Lima: property buying guide (Sept 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.

How this content was created 🔎📝

At The LatinvestOR, we explore the Peruvian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lima, Cusco, and Arequipa. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Lima, and are there any restrictions on location or type of property?

Foreigners enjoy full legal rights to purchase property in Lima with the same privileges as Peruvian citizens.

Peru's property laws allow international buyers to own residential, commercial, and land properties without any residency requirements or ownership amount limits. You can purchase apartments, houses, condominiums, and even vacant land for development purposes in Lima metropolitan area.

The only restrictions apply to properties within 50 kilometers of Peru's international borders and certain protected areas including indigenous territories, military zones, and environmental reserves. Since Lima is located on Peru's central coast, these border restrictions don't affect the capital city's real estate market.

Properties in heritage zones or archaeological sites may require special government approval, but these cases are rare in Lima's main residential and commercial districts. As of September 2025, foreign investors continue to benefit from Peru's open property ownership policies.

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

Is buying property in Lima a path to residency or eventual citizenship, and what are the requirements?

Property ownership in Lima does not automatically grant residency or citizenship in Peru.

While owning real estate can support your residency application by demonstrating economic ties to Peru, you must still apply for and qualify for temporary residency through separate visa categories such as business, retirement, or investment visas. Current Peruvian immigration law requires three years of continuous temporary residency before you can apply for permanent resident status.

The path to citizenship typically involves residing in Peru for at least two years with permanent residency, spending 183+ days per year in the country, plus meeting language proficiency and integration requirements. Property investment alone, regardless of value, doesn't qualify you for expedited residency or citizenship programs.

Many foreign property owners in Lima maintain their investments while living abroad or visiting on tourist visas, using their properties for vacation, rental income, or future relocation plans.

Which neighborhoods in Lima are the most popular with foreign buyers, and why?

Miraflores leads foreign buyer preferences due to its beachfront location, restaurant scene, safety levels, and vibrant nightlife.

This upscale district offers luxury condominiums and apartments with ocean views, making it ideal for both lifestyle buyers and short-term rental investors. The area's tourism infrastructure supports strong Airbnb demand year-round, with properties commanding premium rental rates.

San Isidro attracts corporate executives and families seeking Lima's business hub location, with embassy districts, top-rated schools, and extensive green spaces. The neighborhood's infrastructure and international services make it particularly appealing for relocated professionals.

Barranco appeals to younger professionals and creative expats with its artistic atmosphere, colonial architecture, and ocean views. This bohemian district has seen significant development in recent years, offering more affordable entry prices than Miraflores while maintaining strong appreciation potential.

La Molina and emerging areas like Jesús María and Surquillo attract value-conscious investors looking for larger properties, family-friendly environments, and neighborhoods benefiting from urban renewal projects that drive long-term investment gains.

What are the average property prices, rental yields, and market trends for September 2025?

Neighborhood	Price per sqm (USD)	Rental Yield	Monthly Rent 2BR (USD)
Miraflores	$2,500-$3,500	5-7%	$710-$3,200
San Isidro	$2,800-$3,950	5-7%	$750-$3,950
Barranco	$2,000-$2,800	6-8%	$680-$1,100
Surquillo	$1,000-$1,500	6-8%	$400-$1,075
La Molina	$1,500-$2,200	5-7%	$400-$1,500+

What is the long-term forecast for Lima's real estate market?

Lima's residential market shows strong fundamentals with expected annual nominal price growth of 3-7% through 2026.

The market benefits from continued infrastructure investment, steady population growth, and resilient rental demand from both local and international tenants. Government infrastructure projects including metro line expansions and coastal development initiatives support long-term property value appreciation.

Political uncertainty ahead of Peru's 2026 presidential election represents the primary risk factor for the real estate market. However, Peru's property market has historically remained stable during political transitions, and Lima's position as the economic center provides additional market resilience.

