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Peru's real estate market in 2026 is showing stability with modest growth, and this article covers the current housing prices, days-on-market, and what foreigners need to know before buying property in Peru.
We constantly update this blog post with fresh data from official Peruvian sources like BCRP, SUNARP, and SBS so you always have accurate information.
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.
How's the real estate market going in Peru in 2026?
What's the average days-on-market in Peru in 2026?
As of early 2026, a well-priced apartment in Lima's established districts typically sells in around 70 days, though this varies significantly by location and pricing strategy.
The realistic range for most properties in Peru spans from 45 to 120 days, with correctly priced homes in prime Lima neighborhoods like Miraflores and San Isidro moving faster at 45 to 60 days, while overpriced or poorly located properties can sit for 90 to 120 days or longer.
Compared to 2024, days-on-market in Peru have remained relatively stable because transaction volumes recorded by SUNARP grew 13% in 2025, which kept liquidity healthy without creating the kind of frenzy that would push selling times down to just a few days.
Are properties selling above or below asking in Peru in 2026?
As of early 2026, most resale properties in Peru close at 3% to 6% below the original asking price, while new builds from reputable developers typically sell at or within 2% of asking.
Roughly 80% to 85% of properties in Peru sell at or below asking price, with only about 15% to 20% achieving full asking or slightly above, and we are fairly confident in this estimate because BCRP explicitly confirms its price data reflects listing prices rather than transaction prices.
The neighborhoods in Peru most likely to see above-asking sales are walkable pockets of Miraflores and Barranco with ocean views or particularly desirable building management, where limited supply and strong lifestyle demand can push final prices 0% to 3% above asking.
By the way, you will find much more detailed data in our property pack covering the real estate market in Peru.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Peru. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Peru?
What property types dominate in Peru right now?
In Peru's formal housing market, apartments make up roughly 72% of listings, followed by houses at about 10%, condo-style apartments with amenities at 10%, townhouses at 4%, penthouses and duplexes at 3%, and villas at just 1%.
Apartments represent the largest share of Peru's residential market by far, particularly in Lima and Callao where most foreign buyers focus their search.
This apartment dominance in Peru developed because Lima is a dense, rapidly urbanizing city with limited buildable land in prime districts, so developers have focused on mid-rise and high-rise buildings that maximize the use of valuable urban plots while offering the security and amenities that Peruvian buyers prioritize.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Peru right now?
New-build properties make up a significant share of Lima's apartment market, with multiple active developments in most major districts offering buyers modern units with contemporary amenities and standardized legal documentation.
As of early 2026, the highest concentration of new-build developments in Peru is found in Lima districts like Miraflores, San Isidro, Jesús María, Surquillo, Lince, and Magdalena del Mar, where developers continue launching projects to meet demand from both local and foreign buyers seeking modern apartments with good building management.
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Which neighborhoods are improving fastest in Peru in 2026?
Which areas in Peru are gentrifying in 2026?
As of early 2026, the neighborhoods in Peru showing the clearest signs of gentrification are Barranco, Surquillo (especially the blocks bordering Miraflores and San Isidro), Lince, and selected pockets of La Victoria in Lima.
In these gentrifying Lima neighborhoods, you can see new specialty coffee shops and co-working spaces opening, older buildings being converted into boutique apartments, and a noticeable shift toward younger professionals and creative-industry workers moving in to be close to employment hubs while paying less than prime district prices.
Price appreciation in these gentrifying Peru neighborhoods has ranged from 8% to 15% over the past two to three years, with Surquillo and Barranco showing particularly strong gains due to their proximity to prime districts and growing lifestyle appeal.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Peru.
Where are infrastructure projects boosting demand in Peru in 2026?
As of early 2026, the areas in Peru where major infrastructure projects are most clearly boosting housing demand are the Ate-Callao corridor served by Metro Line 2, the districts along the Line 4 branch toward Jorge Chávez International Airport, and areas near future stations in Santa Anita, La Victoria, and Cercado de Lima.
The specific infrastructure projects driving this demand in Peru are Metro Line 2 (27 kilometers connecting Ate to Callao) and the Line 4 branch (8 stations linking to the airport), which together will reduce travel time across Lima from nearly 3 hours to about 45 minutes once fully operational.
