What are the best areas for real estate in Peru? (2026)

Authored by the expert who managed and guided the team behind the Peru Property Pack

Everything you need to know before buying real estate is included in our Dominican Republic Property Pack

What's the Current Real Estate Market Situation by Area in Peru?

Which areas in Peru have the highest property prices per square meter in 2026?

As of early 2026, the three most expensive areas for residential property in Peru are Barranco, San Isidro, and Miraflores in Lima, where prices consistently exceed S/ 7,000 per square meter.

In these premium Lima districts, buyers typically pay between S/ 7,060 and S/ 8,740 per square meter (roughly USD 2,100 to USD 2,600), with oceanfront properties and penthouses commanding even higher premiums.

Each of these top-priced areas commands high prices for distinct reasons:

• Barranco (El Sol/Costa Verde high-rise belt): limited new land supply combined with bohemian lifestyle appeal and restaurant scene density.
• San Isidro (El Olivar and Country Club zones): proximity to the financial district, embassy presence, and established tree-lined residential streets.
• Miraflores (Malecón strip and Larcomar area): direct Pacific Ocean frontage, walkable services, and the strongest international name recognition in Lima.

Which areas in Peru have the most affordable property prices in 2026?

As of early 2026, the most affordable districts within Lima's main reference areas include San Miguel, La Molina, Surco, and Surquillo, where prices range from approximately S/ 4,900 to S/ 5,950 per square meter.

In these more accessible Lima neighborhoods, buyers can expect to pay between S/ 4,900 and S/ 5,950 per square meter (roughly USD 1,460 to USD 1,770), which is 30% to 40% below the prime coastal districts.

However, each of these affordable areas comes with specific trade-offs that buyers should understand before committing: San Miguel offers coastal proximity but older building stock and humidity issues; La Molina provides spacious family homes but sits farther from central Lima with longer commute times; Surquillo delivers Miraflores adjacency but with more uneven street-by-street quality; and Surco features good schools and parks but less walkability and a more car-dependent lifestyle.

You can also read our latest analysis regarding housing prices in Peru.

Which Areas in Peru Offer the Best Rental Yields?

Which neighborhoods in Peru have the highest gross rental yields in 2026?

As of early 2026, the Lima neighborhoods with the highest gross rental yields are Surquillo, San Miguel, Jesús María, Lince, and Magdalena del Mar, each offering approximately 6.5% to 6.7% gross annual returns.

Across Lima as a whole, typical gross rental yields for investment properties range from 5.5% to 6.5%, with emerging and mid-market districts outperforming the premium coastal areas on a yield basis.

Each of these high-yield neighborhoods in Lima delivers stronger returns for specific reasons:

• Surquillo (La Calera / Miraflores border): lower purchase prices than neighboring Miraflores but similar rent levels from spillover tenant demand.
• San Miguel (La Marina corridor): affordable entry point with steady demand from university students and service-sector professionals.
• Jesús María (central Lima location): strong middle-class tenant pool and good metro connectivity driving consistent occupancy.
• Lince (between San Isidro and Jesús María): benefits from business district proximity without the premium price tag.
• Magdalena del Mar (coastal access): lower prices than Miraflores with ocean proximity attracting lifestyle renters.

Finally, please note that we cover the rental yields in Peru here.

Which Areas in Peru Are Best for Short-Term Vacation Rentals?

Which neighborhoods in Peru perform best on Airbnb in 2026?

As of early 2026, the top-performing Airbnb neighborhoods in Lima are Miraflores (65% occupancy, USD 52 average nightly rate), Barranco (63% occupancy, USD 44 nightly rate), and San Isidro (55% occupancy, USD 60 nightly rate).

Top-performing Airbnb properties in these Lima districts typically generate between USD 800 and USD 1,200 per month, with well-optimized listings in Miraflores reaching USD 1,000 or more during peak season (January to March).

