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If you're curious about where property prices in Peru are heading in 2026 and beyond, you're in the right place.
We constantly update this blog post with the latest data from official sources like Peru's Central Bank (BCRP), property portals, and international institutions.
Below, you'll find everything from current average prices to neighborhood-level trends and long-term forecasts.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Peru.
Insights
- Lima apartment prices hover around US$1,750 to US$2,050 per square meter in 2026, but mid-market districts like Surquillo and Jesús María still offer entry points 20% to 30% below prime zones like Miraflores.
- Property prices in Peru grew only 2% to 5% nominally over the past year, which means they barely kept pace with inflation and stayed essentially flat in real terms.
- Mid-market apartments in Lima's "second ring" districts are the fastest-appreciating property type in Peru, benefiting from the largest pool of mortgage-eligible buyers.
- Mivivienda-backed financing programs are quietly supporting demand in the mid-market segment, helping keep prices resilient even when broader economic sentiment wavers.
- Arequipa's Cayma and Yanahuara districts are emerging as Peru's strongest regional performers, with price growth consistently outpacing most Lima neighborhoods.
- Beach homes near Lima's coastal belt remain a niche but resilient segment, with scarcity keeping prices firm even during slower demand periods.
- Peru's mortgage rates have eased from their recent peaks, which is expected to support a 3% to 7% price increase in Lima during 2026.
- The sol-to-dollar exchange rate matters more than you'd think: when the sol weakens, US dollar-priced listings become harder for local buyers to afford, which can slow demand.
- Large standalone houses in older Lima districts are underperforming because they require big loans and often need renovations, making them less attractive than turnkey apartments.
- Over the next five years, Peru property prices are expected to grow 20% to 35% cumulatively, translating to roughly 4% to 6% annual appreciation if the economy stays stable.
What are the current property price trends in Peru as of 2026?
What is the average house price in Peru as of 2026?
As of January 2026, the average home price in Peru sits around US$120,000 to US$170,000 (roughly S/450,000 to S/640,000, or about €110,000 to €155,000), though Lima properties typically cost more than this national average.
When you look at price per square meter, Peru averages around US$1,050 to US$1,450 per square meter (approximately S/3,900 to S/5,400, or €960 to €1,330), with Lima pushing higher at US$1,750 to US$2,050 per square meter in popular districts.
For most buyers in Peru, the realistic price range that covers roughly 80% of property purchases falls between US$80,000 and US$280,000 (S/300,000 to S/1,050,000, or €73,000 to €255,000), depending heavily on whether you're buying in Lima or a regional city like Arequipa or Trujillo.
How much have property prices increased in Peru over the past 12 months?
Property prices in Peru increased by roughly 2% to 5% in nominal terms over the past 12 months, with Lima specifically seeing gains closer to 2% to 4%.
Across different property types, the range of price increases in Peru varied from essentially flat (around 0%) for large older houses to as much as 5% to 6% for well-located mid-market apartments in high-demand districts.
The single most significant factor behind this modest price movement in Peru was the combination of easing mortgage rates and sticky construction costs, which supported prices without triggering a boom.
Which neighborhoods have the fastest rising property prices in Peru as of 2026?
As of January 2026, the three neighborhoods with the fastest rising property prices in Peru are Surquillo, Jesús María, and San Miguel in Lima, all benefiting from spillover demand from pricier adjacent districts.
These top-performing Lima neighborhoods are seeing annual price growth of approximately 5% to 8%, with Surquillo leading thanks to its proximity to Miraflores and Surco at a fraction of the cost.
The main demand driver in these neighborhoods is the "value next door" dynamic, where buyers priced out of premium districts like Miraflores and San Isidro are discovering they can get similar amenities and better value just one or two districts away.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Peru.
We have made this infographic to give you a quick and clear snapshot of the property market in Peru. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Peru as of 2026?
As of January 2026, the ranking of property types by appreciation rate in Peru places mid-market apartments first, followed by gated-community townhouses, then beach homes, with large standalone houses trailing behind.
The top-performing property type in Peru, mid-market apartments in established districts, is appreciating at roughly 4% to 7% annually, outpacing other categories thanks to strong buyer and tenant demand.
The main reason apartments are outperforming in Peru is that they hit the sweet spot for the largest pool of buyers: they're mortgage-friendly, require less maintenance than houses, and are located where jobs and amenities are concentrated.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Peru?
- How much should you pay for a house in Peru?
- How much should you pay for lands in Peru?
What is driving property prices up or down in Peru as of 2026?
