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Thinking about buying a 3-bedroom apartment in Miraflores? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like San Isidro or Barranco where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Peru Property Pack.
Will property prices increase in Peru in 2025?
No, property prices in Peru are not expected to rise in 2025, due to a combination of economic challenges and market conditions.
Backed by our fresh, in-depth market analysis, we’re cautious about the Peruvian real estate market's potential for growth in the near future.
While there are some positive indicators like urban development and foreign investment, the prevailing economic uncertainties and market dynamics suggest a more stagnant or declining trend.
Economic factors such as inflation and political instability are likely to weigh heavily on the market, affecting both domestic and international investor confidence.
Signals pointing to a property price increase in Peru
Here are some factors suggesting prices could increase:
Urban development projects in major cities like Lima are expected to continue, potentially increasing the attractiveness of certain areas and driving up property values locally.
Foreign investment in Peru's real estate sector is showing signs of growth, particularly in commercial and industrial properties, which could have a positive spillover effect on residential markets.
The Peruvian government is considering new policies to stimulate the housing market, such as tax incentives for first-time homebuyers, which could boost demand.
Signals pointing to a property price decrease in Peru
Here are some factors suggesting prices could fall:
Political instability and uncertainty in Peru are causing hesitation among both domestic and international investors, leading to a potential decrease in property demand.
High inflation rates are eroding purchasing power, making it more difficult for potential buyers to afford homes, which could lead to a decrease in demand.
Rising interest rates are making mortgages more expensive, discouraging potential buyers and potentially leading to a slowdown in the housing market.
The oversupply of housing in certain urban areas is leading to increased competition among sellers, which could drive prices down.
Economic slowdown and reduced consumer confidence are likely to impact the real estate market negatively, as people become more cautious about making large investments.
A potential decrease in foreign remittances, which many Peruvian families rely on for housing investments, could reduce the overall demand for property.
The ongoing impact of global economic challenges, such as supply chain disruptions and geopolitical tensions, could further strain the Peruvian economy and its real estate market.
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If property prices go up in Peru, how much would they increase by?
If real estate prices in Peru were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Peru appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom apartment in Miraflores for 850,000 soles today, don't be surprised if it's priced between 875,500 and 909,500 soles this time next year.
To give you a better understanding, here is a table that shows 7 types of Peruvian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (S/) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Miraflores (60 sqm / 646 sqft) | S/ 900,000 | S/ 927,000 | S/ 945,000 | S/ 963,000 |
| Modern Apartment in San Isidro (75 sqm / 807 sqft) | S/ 1,200,000 | S/ 1,236,000 | S/ 1,260,000 | S/ 1,284,000 |
| Luxury Penthouse in Barranco (100 sqm / 1,076 sqft) | S/ 2,500,000 | S/ 2,575,000 | S/ 2,625,000 | S/ 2,675,000 |
| Studio in Surco (30 sqm / 323 sqft) | S/ 450,000 | S/ 463,500 | S/ 472,500 | S/ 481,500 |
| Loft in La Molina (80 sqm / 861 sqft) | S/ 1,600,000 | S/ 1,648,000 | S/ 1,680,000 | S/ 1,712,000 |
| Townhouse in San Borja (150 sqm / 1,615 sqft) | S/ 3,500,000 | S/ 3,605,000 | S/ 3,675,000 | S/ 3,745,000 |
| Investment Property in Lince (50 sqm / 538 sqft) | S/ 750,000 | S/ 772,500 | S/ 787,500 | S/ 802,500 |
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If real estate prices go up in Peru, which areas are likely to see the biggest increases?
Today, people who want to move to Peru are looking for a blend of cultural heritage and modern amenities, which Miraflores offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Barranco has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Peruvian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Miraflores | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| San Isidro | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Lima. |
| Barranco | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| La Molina | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Surco | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| San Borja | Medium | Investment in local infrastructure, such as the extension of metro lines and renovation of historic areas, is boosting long-term value. |
| Lince | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Jesús María | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Pueblo Libre | Medium-High | Its proximity to central Lima, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Callao | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| San Miguel | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Centro Histórico de Lima | High | Upcoming restoration of historic landmarks and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Peru?
In 2025, Peru's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban areas like Lima.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Lima and other major cities are seeing increased interest. Proximity to green spaces, schools, and transportation hubs is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Lima, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Peru's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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