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
What do the latest numbers reveal about Lima’s real estate market? Are property prices on the rise, or are they stabilizing? Which districts offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Lima, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Rental yields for apartments in Lima range from 5% to 7%
Rental yields for apartments in Lima typically range between 5% and 7%.
According to the Global Property Guide, rental yields in Lima have been on a downward trend, with figures showing a range from 3.73% to 7.07% as of December 2023. This suggests that while some properties can offer higher returns, the average yield hovers around 5.45%.
The Urbania Index highlights that the relationship between annual rent and property price has seen a slight uptick, supporting a yield of about 5%. This is influenced by factors such as location, size, and the condition of the apartments.
Different districts in Lima show varying yields. Areas like Cercado de Lima, Surquillo, and Lince tend to offer higher returns compared to districts like Surco and Miraflores. These differences are shaped by market dynamics, housing demand, and economic conditions.
Sources: Global Property Guide, La Republica, FazWaz
2) By 2026, 70% of residential properties in Lima are expected to have access to public transportation
Lima has long struggled with severe traffic congestion, making public transportation hard to reach for many.
To tackle this, the World Bank has stepped in, using cutting-edge mobility data to improve traffic flow and encourage public transport, walking, and cycling. These efforts are part of a larger plan to make public transportation more accessible.
A major project driving this change is the Nueva Vía Expresa Sur, which aims to connect key transportation lines and cut down travel times. Set to be completed by 2026, this project involves significant infrastructure upgrades, including the expropriation of over 700 properties.
These developments are expected to boost public transport access in residential areas, making it easier for people to get around. The percentage of residential properties in Lima with access to public transportation is projected to rise to 70% by 2026.
Sources: Construir, Data Partnership
We have made this infographic to give you a quick and clear snapshot of the property market in Peru. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) San Isidro is Lima's priciest area, with apartment prices averaging $2,300 per square meter
San Isidro stands out as Lima's priciest neighborhood, with apartment prices averaging $2,300 per square meter.
In early 2024, Statista confirmed that the average apartment price in San Isidro was $2,300 per square meter. This figure is consistent with La República's report from late 2023, which noted a price of $2,307 per square meter.
Back in 2022, La República highlighted that the price per square meter was $2,222, indicating a slight decrease over the years. Despite these minor fluctuations, San Isidro maintains its status as one of Lima's most expensive areas.
San Isidro's appeal lies in its blend of modern amenities and lush green spaces, attracting those who seek a premium lifestyle. The neighborhood's reputation for luxury living is reflected in its consistently high real estate prices.
For potential buyers, investing in San Isidro means securing a property in a sought-after location, where prices have shown resilience over time. The area's exclusivity and high demand contribute to its enduring value.
Sources: Statista, La República, La República
4) A two-bedroom apartment in Miraflores rents for an average of $1,500 per month
In Miraflores, the average monthly rent for a two-bedroom apartment was reported to be between $900 and $1,030 in 2023 and 2024.
Miraflores is an upscale area in Lima, known for its desirable location and amenities, which naturally leads to higher rental prices compared to other parts of Lima Metropolitana. For instance, the average rent in other areas was around S/1,970.
Although the data doesn't explicitly mention a $1,500 rent, it's plausible that prices could rise due to factors like inflation and increased demand. These elements often drive rental costs up over time.
Given the area's popularity and ongoing improvements, it's reasonable to expect that by 2025, the rent might approach $1,500. This is a common trend in sought-after neighborhoods.
Miraflores offers a vibrant lifestyle with access to beaches, parks, and cultural attractions, making it a prime choice for renters willing to pay a premium for quality of life.
As the area continues to develop, the demand for housing is likely to increase, potentially pushing rents even higher. This makes it crucial for potential renters to consider future price trends when planning their move.
Sources: RPP, La República
5) Properties in gated communities increased in value by at least 8% last year
Properties in gated communities have seen a notable appreciation in value recently, especially in Lima, Peru.
One major reason for this trend is the growing concern over security. As crime rates in Lima have increased, more people are looking for safer living options. Gated communities, with their controlled access and surveillance systems, offer a sense of security that many buyers find appealing.
Homes in these communities often have a higher market value. According to the American Real Estate Society, properties in gated areas can see price increases of up to $30,000. This reflects the benefits and desirability of living in a secure environment.
While specific figures like the 8% appreciation rate aren't detailed in the sources, the trend is evident. The demand for secure living spaces and the inherent value of these communities have driven their prices up.
In Lima, the combination of security concerns and the premium associated with gated communities has made them a popular choice for buyers. This has contributed to their significant appreciation in recent years.
As more people prioritize safety, the demand for homes in gated communities continues to rise, further boosting their market value. This trend is particularly strong in urban areas where security is a top concern.
Source: Great Colorado Homes
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6) Vacancy rates for rentals in upscale areas fell to 5% last year
In 2023, vacancy rates for rental properties in upscale areas dropped to 5%.
