Authored by the expert who managed and guided the team behind the Peru Property Pack
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Are you considering expanding your investment portfolio with international real estate? Curious about the potential returns and risks of buying property in Peru? Wondering how the Peruvian market compares to other emerging markets?
We will lay down recent insights, providing a clear picture of the current property landscape in Peru. Here, no guesswork—only solid data to guide your investment decisions.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Peru Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Peru's booming economy over the last decade makes it a hotbed for real estate investments
Peru's economy has been steadily growing, making it a promising spot for real estate investments.
Over the past decade, Peru has enjoyed consistent GDP growth, with an average of 2.3% from 2014 to 2023. This trend is expected to continue, with projections of 3.1% in 2024 and 2.5% in 2025. Such steady growth signals a healthy economy, which is a magnet for investors looking for stability.
Another factor contributing to this stable environment is low inflation rates. When inflation is kept in check, the value of money remains stable, which is great news for real estate investors who want predictable returns. This stability is further bolstered by the increasing foreign direct investment in Peru, especially noticeable in the first two quarters of 2024, reflecting growing international confidence in the country's economic future.
The real estate and construction sectors are also on the rise, with gross fixed investment jumping by 6.6% in the third quarter of 2024. This surge is largely driven by construction and machinery purchases, indicating a robust real estate market. As urbanization rates climb, the demand for residential properties in major cities is also increasing, making it an opportune time for investment.
Sources: World Bank, Fitch Solutions, Trading Economics
2) Foreign investors in Peru enjoy equal property rights as locals making investment incredibly straightforward
In Peru, foreign investors can own property with the same rights as locals, thanks to a welcoming legal framework.
Article 71 of the Peruvian Constitution is key here, ensuring that foreigners enjoy the same property rights as Peruvians, with just a few exceptions near national borders. This means you can invest in a beach house or a city apartment without worrying about legal hurdles.
The Foreign Investment Promotion Law backs this up by offering non-discriminatory treatment to foreign investors. This law creates a stable and safe environment, making it easier for you to focus on finding the perfect property rather than navigating complex regulations.
Legal Stability Agreements are another perk, as they shield foreign investors from sudden changes in taxation and labor laws. This consistency in the legal framework means you can plan your investment with confidence, knowing the rules won't change overnight.
Peru shines in the World Bank's "Doing Business" report, especially in property registration. The process to transfer property titles is quicker in Peru than the regional average, making it a hassle-free experience for investors.
With these advantages, Peru stands out as an attractive destination for property investment, offering a blend of legal security and efficiency. Investors can enjoy a streamlined process that makes owning property in Peru a straightforward venture.
Sources: Baker McKenzie, World Bank, Legal 500
Everything you need to know is included in our Property Investment Pack for Peru
3) Peru's booming middle class is skyrocketing housing demand and sending property values soaring
Peru's middle class is growing, and it's pushing up property values as more people look to buy homes.
In the last 20 years, Peru's economy has boomed, with GDP per capita jumping from $2,126 in 2003 to $7,790 in 2023. This economic upswing has expanded the middle class, giving them the means to invest in real estate.
Looking ahead, the economy is set to grow by 2.5% in 2024 and 2.7% in 2025. This means even more purchasing power for the middle class, making it easier for them to buy homes and further driving up demand.
Urbanization is another big factor. Many Peruvians are moving to cities, which is boosting demand for urban housing. This trend is especially noticeable in bustling cities like Lima, where the real estate market is thriving.
Investors are taking note, seeing Peru's real estate as a solid opportunity. With property values on the rise, investors are likely to see good returns as demand continues to grow.
The combination of a growing middle class, economic growth, and urbanization is creating a strong foundation for Peru's housing market. This makes it an attractive option for both local buyers and international investors.
Sources: World Bank, The Latin Investor, LatinCarib
4) Peru's stunning culture and landscapes lure expats and retirees skyrocketing the rental market
Peru's rich cultural heritage and stunning landscapes are magnets for expatriates and retirees, boosting the rental market.
With the Rentista Visa, retirees and expats can enjoy up to three years in Peru, making it a top choice for those seeking a new home. This visa has simplified the process, enhancing Peru's appeal as a retirement haven.
Peru's popularity among retirees from North America and Europe is on the rise, thanks to its affordable living costs, pleasant weather, and lively cultural life. The country's diverse attractions are drawing more people to explore and settle here.
