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Property prices in Peru vary dramatically between Lima and secondary cities, with Lima commanding premium rates while offering diverse investment opportunities across different neighborhoods.
As of September 2025, Lima's residential market averages $1,818 per square meter, while secondary cities like Arequipa and Trujillo offer properties at 30-50% lower prices, making Peru an attractive destination for both investors and relocators seeking affordable real estate options in Latin America.
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.
Lima leads Peru's property market with average prices of $1,818/m², while secondary cities offer significantly more affordable options ranging from $750-$1,200/m².
Transaction costs add 5-9% to purchase prices, with additional VAT on new construction, making careful budget planning essential for property buyers.
| Location | Average Price per m² (USD) | Market Characteristics |
|---|---|---|
| Lima Prime Districts | $2,000-$3,196 | Miraflores, San Isidro, Surco - highest growth |
| Lima Average | $1,818 | Mixed districts, steady demand |
| Lima Budget Areas | $890-$920 | Los Olivos, Callao - affordable options |
| Arequipa | $1,000 | Secondary city, stable market |
| Cusco | $1,200 | Tourism-driven demand |
| Piura | $750 | Northern coast, emerging market |
| Rural Areas | Under $500 | Limited data, low demand |
What is the average price per square meter in Peru right now?
The average price per square meter in Lima stands at $1,818 as of September 2025.
Lima's prime districts including Miraflores, San Isidro, and Surco command higher rates around $2,000 per square meter. The most expensive area, South San Isidro, reaches $3,196 per square meter for luxury residential properties.
Budget-conscious buyers can find opportunities in districts like North Los Olivos at $890 per square meter, while areas like Callao and Ate offer properties between $911-$919 per square meter. These price variations within Lima reflect significant differences in infrastructure, amenities, and neighborhood prestige.
Nationally, new residential units typically range from S/300,000 to S/650,000 (approximately $80,000 to $175,000), with broader regional data showing Peru-wide residential averages around $2,713 per square meter in some market segments.
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How much does the price vary between Lima and other major cities?
Secondary cities in Peru offer property prices that are 30-50% lower than Lima's averages.
Arequipa, Peru's second-largest city, shows average prices around $1,000 per square meter. Cusco, driven by tourism demand, commands slightly higher rates at $1,200 per square meter due to its historical significance and steady visitor influx.
Northern cities offer even more affordable options, with Tarapoto averaging $800 per square meter and Piura at $750 per square meter. These coastal and jungle cities provide excellent value for investors seeking rental income opportunities or retirees looking for affordable living costs.
The price gap reflects Lima's status as Peru's economic center, with superior infrastructure, job opportunities, and international connectivity driving higher demand and property values.
What is the price difference between urban, suburban, and rural areas?
Urban areas in Lima command the highest prices at $1,818-$2,000 per square meter, with premium districts reaching $3,196 per square meter.
Provincial and secondary urban centers offer significant savings, with prices ranging from $750-$1,200 per square meter depending on the city's economic importance and development level.
Rural areas show dramatically lower prices, typically under $500 per square meter, though specific rural market data remains limited due to lower transaction volumes and informal market characteristics.
The urban-rural price differential reflects infrastructure availability, economic opportunities, and access to services, with urban centers offering better investment liquidity and rental potential.
How have prices per square meter changed over the past five years?
National nominal price growth has averaged 3.1% annually over the past five years, though recent performance shows only 0.1% year-over-year growth as of Q3 2024.
When adjusted for inflation, real property prices decreased by 1.7% in the last year, indicating that Peru's property market has been relatively stable but not outpacing general price increases in the economy.
Lima's prime districts have significantly outperformed the national average, experiencing 8-12% nominal growth in 2024. This concentration of growth in premium areas reflects strong demand from high-income buyers and foreign investors.
Secondary cities have shown mixed performance, with growth rates between 4-9% annually depending on local economic conditions and development projects.
What are the current trends in price growth or decline?
| Market Segment | Growth Rate (2024) | Trend Direction |
|---|---|---|
| Lima Prime Districts | 8-12% annually | Strong upward growth |
| Lima Average Areas | 3-5% annually | Moderate growth |
| Secondary Cities | 4-9% annually | Variable by location |
| National Average | 0.1% YoY (Q3 2024) | Flat to declining |
| Real (Inflation-Adjusted) | -1.7% annually | Declining purchasing power |
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What type of property are we talking about specifically?
The price data primarily refers to residential apartments and flats in Peru's urban markets.
