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Lima's property market is experiencing solid growth with 10% year-on-year price increases and strong demand from both locals and foreign investors. As of September 2025, average residential prices range from USD 800-3,500 per square meter depending on the district, with emerging neighborhoods like Surquillo and Jesús María offering the best value for money while prime areas like Miraflores and San Isidro command premium prices.
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Lima's residential property market shows robust fundamentals with 10% annual growth, strong rental yields of 5-8%, and promising medium-term prospects driven by infrastructure development.
The market offers diverse opportunities from premium coastal districts to emerging value areas, with properties selling within 16-21 days and foreign investment demand continuing to rise.
| District Category | Price Range (USD/m²) | Rental Yield | Growth Trend |
|---|---|---|---|
| Premium (Miraflores, San Isidro) | 2,500-3,500 | 6-7% | Steady appreciation |
| Mid-income (Jesús María, Surquillo) | 1,300-1,800 | 7-8% | Fast growth |
| Emerging (Ate, Los Olivos) | 800-1,200 | 6-8% | High potential |
| Best Value (Surquillo, Pueblo Libre) | 1,200-1,600 | 7-8% | Strong demand |
| Commercial (Prime districts) | Premium pricing | Variable | Stable growth |
What are the current average property prices per square meter in Lima?
As of September 2025, Lima's residential property market shows significant price variation across different districts and property types.
The overall average residential price sits at USD 1,500-1,800 per square meter, but this varies dramatically by location. Premium districts like Miraflores and San Isidro command USD 2,500-3,500 per square meter, reflecting their coastal location, established infrastructure, and high demand from both locals and foreign buyers.
Middle-income districts such as Jesús María, Magdalena, and Surquillo offer more affordable options at USD 1,300-1,800 per square meter. These areas provide good value while maintaining decent amenities and connectivity to central Lima. Emerging and affordable areas like Ate, San Juan de Lurigancho, and Los Olivos present entry-level opportunities at USD 800-1,200 per square meter.
For apartments specifically, the citywide average reaches USD 1,800 per square meter. Houses typically command slightly higher prices per square meter in premium districts, though this varies significantly based on plot size and property features.
Commercial properties in top districts like San Isidro's financial center and Miraflores consistently maintain premium pricing, though specific recent data for commercial real estate remains limited.
How have Lima property prices changed over the past year and what's the short-term outlook?
Lima's residential property market has experienced robust growth over the past 12 months, with overall prices increasing by 10% year-on-year as of September 2025.
Some districts have significantly outperformed this average, with Chorrillos leading the charge with a remarkable 19% price increase. La Victoria and Santiago de Surco have also shown strong appreciation rates above the city average. This growth represents a notable acceleration from the typical 5% annual appreciation seen over the previous five years.
The accelerated growth stems from infrastructure development projects, post-pandemic demand shifts toward larger living spaces, and increased interest from foreign investors. Supply constraints in desirable areas have also contributed to upward pressure on prices.
For the next six months through early 2026, forecasts indicate continued positive momentum with expected growth of 3-7%. While the pace may moderate slightly from the exceptional 2024-2025 performance, the underlying trend remains positive barring external economic shocks.
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What is the medium-term forecast for Lima property prices over the next 2-3 years?
The medium-term outlook for Lima's property market through 2027-2028 shows steady but sustainable growth expectations.
Property prices are forecast to grow at 4-5% annually over the next 2-3 years, representing a normalization from the exceptional growth seen in 2024-2025. This projected growth rate aligns more closely with historical averages while remaining above inflation, ensuring real value appreciation for property owners.
Districts connected to major infrastructure projects will likely outperform the city average. The Metro Line 2 extension, new ring road developments, and highway improvements will particularly benefit neighborhoods with improved connectivity. Areas like Surquillo, Jesús María, and parts of Santiago de Surco stand to gain significantly from these developments.
The medium-term forecast assumes continued political stability, sustained urban migration to Lima, and ongoing middle-class expansion. These fundamental drivers support consistent demand for residential properties across various price segments.
Premium districts are expected to maintain their price premiums while emerging areas may see accelerated appreciation as infrastructure improvements enhance their attractiveness to buyers and investors.
What is the long-term outlook for Lima's real estate market over the next 5-10 years?
The long-term outlook for Lima's property market through 2030-2035 remains cautiously optimistic, supported by fundamental demographic and economic trends.
Sustained urbanization continues to drive demand as Peru's rural population migrates to Lima for employment opportunities. The expanding middle class, projected to grow significantly over the next decade, will create additional demand for quality housing across multiple price segments.
