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House prices in Peru vary significantly by location, with Lima commanding the highest prices at around $1,500 per square meter, while cities like Cusco and Arequipa offer more affordable options starting at $800-1,200 per square meter.
As of September 2025, a typical two-bedroom house in Lima costs between $110,000-$195,500, while similar properties in Cusco average around $81,000 and in Arequipa range from $65,000-$119,000. Buyers should budget an additional 4.5-6% of the purchase price for closing costs and legal fees, plus a 10-20% down payment for mortgage financing.
If you want to go deeper, you can check our pack of documents related to the real estate market in Peru, based on reliable facts and data, not opinions or rumors.
House prices in Peru range from $800 per square meter in rural areas to $3,500 per square meter in premium Lima districts. The average nationwide price stands at approximately $2,700 per square meter for residential properties.
Buyers typically need a 10-20% down payment, face mortgage rates of 7.4-7.5%, and should budget 4.5-6% of the purchase price for closing costs including the 3% acquisition tax.
City | Average Price per m² | Two-Bedroom House Price | Monthly Rent (2BR) |
---|---|---|---|
Lima (Premium Districts) | $2,500-$3,500 | $150,000-$195,500 | $900-$1,000 |
Lima (Middle Districts) | $1,000-$1,300 | $110,000-$140,000 | $750-$850 |
Cusco | $2,275 | $81,000 | $600-$800 |
Arequipa | $800-$1,200 | $65,000-$119,000 | $560 |
Rural Areas | $400-$800 | $45,000-$85,000 | $300-$500 |
Coastal Tourist Areas | $2,000-$3,500 | $120,000-$200,000 | $700-$1,200 |

What's the average price per square meter for houses in Peru right now?
The average price per square meter for houses in Peru stands at approximately $2,700 nationwide as of September 2025.
Lima dominates the market with residential properties averaging $1,500 per square meter overall. However, premium districts like Miraflores and San Isidro command significantly higher prices, reaching up to $2,500-$3,500 per square meter. Middle-income districts in Lima offer more affordable options at $1,000-$1,300 per square meter.
Cusco presents a middle ground with prices averaging around $2,275 per square meter (equivalent to S/8,420 per square meter at the current exchange rate of 3.7 soles per dollar). Arequipa offers the most affordable major city option, with residential properties ranging from $800-$1,200 per square meter.
Rural areas across Peru typically price 30-50% lower than Lima averages, though demand in these areas is increasing due to remote work trends. Coastal and tourist zones command premium prices, often 20-50% above suburban rates due to high rental demand and limited supply.
How much does a typical two-bedroom house cost in the main cities like Lima, Cusco, and Arequipa?
Two-bedroom house prices vary dramatically across Peru's major cities, with Lima commanding the highest prices due to its economic importance and population density.
City | Price Range (USD) | Average Price | Key Factors |
---|---|---|---|
Lima | $110,000 - $195,500 | $152,750 | District-dependent, coastal premium |
Cusco | $75,000 - $87,000 | $81,000 | San Sebastian area average |
Arequipa | $65,000 - $119,000 | $92,000 | Newer construction preferred |
Trujillo | $55,000 - $95,000 | $75,000 | Growing northern market |
Chiclayo | $45,000 - $78,000 | $61,500 | Emerging coastal city |
Iquitos | $35,000 - $65,000 | $50,000 | Amazon region, limited access |
In Lima, location within the city determines price more than any other factor. Premium districts like Miraflores, San Isidro, and Barranco can push two-bedroom house prices above $200,000, while peripheral districts offer options starting around $85,000.
Cusco's market reflects its status as a UNESCO World Heritage site and major tourist destination. Properties in the San Sebastian area, popular with both locals and expats, average around S/300,000 (approximately $81,000 at current exchange rates). Houses closer to the historic center command higher prices due to tourism potential.
What's the difference in house prices between the city center, the suburbs, and rural areas?
House prices in Peru show dramatic variations based on location, with city centers commanding premium prices that can be 50-80% higher than suburban areas.