As of January 2026, the top three factors driving property prices in Peru are improving mortgage affordability compared to recent peaks, sticky construction costs that limit new supply, and policy-supported demand through Mivivienda financing programs.
The single factor with the strongest upward pressure on Peru property prices is the constrained supply side, where high construction input costs and permitting delays prevent developers from flooding the market with new units.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Peru here.
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What is the property price forecast for Peru in 2026?
How much are property prices expected to increase in Peru in 2026?
As of January 2026, property prices in Peru are expected to increase by roughly 3% to 6% in nominal terms over the calendar year, with Lima likely seeing gains at the higher end of that range.
The realistic range of forecasts from different analysts for Peru property price growth spans from a conservative 2% to an optimistic 7%, depending on assumptions about political stability and global economic conditions.
The main assumption underlying most price increase forecasts for Peru is that the economy will continue growing at a moderate pace, inflation will stay within the central bank's target band, and mortgage rates won't spike unexpectedly.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Peru.
Which neighborhoods will see the highest price growth in Peru in 2026?
As of January 2026, the neighborhoods expected to see the highest price growth in Peru are Surquillo, Pueblo Libre, and Magdalena del Mar in Lima, along with Cayma and Yanahuara in Arequipa.
These top Lima neighborhoods are projected to see price growth of 6% to 9% in 2026, while Arequipa's best-performing districts could reach 5% to 8%, both outpacing the national average.
The primary catalyst driving expected growth in these neighborhoods is the combination of improving transport links, growing commercial amenities, and prices that remain accessible to the largest segment of mortgage-qualified buyers.
One emerging neighborhood in Peru that could surprise with higher-than-expected growth is Chorrillos in Lima, where selected micro-zones near redevelopment projects and improved coastal access are attracting fresh investor interest.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Peru.
What property types will appreciate the most in Peru in 2026?
As of January 2026, mid-market apartments in high-demand commuting and amenity districts are expected to appreciate the most in Peru, followed by gated-community townhouses in family-oriented zones.
The projected appreciation for these top-performing apartments in Peru is roughly 5% to 8% in 2026, supported by strong buyer demand and limited new supply in the most sought-after locations.
The main demand trend driving apartment appreciation in Peru is the growing preference among young professionals and families for turnkey, low-maintenance homes near jobs, schools, and public transport.
On the other hand, large older standalone houses in Lima's traditional districts are expected to underperform in 2026 because they require bigger loans, often need costly renovations, and appeal to a narrower pool of buyers.
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 will interest rates affect property prices in Peru in 2026?
As of January 2026, the current trend of stable-to-slightly-declining mortgage rates in Peru is expected to support property prices by improving buyer affordability and keeping monthly payments manageable for mid-market purchasers.
The benchmark reference rate in Peru has eased from its earlier peaks, and mortgage rates are expected to remain relatively stable or drift slightly lower through 2026, making financing more accessible than it was in 2023 and 2024.
Historically in Peru, a 1% change in mortgage interest rates can shift buyer affordability by roughly 8% to 10%, which means even modest rate movements can either unlock or lock out a significant portion of potential purchasers.
You can also read our latest update about mortgage and interest rates in Peru.
What are the biggest risks for property prices in Peru in 2026?
As of January 2026, the three biggest risks for property prices in Peru are political and fiscal instability that could shake buyer confidence, an external economic shock from global slowdown or commodity price drops, and unexpected currency volatility that makes dollar-priced properties harder for local buyers to afford.
Among these risks, political and fiscal instability has the highest probability of materializing in Peru, as recent congressional actions on spending have already prompted warnings from fiscal watchdogs about the country's financial sustainability.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Peru.
Is it a good time to buy a rental property in Peru in 2026?
As of January 2026, buying a rental property in Peru can be a good decision if you focus on liquid apartment markets in mid-market Lima districts with steady tenant demand and you're prepared to hold for the medium to long term rather than expecting quick flips.
The strongest argument in favor of buying now is that mortgage rates have eased from their peaks, mid-market districts still offer reasonable yields, and constrained supply is likely to support prices and rents through the year.
The strongest argument for waiting is that political uncertainty and potential fiscal stress could create better entry points later in 2026 if confidence wobbles and sellers become more motivated.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Peru.
You'll also find a dedicated document about this specific question in our pack about real estate in Peru.
Buying real estate in Peru can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Peru?
What is the 5-year property price forecast for Peru as of 2026?
As of January 2026, cumulative property price growth in Peru over the next five years is expected to reach 20% to 35% in nominal terms, assuming the economy remains stable and no major crisis disrupts the market.