Luxury and modern apartments in prime districts command notable price premiums, especially properties with smart home features or energy-efficient designs. These modern units often cost 10-15% more than traditional residential properties.
The residential market includes both new construction projects and existing apartments, with new builds typically commanding higher prices due to modern amenities and construction standards.
Land parcels, commercial properties, and older residential buildings have different pricing dynamics, with urban land appreciating rapidly in developing areas while commercial real estate follows different valuation metrics based on rental yields and business potential.
How do prices per square meter compare for new construction versus older buildings?
New construction commands a significant premium over older properties in Peru's residential market.
Modern developments with smart home features, energy-efficient systems, and contemporary amenities typically cost 10-15% more than traditional units. Developers focus on modern construction standards, better layouts, and integrated technology systems that justify higher pricing.
Older properties offer more affordable entry points into desirable neighborhoods, though buyers should factor in potential renovation costs and outdated infrastructure. Some older buildings in prime districts maintain value due to their locations and architectural character.
New construction also offers buyers the advantage of warranty coverage, modern safety standards, and energy efficiency, while older properties may provide larger living spaces and unique architectural features at lower per-square-meter costs.
What is the price range per square meter in the most expensive neighborhoods?
Lima's most expensive neighborhoods command premium prices that reflect their status as Peru's elite residential areas.
South San Isidro leads the market at $3,196 per square meter, representing the absolute peak of Lima's luxury residential market. This area offers proximity to financial districts, high-end shopping, and premium amenities.
Miraflores and Santiago de Surco consistently price above $2,000 per square meter, with luxury developments in these districts reaching $2,500-$2,800 per square meter. These neighborhoods offer beachfront access, international restaurants, and established expatriate communities.
San Isidro's business district maintains high values around $2,200-$2,500 per square meter, attracting professionals and investors seeking rental income from corporate executives and international business travelers.
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What is the price range per square meter in the least expensive neighborhoods?
1. **North Los Olivos** - $890 per square meter (Lima's most affordable urban district)2. **Callao** - $911 per square meter (port city with emerging development)3. **Ate** - $919 per square meter (eastern Lima district with growth potential)4. **Villa María del Triunfo** - $950-$1,000 per square meter (southern Lima)5. **San Juan de Lurigancho** - $980-$1,050 per square meter (populous eastern district)6. **Comas** - $1,000-$1,100 per square meter (northern Lima with infrastructure improvements)
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 does the average household income in Peru compare to these property prices?
Peru faces a significant affordability gap between property prices and household incomes.
The average monthly wage in Peru stands at approximately 2,484 PEN (roughly $700), while Lima's property market averages $1,818-$2,000 per square meter. This creates substantial barriers to homeownership for middle-income families.
A typical 70-square-meter apartment in Lima would cost $127,260-$140,000, representing approximately 15-17 years of average household income. This ratio significantly exceeds healthy affordability ratios recommended by financial institutions.
The affordability challenge drives many Peruvians toward secondary cities, longer mortgage terms, or smaller living spaces. Government housing programs and developer financing schemes attempt to bridge this gap, but options remain limited for average-income families.
What additional costs need to be added to the price per square meter?
| Cost Category | Percentage of Purchase Price | Payment Timing |
|---|---|---|
| Transfer Tax | 3% | At closing |
| VAT (new construction only) | 18% of construction value | Built into purchase price |
| Notary Fees | 0.3-1% | At closing |
| Registration Fees | 0.3-1% | At closing |
| Legal Fees | 0.5-2% | During transaction |
| Agent Commission | 3-5% (seller pays) | At closing |
| Annual Property Tax | 0.2-1% of cadastral value | Ongoing annual cost |
How do property prices in Peru compare with neighboring countries on a per-square-meter basis?
Peru's property market positions competitively within Latin America's regional pricing structure.
Lima's prime districts at $2,000-$2,300 per square meter compare favorably to Santiago, Chile at $2,494 per square meter, while offering similar urban amenities and investment potential. Bogotá, Colombia shows comparable pricing at $1,800-$2,000 per square meter.
Peru's secondary cities like Piura and Arequipa at $750-$1,200 per square meter offer excellent value compared to similar-sized cities in Colombia and Ecuador. These markets provide entry-level investment opportunities with growth potential.
Overall, Peru remains less expensive than Argentina or Mexico's major cities while offering more affordable options than Brazil's primary markets. The country's stable currency and growing economy make it attractive for regional property investors.
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 offers diverse opportunities from Lima's premium districts to affordable secondary cities.
Understanding price variations, transaction costs, and market trends helps investors and relocators make informed decisions in Peru's evolving real estate landscape.