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 is happening in Lima’s real estate market? Are prices on the rise or decline? Is Miraflores still a prime location for foreign investors? How are Peru’s government policies shaping real estate taxes and regulations in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Lima, from San Isidro to Barranco and beyond. You might be curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Lima real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts or comments, and we’ll strive to enhance this content for you.
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1) Foreign buyers are drawn to Lima’s real estate market by favorable exchange rates and economic stability
Foreign buyers are flocking to Lima's real estate market thanks to favorable exchange rates and economic stability.
In recent years, Lima has become a hotspot for international property buyers. According to Lima One Capital's 2024 Housing Outlook, the city boasts a stable housing market with increased transaction volume. This is largely due to low inflation and steady economic growth, making it an attractive option for those looking to invest.
The exchange rate is another big draw. The Peruvian sol, while experiencing some ups and downs, has generally kept favorable rates against major currencies like the US dollar. This means buying property in Lima is more affordable for foreign investors, giving it an edge over other major cities.
Economic reports add to the appeal, showing Peru's stable GDP growth and low inflation rates. With inflation expected to drop below 3.1% in 2024 and 2.00% by 2025, Peru's economic environment is a magnet for foreign investors looking for a secure place to park their money long-term.
For those considering a move, Lima offers a unique blend of modern amenities and rich cultural heritage. The city's vibrant neighborhoods and bustling markets provide a lively backdrop for new residents. Plus, the local cuisine is a delightful bonus, with world-renowned dishes that attract food lovers from all over.
Whether you're looking for a vacation home or a permanent residence, Lima's real estate market offers a promising opportunity. With its economic stability and favorable exchange rates, it's no wonder foreign buyers are taking notice.
Sources: Lima One Capital, Trading Economics
2) Peru’s real estate prices will stabilize as inflation rates level off
Peru's real estate market, especially in Lima, is showing signs of price stabilization as inflation rates begin to level off.
In September 2024, Peru's annual inflation rate dropped to 1.78%, the lowest since 2020, staying within the central bank's target of 1-3% for eight months. This indicates a period of economic stability, which is good news for potential property buyers.
While the Consumer Price Index for housing-related expenses rose to 2.34% in November 2024, it aligns with stable inflation trends. This means housing costs aren't significantly driving inflation, a positive sign for the real estate market. Real estate agencies like Lima One Capital foresee stable housing prices and more transactions in 2024, thanks to slow economic growth and lower interest rates.
Looking ahead, Peru's real estate market is expected to grow by 2.73% from 2024 to 2029, focusing on residential development and urbanization. This growth should balance supply and demand, helping stabilize prices further. Financial institutions report that mortgage rates dropped sharply in December 2023 and are likely to stay in the low-to-mid 6% range in 2024, boosting purchasing power and transaction volume.
For those considering buying property, this means a more stable market with increased purchasing power due to favorable mortgage rates. The focus on urbanization and residential development suggests a promising future for real estate investments.
With these trends, Peru's real estate market is becoming more attractive, offering potential buyers a chance to invest in a steadily growing market with balanced dynamics.
Sources: Trading Economics, REI Ink, Statista
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.
3) Rental yields in Lima's Miraflores will drop as property prices rise faster than rents
In 2025, rental yields in Lima's Miraflores district are expected to decline as property prices rise faster than rents.
Miraflores is seeing a boom, with the average price per square meter hitting USD 2,500, much higher than the USD 1,500 in other districts. This jump in property values means buying is getting pricier, which can squeeze rental returns.
Looking back, rental prices in Lima haven't kept up with property values. From 2009 to 2018, gross rental yields fell from 13% to 5.6%. Now, they hover between 3.73% and 7.07%, averaging 5.45% in central spots like Miraflores. This shows rents are climbing slower than property prices, which could mean lower yields.
Real estate agencies report a surge in property investments, thanks to stable housing prices and more transactions in 2024. This wave of investors might push property prices even higher, making it tough for landlords to keep rental yields up.
Foreign investors are also playing a big role, driving up property prices in Lima, including Miraflores. This can boost property values significantly without a matching rise in rental income.
With all these factors, landlords in Miraflores might find it challenging to maintain high rental yields as property prices continue to outpace rent increases.