The range of 5-year forecasts spans from a conservative scenario of around 15% cumulative growth to an optimistic scenario of 40% or more, depending largely on political stability and commodity cycle performance.
This translates to a projected average annual appreciation rate of roughly 4% to 6% per year in Peru over the next five years, which would represent steady but not explosive growth.
The key assumption most forecasters rely on is that Peru will maintain moderate economic growth, keep inflation anchored near the central bank's target, and avoid the kind of political turmoil that could freeze buyer confidence for extended periods.
Which areas in Peru will have the best price growth over the next 5 years?
The top three areas in Peru expected to have the best price growth over the next five years are Lima's mid-market core ring (San Miguel, Pueblo Libre, Jesús María, Lince, and Surquillo), followed by Arequipa's Cayma and Yanahuara districts, and emerging zones in Chorrillos with redevelopment potential.
These top-performing areas in Peru are projected to see 5-year cumulative price growth of 30% to 50%, outpacing the national average thanks to deep buyer and tenant pools and improving local amenities.
This forecast aligns closely with our shorter-term outlook because the same structural drivers, namely mid-market affordability, strong tenant demand, and limited competing supply, are expected to persist and even strengthen over the coming years.
One currently undervalued area with the best potential for outperformance over five years is Magdalena del Mar in Lima, where proximity to the coast, improving commercial density, and still-accessible prices create room for above-average gains.
What property type will give the best return in Peru over 5 years as of 2026?
As of January 2026, mid-market apartments in districts with broad buyer and tenant pools are expected to give the best total return over five years in Peru, combining solid appreciation with consistent rental income.
The projected 5-year total return for these top-performing apartments, including both price appreciation and rental income, is estimated at 40% to 60%, assuming you buy in the right location and manage the property well.
The main structural trend favoring apartments is Peru's ongoing urbanization and household formation patterns, which keep pushing young professionals and families toward convenient, low-maintenance homes near jobs and services.
For investors seeking the best balance of return and lower risk over five years, one to two-bedroom apartments in Lima's Jesús María, Lince, or Pueblo Libre districts offer both rental liquidity and appreciation potential without the volatility of niche or luxury segments.
How will new infrastructure projects affect property prices in Peru over 5 years?
The top three major infrastructure developments expected to impact property prices in Peru over the next five years are Lima Metro Line 2 (connecting eastern districts to the center), the expansion of the Jorge Chávez International Airport, and road improvements linking Lima's southern beach corridor to the city.
Properties near completed infrastructure projects in Peru typically see a price premium of 10% to 20% compared to similar homes in areas without improved access, with the effect most pronounced for residential units within a 10 to 15-minute walk of new transit stations.
The neighborhoods most likely to benefit from these infrastructure developments include Ate and Santa Anita (near Metro Line 2), Callao districts around the airport expansion, and southern Lima beach communities gaining better road access to the capital.
How will population growth and other factors impact property values in Peru in 5 years?
Peru's population is projected to grow at roughly 1% to 1.2% annually over the next five years, and this steady growth, concentrated in urban areas like Lima and Arequipa, is expected to support continued demand for housing and keep prices firm.
The demographic shift with the strongest influence on Peru property demand is the expansion of the middle class and the growing number of young professionals forming households, which is driving demand for affordable, well-located apartments.
Internal migration from rural and smaller urban areas to Lima and regional capitals is expected to continue, adding roughly 100,000 to 150,000 new residents to Lima annually and sustaining pressure on housing supply in popular districts.
Apartments and gated-community townhouses in mid-market Lima districts like San Miguel, Pueblo Libre, and Jesús María will benefit most from these demographic trends, as they match the budgets and lifestyle preferences of Peru's growing urban middle class.
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.
What is the 10 year property price outlook in Peru?
What is the 10-year property price prediction for Peru as of 2026?
As of January 2026, cumulative property price growth in Peru over the next 10 years is expected to reach 45% to 80% in nominal terms, reflecting a "Peru stays stable" scenario without major economic crises or political breakdowns.
The range of 10-year forecasts spans from a conservative 35% cumulative gain to an optimistic 100% or more, with the wide spread reflecting genuine uncertainty about commodity cycles, political stability, and global economic conditions over a decade.
This translates to a projected average annual appreciation rate of roughly 3.8% to 6% per year in Peru over the next decade, which would represent steady wealth-building for patient property owners.
The biggest uncertainty factor in making 10-year property price predictions for Peru is political and fiscal stability, since a major governance crisis or sustained policy mismanagement could derail even the most solid fundamentals.
What long-term economic factors will shape property prices in Peru?