City center properties in upscale Lima districts reach up to $3,500 per square meter, while suburban areas typically range from $1,000-$1,300 per square meter. This represents a price differential of approximately 170-250% between prime central locations and suburban neighborhoods. The gap exists due to proximity to business districts, cultural amenities, and transportation networks.
Suburban areas offer the best value proposition for most buyers, providing modern amenities at reasonable prices. These areas typically feature newer construction, planned communities, and adequate infrastructure while maintaining affordability. Suburban Lima properties average $1,200 per square meter, offering significant savings compared to central districts.
Rural areas present the most affordable options, with prices typically 30-50% lower than Lima averages. However, rural markets are experiencing increased demand due to remote work trends and lifestyle changes following the pandemic. Properties in rural areas often require additional investment in infrastructure improvements and may have limited access to services.
It's something we develop in our Peru property pack.
How much would a new modern house cost compared to an older traditional one?
New modern houses in Peru typically cost 10-30% more than older traditional properties, with the premium varying significantly by location and intended use.
Modern houses command higher prices due to updated building standards, energy efficiency features, and contemporary amenities that appeal to today's buyers. In coastal and tourist zones, new construction can carry premiums of up to 30% over older equivalents due to high demand and limited supply of modern properties.
Traditional older houses often present better value opportunities, particularly outside premium districts. However, buyers must factor in potential renovation costs, which can range from $200-$300 per square meter for moderate updates. Full renovations of traditional properties can cost $30,000-$60,000 for modest houses, potentially eliminating initial savings.
The age and condition of traditional properties vary widely across Peru. Colonial-era houses in historic centers may require specialized restoration that can be more expensive than modern construction. Properties built in the 1980s-1990s often need structural updates to meet current building codes, adding significant costs to the purchase price.
Experts recommend budgeting an additional 10-20% contingency reserve when purchasing older traditional homes due to possible structural issues, code compliance requirements, and unexpected repairs discovered during renovation.
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What are the average prices for apartments versus stand-alone houses?
Apartments in Peru generally cost more per square meter than stand-alone houses, particularly in Lima where apartment living dominates urban areas.
Lima apartments average $1,800 per square meter, with high-end districts reaching $3,000 per square meter or more. The premium for apartment living reflects the convenience of urban locations, shared amenities like security and maintenance, and higher demand in central areas. Luxury apartments in Miraflores or San Isidro can exceed $4,000 per square meter for prime units with ocean views.
Stand-alone houses typically offer more space and land but are more common in suburban and rural areas where land costs are lower. Houses in Lima suburbs average $1,200-$1,500 per square meter, providing better value for families seeking more space. The trade-off often involves longer commutes and reduced access to urban amenities.
The apartment versus house decision often depends on lifestyle preferences and location priorities. Young professionals and expats frequently prefer apartments in central Lima for proximity to work and entertainment. Families and retirees often choose houses in suburban areas for space, privacy, and value.
It's something we develop in our Peru property pack.
How much do houses near the coast or in tourist areas usually cost?
Coastal and tourist area properties in Peru command significant premiums, often 20-50% above comparable suburban properties due to high demand and limited supply.
Miraflores, Lima's premier coastal district, exemplifies these premiums with apartments reaching up to $3,500 per square meter for properties with ocean views. The combination of beachfront location, established tourism infrastructure, and international appeal drives these elevated prices. Similar coastal properties without ocean views still command $2,000-$2,500 per square meter.
Tourist zones in Cusco's historic center carry substantial premiums due to their UNESCO World Heritage status and steady stream of international visitors. Properties suitable for vacation rentals can cost 20-40% more than comparable homes in residential areas. The tourism potential justifies higher purchase prices through enhanced rental income opportunities.
Beach towns along Peru's coast, including areas near Paracas and Máncora, have seen increasing interest from both domestic and international buyers. These markets typically price 15-25% above regional averages, with properties suitable for vacation rentals commanding the highest premiums.
The high rental demand in tourist areas often justifies premium purchase prices through superior rental yields. Properties in prime tourist locations can achieve gross rental yields of 6-8%, compared to 4-5% in standard residential areas.
