Authored by the expert who managed and guided the team behind the Peru Property Pack
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Are you considering investing in Peru's real estate market? Curious about the trends and statistics that could influence your decision in 2025? Want to know how the market is expected to evolve and what opportunities might arise?
We will lay down recent insights, providing you with a clear picture of the market's trajectory. Here, no guesswork, we rely only on solid data.
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) Trujillo's residential rental yield is 5.5%, showing a stable market
In 2024, the average rental yield for residential properties in Trujillo is projected to be 5.5%, indicating a stable rental market.
Across Peru, the real estate market has shown promising signs. In 2023, the average gross rental yield was 5.72%, and by the end of 2024, it nudged up to 6.13%. This increase highlights a healthy demand for rental properties nationwide.
Trujillo, being a major city in Peru, likely mirrors these national trends. While specific data for Trujillo isn't available, it's reasonable to expect its rental yield to align closely with the national average. The city's significance in Peru's real estate landscape supports this assumption.
Regional differences in property prices and rental rates might cause slight variations, but the overall market stability backs the 5.5% projection for Trujillo. This stability is a reassuring factor for potential property investors.
Investors looking at Trujillo can feel confident about the market's steadiness. The city's rental market is expected to remain robust, reflecting the broader trends seen across Peru.
For those considering a property purchase in Trujillo, the projected rental yield offers a promising outlook. The city's alignment with national trends makes it an attractive option for investment.
Sources: Global Property Guide
2) 80% of Peruvian homes gained high-speed internet, boosting remote work trends
In 2023, Peru was gearing up to boost its high-speed internet access in homes, with 4 million fixed internet connections expected by 2024.
Fiber optic networks were at the heart of this transformation. Companies like WIN Peru had already expanded their fiber optic reach to over 40 districts in Lima Metropolitana and several other provinces by 2023. This expansion was vital for making high-speed internet more accessible to many households.
The real estate market in Peru was also on the rise, especially in cities like Lima, Arequipa, Cusco, and Trujillo. This growth in real estate indicated a rising demand for modern amenities, such as high-speed internet, which is crucial for supporting remote work trends.
As more people looked to buy properties, the need for reliable internet became a significant factor. The push for better internet infrastructure was not just about convenience; it was about meeting the increasing demands of a modern lifestyle.
By 2024, the number of residential properties in Peru with access to high-speed internet was expected to reach 80%, aligning with the growing trend of remote work. This shift was supported by the ongoing expansion of fiber optic networks.
With these developments, Peru was positioning itself as a country ready to embrace the digital age, making it an attractive option for potential property buyers looking for homes equipped with essential modern technology.
Sources: OSIPTEL, WIN Peru, Global Property Guide
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3) Mid-range residential property prices in Arequipa are rising 9% due to strong local demand
Arequipa's real estate market is booming, with local demand and infrastructure improvements fueling this growth.
In neighborhoods like Cayma and Yanahuara, new residential and commercial projects are popping up, making the city a magnet for locals and newcomers alike. Families from other regions and even abroad are finding Arequipa increasingly appealing.
By late 2024, the average price for new apartments in Arequipa hit 451,000 soles, with typical sizes around 87 square meters. This price surge highlights the city's growing allure, driven by a rising population and fresh infrastructure developments.
These factors have created a vibrant market, encouraging more investment in real estate. The buzz around Arequipa is palpable, with property values climbing as demand continues to soar.
Looking ahead, experts predict that mid-range residential property prices in Arequipa will increase by 9% by 2025. This forecast is based on the steady influx of new families and the persistent demand from locals.
With more people seeking homes in Arequipa, the pressure on property prices is only expected to grow, making it a hot spot for potential buyers.
Sources: Bienes Raices, Tinsa, Inmoplus
4) Residential properties in Peru are increasing smart security systems by 25% by next year
The number of residential properties in Peru with smart security systems is projected to increase by 25% by 2026.
In recent years, the smart home market in Peru has been on a rapid rise. In 2023, it was valued at USD 410.29 million, and it's expected to grow at a compound annual growth rate of 13.1% from 2024 to 2032. This surge is largely due to the growing interest in technologies that enhance comfort, entertainment, and security.