Each of these Airbnb-friendly neighborhoods in Peru outperforms others for distinct reasons:

• Miraflores (Parque Kennedy / Larcomar radius): highest international tourist foot traffic, walkable restaurants, and strongest safety perception among visitors.
• Barranco (Puente de los Suspiros / traditional zone): arts and nightlife scene attracts younger travelers seeking authentic Lima experiences.
• San Isidro (business district / El Golf area): corporate travelers and business guests drive midweek demand at higher nightly rates.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Peru.

Which tourist areas in Peru are becoming oversaturated with short-term rentals?

The three Lima areas showing signs of Airbnb oversaturation are central Miraflores around Parque Kennedy, the Barranco coastal high-rise belt near Avenida El Sol, and parts of San Isidro's financial district where investor-owned units cluster.

In these potentially oversaturated zones, you can find 4,000 or more active listings in Miraflores alone and over 1,700 in Barranco, creating significant competition for the same guest pool.

The clearest sign of oversaturation in these Lima areas is when multiple nearly identical studio or one-bedroom units in neighboring buildings compete on price, pushing nightly rates down 15% to 20% below what the same unit would command in a less saturated micro-location.

Which Areas in Peru Are Best for Long-Term Rentals?

Which neighborhoods in Peru have the strongest demand for long-term tenants?

The Lima neighborhoods with the strongest long-term tenant demand are San Isidro, Miraflores, Surquillo (Miraflores border), and Jesús María, where properties typically rent within two to three weeks of listing.

In these high-demand Lima districts, well-priced properties experience vacancy rates below 5% annually and typically find tenants within 14 to 21 days, compared to 30 to 45 days in less desirable areas.

The tenant profiles driving demand differ by neighborhood:

• San Isidro: corporate executives, diplomats, and high-income Peruvian families seeking prestige addresses.
• Miraflores: expats, digital nomads, young professionals, and lifestyle renters wanting walkable urban living.
• Surquillo (La Calera pocket): budget-conscious professionals who want Miraflores adjacency without the premium rent.
• Jesús María: middle-class families and public-sector employees valuing central location and metro access.

The key characteristic that makes these neighborhoods attractive to long-term tenants is the combination of reliable security, proximity to employment centers, and access to daily services within walking distance.

Finally, please note that we provide a very granular rental analysis in our property pack about Peru.

What are the average long-term monthly rents by neighborhood in Peru in 2026?

As of early 2026, average long-term monthly rents in Lima's main neighborhoods range from approximately USD 450 in San Miguel to USD 750 or more in San Isidro, with significant variation based on apartment size and building quality.

In the most affordable Lima neighborhoods like San Miguel and parts of Surquillo, entry-level two-bedroom apartments typically rent for USD 450 to USD 550 per month.

Mid-range neighborhoods such as Jesús María, Magdalena del Mar, and central Surco offer two-bedroom apartments for USD 550 to USD 700 per month, providing a balance of location and value.

In the premium districts of San Isidro and Miraflores, quality two-bedroom apartments command USD 700 to USD 1,000 per month, with oceanfront or luxury units exceeding USD 1,200.

You may want to check our latest analysis about the rents in Peru here.

Which Are the Up-and-Coming Areas to Invest in Peru?

Which neighborhoods in Peru are gentrifying and attracting new investors in 2026?

As of early 2026, the Lima neighborhoods experiencing the most visible gentrification and investor interest are Surquillo (particularly the La Calera zone bordering Miraflores), Jesús María, Pueblo Libre, and Chorrillos near the Costa Verde extension.

These gentrifying Lima neighborhoods have shown annual price appreciation of 8% to 12% over the past two years, outpacing the citywide average of 4% to 5%.

Which areas in Peru have major infrastructure projects planned that will boost prices?

The Lima areas most likely to benefit from infrastructure investment are districts along the Metro Line 2 corridor connecting Ate to Callao, plus areas benefiting from the Jorge Chávez Airport expansion.