What are the typical yearly property taxes on a $100,000 house in Peru?
Property taxes in Peru range from 0.2% to 1.0% of the cadastral value annually, making them relatively affordable compared to many international markets.
For a $100,000 house, annual property taxes typically range from $200 to $1,000, with most urban properties falling in the 0.3-0.6% range. The exact rate depends on the property's cadastral value (assessed value for tax purposes), location, and local municipal rates. Lima properties often fall toward the lower end of this range due to efficient municipal tax collection systems.
The cadastral value used for tax calculations may differ significantly from market value, often being lower than actual sale prices. This can result in property taxes that seem modest relative to the property's true market worth. Municipal governments periodically update cadastral values, which can affect tax obligations.
Property tax payments in Peru are typically made annually, though some municipalities offer discounts for early payment or allow installment plans. Foreign property owners face the same tax obligations as Peruvian residents, with no additional surcharges for non-resident ownership.
Additional municipal taxes may apply depending on location, including garbage collection fees, street lighting charges, and infrastructure improvement assessments. These additional charges typically add $50-$200 annually to the basic property tax obligation.

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.
How much do buyers usually pay in closing costs and legal fees when purchasing a house?
Total closing costs for property purchases in Peru typically range from 4.5% to 6% of the purchase price, representing a significant additional expense that buyers must budget beyond the property cost.
Fee Type | Percentage of Sale Price | On $100,000 Property | Description |
---|---|---|---|
Transfer/Acquisition Tax (Alcabala) | 3% | $3,000 | Mandatory government transfer tax |
Notary Fees | 0.5-1% | $500-$1,000 | Document preparation and authentication |
Registration Fees | 0.3-0.5% | $300-$500 | Property registry recording |
Legal Fees | 1-2% | $1,000-$2,000 | Attorney representation and due diligence |
Property Appraisal | Fixed Fee | $200-$500 | Professional property valuation |
Total Range | 4.5-6% | $4,500-$6,000 | Complete closing cost estimate |
The 3% acquisition tax (Alcabala) represents the largest single closing cost, paid to the municipal government where the property is located. This tax is mandatory for all property transfers and cannot be negotiated or reduced. Some municipalities offer slight discounts for prompt payment or first-time buyers, but these are rare.
Legal representation is highly recommended for foreign buyers due to Peru's complex property laws and documentation requirements. Experienced real estate attorneys typically charge 1-2% of the purchase price and provide valuable services including title verification, contract review, and transaction coordination.
Additional costs may include translation fees for foreign buyers, bank transfer fees for international payments, and insurance setup costs. These supplementary expenses typically add another $500-$1,000 to the total closing costs.
What percentage of the house price do banks normally require as a down payment?
Peruvian banks typically require down payments of 10-20% for qualified buyers, though requirements can be higher for foreign buyers or luxury properties.
For Peruvian residents with strong credit histories and stable income, banks commonly approve loans up to 80-90% of the property value, requiring only 10-20% down payments. These favorable terms reflect the relatively stable Peruvian real estate market and established banking relationships with local buyers.
Foreign buyers often face stricter requirements, with banks typically requiring 20-30% down payments and additional documentation including income verification from their home countries, credit history reports, and sometimes co-signers or guarantors. Some banks specialize in serving foreign buyers and may offer more competitive terms.
Luxury properties above $200,000 often require higher down payments regardless of buyer nationality, with banks requesting 25-35% down to mitigate risk on high-value transactions. The luxury market's volatility and smaller buyer pool contribute to these more conservative lending requirements.
First-time homebuyer programs in Peru offer some advantages, including reduced down payment requirements and subsidized interest rates for qualifying buyers. These programs typically target properties under $100,000 and require buyers to meet income and employment criteria.
What's the average mortgage interest rate in Peru and how much would monthly payments be on a $150,000 house over 20 years?
As of September 2025, mortgage interest rates in Peru average 7.4-7.5%, reflecting the country's economic conditions and central bank monetary policy.
