Authored by the expert who managed and guided the team behind the Peru Property Pack
Yes, the analysis of Lima's property market is included in our pack
Lima's property market has experienced strong nominal price growth over the past 12 months, with residential properties rising 5-7% citywide and 8-12% in prime districts like San Isidro and Miraflores.
Transaction volumes jumped 30% compared to last year, indicating high market activity, though inflation-adjusted real values remain relatively flat. Foreign investment continues to drive competition in prestigious neighborhoods while government subsidies support first-time buyers.
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's residential property prices are unlikely to decline significantly in the next 12 months, with most forecasts predicting continued moderate growth of 3-7% annually.
Prime districts will continue outperforming the broader market while rental yields gradually decline as property prices rise faster than rents.
| Market Indicator | Current Status (Sept 2025) | 12-Month Outlook |
|---|---|---|
| Average Property Price | $175,627 (+5.3% YoY) | 3-7% growth expected |
| Price per sqm (Average) | $1,500-$1,800 | Moderate increases |
| Days on Market | 16-41 days | Stable to slightly lower |
| Mortgage Rates | 8.2-8.3% | Stable or slight decrease |
| Rental Yield | 5.97% (declining) | Continued gradual decline |
| Foreign Investment | Strong in prime areas | Sustained high levels |
| New Construction | Moderate increase | Continued growth |
What have house prices in Lima done over the past 12 months?
Lima's residential property market has experienced significant nominal price growth over the past 12 months.
Citywide, residential property prices increased by 5-7% annually, with the average house price reaching $175,627 USD as of March 2025, representing a 5.3% increase from the previous year. Prime districts saw even stronger performance, with San Isidro and Miraflores recording price gains of 8-12% during 2024.
Transaction volumes surged dramatically, jumping approximately 30% compared to the previous year, indicating heightened market activity and buyer confidence. However, when adjusted for Peru's inflation rate, real property values remained relatively flat or showed modest declines, meaning the purchasing power gains were limited.
The strongest price appreciation occurred in prestigious neighborhoods where foreign investment and local affluent buyers concentrated their purchases. Mid-market and emerging districts experienced more moderate growth in the 3-5% range.
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What is the current average price per square meter in Lima's main neighborhoods?
Lima's property prices vary significantly across neighborhoods, with premium districts commanding substantially higher rates than emerging areas.
| Neighborhood | Price per sq.m. (USD) | Price Change Since 2024 |
|---|---|---|
| Barranco | $3,200 | +7-10% |
| Miraflores | $2,500-$3,500 | +8-12% |
| Santiago de Surco | $2,800 | +5-8% |
| San Borja | $2,700 | +5-8% |
| La Molina | $2,500 | +5-8% |
| San Isidro | $2,300-$3,800 | +8-12% |
| Jesus Maria | $2,300 | +5% |
| San Miguel | $1,417-$2,000 | +3-5% |
| Emerging Districts | $800-$1,200 | Stable to modest rise |
How many residential properties are currently listed for sale in Lima compared to last year?
Lima's property market currently shows increased supply compared to the previous year.
As of September 2025, approximately 21,930 residential properties are listed for sale across Lima. This represents an increase from the previous year's listings, reflecting greater supply availability and new construction activity reaching the market.
The increase in listings is particularly noticeable in emerging districts where new developments have been completed and brought to market. Established neighborhoods like Miraflores and San Isidro have seen more modest increases in available inventory.
This uptick in supply has not significantly impacted price growth due to strong demand from both domestic and foreign buyers. The market continues to favor sellers, though buyers have more options to choose from compared to the tight inventory conditions of previous years.
How long are properties in Lima staying on the market before selling?
Lima properties are selling relatively quickly in the current market environment.
The median time properties spend on the market ranges from 16 to 41 days before going pending or completing sale. High-demand properties in premium locations like Miraflores and San Isidro typically sell faster, often within 22-27 days.
Mid-market homes in neighborhoods like San Miguel or Jesus Maria tend toward the longer end of the range, taking closer to 35-41 days to find buyers. Properties priced competitively and in move-in ready condition generally outperform the median timeframes.