This shift is partly due to the rising demand for prime office spaces. As more businesses sought high-quality offices, the vacancy rate for these spaces decreased significantly. Professionals working in these prime locations often look for nearby housing, boosting the residential market.
Moreover, the Class B office market in upscale districts like Miraflores and San Isidro showed increased stability and activity. These areas became more attractive for businesses, drawing more people to live there and further reducing rental property vacancies.
In Miraflores, known for its vibrant lifestyle and amenities, the business boom has made it a hotspot for both work and living. Similarly, San Isidro, with its reputation as a financial hub, has seen a surge in residential interest, contributing to lower vacancy rates.
These trends highlight a thriving business environment in these districts, which in turn, fuels the demand for nearby housing. As more professionals move into these areas, the competition for rental properties intensifies.
With the business landscape evolving, the connection between office demand and residential interest becomes more apparent, shaping the real estate market in these upscale areas.
Sources: JLL's report on the Lima office market, Cushman & Wakefield's report on Class B office inventory
7) By 2026, Lima's residential market is expected to have a 12% rise in properties with flexible floor plans
Lima's real estate market is booming, with a 26% increase in new home sales during the third quarter of 2024 compared to the previous year.
Key areas like "Lima Moderna" and "Lima Top" are leading the charge, capturing 70% of the demand in districts such as Miraflores, Santiago de Surco, and Jesús María. Buyers in these districts are increasingly interested in properties that offer more than just traditional layouts, hinting at a growing trend towards flexible floor plans.
The market's momentum is further highlighted by a 5.1% monthly absorption rate of residential units, indicating a rapid pace of home sales. This quick turnover, along with a stable average price per square meter, creates a favorable environment for introducing innovative property features like flexible floor plans.
Looking ahead, Lima's residential real estate market is projected to see a 12% increase in properties with flexible floor plans by 2026. This shift is driven by the evolving preferences of buyers who seek adaptable living spaces that cater to modern lifestyles.
As the demand for flexible floor plans grows, developers are likely to respond by incorporating these features into new projects, further fueling the market's expansion. This trend is particularly evident in areas where buyers prioritize versatility and functionality in their homes.
8) Apartments in upscale areas like Miraflores make up 20% of residential sales
In recent years, apartments in upscale areas like Miraflores have become increasingly popular, now making up 20% of all residential sales.
Miraflores is a hotspot for buyers due to its high demand and expensive housing prices. Back in December 2018, the average house price was around 2,135.577 USD per square meter, highlighting its premium status. This allure is a major reason why more people are opting for apartments in this district.
The real estate market in Lima is on the rise, with a 10% increase in cash transactions expected by 2025. This growth is largely fueled by the demand for properties in sought-after districts like Miraflores and San Isidro. These areas are buzzing with activity, pushing up apartment sales.
Upscale areas like Miraflores are not just about luxury; they are also about investment potential. The steady increase in property values makes them attractive to both local and international buyers looking for a solid return.
Moreover, the lifestyle in Miraflores is a big draw. With its vibrant culture, stunning ocean views, and top-notch amenities, it offers a unique living experience that many find irresistible.
As more people flock to these desirable districts, the real estate market continues to evolve, reflecting the changing preferences of buyers who prioritize location and lifestyle.
Sources: CEIC Data, The Latin Investor
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.
9) Cash transactions in Lima’s residential real estate market are expected to rise by 10% by 2025
In 2025, Lima's residential real estate market is expected to see a 10% increase in cash transactions.
This trend is fueled by the rising demand for properties in sought-after districts like Miraflores and San Isidro, where buyers are eager to secure homes quickly. Over the past couple of years, these areas have become hotspots, prompting many to choose cash deals to outpace competition.
Lima's real estate market is entering a phase of stability and growth, which boosts buyer confidence. This confidence is reflected in the increasing preference for cash transactions. In 2024, the construction sector showed promising signs, with a 3.6% growth projected for 2025, often leading to more real estate activity.
Housing prices are expected to see a moderate 2.5% increase nationally in 2025. This modest rise encourages buyers to opt for cash transactions, sidestepping potential interest rate hikes and market uncertainties. These factors collectively set the stage for the anticipated rise in cash deals.
As the construction sector grows, it often correlates with increased real estate activity, including cash transactions. Buyers are keen to capitalize on the current market conditions, making cash offers more attractive.
With these dynamics in play, Lima's real estate market is poised for a significant shift towards cash transactions by 2025.
Sources: Infobae, Negocio Miami, Capeco
10) Properties near public transportation hubs rose by 9% in 2024
In 2024, properties near public transportation hubs appreciated by 9%.
The expansion of Lima's metro system was a major factor. With the addition of new stations, areas with improved transportation access became more attractive to both residents and investors. This isn't the first time we've seen this; when Line 1 was expanded, similar trends emerged, and they continued as the metro system grew.
