Is it worth it buying property in Lima in 2025?

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

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Lima. If you'd like to learn more about us, you can check our presentation page.

What kinds of properties are available to buy in Lima right now?

Lima's property market offers six main types of residential properties as of September 2025.

Apartments and condos dominate the market, ranging from compact studio units in emerging districts to luxury penthouses in premium areas like San Isidro and Miraflores. These units typically come with modern amenities and security features that appeal to urban professionals.

Traditional casonas represent Lima's colonial heritage—large, restored homes mainly found in historic districts that offer unique architectural character. Family homes include detached villas, semi-detached houses, and townhouses, particularly popular in suburban areas like La Molina where families seek more space and greenery.

Modern tech-equipped units have become increasingly sought-after, featuring smart home systems, energy-efficient appliances, and high-speed internet infrastructure that attracts young professionals and digital nomads.

Commercial spaces are also available for mixed-use investments, including office buildings, retail premises, and development lots for those looking beyond pure residential investment.

Is it generally better to buy or rent in Lima in 2025?

The decision between buying and renting in Lima depends primarily on your timeline and long-term plans.

Buying makes financial sense if you plan to stay for five or more years, want to build equity, and can benefit from the current favorable mortgage rates of 8.2-8.3%—significantly lower than the rates seen in early 2023. Property values have increased 10% annually, making ownership a hedge against inflation and a pathway to wealth building.

Renting is preferable if you're uncertain about your stay duration, want flexibility to explore different neighborhoods before committing, or if the upfront costs of purchasing feel prohibitive. Many expats choose to rent initially to understand local neighborhoods and market dynamics before making a purchase decision.

Market experts generally recommend renting first for newcomers to Lima, especially international buyers who need time to understand local regulations and identify the best areas for their lifestyle needs.

The current market conditions favor buyers due to lower interest rates and strong appreciation potential, but only if you're prepared for a long-term commitment to the city.

What's the breakdown of property prices in Lima—how they were before, how they are now, and what's the forecast?

Lima's property market has experienced steady growth with recent acceleration in price appreciation.

What are the main real estate market trends in Lima at the moment?

Lima's real estate market in 2025 is characterized by five major trends shaping buyer preferences and investment patterns.

Technology integration has become a premium feature, with buyers actively seeking properties equipped with smart home systems, high-speed internet infrastructure, and energy-efficient appliances. These tech-ready units command higher prices and rent faster than traditional properties.

Rapid appreciation in emerging districts represents a significant shift, with areas like La Victoria, Chorrillos, and Lince experiencing substantial price growth as infrastructure improvements and urban development projects enhance their appeal. These previously overlooked neighborhoods now offer attractive entry points for investors.

The sales recovery has been remarkable, with new home purchases up 30% year-over-year in the first half of 2025, driven primarily by lower mortgage rates that have brought more buyers into the market.

Outdoor space commands a premium, with properties featuring terraces, gardens, or balconies selling at higher prices as residents increasingly value private outdoor areas following recent lifestyle changes.

It's something we develop in our Peru property pack.

How exactly does the buying process work in Lima, step by step?

The property buying process in Lima follows eight essential steps that typically take 30-60 days to complete.

1. Research neighborhoods and property types that match your budget and lifestyle needs, considering factors like commute times, amenities, and future development plans
2. Engage a credible local real estate agent who speaks your language and understands both local regulations and international buyer needs—this step is crucial for transparency and successful negotiations
3. View properties and submit written offers through your agent, including any conditions or contingencies you want to include in the preliminary agreement
4. Sign a preliminary agreement (contrato de arras) once your offer is accepted, typically requiring a deposit of 10% of the purchase price to secure the property
5. Conduct due diligence and legal checks with a qualified notary, verifying property title, checking for liens or encumbrances, and ensuring all documentation is in order
6. Sign the final purchase contract (escritura pública) before a notary and pay the remaining balance, including all closing costs and fees
7. Register the property in the Public Registry (Registros Públicos) to formalize your legal ownership and protect your investment
8. Pay all relevant taxes and fees, including the 3% property transfer tax and notary fees, which typically total 4-5% of the purchase price

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Where can I find properties for sale—are there reliable real estate agencies or platforms to use?

Lima's property market offers several reliable channels for finding quality properties, both online and through established local agencies.

Major online platforms include FazWaz, which specializes in international buyers and offers English-language support, Realtor.com for a wide range of listings, and Premier Casa for premium properties. These platforms provide comprehensive search filters and professional photography to help narrow your options.

Established local agencies like San Miguel Sotheby's Realty offer high-end properties with international service standards, while JamesEdition focuses on luxury and unique properties throughout Lima's premium districts.

For rental properties that might convert to purchases, platforms like Craigslist, Expat.com, and EasyRoommate provide extensive listings, while Facebook expat groups offer insider knowledge and personal recommendations from current residents.

Always work with bilingual agents or reputable agencies that can provide references from previous international clients, and never proceed with any transaction without independent legal advice from a qualified Peruvian attorney.

