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Peru's property market in 2025 shows clear regional divisions with Lima leading growth while rural areas lag behind.
National property prices have experienced modest growth of 0.1% year-over-year as of Q3 2024, though real prices declined by 1.7% when adjusted for inflation. Lima's prime districts like Miraflores and San Isidro saw impressive gains of 8-12%, while secondary cities like Arequipa and Piura experienced moderate growth driven by infrastructure investments and economic development.
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 property market shows strong growth in Lima's prime districts (8-12% YoY) while national averages remain flat, with secondary cities like Arequipa and Piura offering emerging opportunities.
Investment prospects favor Lima apartments in middle-class districts and infrastructure-linked secondary cities, though political risks and legal complexities require careful consideration.
| Region | Current Price Growth | Forecast (Next 12 months) | Rental Yields |
|---|---|---|---|
| Lima Prime Districts | 8-12% YoY | 3-7% nominal growth | 6.4% (up to 7.8%) |
| Lima Middle Districts | 2-5% YoY | 3-5% nominal growth | 6.0-6.5% |
| Arequipa | 4-6% YoY | Up to 9% nominal | 5.5-5.7% |
| Piura | 3-5% YoY | 4-6% nominal | Rising with infrastructure |
| Trujillo | 1-3% YoY | 2-4% nominal | Declining due to oversupply |
| Cusco | 2-4% YoY | 3-5% nominal | 5.7% (tourism-driven) |
| Rural/Coastal Areas | Stagnant to negative | Flat or declining | Low and unstable |
What's the current state of property prices in Peru right now?
As of September 2025, Peru's property market shows a mixed picture with significant regional variations.
National property prices have experienced very modest nominal growth of about 0.1% year-over-year in Q3 2024, with real prices actually declining by 1.7% when adjusted for inflation. This national average masks considerable regional differences across the country.
Lima's prime districts including Miraflores, San Isidro, and Surco have seen impressive price growth of 8-12% year-over-year, while middle-income districts experienced more moderate but still positive gains. Transaction volumes in Lima increased by 30% in 2024 compared to 2023, indicating strong market activity.
Across Peru, new residential units typically range from S/300,000 to S/650,000 (approximately US$80,000 to US$175,000), with Lima properties at the higher end and secondary cities priced 30-50% below Lima levels.
It's something we develop in our Peru property pack.
How have prices changed in the last 12 months across different regions?
Regional price performance varies dramatically across Peru's different markets over the past year.
Lima continues to lead price appreciation with 8-12% year-over-year growth in top districts and a remarkable 30% increase in transaction volumes during 2024. The capital's strong performance reflects continued urbanization trends and infrastructure investments.
Secondary cities including Arequipa, Trujillo, and Piura have experienced increased demand and price growth, though typically less dramatic than Lima's surge. Arequipa stands out with 4-6% annual growth driven by mining sector activity and infrastructure development.
Rural areas across Peru are experiencing price stagnation or outright declines as younger populations continue migrating to urban centers, leaving rural property markets with reduced demand and limited appreciation potential.
The national property index remained virtually flat in nominal terms over the 12-month period, turning negative in real terms when inflation is factored in.
What is the forecast for property prices in the short term (next 6–12 months)?
Short-term forecasts show continued but more moderate growth across Peru's main property markets.
Lima is expected to achieve 3-7% nominal growth in 2025-2026, though real gains will likely be muted by ongoing inflation pressures. Prime districts should continue outperforming the broader Lima market due to sustained demand from affluent buyers.
Secondary cities are forecast to experience 2-5% annual growth, with Arequipa potentially reaching up to 9% nominal growth due to supply constraints and continued economic expansion. Piura is expected to see strong growth given major infrastructure investments in the region.
Rural and coastal areas outside major population centers are projected to see little to no growth, with some remote locations potentially experiencing declines as urban migration patterns continue.
The short-term outlook remains closely tied to political stability and infrastructure project progress, both key factors influencing investor and buyer confidence.
How do experts see the medium-term outlook (2–3 years) for the market?
The medium-term outlook for Peru's property market depends heavily on political stability and infrastructure development progress.
