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Where are the best places to invest in Peru right now? Is Lima still the top pick, or are cities like Cusco, Arequipa, and Trujillo gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Peru and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Cusco City is booming with short-term rental investment opportunities as a gateway to Machu Picchu
Cusco City is buzzing with real estate opportunities thanks to its status as the gateway to Machu Picchu.
In 2023, tourism in Cusco made a strong comeback, with over 950,000 visitors flocking to Machu Picchu. This surge in tourists is expected to grow even more in 2024, with a projected 50% increase in arrivals from APEC countries. This influx of visitors is a golden opportunity for those interested in short-term rental investments.
The demand for short-term rentals is high, with an average occupancy rate of 52% from August 2023 to July 2024. International guests are a big part of this, making up 72.66% of the total visitors. For property owners, this means a chance to book their places for about 190 nights a year, bringing in a solid average annual revenue.
By September 2024, there were 3,352 active Airbnb listings in Cusco, showing just how vibrant the short-term rental market is. The steady stream of tourists and high occupancy rates are clear signs of a thriving real estate scene. This boom is likely to push property values higher, especially with an expected GDP growth of 11.2% over the next five years.
For those looking to invest, Cusco offers a unique blend of cultural richness and economic potential. The city's role as a major tourist hub means there's always a demand for accommodations, making it a promising spot for real estate ventures.
With the tourism industry on the rise, Cusco's real estate market is set to benefit from increased property values and rental income. This makes it an attractive option for investors looking to capitalize on the city's growing popularity.
Sources: Trexperience Peru, Airbtics, Trexperience Peru
2) Piura City is booming with its growing agricultural and commercial sectors driving residential development
Piura City is buzzing with a real estate boom, especially in residential areas, thanks to its growing agricultural and commercial sectors.
With agriculture thriving, Piura is seeing more investment and development. The city's fertile lands are perfect for crops like mangoes and avocados, which are in high demand. This agricultural success is drawing more people and businesses, fueling the real estate market.
On the commercial side, Piura is bustling with new shopping centers and malls. Mallplaza, a big retail player in Peru, has set up multiple locations here, showing just how vibrant the commercial scene is. This growth is attracting more businesses, which in turn boosts the demand for real estate.
Peru's population has grown by 6% over the last five years, and this means more people are looking for homes. Piura's expanding economy makes it a prime spot for residential investments. As more people move to the city for work and opportunities, the demand for housing is on the rise.
Real estate agencies are keeping a close eye on Piura, recognizing it as a hotspot for residential investments. The city's economic growth and increasing population make it an attractive option for those looking to invest in property.
Sources: Statista, Fitch Solutions, Peru Buy Property
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.
3) Pucallpa City is booming with real estate growth driven by its expanding trade and logistics role
Pucallpa City is booming in real estate thanks to its growing importance in trade and logistics.
In recent years, especially around 2023 and 2024, infrastructure investments surged, including a major expansion of the local airport. This upgrade was designed to enhance connectivity and stimulate regional economic growth, naturally drawing more businesses and industries to the area.
The Peruvian government has been instrumental in this growth by rolling out policies to encourage affordable housing and attract foreign investment in real estate. These efforts have significantly boosted the demand for residential properties, fueling the market's expansion. Additionally, rising income levels and evolving lifestyles among Peruvians have spiked interest in both commercial and residential properties in hotspots like Pucallpa.
Tourism is another driving force, with Peru's rich cultural heritage and natural beauty attracting more visitors. This has led to a higher demand for properties in urban centers and tourist spots. As people flock to cities for better job prospects and living conditions, urbanization rates have climbed, further stoking the real estate demand in Pucallpa.
For those considering a property investment, Pucallpa offers a unique opportunity. The city's strategic location and ongoing development make it a promising choice for both residential and commercial ventures. With the government's supportive policies and the area's economic potential, Pucallpa is poised for continued growth in the real estate sector.
Sources: Airport Information, Statista
4) Trujillo City is attracting investors with its colonial architecture and properties offering historical value and tourism potential
Trujillo City is quickly becoming a prime destination for property investors.
One of the main reasons is the steady growth of the real estate market in Peru, especially in urban areas like Trujillo. This city is rich in historical value and tourism potential, which are major draws for investors. In 2023, Peru's tourism revenue hit a remarkable $4 billion, with Trujillo playing a significant role in this success. This surge in tourism is expected to boost property values, making it an enticing option for investors.
The local government is also actively involved in preserving and promoting Trujillo's colonial architecture. They are maintaining historical gems like Casa de Urquiaga and Palacio Iturregui, which have become popular spots for cafes, restaurants, and social clubs. This effort not only preserves the city's charm but also enhances its appeal to tourists and investors alike.
