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
Property prices in Lima are indeed going up, with residential properties showing a 10% average increase over the past year.
As we reach mid-2025, Lima's real estate market demonstrates strong upward momentum, particularly in emerging districts like La Victoria and Chorrillos. The combination of urban migration, infrastructure development, and lower interest rates continues to push prices higher across most neighborhoods.
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Lima's property market shows robust growth as of June 2025, with average prices reaching USD 1,500 per square meter and rising 10% annually. Districts like La Victoria and Chorrillos lead with increases up to 19%, while infrastructure projects and lower mortgage rates fuel continued demand.
| Metric | Current Status | Year-over-Year Change |
|---|---|---|
| Average Price per m² | USD 1,500 | +10% |
| Top Growth District | Chorrillos | +19% |
| New Home Sales | 6,237 units (H1 2025) | +30% |
| Mortgage Rate | 8.32% | -17.5% from peak |
| 2026 Forecast | 3-7% growth expected | Moderate increase |
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.
What are the current average property prices in Lima as of June 2025?
Lima's residential property market shows significant price variations across different districts in mid-2025.
The average price per square meter for residential properties in Lima currently stands at approximately USD 1,500. Premium districts like Miraflores and San Isidro command the highest prices, reaching up to USD 2,500 per square meter. These areas attract both international buyers and affluent locals seeking luxury amenities and prime locations.
Mid-range districts within Lima Moderna, including Jesús María, Magdalena, San Miguel, and Lince, offer more affordable options at USD 1,000 to 1,300 per square meter. These neighborhoods provide excellent value for middle-income buyers and young professionals. Emerging districts present the most budget-friendly opportunities, with prices starting as low as USD 800 per square meter.
For typical apartments in Lima, buyers can expect to pay around PEN 421,000 (USD 110,000) for a 2-bedroom unit of 60 square meters, while a larger 3-bedroom apartment spanning 100 square meters costs approximately PEN 657,000 (USD 172,000).
These price levels reflect Lima's position as Peru's economic capital and its continued attractiveness to both local and international property investors.
How much have Lima property prices increased over the past year?
Lima's property market experienced robust growth throughout 2024 and into 2025.
Residential property prices in Lima increased by approximately 10% on average over the past year from 2024 to 2025. This double-digit growth significantly outpaces inflation and demonstrates the market's strong fundamentals. Some districts showed even more impressive gains, with price increases ranging from 4.8% to 19% depending on the specific neighborhood.
The price growth wasn't uniform across all areas. Districts experiencing the most significant appreciation included La Victoria with a 9.5% increase, Chorrillos with an exceptional 19% jump, and Lince showing a strong 17.5% rise. San Miguel and San Isidro both recorded solid 8.3% to 9.2% increases, reflecting sustained demand in these established neighborhoods.
Looking at the broader historical context, Lima's property market has maintained steady annual growth of approximately 5% over the past five years from 2020 to 2025. Some zones within Lima Moderna and Lima Centro experienced cumulative increases of up to 42% over this five-year period.
Since 2015, property prices have more than doubled in most Lima districts, with premium areas like Miraflores, San Isidro, and Surco leading the appreciation curve.
Which Lima districts are experiencing the fastest property price growth in 2025?
Several Lima districts stand out as hotspots for rapid price appreciation in 2025.
Leading the pack is Chorrillos with an exceptional 19% price increase over the past year. This coastal district has attracted significant buyer interest due to its proximity to beaches and improving infrastructure. Lince follows closely with a 17.5% increase, benefiting from its central location and urban renewal projects.
Surquillo demonstrates strong growth at 11.5%, while La Victoria shows a solid 9.5% appreciation. San Miguel rounds out the top performers with 9.2% growth. Both San Isidro and Los Olivos recorded respectable 8.3% increases each, maintaining their appeal to different buyer segments.