Rental demand continues strengthening, particularly for furnished apartments and short-term rentals in tourist areas like Miraflores and Barranco. The growing expat community and business travel recovery post-pandemic support sustained rental income opportunities.

Currency considerations remain important, as properties priced in US dollars provide some protection against peso devaluation for international investors holding dollar-denominated assets.

What are all the taxes, fees, and ongoing costs involved in buying and owning property there?

Total transaction costs for buying property in Lima range from 4-7% of the purchase price.

The alcabala transfer tax represents the largest single cost at 3% of the sale price, paid by the buyer. Notary fees typically cost 0.2-1% of property value, while public registry fees add another 0.3-0.5%. Legal representation costs $500-$2,000 depending on transaction complexity and property value.

Ongoing ownership costs include annual property tax ranging from 0.2-1% of the cadastral value, which is typically lower than market value. Condominium fees vary significantly by building amenities and services, with luxury buildings charging $1,950+ annually and basic buildings under $520 per year.

If you sell the property, the seller pays real estate agent commissions of 3-5% and capital gains tax of 5-30% on profits (unless selling through a corporation). Municipal taxes and utility connections add smaller additional costs during the buying process.

Appraisal fees of $100-$500 may be required for mortgage financing or certain transaction types.

Can you buy property in Lima entirely with cash, and is it possible for foreigners to get a mortgage, including the current rates, conditions, and the best way to qualify?

Cash purchases are fully permitted and common among foreign buyers in Lima's real estate market.

Many international investors prefer cash transactions for speed and simplicity, avoiding the documentation requirements and approval processes associated with mortgage financing. Cash buyers often negotiate better purchase prices and can close transactions more quickly.

Foreign mortgage financing is available through major Peruvian banks including Banco de Crédito del Perú (BCP), Interbank, and Scotiabank. Non-resident foreigners typically face interest rates of 7-11%, compared to 6-9% for residents. Banks generally require 20-30% down payments from foreign borrowers.

To qualify for a mortgage as a foreigner, you'll need Peruvian residency (temporary or permanent), proof of income in Peru, and substantial financial documentation. Some banks may consider international income, but local income significantly strengthens your application. The mortgage approval process can take 30-60 days.

Alternative financing includes using home equity loans or mortgages from your home country, which many foreign buyers find more straightforward than navigating Peru's banking system.

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

What documents are required for a foreigner to complete a property purchase in Lima?

The document requirements for foreign property purchases in Lima are straightforward but must be properly prepared and translated.

1. **Tax identification number (RUC or DNI extranjero)** - Required for all property transactions in Peru2. **Valid passport or national identification** - Must be current and properly authenticated3. **Property title deed and SUNARP registry certificate** - Verifies legal ownership and property status4. **Municipal tax clearance certificate** - Confirms no outstanding property taxes5. **Certificate of habitability** - Required for residential properties6. **Notarized purchase contract (Minuta de Compra-Venta)** - Legal sale agreement7. **Proof of tax payments** - Alcabala, notary fees, and registration fees8. **Property appraisal report** - May be required for financing or certain property types

All foreign documents must be translated into Spanish by a certified translator and legalized through apostille or consular authentication. The seller must provide clear title documentation and proof that the property is free of liens or debts.

Working with experienced legal counsel ensures all documentation meets Peruvian legal requirements and prevents delays during the registration process.

What is the step-by-step process for buying property as a foreigner, from search to final registration?

The property buying process in Lima typically takes 2-3 months from initial search to final registration.

1. **Property search and selection** - Work with licensed real estate agents familiar with foreign buyer requirements2. **Due diligence investigation** - Verify title, check for liens, debts, or legal issues through SUNARP registry3. **Preliminary purchase contract** - Sign minuta detailing terms, price, conditions, and obligations4. **Deposit payment** - Transfer 10-30% deposit to secure the property5. **Final contract execution** - Complete notarized sale contract before public notary6. **Tax and fee payments** - Pay alcabala, notary fees, registration costs7. **SUNARP registration** - File final documentation with public registry to receive official title

The due diligence phase is critical and should include obtaining a Certificado Registral Inmobiliario (CRI) and property registry extract to verify legal status. Professional legal representation helps navigate each step and ensures compliance with Peruvian property law.