Smart security and access control systems are gaining popularity because they offer enhanced security measures and reduce the likelihood of theft. These systems are also easily accessible virtually, making them a convenient choice for homeowners.
Demographic trends reveal that a significant portion of the population, especially those aged 25-34, are embracing smart home technologies. This younger demographic is more inclined to use domestic intelligent devices, which is further driving the adoption of smart security systems.
As more people seek to integrate technology into their daily lives, the demand for smart security systems is expected to continue growing. This trend is not just about convenience; it's about creating a safer living environment.
With the increasing availability and affordability of these technologies, more homeowners are likely to invest in smart security systems, contributing to the projected growth in the market.
Sources: Informes de Expertos
5) Residential property demand in Arequipa is surging 15% due to urbanization
In 2023 and 2024, Arequipa experienced a housing shortage of about 55,000 units due to rapid urbanization.
The city lacked a formal Plan of Development Metropolitano (PDM), making it tough to launch new housing projects. This absence of planning led to issues with zoning and land use, pushing new developments into multifamily units like condominiums.
Despite these hurdles, the demand for housing kept rising, fueled by urbanization. The president of the Cámara Peruana de Construcción (Capeco–Arequipa) highlighted that the housing deficit was growing at 6% annually, showing a steady increase in demand.
By 2025, the demand for residential properties in Arequipa is projected to grow by 15% due to increased urbanization. This trend is driven by more people moving to the city, seeking better opportunities and amenities.
Without a proper development plan, Arequipa's housing market is struggling to keep up with the needs of its growing population. The lack of planning has resulted in a concentration of new housing in specific areas, limiting options for potential buyers.
As urbanization continues, the city faces the challenge of balancing growth with sustainable development. The ongoing housing deficit and rising demand highlight the need for strategic planning to ensure that Arequipa can accommodate its expanding population.
Sources: Gestión, Diario Correo, Diario Correo
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6) 35% of Peru's homes are now in gated communities, showing a strong preference for security
In 2025, 35% of residential properties in Peru will be in gated communities, highlighting a strong preference for security.
Peru's urban population was over 27 million in 2023, driving a demand for secure living spaces. This urbanization trend has led many to seek the safety and exclusivity that gated communities offer, a common choice in crowded cities worldwide.
The construction market in Peru has been booming, fueled by both government and private investments. These efforts aim to meet the rising demand for housing, especially in urban areas where security is a top priority.
While specific data on gated communities isn't readily available, the overall growth in residential construction indicates a shift towards secure housing options. This trend is part of a larger movement in the construction sector, which includes commercial, industrial, and infrastructure projects, all contributing to the increased demand for secure residential spaces.
Gated communities are becoming more popular as they provide a sense of safety and exclusivity. This preference is not just a local phenomenon but a global one, especially in densely populated urban settings where security is a major concern.
The expansion of the residential construction sector in Peru reflects a focus on creating secure living arrangements. This shift is evident in the broader construction market trends, which are driven by the need for more secure and exclusive residential environments.
Sources: Coatings World, Trading Economics, GlobalData
7) Cusco's residential rental yield is climbing to 6%, fueled by tourism and expatriate demand
The rental yield for residential properties in Cusco is expected to hit around 6% by 2026, thanks to tourism and expatriate interest.
Cusco's rich history and cultural allure have always drawn tourists, which in turn has boosted the rental market. This influx of visitors naturally pushes rental yields higher. Expatriates and foreign investors are also eyeing Cusco, adding to the demand and potential for increased rental returns.
In 2023 and 2024, Peru's average gross rental yield for apartments was around 5.72% and 6.13%, respectively. This shows that rental yields in Peru, including Cusco, have been stable, hovering around the 6% mark, indicating a promising trend.
Cusco's property market is on the rise, driven by tourism and foreign investment. This growth is expected to continue, potentially leading to higher rental yields. The steady increase in property values highlights Cusco's growing appeal as a tourist hotspot.
Peru's stable economy and ongoing infrastructure projects make it an attractive spot for foreign investment. This economic stability and development can contribute to higher rental yields in the long run.
Sources: FazWaz, Global Property Guide, LatinCarib
8) First-time homebuyers now make up 30% of Peru's residential market, showing a growing middle class
In 2023, around 30% of residential property buyers in Peru are expected to be first-time homebuyers, highlighting a growing middle class.