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| District | Price Growth 2024-2025 | Key Growth Driver |
|---|---|---|
| Chorrillos | +19% | Coastal location, infrastructure |
| Lince | +17.5% | Central location, urban renewal |
| Surquillo | +11.5% | Accessibility, young professionals |
| La Victoria | +9.5% | Affordability, transport links |
| San Miguel | +9.2% | Family-friendly, amenities |
| San Isidro | +8.3% | Business district, premium location |
| Los Olivos | +8.3% | Growing middle class, development |
The top-performing districts for new home sales in 2025 include Miraflores, Jesús María, Cercado de Lima, San Miguel, and Santiago de Surco, indicating strong buyer confidence in these areas.
What types of properties are seeing the biggest price increases?
Different property types in Lima show varying levels of price appreciation based on current buyer preferences.
Apartments in mid-range and emerging districts are experiencing the fastest price increases, driven primarily by demand from young professionals and growing families. These properties offer the best value proposition in terms of location, amenities, and affordability. The shift toward remote work has made these areas particularly attractive as buyers seek more space at reasonable prices.
Luxury units in prestigious districts like Miraflores and San Isidro continue to show strong appreciation, fueled by foreign investment and expatriate demand. Despite some weakness in the ultra-luxury segment due to political uncertainty, well-located premium properties maintain their appeal.
Properties with flexible floor plans are projected to see a 12% increase in supply by 2026, reflecting buyer preferences for adaptable living spaces. This trend emerged from the pandemic and continues to influence purchasing decisions. Homes featuring outdoor spaces such as terraces, balconies, or gardens command premium prices, addressing the post-pandemic desire for private outdoor areas.
Smart homes with integrated technology and energy-efficient features attract strong buyer interest, particularly among younger demographics. Properties in gated communities with enhanced security features also command price premiums, reflecting ongoing safety concerns in urban areas.
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What are property price forecasts for Lima in 2026?
Property market experts project continued moderate growth for Lima's real estate sector in 2026.
Prices in key Lima districts are expected to rise between 3% and 7% in 2026, maintaining the market's positive trajectory. This forecast reflects a slight moderation from 2025's double-digit growth but still represents solid appreciation above inflation rates. Flexible and sustainable housing options are predicted to gain significant market share, with properties offering adaptable floor plans seeing increased demand.
The completion of major infrastructure projects, particularly the Lima Metro Line 2 scheduled for 2026, will likely boost property values in connected districts. Eastern districts along the new metro line could see price premiums of 15-20% for properties within 500 meters of stations.
Government housing programs and continued employment improvement are expected to support a 3% growth in residential investment throughout 2026. Mid-range properties in emerging districts with confirmed infrastructure improvements offer the best appreciation potential.
While nominal price growth appears sustainable, real-term appreciation will depend heavily on inflation control and political stability following Peru's 2026 elections. Investors should focus on areas with tangible infrastructure benefits rather than speculative luxury developments.
What impact is the 2025 fiscal reform package having on Lima property prices?
The 2025 fiscal reform package shows limited direct impact on Lima's property market so far.
As of June 2025, there is no clear evidence of significant effects from the fiscal reform package on Lima property prices. The market continues to follow pre-existing trends driven by supply-demand dynamics, infrastructure development, and monetary policy rather than fiscal changes. However, the reforms have created some uncertainty among buyers and developers, leading to increased caution in investment decisions.
Pre-electoral instability has influenced market sentiment more than the fiscal reforms themselves. Some high-end buyers have adopted a wait-and-see approach, particularly in the luxury segment where political stability plays a crucial role in investment decisions. Despite this caution, the broader market remains resilient with continued transaction volumes.
The expected 3% growth in residential investment for 2025 remains on track, supported by government housing programs that were largely unaffected by the fiscal reforms. Programs like Fondo MIVIVIENDA continue to assist first-time buyers and support market liquidity.
Market participants anticipate that any significant fiscal reform impacts will become clearer after the 2026 elections, when policy direction becomes more certain.