Most delays occur during the documentation phase, so having all paperwork properly prepared and translated accelerates the timeline significantly.

Do you need to be physically in Peru to complete the purchase, or can it be done remotely?

Foreign buyers can complete property purchases in Lima entirely remotely through power of attorney arrangements.

The power of attorney must be granted at a Peruvian consulate in your home country and properly notarized and apostilled. This legal document authorizes a representative in Peru (typically your lawyer or real estate agent) to sign documents, transfer funds, and complete the registration process on your behalf.

All purchase documentation must be translated into Spanish and legalized, but physical presence in Peru is not required for any step of the buying process. Many foreign buyers successfully purchase properties while remaining in their home countries throughout the entire transaction.

Remote purchases require extra attention to communication and documentation, as you'll rely on your representatives for updates and verification. Video calls and digital document sharing help maintain oversight of the process.

Some buyers choose to visit Lima for property selection and initial negotiations, then complete the legal and financial steps remotely to minimize travel requirements.

What are the most common mistakes and pitfalls foreign buyers make in Lima, and how can you avoid them?

Inadequate due diligence represents the most expensive mistake foreign buyers make in Lima's property market.

Many buyers fail to thoroughly verify property titles, outstanding debts, liens, or legal restrictions before signing contracts. Always obtain a complete SUNARP registry report and municipal tax clearance certificate. Skipping this step can result in purchasing properties with hidden debts or legal complications.

Underestimating total transaction costs catches many buyers unprepared financially. Budget 4-7% of purchase price for taxes, fees, and legal costs beyond the property price. Currency exchange timing can also impact total costs for buyers using foreign currencies.

Choosing inexperienced legal representation or attempting to navigate the process without professional help creates unnecessary risks and delays. Select lawyers and notaries with proven experience in foreign buyer transactions and property law.

Ignoring regional property restrictions, particularly in heritage zones or protected areas, can complicate ownership or future development plans. Research zoning regulations and building restrictions before committing to purchase.

Failing to understand ongoing costs like property taxes, condominium fees, and maintenance expenses can strain investment returns and cash flow planning.

What is daily life like for expats in Lima, and how does the lifestyle compare to other Latin American cities?

Daily life for expats in Lima combines modern urban amenities with rich cultural traditions and year-round coastal weather.

Lima offers world-class restaurants, vibrant nightlife, historic districts, and easy access to outdoor activities including surfing, hiking, and weekend trips to the mountains or jungle. The city's culinary scene ranks among the world's best, with everything from street food to Michelin-starred restaurants.

Miraflores and San Isidro provide high living standards with international services, quality healthcare, and strong safety records. Traffic congestion represents the main daily challenge, but most expats find the cultural richness and lifestyle benefits outweigh this inconvenience.

Cost of living for expats ranges $1,500-2,500 monthly for a middle-class lifestyle, which is competitive compared to other Latin American capitals like Santiago, Bogotá, or Buenos Aires. Lima offers better value for dining and entertainment, though high-end property and luxury services may cost more than smaller Latin American cities.

The expat community in Lima is well-established with strong networking opportunities, international schools, and cultural organizations. Many expats cite the work-life balance, social connections, and opportunities for cultural immersion as major lifestyle advantages.

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

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.

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. The LatinvestOR - Moving to Peru Property Guide
2. Aparthotel - Foreign Real Estate Purchase in Peru
3. Andres Berger Garcia - Buying Property in Lima
4. Expat Focus - Peru Property Buying Guide
5. The LatinvestOR - Lima Property Market
6. Global Property Guide - Peru Price History
7. New York Times - Lima Real Estate Market
8. Global Property Guide - Peru Taxes and Costs
9. Expat Focus - Peru Property Financing
10. The LatinvestOR - Living in Peru as American