Investors are particularly interested in the profitability of historical properties in Trujillo. Many colonial houses have been successfully transformed into cafes and restaurants, drawing both locals and tourists. This trend suggests a promising opportunity for those investing in historically significant properties. The city is also witnessing a rise in new hotels and tourist accommodations, including luxury options like the Libertador Trujillo, catering to the increasing number of visitors.
Trujillo's blend of historical allure and modern amenities makes it a unique investment opportunity. The city's commitment to preserving its colonial architecture while embracing tourism growth is a winning combination. For investors, this means not only potential financial returns but also a chance to be part of a city that values its past while looking to the future.
Sources: CEIC Data, Gallop Around the Globe, GIA Finance
5) Iquitos is gaining attention as a hub for eco-tourism, driving real estate demand in the Peruvian Amazon
Iquitos is the largest city in the Peruvian Amazon and a hotspot for eco-tourism, driving up real estate demand.
Back in 2019, Iquitos welcomed 742,000 visitors, far surpassing its population of 490,000. This influx hinted at the city's eco-tourism potential, which only grew stronger by 2023. In July of that year, the Peruvian Tourism Ministry noted a record-breaking 263,000 tourists visiting in just one month.
Eco-friendly lodges like the Maniti Eco-Lodge are popping up, offering comfy stays while respecting nature. These places are perfect for tourists eager to dive into the Amazonian jungle, making Iquitos even more attractive. The government is also pitching in with initiatives like PromPerú's campaigns and the Amazon River Tourism Corridor Development Plan, all aimed at boosting sustainable tourism.
International interest in Amazonian biodiversity and culture is on the rise, with unique activities like piranha fishing and bird watching drawing global visitors. Media coverage is spotlighting Iquitos as a budding eco-tourism hub, which only brings in more tourists. This buzz is pushing up property values, with local real estate agents noting a spike in demand thanks to the eco-tourism boom.
Sources: Trexperience Peru, Maniti Expeditions, Modern Diplomacy
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6) La Molina in Lima is popular for its spacious homes and green areas, attracting families and driving steady property appreciation
La Molina in Lima is a top choice for families, thanks to its spacious homes and lush green areas.
Families love La Molina because it offers large interiors, gardens, and terraces, creating a cozy and appealing living space. The area is also close to parks, schools, and family-friendly facilities, making it a perfect spot for raising kids.
Residents often rave about the quality of life in La Molina, appreciating its tranquility, security, and easy access to amenities. This family-friendly vibe is a big draw for those looking to settle down.
When it comes to real estate, La Molina stands out with higher property appreciation rates than other Lima districts. Experts predict a 3% to 7% rise in property values by 2025, fueled by strong demand and limited supply.
Historical data backs this up, showing a consistent increase in property values over the past decade. This trend makes La Molina a smart investment for potential buyers.
With its spacious homes, green spaces, and family-oriented environment, La Molina continues to be a sought-after location, ensuring steady property appreciation for years to come.
Sources: Le Figaro Properties, FazWaz
7) Miraflores in Lima is thriving with ocean views and vibrant nightlife, attracting local and international buyers, driving property prices up
Miraflores in Lima is a magnet for property buyers, thanks to its stunning ocean views and vibrant nightlife.
In recent years, property prices have been on the rise, with the average price per square meter for apartments expected to hit USD 3,500 by 2025. This increase is part of a steady trend, with prices climbing by about 5% annually over the past five years.
International buyers, including expatriates and retirees, are drawn to Miraflores, adding to the high demand for real estate in the area. The neighborhood's appeal is further boosted by its strong short-term rental market.
With a median occupancy rate of 63%, property owners in Miraflores can enjoy profitable rental opportunities. This makes it an attractive investment for those looking to capitalize on the area's popularity.
Miraflores offers a unique blend of urban living and coastal charm, making it a top choice for both living and investing. The area's lively atmosphere and scenic beauty continue to attract a diverse range of buyers.
Whether you're looking to settle down or invest, Miraflores provides a dynamic environment with plenty of potential for growth and enjoyment.
Sources: Airbtics, Aparthotel
8) San Isidro, Lima, is booming with high demand for luxury apartments and its proximity to business centers
San Isidro in Lima is a hot market for property buyers.
One reason is its high property appreciation rates, making it one of Lima's priciest areas. Even when Peru's overall property market took a hit, San Isidro's prices held strong, with a steady climb in the property price index throughout 2023. This resilience makes it a safe bet for investors looking for stability.
The district is buzzing with luxury apartment developments to meet the demand for upscale living. With 189 properties available for rent, including high-end options, it's a magnet for those seeking a lavish lifestyle. The presence of multinational corporations and embassies adds to its allure, turning it into a hub for international business and diplomacy.
San Isidro's proximity to major business centers, like the financial district, is a big draw for professionals from all over Peru and beyond. This makes it a prime spot for both living and working. The area is packed with premium amenities, such as coworking spaces, which are perfect for professionals looking to balance work and leisure.