What are the main factors driving Lima property price increases?
Multiple interconnected factors contribute to Lima's robust property price growth in 2025.
Urban migration tops the list of demand drivers, with Lima's population growing by 157,500 in the past year. This substantial influx creates constant pressure on housing supply, particularly for affordable and mid-range properties. Young professionals and families moving to the capital for employment opportunities form the core of this demographic shift.
Infrastructure development plays a crucial role in value creation. The expansion of Lima's metro system and the $3.4 billion ring road project have significantly boosted property values in connected areas. Properties near confirmed infrastructure projects typically outperform market averages by 3-5% annually during construction phases.
Foreign investment, particularly in luxury segments and prime districts like Miraflores and San Isidro, continues driving up prices and competition. International buyers appreciate Lima's open property ownership laws and the ability to conduct transactions in US dollars.
Lower interest rates have substantially improved affordability. The Central Bank of Peru's rate cuts reduced mortgage rates from 10.1% to 8.32%, making property purchases more accessible to middle-income buyers.
Sustainability and technology trends influence buyer preferences, with 70% of purchasers now seeking eco-friendly features. This shift drives new development patterns and commands premium prices for properties with green certifications and smart home technology.
Are there signs of a property bubble in Lima's market?
Lima's property market shows no clear indicators of an imminent bubble or sharp correction in 2025.
Current price growth, while robust at 10% annually, remains supported by genuine demand fundamentals rather than speculation. The steady urban migration, infrastructure improvements, and demographic trends provide solid justification for price increases. Unlike bubble conditions, Lima's market shows balanced activity across different price segments rather than concentrated speculation in luxury properties.
Some analysts express concern about affordability pressures in premium areas like Miraflores and San Isidro, where prices have reached USD 2,500 per square meter. However, these concerns are balanced by continued strong demand from both local and international buyers. The overall market maintains healthy fundamentals with no major oversupply detected in key districts.
Nationally, Peru's property prices decreased by 1.42% year-over-year in December 2024, but Lima's main districts significantly outperformed this average. This divergence indicates Lima's unique market dynamics rather than a nationwide bubble.
Risk factors worth monitoring include political uncertainty ahead of 2026 elections and potential global economic headwinds. However, these represent normal market risks rather than bubble indicators.
We made this infographic to show you how property prices in Peru compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How do Lima property prices compare to other Latin American capitals?
Lima occupies a middle position in Latin American property price rankings as of June 2025.
With an average price of USD 1,500 per square meter, Lima's residential properties cost more than those in Bogotá and Buenos Aires but less than Santiago's premium districts. This positioning reflects Peru's economic stability and Lima's status as a major regional business center.
| City | Average Price per m² (USD) | Comparison to Lima |
|---|---|---|
| Lima | $1,500 (up to $2,500 in top districts) | Baseline |
| Bogotá | $1,200-$1,800 | Generally lower |
| Santiago | $2,000-$3,000 | Significantly higher |
| Buenos Aires | $1,200-$2,200 | Similar to slightly higher |
Lima's competitive pricing attracts regional investors seeking value opportunities. The city offers better yields than more expensive markets like Santiago while providing more stability than lower-priced alternatives. Premium Lima districts like Miraflores and San Isidro compete directly with upscale neighborhoods in other capitals.
The ability to conduct transactions in US dollars gives Lima an advantage over markets with currency volatility concerns. This feature particularly appeals to international investors seeking to minimize exchange rate risks.
Is demand for residential properties in Lima still strong in 2025?
Demand for Lima residential properties remains robust and shows accelerating momentum in mid-2025.
New home sales jumped 30% in the first half of 2025, with 6,237 units sold compared to the previous period. This surge indicates strong buyer confidence and pent-up demand being released as economic conditions improve. The sales acceleration spans across multiple market segments, from affordable housing to premium properties.