For a $150,000 house with a 20% down payment ($30,000), the loan amount would be $120,000. Using a 7.4% interest rate over 20 years, the monthly principal and interest payment would be approximately $960. This calculation assumes a standard fixed-rate mortgage with equal monthly payments throughout the loan term.
The total cost of the loan over 20 years would be approximately $230,400, meaning buyers pay about $110,400 in interest over the life of the loan. This represents nearly the entire loan principal amount in interest charges, highlighting the importance of considering loan terms carefully.
Additional monthly costs include property insurance (typically $50-$100 monthly), property taxes (approximately $40-$80 monthly for this property value), and potentially private mortgage insurance if the down payment is less than 20%. These additional costs can add $150-$250 to the monthly housing payment.
Some banks offer variable rate mortgages that may start with lower rates but adjust over time based on market conditions. While these can offer initial savings, they carry the risk of payment increases if interest rates rise during the loan term.
It's something we develop in our Peru property pack.
How much extra should buyers expect to spend on renovations or repairs for an older house?
Renovation costs for older houses in Peru typically range from $200-$300 per square meter for moderate updates, with total project costs often reaching $30,000-$60,000 for modest properties.
The scope of required renovations varies dramatically based on the property's age, maintenance history, and desired finish level. Houses built before 1990 often require electrical system updates, plumbing improvements, and structural reinforcements to meet current building codes. These foundational improvements can account for 40-60% of total renovation budgets.
Cosmetic improvements including paint, flooring, fixtures, and appliances typically cost $100-$150 per square meter for mid-range finishes. High-end renovations with premium materials and custom work can reach $400-$500 per square meter, particularly in Lima where skilled labor and imported materials command premium prices.
Experts strongly recommend budgeting a 10-20% contingency reserve beyond initial renovation estimates due to potential hidden issues discovered during construction. Older properties frequently reveal structural problems, code violations, or utility issues that require immediate attention and additional investment.
Specific renovation costs include: electrical system updates ($3,000-$8,000), plumbing improvements ($2,500-$6,000), roof repairs ($4,000-$12,000), and kitchen/bathroom renovations ($8,000-$25,000 each). These ranges reflect the broad spectrum of quality and finish levels available in the Peruvian market.
What's the average rent for a similar property, and how long would it take for rental income to cover the cost of the house?
Rental yields in Peru vary significantly by location and property type, with Lima offering the most established rental market and highest absolute rental income potential.
City | Average Monthly Rent (2BR) | Annual Rent | Gross Rental Yield | Payback Period |
---|---|---|---|---|
Lima (Central) | $750-$1,000 | $9,000-$12,000 | 6-8% | 12-17 years |
Lima (Premium) | $1,200-$1,500 | $14,400-$18,000 | 5-6% | 17-20 years |
Arequipa | $560 | $6,720 | 6-7% | 14-17 years |
Cusco | $600-$800 | $7,200-$9,600 | 7-9% | 11-14 years |
Coastal Tourist Areas | $700-$1,200 | $8,400-$14,400 | 5-8% | 12-20 years |
Prime Lima districts achieve gross rental yields of 5-7%, which translates to payback periods of 14-20 years before rental income equals the original purchase price. However, this calculation doesn't account for property management costs, maintenance, taxes, or vacancy periods, which typically reduce net yields by 20-30%.
Cusco offers some of the most attractive rental yields in Peru, particularly for properties suitable for tourist rentals. The city's status as a UNESCO World Heritage site and gateway to Machu Picchu ensures consistent demand from both long-term residents and vacation renters. Properties in prime tourist areas can achieve yields approaching 9% gross.
When factoring in all costs including property management (8-12% of rental income), maintenance reserves (5-10% annually), taxes, and average vacancy rates (10-15% annually), net rental yields typically range from 3-5% in most Peruvian markets. This suggests realistic payback periods of 20-30 years for most investment properties.
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.
Peru's real estate market offers diverse opportunities across different price ranges and locations, from affordable options in secondary cities to premium investments in Lima's coastal districts.
Buyers should carefully budget for all associated costs including the 4.5-6% closing costs, down payment requirements, and potential renovation expenses when evaluating their total investment.