The Metro Line 2 project, with nearly 20 stations now in final construction phases, will create a 35-kilometer underground connection across Lima, while the airport expansion supports corporate rental demand in connected districts.

Historically, Lima properties within 500 meters of new metro stations have seen price premiums of 15% to 20% within two to three years of station openings, based on the experience with Metro Line 1.

You'll find our latest property market analysis about Peru here.

Which Areas in Peru Should I Avoid as a Property Investor?

Which neighborhoods in Peru with lots of problems I should avoid and why?

Foreign investors in Lima should generally avoid purchasing in Callao (except La Punta), San Juan de Lurigancho, La Victoria, Villa El Salvador, and Comas, where the combination of security concerns, limited liquidity, and challenging tenant profiles makes investment significantly riskier.

Each of these areas presents specific challenges for property investors:

• Callao (excluding La Punta): higher crime rates, port-area industrial character, and negative perception that limits tenant quality and resale appeal.
• San Juan de Lurigancho: Peru's largest district by population but far from employment centers, with inconsistent infrastructure and security issues.
• La Victoria: known for commercial markets but also elevated street crime, making residential investment challenging.
• Villa El Salvador: peripheral location, long commutes, and limited appeal to the tenant profiles foreign investors typically target.
• Comas: affordability driven by distance from central Lima and security concerns that limit both rental demand and resale liquidity.

For these areas to become viable investment options, they would need sustained improvements in public security, better transport connectivity (such as metro extensions), and visible urban renewal that shifts perception among middle-class renters and buyers.

Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Peru.

Which areas in Peru have stagnant or declining property prices as of 2026?

As of early 2026, the Lima areas showing the weakest price performance are districts with high new-build supply concentration and those highly sensitive to mortgage credit conditions, including parts of northern Lima and peripheral zones where affordability dominates the buyer pool.

While Lima's citywide prices have risen modestly (roughly 4% nominal, 2.5% real in the past year), certain oversupplied micro-markets and credit-constrained areas have experienced flat to slightly negative real returns after adjusting for inflation.

The underlying causes of stagnation differ by area:

• Peripheral Lima districts (Ate, Los Olivos outer zones): heavy new-build supply from developers targeting first-time buyers creates rate competition and price pressure.
• Credit-sensitive middle-market areas: when SBS reference rates rise, buyer demand in these zones contracts faster than in cash-buyer-dominated prime areas.
• Areas without infrastructure catalysts: districts not connected to metro expansion or other improvements see slower appreciation than benefiting neighbors.

Which Areas in Peru Have the Best Long-Term Appreciation Potential?

Which areas in Peru have historically appreciated the most recently?

Over the past five to ten years, the Lima areas with the strongest historical appreciation have been Barranco, Miraflores, San Isidro, and Chorrillos (coastal zone), benefiting from limited supply and sustained lifestyle demand.

Approximate appreciation performance by area:

• Barranco: approximately 8% to 10% annually over the past five years, driven by transformation into Lima's arts and dining destination.
• Miraflores (oceanfront zones): roughly 6% to 8% annual appreciation, supported by consistent expat and tourist demand.
• Chorrillos (Costa Verde extension): up to 19% growth in 2025 alone, benefiting from coastal development and improved connectivity.
• San Isidro (El Olivar/Country Club): steady 5% to 7% annual growth, reflecting stability and prestige demand.

The main driver behind above-average appreciation in these Lima areas has been the combination of constrained buildable land supply, strong lifestyle appeal to both local and international buyers, and improvements in infrastructure and services.

By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Peru.

Which neighborhoods in Peru are expected to see price growth in coming years?

The Lima neighborhoods expected to see the strongest price growth over the next three to five years are Surquillo (Miraflores border), districts along the Metro Line 2 corridor, Jesús María, and parts of Chorrillos with coastal access.