The Metro Line 2 project in Peru is currently 72% complete as of mid-2025, with tunnel excavation expected to finish between late 2026 and early 2027, though full integrated operations may not begin until 2028 or 2029 given the project's history of delays.
In Peru, properties near announced metro stations typically see price bumps of 5% to 10% upon announcement, with an additional 10% to 20% gain once stations become operational, though results vary significantly by micro-location and building quality.
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.
What do locals and insiders say the market feels like in Peru?
Do people think homes are overpriced in Peru in 2026?
As of early 2026, many locals in Lima's prime districts like Miraflores and San Isidro describe housing as expensive relative to local salaries, but most market insiders do not see the classic signs of a speculative bubble forming.
When arguing that homes in Peru are overpriced, locals typically point to the fact that average apartment prices in prime Lima districts have reached $2,000 to $2,600 per square meter while median household incomes remain well below $20,000 per year, making ownership unattainable without significant savings or family support.
Those who believe Peru's housing prices are fair usually counter that prices have grown only modestly in real terms (around 2% to 3% after inflation), that mortgage credit is expanding at a healthy pace, and that strong transaction volumes show buyers are still finding value.
The price-to-income ratio in Lima's prime districts is notably higher than Peru's national average, with Lima residents typically needing 15 to 20 years of average household income to afford a standard apartment, compared to 8 to 12 years in secondary cities like Arequipa or Trujillo.
What are common buyer mistakes people regret in Peru right now?
The most frequently cited buyer mistake in Peru is purchasing property without conducting a rigorous title and registry check through SUNARP, which can lead to discovering ownership disputes, liens, or documentation problems after the sale that are expensive and time-consuming to resolve.
The second most common regret among property buyers in Peru is underestimating building management and HOA quality, especially in apartment buildings where poor governance can lead to deferred maintenance, unexpected fee increases, and conflicts that erode both livability and resale value.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Peru.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Peru.
Get the full checklist for your due diligence in Peru
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Peru in 2026?
Do foreigners face extra challenges in Peru right now?
Foreigners in Peru face a moderately higher difficulty level than local buyers, mainly due to slower banking processes, stricter documentation requirements, and the need for reliable local legal support, though the legal framework itself treats foreigners and Peruvians equally outside of border zones.
The main legal restriction for foreign buyers in Peru is Article 71 of the Constitution, which prohibits foreigners from acquiring or possessing property within 50 kilometers of any national border unless a special exception is granted by Supreme Decree, a rule that affects areas near Ecuador, Colombia, Brazil, Bolivia, and Chile.
Beyond the border restriction, foreigners in Peru commonly face challenges like bank account opening delays that can take weeks, requirements to have documents apostilled and translated into Spanish, difficulty proving foreign income to Peruvian standards, and the fact that most real estate contracts and notary procedures are conducted entirely in Spanish with limited English support.
We will tell you more in our blog article about foreigner property ownership in Peru.
Do banks lend to foreigners in Peru in 2026?
As of early 2026, mortgage financing for foreign buyers is available in Peru but significantly harder to obtain than for residents, with most foreigners needing either a local banking relationship, proof of Peru-based income, or a larger down payment to qualify.
Foreign buyers in Peru can typically expect loan-to-value ratios of 60% to 70% (meaning 30% to 40% down payment required) compared to 80% to 90% for qualified residents, with current mortgage interest rates averaging around 7.4% for sol-denominated loans and 6.3% for dollar-denominated loans.
Banks in Peru typically require foreign mortgage applicants to provide apostilled and translated income statements, tax returns from their home country, proof of funds held in Peruvian accounts, valid immigration documents, and sometimes a local co-signer or guarantor to reduce the bank's perceived risk.
You can also read our latest update about mortgage and interest rates in Peru.
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 risky is buying in Peru compared to other nearby markets?
Is Peru more volatile than nearby places in 2026?
As of early 2026, Peru's housing market shows mid-range volatility compared to regional neighbors, with price swings generally smaller than Colombia's boom-bust cycles but larger than Chile's more stable market, making Peru a moderate-risk option in South America.
Over the past decade, Peru's real residential property prices have fluctuated within a relatively narrow band, avoiding the dramatic crashes seen in some neighbors while also missing the sharp appreciation spikes, with most annual changes staying between negative 2% and positive 5% in real terms.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Peru.
Is Peru resilient during downturns historically?
Peru's property market has shown moderate resilience during past economic downturns, with prices typically declining but recovering within two to four years rather than experiencing prolonged multi-year collapses seen in some other emerging markets.
During Peru's most significant recent downturn around 2020 to 2022 (COVID-19 and political instability), real house prices fell by roughly 6% to 9% over two years, but Lima's prime districts like Miraflores and San Isidro recovered faster than national averages, regaining lost ground by late 2024.
The property types and neighborhoods in Peru that have historically held value best during downturns are well-located apartments in Lima's established premium districts (San Isidro, Miraflores, Barranco) with strong building management and proximity to employment centers, while properties in fringe locations or with title issues tend to suffer deeper and longer price declines.
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How strong is rental demand behind the scenes in Peru in 2026?
Is long-term rental demand growing in Peru in 2026?
As of early 2026, long-term rental demand in Peru is growing steadily, supported by continued urban migration to Lima, an expanding middle class, and credit constraints that keep many households renting rather than buying their first home.
The tenant demographics driving long-term rental demand in Peru are primarily young professionals aged 25 to 40 working in Lima's financial, tech, and service sectors, plus university students in districts near major campuses and a growing segment of foreign professionals and retirees seeking affordable Latin American living.
The neighborhoods in Peru with the strongest long-term rental demand right now are Miraflores, San Isidro, Barranco, and Surquillo in Lima, where walkability, safety, and proximity to offices and amenities make renting attractive despite higher prices compared to outlying districts.
You might want to check our latest analysis about rental yields in Peru.
Is short-term rental demand growing in Peru in 2026?
Peru's short-term rental regulations remain relatively lenient as of early 2026, with no strict licensing requirements uniformly enforced across Lima, though individual municipalities like Miraflores may require tourism registration and hosts must declare income for tax purposes.
As of early 2026, short-term rental demand in Peru is stable but not rapidly expanding, with Lima's Airbnb market showing modest growth as the city continues attracting tourists and digital nomads seeking affordable South American destinations with good infrastructure.
The current average occupancy rate for short-term rentals in Lima is around 44% to 55% citywide, with premium neighborhoods like Miraflores achieving higher rates of 60% to 65% while less tourist-focused areas average 35% to 45%.
The guest demographics driving short-term rental demand in Peru are primarily international tourists (about 90% of Miraflores bookings are foreign guests), followed by digital nomads staying one to three months, business travelers, and domestic tourists from other Peruvian cities visiting Lima.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Peru.
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 are the realistic short-term and long-term projections for Peru in 2026?
What's the 12-month outlook for demand in Peru in 2026?
As of early 2026, the 12-month demand outlook for residential property in Peru is cautiously positive, with steady buyer interest expected in Lima's established districts supported by healthy transaction volumes and continued mortgage credit growth.
The key factors most likely to influence Peru's housing demand over the next 12 months are the 2026 presidential elections (which could affect investor confidence), global economic conditions that impact Peru's export-dependent economy, and the central bank's interest rate decisions as inflation remains well-controlled around 1.5%.
The forecasted price movement for Peru's housing market over the next 12 months is modest nominal growth of 3% to 5%, which translates to roughly 1% to 3% real appreciation after accounting for Peru's low inflation environment, with Lima's prime districts likely outperforming the national average.
By the way, we also have an update regarding price forecasts in Peru.
What's the 3 to 5 year outlook for housing in Peru in 2026?
As of early 2026, the 3 to 5 year outlook for housing prices and demand in Peru is moderately positive, with annual real appreciation of 2% to 4% expected in Lima's prime and emerging districts while secondary cities may see more variable performance depending on local economic conditions.
The major development projects expected to shape Peru's housing market over the next 3 to 5 years include the completion of Metro Line 2 and Line 4 branch (expected 2028 to 2029), continued new airport development at Chinchero serving Cusco, and ongoing urban densification projects in Lima that will add apartment supply in established neighborhoods.
The single biggest uncertainty that could alter Peru's 3 to 5 year housing outlook is political stability following the 2026 elections, as significant policy shifts or prolonged political conflict could dampen both domestic buyer confidence and foreign investment flows that support Lima's premium market.