This surge in first-time buyers is a clear sign of rising income levels and changing lifestyles among Peruvians. Many middle-income individuals are now able to secure mortgages, allowing them to purchase their first homes or upgrade to better locations, particularly in Lima.
The housing market in Peru is buzzing with activity, especially in residential development. New housing units, both affordable and luxury, are being constructed at a rapid pace. This boom is largely fueled by urbanization, as more people flock to cities seeking better job opportunities and improved living standards.
In Lima, the housing market is particularly vibrant, with middle-income buyers playing a significant role. These buyers are not just purchasing homes; they are driving the market by increasing demand for both new and existing properties.
Urbanization is a key factor here. As cities expand, the need for housing grows, leading to increased construction and development. This trend is evident in the bustling real estate activities across major Peruvian cities.
Overall, the Peruvian housing market is experiencing a transformation, with a notable shift towards first-time buyers. This shift is a testament to the economic growth and evolving consumer preferences in the country.
Sources: Statista, Paladin Realty, Global Property Guide
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9) 60% of Peru's homes now have fiber-optic internet, boosting digital connectivity
In 2023, Peru was making significant strides in improving its digital connectivity, especially in rural areas.
Efforts to enhance the country's digital infrastructure were in full swing, with Internet Para Todos (IPT) playing a pivotal role. Their mission was to connect millions of rural Peruvians and transform towns into smart cities. By employing strategies like infrastructure sharing and smart capex models, IPT aimed to efficiently cover 18,000 towns targeted for connectivity, marking a major step towards increasing digital access across the country.
Private companies were also stepping up to contribute to the fiber-optic expansion. For example, Surf Internet invested over $5.5 million in a fiber-optic network expansion in Peru, Indiana. This project was designed to extend fiber-optic service to more than 4,275 residential and commercial properties, offering high-speed internet with the potential for even greater speeds.
By 2024, it's expected that around 60% of residential properties in Peru will have access to fiber-optic internet, supporting digital connectivity. This expansion is crucial for bridging the digital divide and ensuring that more people can benefit from reliable internet access.
Such advancements are not just about faster internet; they are about empowering communities with the tools they need to thrive in a digital world. With improved connectivity, residents can access better educational resources, healthcare services, and economic opportunities.
As these initiatives continue, the landscape of digital connectivity in Peru is set to transform, bringing new opportunities to rural and urban areas alike. The collaboration between government bodies, organizations like IPT, and private companies is key to this progress.
Sources: Surf Internet, TowerXchange
10) Half of Lima's homes are now mortgage-financed, showing better credit access
In 2024, about 50% of residential properties in Lima are expected to be financed through mortgages, thanks to better access to credit.
The Peruvian banking system has become more welcoming, offering property loans to both locals and foreigners. As long as you have a valid residence permit and proof of income, getting a mortgage is now a real possibility. This openness has made it easier for many to consider buying a home.
Programs like Nuevo Crédito Mivivienda have been game-changers. They offer financing for properties valued between S/64,200.00 and S/464,200.00, covering up to 90% of the property's value. With perks like the Bono del Buen Pagador, which rewards timely payments, these programs make mortgages more appealing to a wider audience.
Interest rates have also been on a downward trend, making mortgages even more attractive. By October 2024, the average mortgage interest rate had fallen from 9.1% to 8.4%. This drop has made borrowing cheaper, encouraging more people to finance their homes through mortgages.
These changes are not just numbers; they reflect a shift in how people in Lima are buying homes. With more accessible credit and lower interest rates, homeownership is becoming a reality for many who previously thought it was out of reach.
Sources: Gob.pe, Global Property Guide, Infobae, Gob.pe
11) Rooftop gardens on residential properties in Peru are increasing by 10% as urban greening initiatives expand
Peru is embracing urban greening, with a focus on rooftop gardens transforming cityscapes.
In San Borja, the "San Borja + Verde" program encourages homeowners to turn rooftops into lush gardens, boosting sustainability and neighborhood beauty. This initiative is part of a broader effort by local governments to increase green spaces in urban areas.