The top three long-term economic factors that will shape property prices in Peru over the next decade are sustained productivity and formal job growth, fiscal credibility that keeps long-term interest rates manageable, and how well Peru manages its commodity exposure to avoid boom-bust cycles.
The single long-term economic factor with the most positive potential impact on Peru property values is continued expansion of formal employment and the middle class, which would steadily grow the pool of qualified home buyers and support broad-based demand.
Conversely, the long-term economic factor posing the greatest structural risk to Peru property values is chronic fiscal instability or governance failures, which could raise borrowing costs, freeze investment, and undermine the confidence that real estate markets need to function well.
You'll also find a much more detailed analysis in our pack about real estate in Peru.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Peru, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why we trust it | How we used it |
|---|---|---|
| BCRP Apartment Price Indicator | Peru's central bank maintains one of the most consistent housing price series in the country. | We used it as our anchor for Lima apartment prices by district and quarter. We translated it into easy-to-read ranges and compared it with portal indices. |
| BCRP Housing Market Study (2025) | It's an official BCRP publication explaining methodology, coverage, and caveats. | We used it to understand what the BCRP index actually measures. We also used its district coverage list to keep neighborhood comparisons consistent. |
| BCRP Inflation Report (Dec 2025) | It's the central bank's main macro outlook document covering GDP, inflation, and policy rates. | We used it to set the 2026 macro backdrop for our forecast scenario. We cross-checked it with IMF and World Bank projections. |
| BCRP Exchange Rate Data | It's the official BCRP time series for exchange rate averages, crucial since Peru prices property in US dollars. | We used it to keep sol and dollar conversions grounded in official data. We presented prices in both currencies for easy comparison. |
| INEI Price Indexes | INEI is Peru's official statistics agency and its indexes are the standard for inflation adjustments. | We used it to convert nominal price moves into real, inflation-adjusted figures. We also tracked construction input costs as a supply-side indicator. |
| INEI Construction Price Index (Official) | It's a formal publication process for construction price indexes, strengthening data credibility. | We used it to corroborate construction cost trends when discussing why prices are sticky. We connected cost pressure to new-build pricing. |
| SBS Interest Rate Data | SBS is Peru's financial regulator and its rate series is the reference for mortgage cost conditions. | We used it to quantify how expensive mortgages are in 2025 and 2026. We translated rate changes into affordability impacts by buyer segment. |
| BIS Residential Property Prices | BIS is a top-tier international source for cross-country housing price series and comparability. | We used it for long-run Peru housing cycle context beyond just Lima. We cross-checked direction with BCRP's apartment indicators. |
| FRED Peru Property Price Series | It's a widely used public data portal hosting BIS series with transparent updates. | We used it to quickly reference Peru-wide residential price index history. We used it as a second access point for verification. |
| World Bank Peru Overview | The World Bank is a highly credible macro source for growth and inflation context. | We used it to cross-check the 2026 growth and inflation environment. We mapped macro conditions to realistic housing demand scenarios. |
| IMF World Economic Outlook (Oct 2025) | IMF provides standardized projections and risk assessments that help benchmark Peru globally. | We used it to sanity-check Peru's macro assumptions against global conditions. We incorporated external risks into our forecast bands. |
| Fondo Mivivienda Statistical Bulletin | It's the key public housing finance program with hard numbers on supported units and pipeline. | We used it to measure policy-supported demand and supply in Peru. We interpreted where mid-market pricing can stay resilient. |
| CAPECO Construction Report | CAPECO is Peru's main construction chamber and an established reference for sector activity. | We used it to cross-check supply pipeline and construction momentum. We incorporated it into our supply-side narrative. |
| Urbania Index Lima | Urbania is one of Peru's best-known property portals with a transparent, recurring index. | We used it for a timely read on asking prices per square meter by Lima district. We triangulated it with BCRP data to reduce errors. |
| Properati Lima Price Report | Properati is a major regional portal that publishes methodology notes on filters and conversions. | We used it as an independent second view on Lima per-square-meter trends. We compared its direction with Urbania and BCRP. |
| Properati Arequipa Price Report | It provides a consistent regional city view using the same methodology as the Lima series. | We used it to avoid a Lima-only story and reflect Peru beyond the capital. We used it for Arequipa district examples. |
| Reuters Peru Fiscal Risk Reporting | Reuters is a globally respected news source with on-the-ground Peru coverage. | We used it to incorporate fiscal-risk warnings into our risk assessment. We connected political uncertainty to buyer confidence impacts. |
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If you want to go deeper, you can read the following: