housing.
The cultural and historical appeal of Lima, combined with its growing reputation as a culinary and tourist destination, continues to attract both local and international buyers, supporting property price growth.
Signals pointing to a property price decrease in Lima
Here are some factors suggesting prices could fall:
Economic instability or political uncertainty in Peru could undermine investor confidence and reduce demand for real estate, potentially leading to a slowdown in price growth.
Rising inflation and cost of living may strain household budgets, reducing the purchasing power of potential homebuyers and dampening demand for properties.
Higher interest rates could make mortgage financing more expensive, discouraging potential buyers and slowing down the real estate market.
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If property prices go up in Lima, how much would they increase by?
If real estate prices in Lima were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Lima appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Miraflores for 500,000 soles today, don't be surprised if it's priced between 515,000 and 535,000 soles this time next year.
To give you a better understanding, here is a table that shows 7 types of Lima real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (S/) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Miraflores (60 sqm / 646 sqft) | S/ 600,000 | S/ 618,000 | S/ 630,000 | S/ 642,000 |
| Modern Apartment in San Isidro (75 sqm / 807 sqft) | S/ 800,000 | S/ 824,000 | S/ 840,000 | S/ 856,000 |
| Luxury Penthouse in Barranco (100 sqm / 1,076 sqft) | S/ 1,500,000 | S/ 1,545,000 | S/ 1,575,000 | S/ 1,605,000 |
| Studio in Surco (30 sqm / 323 sqft) | S/ 300,000 | S/ 309,000 | S/ 315,000 | S/ 321,000 |
| Loft in La Molina (80 sqm / 861 sqft) | S/ 1,000,000 | S/ 1,030,000 | S/ 1,050,000 | S/ 1,070,000 |
| Townhouse in San Borja (150 sqm / 1,615 sqft) | S/ 2,000,000 | S/ 2,060,000 | S/ 2,100,000 | S/ 2,140,000 |
| Investment Property in Lince (50 sqm / 538 sqft) | S/ 500,000 | S/ 515,000 | S/ 525,000 | S/ 535,000 |
Everything you need to know is included in our Property Pack for Lima
If real estate prices go up in Lima, which areas are likely to see the biggest increases?
Today, people who want to move to Lima seek the charm of its historic districts, but they also desire modern conveniences and vibrant social scenes, which Barranco delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Miraflores has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Lima market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Barranco | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| San Isidro | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Lima. |
| Miraflores | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| San Borja | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| La Molina | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Pueblo Libre | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Lince | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Surco | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Jesús María | Medium-High | Its proximity to central Lima, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Magdalena del Mar | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Chorrillos | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Centro Histórico | High | Upcoming restoration of historic buildings and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Lima
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Lima?
In 2025, Lima real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Lima are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Lima, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Lima's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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