Living in San Isidro means being close to the action, with easy access to Lima's bustling business scene. The district's strategic location and high-end facilities make it a top choice for those who want to be at the heart of it all.
Sources: Global Property Guide, Regus, FazWaz.com.pe, Global Property Guide
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.
9) Barranco in Lima is booming with its bohemian vibe, attracting young professionals and artists, driving up property values
Barranco in Lima is now a favorite spot for young professionals and artists, causing property values to rise.
With its vibrant cultural scene, Barranco is buzzing with art galleries like the MAC Museum and MATE gallery, which attract both locals and tourists. This artistic vibe makes the area even more appealing.
The neighborhood is also seeing a boom in new cafes and restaurants, perfect for the lifestyle of young professionals. This lively social scene is driving up demand for rental properties, pushing property values higher.
Media and social media have painted Barranco as a trendy neighborhood, boosting its popularity. Government efforts to promote it as a cultural hub have made it a top choice for those seeking a dynamic lifestyle.
Investment in local infrastructure and public spaces is enhancing Barranco's long-term value, making it even more attractive for potential buyers.
Sources: Iberia Plus Magazine, Belmond, Enigma Blog
10) Punta Hermosa in Lima is gaining attention as a vacation rental hotspot with rising demand during summer months
Punta Hermosa is quickly becoming a favorite spot for vacationers and property investors.
During the summer, vacation rentals in Punta Hermosa see a noticeable spike in demand. While we don't have exact numbers for this town, Lima's short-term rentals average a 54% occupancy rate, with properties booked for about 197 nights annually. This trend suggests that Punta Hermosa is riding the same wave of popularity.
Platforms like Airbnb are buzzing with activity, showing a rise in listings. As of September 2024, Lima boasted 13,782 active Airbnb listings, including those in Punta Hermosa. This surge in listings highlights the growing appeal of short-term rentals, making it a hot spot for potential investors.
Guests are raving about their stays in Punta Hermosa, with many properties earning stellar reviews. For instance, an apartment in Tres Palmeras holds a 4.97 out of 5 rating, and a luxury beachfront apartment has a perfect 5-star rating. These glowing reviews underscore the town's charm and its potential as a top vacation destination.
Investors are taking note of Punta Hermosa's potential, especially given the town's increasing popularity during peak seasons. The combination of high ratings and rising demand makes it an attractive option for those looking to invest in vacation properties.
11) Chiclayo is gaining interest for its strategic location and growing economy, boosting demand for residential and commercial properties
Chiclayo City is becoming a hot spot for real estate, thanks to its strategic location and booming economy.
In recent years, property values in Chiclayo have been climbing steadily. Experts predict that house prices will jump by 10.7% in 2025, showing a strong demand for homes and business spaces. This makes it an exciting time for potential buyers looking to invest in the area.
The city is also upgrading its infrastructure, with major projects like the modernization of its airport. This upgrade is set to significantly boost passenger traffic, making Chiclayo more accessible and attractive to investors and tourists alike.
Adding to the city's appeal, Copa Airlines has introduced new air routes, connecting Chiclayo to major cities across the Americas. This enhanced connectivity is a game-changer for business and tourism, sparking even more interest in the local real estate market.
Chiclayo's growing economy and improved infrastructure are drawing attention from both local and international investors. The city's strategic location makes it a prime spot for those looking to tap into the thriving commercial and residential property market.
With these developments, Chiclayo is not just a place to live but a smart investment opportunity. The city's ongoing growth and connectivity improvements are setting the stage for a vibrant real estate future.
Sources: Rabobank, Revista iTransporte, Aviation Week
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12) Arequipa City is gaining attention with rising property values as a cultural and economic hub
Arequipa City, known as the "White City," is experiencing a surge in property values due to its growing status as a cultural and economic hub.
With its stunning colonial architecture and vibrant cultural scene, Arequipa is becoming a magnet for both people and businesses. This influx is naturally driving up property demand. The city is not just about its picturesque views; it's also about the buzz of new opportunities.
Recent years have seen Arequipa undergo a transformation with significant economic infrastructure development. The arrival of national and international businesses has led to the creation of new cultural and economic spaces. A prime example is the revamped Open Plaza Arequipa, now a bustling urban center and a key shopping district that adds to the city's appeal.
Tourism is another factor boosting Arequipa's profile. In 2023, the city saw a 25% increase in inbound tourism compared to the previous year. This influx of visitors not only energizes the local economy but also enhances Arequipa's reputation as a cultural hotspot.
Positive media coverage and surveys reflect a growing sentiment that Arequipa is a desirable place to live. This perception is further fueled by the city's rich cultural offerings and economic opportunities, making it an attractive option for potential property buyers.
Sources: Institutional Presentation 1Q2024, Peruvian Tourism Balance and 2024 Expectations, International Living
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.