What types of properties can I get for different budget ranges?

Lima's property market accommodates various budgets, from entry-level investments to luxury estates.

What are the most common mistakes buyers make when purchasing property in Lima?

International buyers in Lima frequently make six critical errors that can cost thousands of dollars and create legal complications.

Failing to verify property title and ownership represents the most dangerous mistake—always demand to see the original title deed and conduct a thorough search at the Public Registry to ensure the seller has clear ownership and no outstanding liens exist.

Underestimating closing costs and taxes catches many buyers off-guard, as additional expenses including the 3% transfer tax, notary fees, legal costs, and registration fees can add 4-5% to your total investment beyond the purchase price.

Falling for scams remains a persistent risk, particularly when sellers demand large upfront payments before proper due diligence—never transfer significant funds until title verification is complete and contracts are signed before a notary.

Ignoring renovation and maintenance costs can strain budgets, especially for older properties or those in historic districts where restoration work may require special permits and higher-skilled craftspeople.

Not understanding foreigner restrictions can derail purchases entirely, as foreign nationals cannot buy land within 50km of coastlines or 100km of international borders without special government authorization.

Working without qualified bilingual representation often leads to misunderstandings about contract terms, local regulations, and market conditions that could have been easily avoided with proper professional guidance.

What's the cost of living like in Lima for property owners?

Lima offers significantly lower living costs compared to major US or European cities, making property ownership financially attractive for international buyers.

Monthly community fees for condominiums typically range from $50-$250 depending on amenities like pools, gyms, security services, and common area maintenance. Luxury buildings with concierge services and extensive facilities command the higher end of this range.

Utility costs remain very reasonable, with electricity, water, gas, and internet totaling $50-$150 per month for a typical apartment, depending on usage patterns and property size. Air conditioning costs are minimal due to Lima's mild climate year-round.

Property taxes in Peru are notably low, generally ranging from 0.2-1% of the assessed property value annually, making long-term ownership highly cost-effective compared to many other countries.

Maintenance and insurance costs vary significantly by property type and age, but generally remain affordable with basic homeowner's insurance costing $200-$500 annually for most residential properties.

While daily living expenses like local food, transportation, and services are very affordable, imported goods and international-brand products carry premium prices that can impact overall household budgets for expats accustomed to certain lifestyle standards.

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.

Which areas are the best to buy in—affordable, up-and-coming, and upscale—and what are the strengths and weaknesses of each?

Lima's real estate market offers distinct opportunities across different price segments and investment strategies.

What is life like for expats living in Lima?

Lima offers expats a dynamic urban lifestyle that successfully blends Latin American energy with modern cosmopolitan amenities.

The city hosts a large and active expat community, particularly concentrated in districts like Miraflores, San Isidro, and Barranco where English is widely spoken and international services are readily available. Most expats find comfortable integration through established social networks, international schools, and expat-focused businesses.

Cost of living advantages are substantial, with rent, local food, public transportation, and domestic services costing significantly less than comparable US or European cities. However, luxury goods, international brands, and imported products carry premium prices that can impact budgets for those maintaining specific lifestyle standards.

Safety considerations require common urban precautions, with crime levels varying significantly by district—expat-favored areas generally maintain good security, but awareness and basic precautions remain essential for daily activities.

The lifestyle combines vibrant urban energy with coastal recreation opportunities, featuring Lima's renowned culinary scene, extensive cultural events, beach access, and year-round mild climate that supports outdoor activities. Professional opportunities exist particularly in tourism, education, consulting, and international business sectors.

It's something we develop in our Peru property pack.

If I rent out long term, which areas should I target, what kind of tenants can I expect, what do they look for, how much rental income and yield could I get, and how does that compare to short-term rentals in terms of areas, tenant profile, income, yield, and any regulations?

Lima's rental market offers distinct opportunities for both long-term and short-term rental strategies, each with specific advantages and target demographics.

Long-term tenants in Lima's prime areas typically seek properties with modern amenities, reliable internet, security features, and proximity to business districts or international facilities. Corporate tenants and expat professionals value furnished units, parking spaces, and buildings with 24-hour security.

Short-term rentals can generate higher gross returns but require active property management, deal with vacancy periods between bookings, and must comply with local regulations that vary by district. Some buildings or neighborhoods restrict short-term rentals, so verify regulations before committing to this strategy.

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.

Sources

1. FazWaz Peru - Properties for Sale in Lima
2. The LatinVestor - Peru Price Forecasts
3. Digital Nomad Exchange - Real Estate in Lima
4. James Edition - Peru Real Estate
5. The LatinVestor - Lima Price Forecasts
6. The LatinVestor - Peru Real Estate Foreigner Tips
7. Expat Focus - How to Buy Property in Peru
8. Realtor.com International - Peru
9. P Partners Group - Peru Real Estate
10. The LatinVestor - Lima Buy vs Rent Analysis