In early 2024, international tourism in Peru saw a 39.2% increase, showcasing its allure. This surge highlights the country's ability to attract visitors who often decide to stay longer.
Cities like Lima and Cusco are favorites among expats and retirees, offering a mix of historical charm and modern conveniences. Lima's Miraflores, with its beautiful beaches and active expat community, is a prime example of the growing demand for rentals.
Sources: Trexperience Peru, The Latin Investor, Expatriate Consultancy, The Rio Times
5) Peru's new highways and public transport projects are skyrocketing property access and value
The Peruvian government is making big strides in improving infrastructure.
Projects like the Peripheral Ring Road in Lima are not just about better roads; they’re about boosting property values by making areas more accessible. Take the Jorge Chavez International Airport expansion—it’s not just about more flights, but also about rising property prices nearby. In Piura, better broadband is doing the same trick, making homes more valuable.
In Lima, the Metro de Lima Line 2 is a game-changer. It’s not just a metro line; it’s a magnet for property value increases. People are flocking to areas with better connectivity, and this metro line is a prime example of how improved transport can make a neighborhood more desirable.
New highways and public transport systems are making certain areas hot property markets. The Peripheral Ring Road is expected to draw in buyers because it makes getting around so much easier. People are keen on properties with good transport links, and this road is a perfect example of why.
Buyers are showing high interest in areas near new infrastructure projects. The Ancon industrial park and the Huancayo-Huancavelica train project are catching eyes because they promise better accessibility. It’s clear that when transport improves, so does the demand for nearby properties.
Surveys highlight that buyers are prioritizing properties with enhanced transport links. This trend is evident in the growing interest in areas around new projects, showing that better infrastructure directly influences property demand.
Sources: Trade.gov, GIA Finance, Trade.gov Market Intelligence
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6) Government housing programs and first-time buyer incentives are electrifying Peru's real estate market
Government housing programs and incentives for first-time buyers are giving Peru's real estate market a noticeable boost.
One major factor is the increased government funding for housing initiatives. For example, the Inter-American Development Bank (IDB) has approved a $300 million loan to expand access to social housing, which will benefit over 17,000 households. This financial support makes it easier for people to buy or improve their homes, which in turn energizes the real estate market.
Another key element is the success of government-backed mortgage schemes. The MIVIVIENDA Fund is designed for lower-income households, offering sub-loans to help them purchase homes, including energy-efficient green homes. This not only assists first-time buyers but also promotes sustainable housing practices, further invigorating the market.
The economic impact of these housing incentives is also noteworthy. The construction of new housing units creates jobs and stimulates local economies, contributing to economic recovery. This positive economic impact encourages more people to invest in real estate, further driving market growth.
Moreover, the construction boom is creating a ripple effect, leading to job creation and local economic stimulation. This is crucial for economic recovery and encourages more people to invest in real estate, further driving market growth.
These initiatives are not just about building homes; they are about building communities and futures. By making housing more accessible, the government is helping to create a more stable and prosperous society.
Sources: Inter-American Development Bank, Oxford Business Group
7) Urbanization in Lima and Arequipa is driving demand for sleek modern homes
The rise of urbanization in cities like Lima and Arequipa is creating a high demand for modern residential spaces.
In Lima, the population has been on the rise, with the metro area reaching 11,362,000 people in 2024. This is a 1.41% increase from the previous year, showing that more people are flocking to the city for better opportunities. Arequipa is experiencing a similar trend, with its population growing to 971,000, marking a 1.25% increase. This influx of people is driving the need for more housing.
The Peruvian government is stepping in with policies to make home buying easier, like offering tax incentives for first-time buyers. This move is expected to boost the demand for modern homes, especially those that are tech-smart and energy-efficient. Urban dwellers are increasingly interested in eco-friendly buildings, aligning with global real estate trends.
Business districts in Lima are expanding, creating more job opportunities and attracting even more people to the city. This economic growth is a magnet for those seeking employment, further fueling the demand for modern residential spaces. The growing middle class in Peru is also a key player, as they have the means to invest in these new living spaces.
In Arequipa, the story is similar. The city's growth is not just about numbers; it's about the lifestyle and opportunities that come with urban living. People are drawn to the promise of better jobs and modern amenities, making the demand for contemporary housing skyrocket.