Projected growth expectations by neighborhood:

• Surquillo (La Calera / prime-adjacent zones): 6% to 9% annual growth as spillover from Miraflores pricing continues.
• Metro Line 2 corridor districts: 15% to 20% premium potential within 500 meters of new stations upon full operation.
• Jesús María: 5% to 7% annual appreciation driven by metro connectivity and middle-class demand.
• Chorrillos (Costa Verde areas): continued strong growth if coastal development and road improvements proceed.

The single most important catalyst expected to drive future price growth in these Lima neighborhoods is the completion and full operation of Metro Line 2, which will dramatically improve cross-city commute times and shift accessibility dynamics.

What Do Locals and Expats Really Think About Different Areas in Peru?

Which areas in Peru do local residents consider the most desirable to live?

Local Peruvian residents consistently rate San Isidro, Miraflores, San Borja, and La Molina as the most desirable Lima districts to live, based on revealed preferences in pricing and rental demand data.

The qualities that make each area most desirable to Lima locals differ:

• San Isidro: prestige, tree-lined streets, El Olivar park, and proximity to financial center employment.
• Miraflores: walkable lifestyle, ocean access, restaurant and entertainment options, and international feel.
• San Borja: family-friendly environment, good schools, parks, and a quieter residential character.
• La Molina: spacious properties, suburban feel, universities, and perceived safety for families with children.

These areas attract upper-middle-class and wealthy Peruvian families, professionals working in Lima's financial and corporate sectors, and households prioritizing education quality and security.

Local preferences in Lima generally align with foreign investor targets, with both groups favoring the same prime coastal districts, though locals may place more emphasis on school quality and family orientation while foreigners often prioritize walkability and lifestyle amenities.

Which neighborhoods in Peru have the best reputation among expat communities?

The Lima neighborhoods with the strongest reputation among expat communities are Miraflores, San Isidro, and Barranco, which together host the vast majority of foreign residents in Peru.

Expats prefer these neighborhoods for specific reasons:

• Miraflores: walkability, English-speaking services, international restaurants, and the strongest expat social infrastructure.
• San Isidro: corporate expat housing near embassies and multinational offices, with premium security and services.
• Barranco: creative and artistic atmosphere that attracts younger expats, digital nomads, and those seeking authentic Lima character.

The typical expat profile in Miraflores includes retirees, digital nomads, and English teachers; San Isidro attracts corporate executives and diplomatic personnel; while Barranco draws younger professionals, artists, and entrepreneurs seeking a more bohemian lifestyle.

Which areas in Peru do locals say are overhyped by foreign buyers?

Lima locals commonly consider central Miraflores (around Parque Kennedy), the Barranco high-rise coastal strip, and certain heavily marketed San Isidro developments as overhyped by foreign buyers.

The reasons locals believe these areas are overvalued differ:

• Central Miraflores (Parque Kennedy zone): tourists crowd the area, noise levels are high, and locals see better value in adjacent quieter blocks.
• Barranco coastal high-rises: new developments marketed heavily to foreigners often lack the authentic Barranco character that made the district desirable.
• San Isidro luxury towers: some new-build projects command premiums that locals view as disconnected from rental reality.

Foreign buyers typically value the name recognition and perceived safety of these central locations, while locals recognize that equally good or better value exists just a few blocks away from the most marketed addresses.

By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Peru.

Which areas in Peru are considered boring or undesirable by residents?

Lima residents commonly consider San Borja, parts of Surco away from Chacarilla, and La Molina as "boring" districts, though this perception often makes them excellent for stable long-term rental investment.

The reasons residents find these areas less exciting:

• San Borja: quiet residential streets, limited nightlife, and a family-oriented character that younger residents find dull.
• Outer Surco: car-dependent suburban feel with less walkable daily life than central Lima districts.
• La Molina: distance from central Lima entertainment and a gated-community atmosphere some find isolating.

For investors, these "boring" districts often deliver exactly what long-term tenants want: predictable, safe, and residential environments with lower turnover and more stable rental income.

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.