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Peru's real estate market offers attractive opportunities for both investors and those looking to relocate, with significant price variations across regions and property types.
As of September 2025, property prices in Peru range from affordable rural areas to premium coastal districts, with Lima commanding the highest prices nationally. The country's growing economy and stable political environment have created a robust real estate market with rental yields averaging 6% in major cities.
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.
Peru's real estate market shows clear regional pricing patterns, with Lima averaging $1,818-$2,000 per square meter in prime districts and secondary cities offering 30-50% lower prices.
Transaction costs add 6-9% to purchase prices, while mortgage rates for locals range from 9-11% in soles and 7-9% in USD, making cash purchases more attractive.
| Property Type | Lima Prices (USD) | Secondary Cities (USD) |
|---|---|---|
| Small Apartment (50-70m²) | $90,000-$140,000 | $35,000-$50,000 |
| Family Apartment (100-120m²) | $175,000-$310,000 | $120,000-$200,000 |
| Average House | $180,000-$500,000 | $120,000-$200,000 |
| Price per m² (Mid-range) | $1,000-$1,300 | $700-$900 |
| Price per m² (Luxury) | $1,500-$2,500 | $1,000-$1,500 |
| Urban Land per m² | $150-$1,200 | $80-$250 |
| Rental Yield | 6.45% | 6.0% |
What's the average price per square meter for real estate in Peru right now?
As of September 2025, Peru's national average price per square meter stands at $2,713, though this figure varies dramatically by location and property type.
In Lima's prime districts like Miraflores and San Isidro, prices average $1,818-$2,000 per square meter. The "Lima Moderna" mid-range areas command $1,000-$1,300 per square meter, offering more affordable options while maintaining good infrastructure and amenities.
Secondary cities across Peru show significantly lower prices, with Arequipa, Trujillo, and Cusco averaging 30-50% less than Lima's rates. This translates to approximately $700-$1,200 per square meter in these major regional centers, depending on the specific neighborhood and property quality.
Coastal areas outside Lima generally maintain higher prices due to tourism and development potential, while mountain and Amazon regions offer the most affordable real estate options in the country.
It's something we develop in our Peru property pack.
How much does a small apartment (about 50–70 m²) typically cost in Lima compared to smaller cities?
Small apartments in Lima's central areas cost between $90,000-$140,000 for properties ranging from 50-70 square meters.
In Lima's mid-range neighborhoods, the same size apartment drops to $50,000-$90,000, offering better value while still providing access to the capital's job market and amenities. These areas include districts like Pueblo Libre, Jesús María, and parts of San Miguel.
Smaller cities across Peru offer even more affordable options, with similar quality 50-70 square meter apartments priced at $35,000-$50,000. Cities like Arequipa, Trujillo, and Piura provide this pricing range, though luxury developments in these markets can reach higher price points.
The price difference reflects Lima's status as Peru's economic center, with higher demand from both locals and international buyers. However, smaller cities often provide better rental yields due to their lower purchase prices combined with steady rental demand from local professionals and students.
What's the going rate for a family-sized apartment (around 100–120 m²) in popular neighborhoods like Miraflores, San Isidro, or Barranco?
Family-sized apartments of 100-120 square meters in Lima's most desirable neighborhoods command premium prices ranging from $175,000-$310,000.
Miraflores properties, especially those with ocean views or near the malecón, typically start at $200,000 and can exceed $300,000 for newer constructions with luxury amenities. San Isidro, known for its business district and upscale residential areas, shows similar pricing patterns with slight premiums for properties near golf courses or parks.
Barranco, popular among younger professionals and artists, offers slightly more affordable options within this range, though gentrification has pushed prices upward significantly over recent years. Properties here typically range from $175,000-$250,000 for family-sized units.
New construction projects in these neighborhoods command the highest prices, often 10-20% above existing properties, due to modern amenities, energy efficiency, and contemporary designs that appeal to both local and international buyers.
How much is the average cost of a house in Lima, and how does that compare with secondary cities like Arequipa, Trujillo, or Cusco?