Sources: Global Property Guide, Global Property Guide, REI Ink
4) E-commerce growth is shaping residential designs to incorporate package delivery solutions
The boom in e-commerce has transformed urban living, especially in places like Lima, Peru.
Back in 2023, online shopping took off, with a 32% increase in e-commerce sales. This meant more packages arriving at doorsteps, changing how homes are designed.
With this surge, parcel theft became a big worry. To tackle this, many buildings started using smart parcel lockers, like those from Parcel Pending, which offer a secure way to receive deliveries.
Real estate developers quickly caught on, realizing that package delivery features could boost property appeal. People began looking for homes with these convenient amenities.
Developers teamed up with delivery services, making it easier to integrate smart delivery solutions into both new and existing properties.
These changes reflect a shift in consumer preferences, where convenience and security in package delivery are now key selling points for homes.
Sources: Americas Market Intelligence, Parcel Pending, HelloPackage
5) Property prices in Ate are falling as new developments in nearby areas attract more interest
The district of Ate is seeing a drop in property prices as interest shifts to nearby areas.
In 2023, property prices in Metropolitan Lima, which includes Ate, fell by 3.03% when adjusted for inflation. This decline is partly due to the rise in new developments in neighboring districts like La Molina and Santa Anita, which are drawing more attention from investors.
These neighboring areas are becoming hotspots for buyers, with demand outpacing supply and driving prices up. People are looking for better amenities and infrastructure, which are more common in these new developments outside Ate.
Comparative data shows that new housing projects in these areas have higher occupancy rates, indicating they are attracting more buyers. This trend is pulling interest away from Ate, where such developments are less prevalent.
Buyers are increasingly favoring districts with better amenities or infrastructure improvements, which are more prevalent in new developments outside Ate. This shift is evident in the growing popularity of La Molina and Santa Anita.
As a result, Ate is experiencing a decline in property prices, while neighboring districts continue to thrive with new investments and developments.
Source: Global Property Guide
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6) Rental yields in Pueblo Libre are expected to drop as new developments boost competition
In Pueblo Libre, rental yields are expected to drop as new housing developments flood the market.
With a surge in construction permits, new residential projects are popping up everywhere. This boom means more options for renters, but it also spells trouble for landlords who might see their properties sitting empty longer.
When new buildings open their doors, existing rentals often face higher vacancy rates. This is a common scenario in areas with lots of new construction, leading to fierce competition among property owners. Real estate agencies are already noticing this trend, which can push rental prices down and squeeze rental yields.
Looking back, rental yields in Lima, including Pueblo Libre, have been on a downward slide. Back in 2013, yields were around 13%, but by 2023, they had dropped to 5.45% in some spots. This decline is partly due to the wave of new housing projects hitting the market.
For potential buyers, this means more choices but also more competition if you're thinking of renting out your property. The influx of new developments is reshaping the rental landscape, making it crucial to stay informed and strategic.
As the market evolves, keeping an eye on these trends can help you make smarter investment decisions. Whether you're buying to live or to rent, understanding the dynamics at play in Pueblo Libre is key.
Sources: Global Property Guide, Urban Land Institute, Airbnb
7) Lima's aging population will boost demand for retirement-friendly housing options
The population in Lima is aging, leading to a higher demand for retirement-friendly housing.
In 2024, the average age in Peru was 33.8 years, a noticeable increase from the early 90s when it was around 23-24 years. This shift means more people are living longer and reaching retirement age, creating a need for homes that cater to their lifestyle.
Life expectancy in Peru has also seen a remarkable rise. Back in 1950, people lived on average to about 46 years old, but by 2024, this number had increased to nearly 78 years. This longevity means people are enjoying longer, healthier lives, and as they age, they require homes that accommodate their evolving needs.
By 2024, 13.9% of Peru's population was 60 years or older, with Lima being a significant area experiencing this demographic shift. This is a substantial increase from 6.4% in 1940, highlighting a growing number of elderly residents who need suitable housing options.
In Lima, the demand for homes that are accessible and comfortable for retirees is on the rise. This trend is driven by the city's aging population, who are looking for properties that offer convenience and ease of living.
As more people in Lima reach retirement age, the real estate market is adapting to meet their needs. Developers are focusing on creating communities that provide amenities and services tailored to older adults.