Most experts forecast continued moderate growth of 4-5% annual nominal increases, though this projection is highly dependent on political stability following the 2026 elections and successful completion of major infrastructure projects currently underway.
Well-connected urban areas, especially those benefiting from new transportation and utility infrastructure, could significantly outperform the national average with potential 10-15% price jumps following project completions.
The medium-term success of Peru's property market will largely depend on the country's ability to maintain economic growth driven by mining exports and continued urbanization trends that favor major cities and their surrounding areas.
Political uncertainty remains the primary risk factor, as frequent government transitions and policy changes can disrupt investment flows and consumer confidence in the property market.
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What are the long-term trends (5+ years) expected for real estate in Peru?
Long-term trends favor continued urbanization and middle-class expansion driving property demand in major cities.
Urbanization and middle-class growth are projected to sustain steady property appreciation over the next five years, especially in Lima and large secondary cities like Arequipa and Piura. Demographics strongly favor urban property markets as rural-to-urban migration continues.
Future demand will increasingly favor technology-enabled, sustainable housing and properties located near infrastructure hubs including airports, ports, and major transportation corridors. Environmental sustainability and energy efficiency will become more important to buyers.
Rural and depopulating areas are likely to see stagnant or negative price growth over the long term as economic opportunities concentrate in urban centers and infrastructure investments focus on major population areas.
The mining sector's long-term health will continue influencing Peru's overall economic growth and property market performance, making the real estate market somewhat dependent on global commodity prices and mining industry trends.
Which areas of Peru are seeing the strongest growth or demand right now?
Current market leaders show clear patterns favoring Lima's premium and emerging districts plus select secondary cities.
Lima's prime districts including Miraflores, San Isidro, and Surco continue experiencing the hottest demand, while emerging middle-class districts like San Miguel, Magdalena, and Surquillo are seeing increased investor and buyer interest due to their growth potential.
Among secondary cities, Arequipa leads growth driven by mining sector expansion and infrastructure development, while Piura benefits from logistics and agricultural sector growth plus major infrastructure investments that are attracting workers and businesses.
Cusco remains strong for short-term rental properties due to sustained tourism demand, offering stable yields for investors focused on the vacation rental market.
La Molina in Lima shows consistent property appreciation and attracts families seeking quality residential areas with good schools and amenities, making it a stable long-term choice for both residents and investors.
How do forecasts differ between Lima, secondary cities, and coastal or rural areas?
| Area Type | Growth Outlook | Key Drivers | Main Risks |
|---|---|---|---|
| Lima | 3-7% annual nominal, higher in top districts | Urbanization, infrastructure, strong demand | Political instability, affordability constraints |
| Secondary Cities | 2-5% annual, Arequipa up to 9% | Economic growth, mining, infrastructure projects | Oversupply in Trujillo, economic dependency |
| Coastal Areas | Flat to slightly negative | Limited economic activity, tourism (select areas) | Outmigration, climate vulnerability |
| Rural Areas | Stagnant or declining | Agricultural activity (limited) | Population decline, lack of investment |
| Tourist Areas | 2-4% annual (tourism-dependent) | International and domestic tourism | Tourism volatility, seasonal demand |
What are the differences in outlook between apartments, houses, and commercial properties?
Property type performance varies significantly based on location and target market demands.
Apartments lead urban demand, especially compact and efficient units in well-located districts of Lima and secondary cities. These properties benefit from strong rental demand and relatively lower entry costs for investors, making them attractive for both local and foreign buyers.
Houses attract family demand primarily in suburban areas like La Molina, where security, green space, and proximity to quality schools drive appreciation. Single-family homes tend to appreciate steadily but require higher initial investments and may have lower rental yields compared to apartments.
Commercial properties show mixed performance, with logistical and office assets seeing demand in Lima due to continued business growth, though they remain sensitive to broader economic conditions. Secondary city commercial real estate carries higher risks due to more limited business activity and tenant pools.
Retail properties face challenges from changing consumer behavior and online shopping trends, making location and foot traffic critical factors for success in this segment.
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 is the rental market performing, and what's the expected yield by area and property type?
Peru's rental market shows strong performance in urban areas with varying yields across different regions and property types.