Demand concentration occurs in districts with superior connectivity, established amenities, and proximity to employment centers. Neighborhoods benefiting from metro expansion and road improvements see particularly strong buyer interest. First-time buyers drive significant market activity, supported by government programs like Fondo MIVIVIENDA.
Lower mortgage rates have expanded the buyer pool considerably. The reduction from 10.1% to 8.32% means monthly payments decreased by approximately 15-20% for the same loan amount, bringing homeownership within reach for many middle-income families.
Young professionals and growing families form the core demand demographic, seeking properties that accommodate remote work and offer quality of life improvements. This trend supports continued price appreciation in well-located residential areas.
How have recent interest rate changes affected Lima's property market?
Central Bank rate cuts have significantly stimulated Lima's real estate market throughout 2024 and into 2025.
The Central Bank of Peru's decision to reduce its reference rate to 6.25% in February 2024 triggered a cascade of positive effects on property demand. Mortgage rates fell from their peak of 10.1% in February 2023 to 8.32% by January 2024, representing a substantial 17.5% reduction that dramatically improved affordability.
This rate reduction translates to meaningful savings for buyers. For a typical PEN 400,000 mortgage, the monthly payment decreased by approximately PEN 500-700, making homeownership accessible to thousands of additional families. The improved affordability particularly benefited middle and lower-income segments, driving increased sales volumes.
Lower financing costs encouraged buyers to act quickly, contributing to the 30% increase in new home sales during the first half of 2025. Many purchasers who had been waiting on the sidelines entered the market to lock in favorable rates before potential future increases.
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The rate environment continues supporting market growth, with economists expecting rates to remain relatively stable through 2025, providing a favorable backdrop for continued price appreciation.
What long-term projections exist for Lima property prices through 2030?
Long-term forecasts for Lima's property market remain cautiously optimistic through 2030.
While specific quantitative forecasts for 2030 are limited, market fundamentals suggest continued steady appreciation. Ongoing infrastructure improvements, including metro expansion and road projects scheduled for completion by 2027-2028, will create lasting value in connected areas. Properties within 500 meters of new metro stations could see cumulative premiums of 20-30% by decade's end.
Demographic trends strongly support long-term growth. Peru's urbanization continues driving migration to Lima, with the capital expected to add over 1 million residents by 2030. This population growth ensures sustained housing demand across all market segments.
The growing middle class represents a powerful long-term driver. As household incomes rise and more families achieve financial stability, demand for quality housing will intensify. Modern amenities, security features, and sustainable design will become standard expectations rather than luxury additions.
Political stability following the 2026 elections will prove crucial for maintaining investor confidence. Assuming reasonable political continuity and economic management, annual price growth of 4-5% appears sustainable through 2030.
Climate change adaptation and sustainable development will increasingly influence property values, with eco-friendly buildings commanding growing premiums.
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 property market demonstrates clear upward momentum as of June 2025, with prices rising 10% annually and strong fundamentals supporting continued growth. The combination of urban migration, infrastructure development, and improved mortgage affordability creates favorable conditions for both investors and homebuyers.
Based on current market dynamics, demand patterns, and economic indicators, the answer is clear: Yes, property prices in Lima are going up, with expectations for continued moderate growth of 3-7% annually through 2026 and beyond.
Sources
- Lima Market Data About Real Estate Market - TheLatinvestor
- Precios de viviendas en Lima Moderna - La Cámara
- Mercado inmobiliario: segmentos con mayor potencial - Forbes Peru
- Distritos de Lima donde se incrementó el precio - Infobae
- Precio de viviendas en Lima creció 10% - Mobysuite
- Mercado Inmobiliario - Frontera
- Las diez zonas de Lima donde las viviendas se revalorizaron más - IPDU
- Lima Property Investment - TheLatinvestor
- Tendencias mercado inmobiliario Lima 2025 - Nexo Inmobiliario
- Lima Real Estate Forecasts - TheLatinvestor