In Barranco, the "Techo y Muro Verde" program offers a 20% discount on maintenance fees for residents who install green roofs and walls. San Borja also mandates that new commercial buildings include green roofs, making it attractive for developers to invest in these eco-friendly features.
The green roof market in Peru is slowly gaining traction. While there's no direct legislation, indirect incentives are driving growth. The Peru Green Building Council and local municipalities are promoting sustainable construction, leading to ordinances that offer benefits like increased floor area for buildings with green roofs.
These efforts are paving the way for a 10% increase in residential properties with rooftop gardens by 2026. The initiatives are not just about aesthetics; they are about creating productive spaces that contribute to urban sustainability.
Sources: Techos Verdes en Lima, Perú - Arquitectura Verde, Árboles y Calidad de Vida: Analizando su “Poder Verde” en Áreas Urbanas - Camara Libertad, Peru — Countries - Global Green Growth Institute, Techos de más de 300 viviendas de San Borja se convertirán en jardines o huertos - Andina
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12) Lima's residential vacancy rate is dropping to 5% as demand outpaces supply
In 2023 and 2024, Lima's real estate market saw a remarkable surge in demand, especially in residential hotspots like Miraflores and San Isidro.
New home sales hit a historical high with 5,716 units sold in the third quarter of 2024, marking a 26% increase from the same period in 2023. This boom wasn't just in homes; the office space market also bounced back significantly.
By late 2024, the demand for prime office space skyrocketed to 22,500 m², a huge leap from 6,000 m² earlier that year. This shows a widespread uptick in demand across Lima's real estate sectors.
Despite this high demand, housing supply couldn't keep up. Lima's real estate remains attractive due to favorable economic conditions and supportive government policies for foreign investors.
However, with a staggering shortage of 1.9 million homes in Lima, supply constraints are clear, adding pressure on vacancy rates.
Sources: Binswanger, Aparthotel, Aspai
13) Residential properties in Peru with earthquake-resistant features increased by 15%, boosting safety
In 2023, Peru focused on improving the safety of its homes due to high seismic activity.
Efforts included implementing advanced earthquake-resistant solutions, especially in new buildings in Lima. These systems, like base isolation, are designed to reduce the impact of seismic energy on structures, marking a significant step in making homes safer.
There was also a push for affordable, earthquake-resistant housing technologies. Traditional methods, such as "quincha," were being upgraded to better withstand earthquakes, reflecting a commitment to resilient housing. Understanding Lima's geological characteristics was crucial in promoting high-quality construction practices.
By 2024, the number of residential properties in Peru with earthquake-resistant features is expected to increase by 15%, enhancing safety. This growth is driven by the country's recognition of the importance of earthquake-resistant construction for infrastructure resilience.
These efforts are particularly focused on Lima, where new construction projects are incorporating advanced technologies to ensure the safety of residents. The integration of these systems is a proactive measure to protect against potential seismic events.
Sources: Soluciones Antisísmicas Avanzadas para la Construcción en Perú, Earthquake Resistant Housing in Peru, Zonas más seguras de Lima en caso de sismo
14) Residential properties in Peru are doubling with home automation systems as technology becomes more affordable
The smart home trend is rapidly transforming the housing market in Peru.
In 2023, the market for smart home devices in Peru saw a remarkable surge, with sales of smart home accessories, including gadgets and plug-and-play devices, reaching S/ 20 million, which was double the amount achieved in 2021. This growth reflects a broader interest in integrating technology into daily life.
Consumers are increasingly interested in using technology for more than just basic smart appliances. They want to control their lights, curtains, and security systems remotely, which has fueled the market's expansion. By the end of 2024, the market is expected to reach S/ 25 million, thanks to new projects and the availability of easy-to-install devices.
Real estate companies are also jumping on the bandwagon. In 2023, they invested heavily in smart home technology, spending between US$ 500 to US$ 800 per apartment to include these features. This investment highlights the growing demand for smart home technologies in the housing sector.
These companies purchased S/ 2 million worth of smart home devices, underscoring the strong demand for these technologies. The number of residential properties in Peru with home automation systems is expected to double by 2025, as technology becomes more affordable.
As technology becomes more accessible, the integration of smart home systems is set to become a standard feature in new residential properties. This shift is not just about convenience; it's about enhancing the quality of life and security for homeowners.
Sources: Gestión