The average house price in Lima sits at approximately $180,000 citywide, though this varies dramatically by neighborhood and property size.
| City | Average House Price (USD) | Price Range (USD) |
|---|---|---|
| Lima (citywide average) | $180,000 | $120,000-$800,000 |
| Lima (Miraflores/San Isidro) | $500,000 | $300,000-$1,200,000 |
| Lima (mid-range districts) | $240,000 | $180,000-$350,000 |
| Arequipa | $150,000 | $120,000-$250,000 |
| Trujillo | $140,000 | $120,000-$220,000 |
| Cusco | $160,000 | $130,000-$280,000 |
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What are the current land prices per square meter in urban zones versus rural or coastal zones?
Urban land prices in Peru show significant variation based on location and development potential.
In Lima's urban zones, land prices range from $150-$500 per square meter in medium-density areas, while premium locations in Miraflores and San Isidro command $800-$1,200 per square meter. Commercial lots typically add 20-40% to these base prices due to their income-generating potential.
Secondary urban centers like Arequipa and Cusco offer more affordable urban land at $80-$250 per square meter, making them attractive for developers and investors seeking lower entry costs with good growth potential.
Coastal areas present varied pricing, with near-beach properties ranging from $30-$150 per square meter depending on accessibility and tourism infrastructure. Rural agricultural land remains the most affordable option at $5-$25 per square meter, though these areas typically lack basic infrastructure and services.
The significant price spread reflects Peru's diverse geography and economic development levels across different regions.
How much do new construction projects usually sell for compared to older properties in Lima?
New construction projects in Lima typically command 10-20% premiums over equivalent-sized older properties.
This premium reflects modern amenities, energy-efficient systems, contemporary designs, and often better earthquake resistance standards that appeal to safety-conscious buyers. New developments also frequently include amenities like gyms, pools, and security systems that older buildings lack.
However, in the luxury market segment, well-renovated older properties in prime locations can achieve similar prices to new construction, particularly if they maintain architectural character while incorporating modern updates. Historic buildings in areas like Barranco often hold their value well due to their unique character and protected status.
The premium for new construction varies by district, with areas experiencing rapid development showing larger price gaps, while established neighborhoods with limited new construction opportunities see smaller differences between old and new properties.
What is the typical rental yield (annual rent as a percentage of purchase price) in main cities such as Lima and Cusco?
Peru's rental market offers attractive yields for real estate investors, with Lima averaging 6.45% gross annual rental yield.
Cusco provides rental yields just under 6%, with growing tourist demand pushing rates higher in properties suitable for short-term rentals. The city's UNESCO World Heritage status and position as a gateway to Machu Picchu create strong rental demand from both tourists and business travelers.
Within Lima, prime districts like Miraflores and San Isidro show yields between 5.2-6.7%, with luxury properties typically generating lower yields due to their higher purchase prices. Mid-market properties generally produce higher yields, making them attractive for income-focused investors.
Secondary cities often provide better rental yields due to lower property prices combined with steady rental demand from local professionals, students, and government workers. This makes Peru's regional markets particularly attractive for yield-focused investment strategies.
It's something we develop in our Peru property pack.
How much does it cost per square meter for luxury real estate versus mid-range housing?
Luxury real estate in Lima's best neighborhoods commands $1,500-$2,500 per square meter, representing a significant premium over mid-range housing.
Mid-range properties across Lima average $1,000-$1,300 per square meter, offering good quality construction and amenities without the premium location or luxury finishes. These properties typically feature modern layouts, adequate parking, and basic security systems.
The luxury market includes properties with high-end finishes, panoramic views, premium locations, concierge services, and extensive amenities. Penthouse properties and oceanfront units can exceed the $2,500 per square meter threshold, particularly in new developments with resort-style amenities.
In secondary cities, luxury properties typically cost $1,000-$1,500 per square meter, while mid-range housing ranges from $600-$900 per square meter, maintaining the same general ratio between luxury and mid-range segments seen in Lima.
What's the average price difference between coastal properties, mountain regions, and Amazon areas?
Peru's diverse geography creates distinct pricing tiers across its three main regions.