Sources: Population Data, Life Expectancy
8) La Molina's rental yields stay stable as it remains favored by expatriates and affluent locals
La Molina is a top choice for expatriates and affluent locals due to its stable rental yields.
For those eyeing a property in La Molina, the rental yields are quite appealing. Two-bedroom apartments offer a 5.46% yield, while three-bedroom units bring in 5.55%. These figures align with Lima's averages, showing a steady market.
Expatriates are particularly drawn to La Molina, thanks to its excellent amenities and security. The area is home to high-quality international schools like Newton College, which is a big plus for families seeking bilingual education and a strong IB program.
High-income locals also find La Molina attractive for both living and investing. The area's stability and demand make it a smart choice for property investments. Real estate agents frequently note the consistent demand for rentals, highlighting its popularity.
La Molina's charm lies in its blend of security, education, and community, making it a preferred spot for those seeking a comfortable lifestyle. The district's appeal is further cemented by its ability to maintain stable rental yields, a testament to its ongoing desirability.
Whether you're an expatriate or a local, La Molina offers a compelling mix of benefits that make it a standout choice in the property market. Its steady rental yields and strong demand are clear indicators of its enduring appeal.
Sources: Global Property Guide, Tales Mag
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Peru. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Chinese investors are increasingly interested in Lima’s real estate market for diversification
Lima's real estate market is increasingly attracting Chinese investors eager to diversify their portfolios.
Real estate agencies in Lima have noticed a significant rise in interest from Chinese buyers, drawn by the city's economic potential and strategic location. This interest is further fueled by the growing Chinese community in Lima, which offers cultural and social connections for new investors.
Chinese investors are looking beyond their borders, and Lima stands out as a key target due to its stable economy and expanding real estate market. The city's appeal is enhanced by historical ties and a supportive expatriate community, making it a natural choice for those seeking international opportunities.
Government agreements between China and Peru often include provisions that facilitate real estate investments, adding another layer of attraction for Chinese investors. These agreements help streamline the process, making it easier for investors to enter the market.
Media reports and surveys highlight a broader strategy among Chinese investors to diversify their portfolios internationally, with Lima being a prime focus. The city's economic stability and growth potential make it a compelling option for those looking to invest abroad.
As Chinese Foreign Direct Investment in Peru continues to grow, reaching approximately 2.35 billion U.S. dollars in 2023, the trend of investing in Lima's real estate market is expected to continue. This influx of investment is a testament to the city's promising prospects and strategic importance.
Sources: Statista, The Diplomat
10) New green spaces and parks in Lima are boosting the desirability of nearby residential areas
In Lima, new green spaces and parks are making nearby residential areas more desirable.
Neighborhoods like Barranco, San Isidro, and Miraflores are seeing a boom in property values. This is largely due to luxury housing projects and urban renewal initiatives that have transformed these areas. People are drawn to the blend of modern living and lush surroundings.
In places like La Molina, the demand for homes near parks is on the rise. Eco-friendly urban projects and new schools are making these areas more appealing. Real estate ads often highlight the proximity to green spaces, showcasing tech-smart, energy-efficient apartments with outdoor areas.
Residents are showing a clear preference for living near green spaces. Programs like Limeños al Bicentenario have reported a significant increase in the use of these areas. This has not only boosted foot traffic but also spurred a 700% rise in commercial activities in newly renovated public spaces.
These green spaces are not just about aesthetics; they are becoming vibrant community hubs. The increase in business activity around these areas is a testament to their growing importance in urban life. People are enjoying the benefits of having nature at their doorstep.
As Lima continues to expand its green spaces, the trend of rising property values in these areas is expected to continue. The city's commitment to sustainable urban development is reshaping the real estate landscape, making it a prime time to invest in these neighborhoods.
Sources: Shift Cities, Early Childhood Matters
11) Lima homebuyers are increasingly seeking properties with energy-efficient features due to sustainability concerns
In Lima, the real estate market is buzzing with a shift towards eco-friendly homes.
People are increasingly interested in sustainability and eco-conscious living, and it's changing how homes are built and sold. The NAR 2024 Sustainability Report shows that almost half of the clients are keen on sustainable features. This isn't just a trend; it's a movement that's reshaping the market.