Infrastructure investment represents a key growth driver for the long term. Beyond current projects, planned developments include additional metro lines, improved coastal access, and smart city initiatives that will enhance property values in connected areas. Districts that successfully integrate these improvements will see sustained appreciation above city averages.
Technology integration in properties will become increasingly important, with sustainable and smart-home features commanding growing premiums. Properties without modern amenities may face relative depreciation compared to upgraded alternatives.
The long-term success of Lima's property market depends on continued political stability and economic growth. Assuming GDP growth maintains projected levels of 3-4% annually and democratic institutions remain stable, property appreciation should continue at sustainable rates while offering good investment returns.
Which Lima districts are experiencing the fastest property price growth?
Several Lima districts are showing exceptional growth rates that significantly exceed the city average as of September 2025.
Chorrillos leads all districts with a remarkable 19% price appreciation over the past year. This coastal district benefits from ongoing urban renewal projects, improved beach access, and growing recognition as an affordable alternative to premium coastal areas like Miraflores.
La Victoria and Santiago de Surco also demonstrate strong performance above the 10% city average. La Victoria's central location and improving infrastructure make it attractive for both residential and commercial development, while Surco's family-friendly environment and good schools drive consistent demand.
Jesús María, Cercado de Lima, and San Miguel show robust sales volume growth, indicating strong underlying demand. These districts offer good value propositions with established amenities and improving connectivity to other parts of the city.
Miraflores continues to appreciate steadily, though at more moderate rates given its already premium pricing. The district's established reputation and continued foreign buyer interest ensure consistent growth despite higher entry costs.
Which areas in Lima offer the best value for money right now?
Several Lima districts currently offer exceptional value for money, combining affordable entry prices with strong growth potential and good rental demand.
Surquillo stands out as the top value proposition, offering prices in the USD 1,300-1,600 per square meter range while providing excellent connectivity to premium districts. The area benefits from ongoing infrastructure improvements and shows strong rental demand from professionals working in nearby business districts.
Jesús María provides another excellent value opportunity, with similar pricing to Surquillo but featuring more established amenities and cultural attractions. The district appeals to both local families and foreign residents seeking authentic Lima experiences without premium district prices.
Pueblo Libre offers good value for buyers seeking larger properties with character. Historic architecture combined with reasonable prices makes it attractive for renovation projects and family homes. Barranco, while slightly pricier, provides exceptional lifestyle value with its bohemian atmosphere and cultural scene.
Los Olivos and San Miguel represent excellent value in the affordable rental market, offering lower purchase prices with decent rental yields. These areas particularly suit investors focused on local rental demand rather than premium or foreign tenant markets.
How do price trends differ between apartments, houses, and luxury properties in Lima?
| Property Type | Price Trend | Target Market | Growth Driver |
|---|---|---|---|
| Mid-range Apartments | Fastest increases | Professionals/Families | High demand, tight supply |
| Luxury Properties | Steady but slower | High-net-worth individuals | Political risk concerns |
| Entry-level Homes | Strong demand growth | First-time buyers | Infrastructure improvements |
| Family Houses | Steady appreciation | Families with children | Outdoor space demand |
| Ultra-luxury Segment | Underperforming | International buyers | Limited by political uncertainty |
What are the current rental yields across different areas and property types in Lima?
Lima's rental market offers attractive yields ranging from 5-8% gross returns depending on location and property type as of September 2025.
Prime districts including Miraflores, San Isidro, and Barranco typically generate 6-7% gross rental yields. These areas benefit from consistent demand from expatriates, business travelers, and affluent local professionals willing to pay premium rents for location and amenities.
Emerging districts like Surquillo and Jesús María offer some of the highest yields, reaching up to 8% gross returns. These areas combine reasonable purchase prices with strong rental demand from professionals seeking good value accommodations with decent connectivity to business districts.
Short-term rental properties, particularly those suitable for Airbnb and furnished corporate lets, show yields at the upper end of ranges due to Lima's growing business and leisure travel market. Properties in tourist-friendly areas like Miraflores and Barranco particularly benefit from this trend.
Standard residential properties in middle-income areas consistently deliver 7-8% yields, making them attractive for buy-to-let investors. The combination of affordable purchase prices and steady local rental demand creates reliable investment returns.
What is the average time to sell or rent a property in different parts of Lima?
Lima's property market shows remarkably quick transaction times across most districts, reflecting strong underlying demand and limited supply.
Prime districts including Miraflores, San Isidro, and Barranco typically see properties sell within 16-21 days. Rental properties in these areas move even faster, often finding tenants within 10 days due to high demand from professionals and expatriates.