Are demographics or other trends pushing prices up in Peru in 2026?
As of early 2026, demographic trends are creating moderate upward pressure on Peru's housing prices, particularly in Lima where continued rural-to-urban migration adds tens of thousands of new households each year to a market that already has a deficit of nearly 2 million formal housing units.
The specific demographic shifts most affecting prices in Peru are Lima's magnetic pull on young workers from across the country, household formation rates that exceed new construction by roughly 50,000 units annually, and an emerging middle class that is increasingly able to access mortgage financing but still faces limited affordable supply.
Beyond demographics, the non-demographic trends pushing prices in Peru include rising construction costs tracked by INEI indices, a growing preference for gated communities with security features due to crime concerns, and steady interest from expatriate Peruvians and foreign retirees who bring outside purchasing power to Lima's premium market.
These demographic and trend-driven price pressures in Peru are expected to continue for at least the next 5 to 10 years, as closing the housing deficit would require construction rates far above current levels, and urbanization trends show no sign of reversing given Lima's dominant role in Peru's economy.
What scenario would cause a downturn in Peru in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Peru would be a combination of sharp credit tightening (if global conditions force interest rates up), a confidence shock from political instability around the elections, or a significant decline in copper prices that would hurt Peru's export revenues and employment.
The early warning signs that would indicate a housing downturn is beginning in Peru include a sharp drop in SUNARP-registered transactions below 200,000 annually, mortgage approval rates falling significantly, developers pausing new project launches in Lima, and listing inventory rising while days-on-market extends beyond 120 days even for well-priced properties.
Based on Peru's historical patterns, a realistic downturn scenario could see real prices decline 8% to 15% over two to three years, with recovery taking another two to four years, though Lima's premium districts would likely experience shallower declines and faster rebounds than the national average.
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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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| BCRP Apartment Price Indicator | Peru's central bank publishes this long-running, documented housing price series with clear methodology. | We used it to anchor price trends in Lima's apartment market. We also referenced its methodology notes to distinguish listing prices from transaction prices. |
| SUNARP Property Registry | Peru's official property registry provides the closest thing to ground-truth transaction counts. | We used it to measure actual market liquidity with 263,243 recorded sales in 2025. We also used regional breakdowns to show Lima's dominance in transaction volume. |
| SBS Peru | Peru's financial regulator publishes official reference interest rates from all supervised banking institutions. | We used it to track mortgage rates currently averaging 7.4% for sol loans. We also used it to explain how financing conditions affect buyer demand even for cash purchasers. |
| IMF Article IV Report for Peru | The IMF provides standardized, rigorous country surveillance trusted by international investors. | We used it to frame 2026 macro risks including growth projections and inflation outlook. We also used its risk scenarios to build realistic downturn modeling. |
| FRED/BIS Real Property Price Series | This widely used public data portal distributes BIS-harmonized series with transparent metadata. | We used it to verify Peru's long-run real price trends back to 1998. We also used it for cross-country volatility comparisons with regional neighbors. |
| Peru Constitution (Congress Edition) | This is the official government publication of Peru's constitution with current amendments. | We used it to anchor the 50-kilometer border restriction rule for foreign buyers. We also used it to confirm equal property rights for foreigners outside border zones. |
| MTC Metro Line 2 Updates | Peru's Ministry of Transport provides official progress reports on major infrastructure projects. | We used it to identify which corridors will see improved connectivity from Metro Line 2. We also used it to provide realistic completion timelines rather than speculative dates. |
| Tinsa Peru Market Overview | Tinsa is an established real estate valuation firm with structured reports and documented methodology. | We used it to describe new-build supply patterns and price segmentation in Lima. We also used it to confirm that the new-build market is concentrated in Lima and Callao. |
| AirDNA Lima Market Data | AirDNA is a major, widely cited short-term rental data provider with consistent methodology across markets. | We used it to estimate Lima's short-term rental occupancy rates and average daily rates. We also used it to keep the Airbnb section quantitative rather than anecdotal. |
| INEI Price Indices | INEI is Peru's official national statistics agency responsible for all major economic indicators. | We used it to ground construction cost inflation that affects new-build pricing. We also used it to calculate real versus nominal price changes with accurate inflation data. |
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