Lima generates gross rental yields around 6.4% overall, with some central districts achieving up to 7.8%. However, yields are trending downward as property prices increase faster than rental rates, creating a yield compression effect for new investors.
Arequipa offers yields of 5.5-5.7% with rents rising alongside the local economic boom driven by mining sector activity. Piura shows improving yields due to worker influx for infrastructure projects, while Trujillo experiences declining yields due to oversupply conditions.
Cusco maintains stable yields around 5.7% annually, primarily driven by short-term rental demand from tourism. The national average gross yield sits around 6%, with net yields typically 1.5-2% lower after expenses and taxes.
Compact apartments in well-located urban areas generally provide the highest yields, while luxury properties and houses typically offer lower yields but potentially better long-term appreciation prospects.
What are the key risks (economic, political, legal) that could affect the property market forecast?
Several significant risk factors could impact Peru's property market performance and should be carefully considered by potential buyers and investors.
- Economic risks: Peru's GDP remains closely tied to mining and commodity exports, making the economy vulnerable to global price fluctuations for copper, gold, and other key exports that drive national wealth.
- Political instability: Frequent government transitions and policy changes create uncertainty for investors, with election cycles potentially disrupting investment flows and consumer confidence in property markets.
- Legal complexities: Special restrictions apply to foreign property ownership near borders, non-resident capital gains tax reaches 30%, and real estate lease transactions face 18% VAT, creating additional costs and complications.
- Corruption concerns: Peru ranks 101st globally for perceived corruption, with bureaucratic challenges particularly pronounced outside Lima, potentially complicating property transactions and legal processes.
- Currency risk: Foreign investors face potential losses from Sol depreciation against their home currencies, though this can also create buying opportunities during favorable exchange rate periods.
If you're buying to live, where are the most stable and promising neighborhoods to consider?
For residents seeking stable, liveable neighborhoods, certain Lima districts offer the best combination of security, amenities, and long-term stability.
San Miguel provides excellent value with good transport connections, growing amenities, and a stable residential environment that appeals to middle-class families and professionals. JesĂşs MarĂa offers similar benefits with proximity to downtown Lima and established infrastructure.
Miraflores remains the premium choice for those seeking beachfront living, excellent restaurants, and international community, though prices reflect its prestigious status. Surco offers family-friendly environments with good schools and green spaces at more moderate price points than prime coastal districts.
La Molina attracts families with children due to excellent educational institutions, security, and suburban feel while maintaining good access to central Lima. Surquillo presents emerging opportunities with improving infrastructure and proximity to established districts.
It's something we develop in our Peru property pack.
If you're buying for investment, what's the recommended budget range, property type, and location for renting out or reselling with profit potential?
Investment success in Peru requires strategic choices regarding budget allocation, property type selection, and location targeting.
Budget-conscious investors should focus on apartments in Lima's middle-class districts with budgets of US$80,000-US$175,000, where studios and one-bedroom units typically offer the highest rental yields and strongest tenant demand from young professionals and students.
Luxury investors can target prime Lima districts like Miraflores and San Isidro for apartments, or La Molina for houses, where long-term appreciation potential remains strong despite lower immediate yields.
Secondary city opportunities exist in Arequipa and Piura, where higher yields and future growth prospects tied to economic development make them attractive for investors seeking emerging market exposure with reasonable risk levels.
Short-term rental investors should consider Cusco and central Lima properties that can capitalize on tourism demand, though this strategy requires active management and carries seasonal income variations that must be factored into financial planning.
It's something we develop in our Peru property pack.
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 property market in 2025 presents clear opportunities for informed investors and residents, with Lima's prime and emerging districts leading growth while secondary cities offer emerging potential.
Success requires careful attention to location selection, property type matching with investment goals, and awareness of political and economic risks that could impact returns.
Sources
- Global Property Guide - Peru Price History
- The LatinVestor - Peru Price Forecasts
- Fynsa - Peru Urban Growth
- The LatinVestor - Peru Areas
- The LatinVestor - Peru Real Estate Forecasts
- The LatinVestor - Peru Buy Property
- HomeReady Global - Peruvians Buying Homes
- Global Property Guide - Peru Rental Yields
- Peru Biz Connect - Investing in Peru Real Estate
- Trading Economics - Peru Property Prices