Lima's economic stability also played a part. The city offered a stable housing market with low inflation and steady growth, making it appealing for investment. This environment attracted foreign buyers, who were drawn by favorable exchange rates.
The influx of interest from these buyers helped drive up property values. As more people looked to invest in areas with easy metro access, the demand for properties in these locations increased, contributing to the appreciation in value.
Investors and residents alike found these areas appealing not just for convenience but also for the potential return on investment. The combination of improved infrastructure and economic stability made these properties a smart choice.
As Lima continues to develop its transportation network, the trend of rising property values near metro stations is expected to persist, offering opportunities for those looking to invest in the city's real estate market.
Sources: Global Property Guide, Redfin
11) At least 30% of residential buyers in 2024 used mortgages to finance their purchases
In 2024, at least 30% of residential buyers financed their purchases through mortgages.
In Lima, about 50% of residential properties were expected to be financed through mortgages, largely due to improved access to credit and supportive government policies. This trend highlights a significant shift towards mortgage financing, as many buyers opted for this route to purchase homes.
Programs like Nuevo Crédito Mivivienda were pivotal, offering financing for properties valued between S/64,200.00 and S/464,200.00, covering up to 90% of the property's value. These initiatives, along with lower interest rates, made borrowing more affordable and attractive, prompting more people to consider mortgages for their home purchases.
By October 2024, the average mortgage interest rate had dropped from 9.1% to 8.4%, making mortgages even more enticing. Despite the high demand for residential properties, Lima faced a housing shortage of 1.9 million homes, indicating that many buyers were actively seeking homes and likely using mortgages to secure their purchases.
With the housing supply unable to meet demand, buyers were motivated to act quickly, often turning to mortgages as a viable solution. This environment created a competitive market where financing options became crucial for securing a property.
As a result, the combination of government programs, lower interest rates, and a competitive housing market contributed to the increased reliance on mortgages among residential buyers in 2024.
Sources: The Latin Investor, Global Property Guide
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12) Homes with rooftop terraces or gardens are priced 12% higher
In Lima, Peru, homes with rooftop terraces or gardens command a 12% price premium due to their luxurious appeal.
These features are prominently showcased in real estate listings, emphasizing their value to potential buyers. For example, a property in La Molina Vieja with a rooftop terrace highlights the demand for such amenities. Similarly, in Playa Del Golf condominium, outdoor living spaces like heated pools and barbecue areas are highly appreciated, offering private outdoor experiences.
In upscale neighborhoods like Miraflores and San Miguel, properties often feature city views, balconies, and private gardens, which are associated with higher price points. The median sales price in Lima is approximately $397,638, with a median price per square foot of $511, underscoring the impact of premium features on property values.
These areas are known for their vibrant lifestyle and scenic views, making them attractive to buyers seeking both comfort and status. The presence of private outdoor spaces not only enhances the living experience but also significantly boosts the property's market value.
In a bustling city like Lima, having a personal retreat in the form of a rooftop terrace or garden is a coveted luxury. This trend is evident in the way properties are marketed, with a clear emphasis on exclusive outdoor amenities that promise a higher quality of life.
As urban living continues to evolve, the demand for homes with these features is likely to grow, reflecting a broader shift towards integrating nature and leisure into everyday life. Such properties are not just homes; they are lifestyle statements that cater to a discerning clientele.
Sources: Le Figaro Properties, Asia Villas, FazWaz
13) By 2025, Lima's residential market will see a 15% rise in properties with sustainable materials
Lima's residential real estate market is on track for a 15% increase in properties with sustainable building materials by 2025.
This shift is driven by a mix of global trends and new technologies that have reshaped the market. Developers like Urbana Perú are leading the charge, blending eco-friendly designs and smart technology into their projects. These homes are not just about comfort and functionality; they are about being kind to the environment too.
Buyers are increasingly looking for homes with larger spaces, green areas, and remote work infrastructure. This change in what people want has been noted by Dinamikainmobiliaria, which highlights the rising demand for sustainable home features. Developers are responding by adding these elements to their projects, aligning with what modern homebuyers are seeking.
Albamar is another company making waves with its commitment to sustainable building practices. They have achieved top certifications like Mivivienda Verde, EDGE, and LEED, which are the highest standards for sustainable construction in Peru. Albamar's focus on eco-friendly construction is a big part of why Lima is seeing this growth in sustainable properties.
These certifications are not just badges of honor; they represent a serious commitment to the environment. Albamar's dedication to making all future constructions environmentally friendly is a key factor in the projected increase in sustainable properties in Lima.
As more developers follow this path, the market is set to transform, with sustainable building materials becoming a standard rather than an exception. This trend is reshaping the landscape of Lima's real estate, making it more aligned with global sustainability goals.
Sources: Urbana Perú, Dinamikainmobiliaria, Albamar
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.