Coastal properties, particularly those in Lima and other Pacific-facing cities, command the highest prices due to economic activity, infrastructure, and beachfront appeal. These areas typically price 40-80% higher than inland alternatives for comparable properties.
Mountain regions including Cusco, Arequipa, and Huancayo offer properties at 30-50% below Lima's coastal pricing. These areas benefit from cultural significance, tourism, and mining-related economic activity, but generally lack the infrastructure density and international connectivity of coastal zones.
Amazon region properties represent Peru's most affordable real estate market, with prices often 60-80% below coastal levels. Cities like Iquitos and Pucallpa offer very low entry costs but face challenges including limited infrastructure, accessibility issues, and smaller local economies.
The pricing differential reflects infrastructure development, economic opportunities, and international accessibility, with coastal areas offering the best combination of these factors for most buyers and investors.
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 taxes, notary, and registration fees add on top of the property purchase price in Peru?
Transaction costs in Peru add 6-9% to the property purchase price, making cash flow planning essential for buyers.
| Fee Type | Percentage | Cost on $200,000 Property |
|---|---|---|
| Transfer Tax (IGV) | 3% | $6,000 |
| Notary Fee | 0.5-1% | $1,000-$2,000 |
| Registration Fee | 0.3-0.5% | $600-$1,000 |
| Legal Costs | 1-2% | $2,000-$4,000 |
| Property Appraisal | 0.1-0.3% | $200-$600 |
| Total Transaction Costs | 6-9% | $12,000-$18,000 |
What are the usual mortgage rates, and how much would a 20-year loan cost monthly for a property priced at, say, USD 100,000?
Mortgage rates in Peru vary significantly based on borrower nationality and currency choice.
Local residents can access loans at 9-11% annual rates in Peruvian soles, or 7-9% for USD-denominated mortgages. Foreign buyers typically face higher rates of 7-11%, reflecting additional risk assessments by lenders.
For a $100,000 property with a 20-year fixed mortgage at 6.75% (best available rate for qualified local buyers), monthly payments would be approximately $760. This assumes a standard 80% loan-to-value ratio, requiring a $20,000 down payment.
Foreign buyers or those with less favorable credit profiles might see rates of 8-10%, pushing monthly payments to $835-$965 for the same loan amount. These higher rates, combined with substantial transaction costs, make cash purchases increasingly attractive for international buyers.
It's something we develop in our Peru property pack.
How have real estate prices changed in Peru over the past 5 years, and what's the current growth rate per year?
Peru's real estate market has shown mixed performance over the past five years, with nominal price growth of 3-7% annually in Lima offset by currency inflation effects.
Lima's real estate market experienced real (inflation-adjusted) prices that remained flat or slightly declined, as nominal growth failed to keep pace with broader economic inflation. However, prime districts maintained better performance due to limited supply and continued demand from affluent buyers.
Secondary cities including Arequipa and Trujillo demonstrated more robust growth of 4-9% annually, driven by infrastructure investments, supply constraints, and growing regional economies. These markets benefited from decentralization trends and mining sector investments.
As of September 2025, the current annual growth rate varies by region, with Lima showing modest 2-4% growth while secondary cities continue outperforming at 5-8% annual increases. This trend reflects Peru's economic diversification and the maturation of regional real estate markets.
The market outlook remains positive for investors willing to look beyond Lima, with secondary cities offering both better growth prospects and higher rental yields for long-term investment strategies.
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 compelling opportunities for both investors and those seeking to relocate, with clear regional pricing advantages and solid rental yields in major cities.
While Lima commands premium prices, secondary cities provide excellent value propositions with lower entry costs and often superior growth prospects, making Peru an attractive destination for diverse real estate investment strategies.
Sources
- TheLatinVestor - Peru Price Forecasts
- Home Ready Global - Price Per Square Meter Drops in Lima
- Aparthotel - Peru Analysis
- Armenian Lawyer - Living Costs in Peru 2025
- Food Travel Explore - Cost of Living Peru
- International Living - Cost of Living in Peru
- Global Property Guide - Peru Rental Yields
- TheLatinVestor - Peru Real Estate Market