Emerging and value districts require slightly longer timeframes but still perform well below historical averages. Properties in areas like Surquillo, Jesús María, and Pueblo Libre typically sell within 3-4 weeks, while rentals are usually secured within 2-3 weeks.
The luxury segment takes longer to transact, particularly for ultra-premium properties where buyer pools are smaller and decision-making processes more complex. However, even luxury properties rarely remain on the market for more than 6-8 weeks if priced appropriately.
These quick transaction times reflect the constrained supply situation across Lima's desirable districts. The combination of limited new development and strong demand from both local and foreign buyers creates a seller's market in most areas.
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How is demand from foreign buyers and investors evolving in Lima's real estate market?
Foreign buyer demand in Lima's property market continues to strengthen, driven by the city's affordability compared to other regional capitals and Peru's favorable investment climate.
International buyers, particularly from the United States, Europe, and other Latin American countries, show increasing interest in Lima's prime and lifestyle districts. Foreign investors appreciate Peru's stable legal framework that grants nearly identical property rights to non-residents as to local buyers.
The primary focus areas for foreign investment include Miraflores, Barranco, and San Isidro—districts offering amenities, coastal access, and strong short-term rental potential. These areas appeal to buyers seeking both lifestyle properties and investment opportunities in the growing tourism and business travel markets.
Foreign demand particularly concentrates on properties suitable for short-term rentals, given Lima's expanding role as a business and tourism hub. Properties with modern amenities, good connectivity, and appeal to international visitors command premium interest from overseas buyers.
The trend shows sustained growth potential as more international investors discover Lima's value proposition: affordable entry costs, stable appreciation, good rental yields, and straightforward legal processes for foreign ownership.
Which districts, property types, and price ranges offer the best opportunities for buying now?
The current Lima market offers diverse opportunities depending on your investment goals and budget as of September 2025.
For emerging districts with high appreciation potential, Surquillo, Jesús María, and Pueblo Libre represent the best opportunities. These areas offer lower entry prices (USD 1,200-1,600/m²) combined with major infrastructure developments that should drive future value appreciation.
The optimal property types include mid-range apartments suitable for professionals and families, as well as family-sized homes with outdoor space. Properties featuring modern amenities, sustainable features, and smart-home technology command growing premiums and appeal to both local and international tenants.
The USD 1,000-1,800 per square meter price range represents the market sweet spot, balancing affordability with good rental prospects and appreciation potential. This range captures emerging districts with growth potential while avoiding the highest-priced premium areas.
For prime area investments, apartments in Miraflores and Barranco with rental potential continue to offer strong opportunities, particularly for short-term rental markets. These properties may have higher entry costs but provide reliable returns and appreciation in established markets.
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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.
What economic, political, and infrastructure developments will influence Lima's real estate market?
Several major factors will shape Lima's property market performance over the coming years, creating both opportunities and potential risks for investors.
Economic fundamentals remain solid with GDP growth projections of 3.1-4% annually, continued urban migration to Lima, and an expanding middle class. Low unemployment rates and steady economic growth support sustained housing demand across multiple price segments.
Political factors introduce some uncertainty, particularly the 2026 presidential elections. Long-term political stability remains critical for sustained market growth, and election outcomes could influence foreign investment confidence and economic policy directions.
Infrastructure development represents the strongest positive influence on property values. Metro Line 2, scheduled for completion in 2026, will significantly improve connectivity and boost property values in served neighborhoods. New highways and the Lima ring road project will enhance accessibility and drive development in previously less accessible areas.
Urban development initiatives including expanded parks, green development projects, and new mixed-use zones will favor districts receiving new investment. These improvements particularly benefit emerging areas by enhancing their attractiveness to residents and investors.
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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 presents compelling opportunities for both investors and residents, with strong fundamentals supporting continued growth across multiple districts and property types.
The combination of affordable entry prices, attractive rental yields, and improving infrastructure creates a favorable environment for property investment, particularly in emerging districts poised to benefit from major development projects.
Sources
- Lima Average Apartment Prices - The LatinVestor
- Lima Market Data About Real Estate Market - The LatinVestor
- Lima Price Forecasts - The LatinVestor
- Lima Which Area - The LatinVestor
- Peru Price Forecasts - The LatinVestor
- Top Real Estate Hotspots in Lima - Home Ready Global
- Lima Property - The LatinVestor
- Cheapest Rental in Lima 2025 - Home Ready Global
- Peru Price History - Global Property Guide
- Peru Rental Yields - Global Property Guide