Green building certifications like LEED, EDGE, and BREEAM are becoming the norm. These certifications, backed by local governments, promote environmentally friendly buildings. The NAR report also mentions that 40% of real estate listings now highlight green features, showing how important sustainability has become in property sales.
In Lima, homes with energy-efficient features are in high demand. New developments that focus on sustainability are fetching higher prices, which shows that buyers are willing to pay more for eco-friendly living. The government is also offering incentives, like height bonuses, to developers who build green, pushing the trend even further.
These changes are not just about saving energy; they're about creating a better living environment. Energy-efficient homes are not only good for the planet but also offer long-term savings on utility bills. This makes them attractive to buyers who are looking for both sustainability and cost-effectiveness.
Sources: KfW Development Bank, Baker McKenzie, NAR Realtor
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12) Interest in high-rise condos in Lima's city center is waning as people look for more spacious options
High-rise condominiums in Lima's city center are losing their appeal as people crave more space.
In 2022, sales of newly-built homes in Metropolitan Lima dropped by about 10%, highlighting a waning interest in these towering structures. This trend is not just about buying; rental yields for central Lima apartments are also on the decline, making them less attractive for investors and renters alike.
Meanwhile, suburban areas are becoming more popular, with rental prices for larger apartments on the rise. This shift suggests that people are prioritizing spacious living environments over the convenience of city life. The rise of remote work has played a significant role in this change, as fewer people need to live close to their workplaces.
Social media and news outlets are buzzing with stories of people seeking homes with gardens or outdoor spaces, further fueling the suburban trend. This desire for more room is reshaping the real estate landscape, with suburban properties gaining more attention than ever before.
As the demand for city-center condos dwindles, the focus is shifting to areas that offer a breath of fresh air and room to grow. The allure of high-rise living is fading, replaced by the charm of suburban life.
Sources: Global Property Guide
13) Online property platforms are changing buyer-seller interactions in Lima’s real estate market
Online property platforms are transforming how buyers and sellers interact in Lima's real estate market.
In recent years, especially around 2023 and 2024, there was a noticeable shift towards mobile apps for real estate. Millions of people downloaded these apps, making it super easy to search for properties anytime, anywhere. This mobile-first approach has made property hunting more convenient and accessible for everyone.
These platforms boast a vast number of property listings. For instance, platforms like Apartments.com offer over 1.1 million listings, giving buyers and renters a wide array of choices. This extensive catalog means you can find the perfect property without the old-school hassle. Plus, when these online platforms team up with traditional real estate agencies, it makes communication and transactions a breeze.
Nowadays, 97% of prospective buyers start their home search online. This trend underscores the critical role digital platforms play in the real estate market. With features like virtual tours and blockchain technology, property transactions have become more efficient and trustworthy, letting buyers make informed decisions right from their couches.
Local companies are pouring more investment into digital real estate technology, which is driving this change even further. By leveraging AI, big data, and blockchain, the real estate market in Lima is becoming more dynamic and responsive to what consumers want.
Sources: Solguruz, Ascendix Tech
14) Barranco's property prices are stabilizing after rapid growth, making it more appealing to investors
In Barranco's historic district, property prices are stabilizing after years of rapid growth, making it a more attractive option for investors.
Recent reports show that the annual growth rate of property prices is slowing down. The median sales price for a property in Barranco is around S/912,000, with a median price per square meter of S/9,180. This indicates that the rapid price hikes of the past are now leveling off, offering a more predictable market for potential buyers.
Real estate agencies are also noting a plateau in average property prices. The average price per square meter has stayed relatively stable over the past few years, reinforcing the idea of stabilization. With 22 properties currently listed for sale, the increased inventory suggests a more balanced market, which can lead to steadier prices.
Investor surveys are highlighting a renewed interest in Barranco due to this price stabilization. While specific surveys aren't cited, the perceived market stability is likely drawing more investors. This renewed interest is a positive sign for the district, indicating growing confidence in its future prospects.
For those considering a purchase, Barranco offers a unique blend of historic charm and modern amenities. The district is known for its vibrant arts scene, eclectic architecture, and lively cultural events, making it a desirable location for both living and investment.
With its cobblestone streets and bohemian vibe, Barranco is not just a place to live but a lifestyle choice. The stabilization of property prices adds to its appeal, providing a sense of security for those looking to invest in this picturesque area.
Sources: FazWaz.com.pe
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.