As urbanization continues, the focus is on creating living spaces that meet the needs of a modern lifestyle. This includes everything from smart home technology to sustainable building practices, which are becoming increasingly important to potential buyers.
Sources: Macrotrends - Lima Population, Macrotrends - Arequipa Population, The Latin Investor
8) Remote work is skyrocketing interest in rural properties boosting diverse real estate investments in Peru
Remote work is changing where people choose to live, especially in 2023 and 2024.
Thanks to better internet in rural areas, like in Peru where 4G access has expanded significantly, more people can now work from quieter, less crowded places. This shift is making rural living more appealing for those who want to escape the hustle and bustle of city life.
Governments are also playing a role by supporting housing projects in these areas. In Peru, for instance, government programs are boosting housing construction, making it easier and cheaper for remote workers to move out of the city. This is a win-win, as it not only provides affordable living options but also diversifies investment opportunities.
The construction market in Peru is thriving, with major investments in housing and infrastructure. This growth is not just about building homes; it's about creating communities that cater to the needs of remote workers and their families.
For those considering a move, the lower cost of living in rural areas is a big draw. With remote work, living in a peaceful, affordable area is now a reality for many. This trend is opening up new possibilities for both personal and financial growth.
As more people embrace remote work, the demand for properties outside major cities is rising. This shift is diversifying investment opportunities, making it an exciting time for potential buyers looking to invest in the countryside.
Sources: Penn IUR, IDB Invest, Coatings World
Everything you need to know is included in our Real Estate Pack for Peru
9) Peru's prime Pacific coast location transforms it into a booming trade hub skyrocketing housing demand
Peru's prime spot on the Pacific coast has made it a magnet for global trade, which is driving up housing demand.
The Port of Callao, one of the largest on the Pacific, has expanded, boosting trade activities significantly. This expansion not only moves goods efficiently but also attracts businesses and workers, increasing the need for nearby housing.
In 2023 and 2024, Peru's export sector, especially in mining and agriculture, saw growth, with mining exports jumping by 12.1%. This boom has led to a trade surplus, reinforcing Peru's status as a trade hub. As trade grows, more multinational companies are setting up in Lima, drawn by its strategic location and business-friendly vibe, which naturally spikes housing demand in urban areas.
Government efforts to enhance infrastructure and connectivity are also fueling trade and business growth. These improvements make living and working in these areas easier, pushing up demand for residential properties. Property values in coastal cities like Lima are rising as more people want to live where the action is.
With more businesses and their employees flocking to these areas, the need for housing in urban centers is on the rise. This trend is particularly noticeable in Lima, where the influx of new residents is reshaping the housing market.
As Peru continues to thrive as a trade hub, the real estate market is buzzing with opportunities for those looking to invest in property. The strategic location and ongoing developments make it an attractive option for potential buyers.
Sources: The Rio Times, BCRP Inflation Report, Trading Economics
10) Peru's diverse landscapes unlock thrilling eco-friendly and tourism-driven real estate opportunities
Peru's diverse geography offers unique opportunities for eco-friendly and tourism-related residential developments.
Imagine waking up to the breathtaking views of the Andes or the vibrant life of the Amazon rainforest. These regions, along with Peru's stunning coastlines, provide distinct environments perfect for eco-tourism and sustainable living. Whether you're drawn to the mountains, the jungle, or the sea, there's a spot in Peru that fits your dream of a green lifestyle.
In 2023 and 2024, more international tourists are flocking to Peru for nature-based experiences. This surge in interest makes Peru an ideal destination for eco-friendly developments. The government is on board too, offering incentives like the National Forest Conservation Program to support sustainable tourism and conservation.
Eco-tourism is booming in Peru, leading to a rise in eco-friendly lodges and resorts. This growth is not just about preserving nature; it's also about boosting the local economy. Between 2018 and 2023, tourism investments created over 115,000 jobs, showing how eco-friendly projects can benefit both people and the planet.
Investors are pouring money into sustainable tourism infrastructure, which means more opportunities for eco-friendly residential developments. The positive environmental impact reports from existing projects highlight the potential for successful and sustainable living spaces in Peru.
With its commitment to sustainable tourism and a growing eco-tourism industry, Peru is a hotspot for those looking to invest in green living. The country's diverse landscapes offer unmatched opportunities for eco-friendly developments, making it a prime location for your next property investment.
Sources: Trexperience Peru, UNWTO, Forests News