The relatively short marketing periods indicate strong buyer demand across Lima's residential market. Well-priced properties in desirable locations continue to attract multiple offers, while overpriced listings may sit on the market considerably longer.
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What is the current mortgage interest rate in Peru and how has it changed over the past year?
Peru's mortgage rates have shown modest improvement over the past year.
As of August 2025, typical mortgage interest rates in Peru range from 8.2% to 8.3%. This represents a decrease from the nearly 7.9-8.0% rates seen in late 2023, though the improvement has been gradual rather than dramatic.
The Central Bank of Peru has maintained its policy rate at 4.5%, providing stability to the broader interest rate environment. This monetary policy stance has supported the modest decline in mortgage rates over the past 12 months.
The rate environment reflects the central bank's balanced approach to managing inflation while supporting economic growth. For property buyers, the current rates remain relatively high compared to historical standards but have become more favorable than the previous year.
How many new housing units are being built or approved in Lima right now?
Lima's construction activity has increased moderately, driven by ongoing urbanization and infrastructure development.
While exact figures for August 2025 construction approvals are not widely published, estimates suggest several thousand new housing units have been approved citywide. The overall trend shows upward momentum in both construction permits and housing starts compared to previous periods.
New construction activity is particularly concentrated in emerging districts where land costs remain more affordable and large-scale development projects are feasible. Prime districts face supply constraints due to limited available land and strict zoning requirements.
Infrastructure investments and government initiatives supporting urban development have contributed to increased construction activity. However, supply constraints in the most desirable neighborhoods continue to limit new unit availability in those areas.
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What is the current rental yield in Lima and how has it shifted recently?
Lima's rental yields have declined as property prices have outpaced rental growth.
As of Q2 2025, the average rental yield in Lima stands at 5.97%, down from 6.13% in late 2024. This decline reflects the broader trend of property prices rising faster than rental rates across the city.
Premium neighborhoods like Miraflores and Barranco show lower yields in the 3.7-5.5% range due to their strong price appreciation. Mid-market areas continue to offer higher yields, though these are also experiencing gradual compression.
The yield decline indicates a market where capital appreciation is the primary driver of returns rather than rental income. Investors focused on cash flow may find better opportunities in emerging districts or need to adjust their expectations for prime locations.
How has the unemployment rate in Lima changed over the past year?
Lima's unemployment rate has shown some fluctuation but remains relatively stable.
As of July 2025, Lima's unemployment rate is estimated at approximately 6.9%, representing a slight increase from the previous year. The rate peaked at 7% in May 2025 but has eased since then, indicating some improvement in labor market conditions.
Youth unemployment remains a concern, exceeding 14% and significantly higher than the general population rate. This demographic challenge affects housing demand from younger potential buyers and renters.
The labor market has experienced some tightening but maintains overall stability. Employment levels sufficient to support continued housing demand, though wage growth has not kept pace with property price increases, affecting affordability for local buyers.
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.
What is the current inflation rate in Peru and how is it affecting housing affordability?
Peru's inflation rate remains low and stable, but housing affordability continues to be challenged.
As of August 2025, Peru's inflation rate (Lima CPI) stands at 1.69% annually. This low and stable inflation environment provides economic predictability and supports consumer confidence.
However, nominal property price increases of 5-7% annually significantly exceed the inflation rate, meaning real property values are actually declining when adjusted for inflation. This dynamic creates a complex affordability picture.
Wage growth has not kept pace with property price increases, particularly affecting first-time buyers and local residents. While low inflation helps with general cost of living, the property market's outpacing of both inflation and wage growth creates affordability challenges for domestic buyers.
Foreign buyers with stronger currencies benefit from both the low inflation environment and favorable exchange rates when purchasing Lima real estate.
How have foreign investment levels in Lima's real estate market changed recently?
Foreign investment in Lima's real estate market has accelerated significantly over the past year.
International buyers, including retirees, expatriates, and investment-focused purchasers, have increased their activity substantially in Lima's top districts. Miraflores, Barranco, and San Isidro have seen particularly strong foreign buyer interest.
The inflow of foreign capital accelerated throughout 2024 and continued into 2025, contributing directly to higher competition and price appreciation in prime locations. Foreign buyers often have stronger purchasing power than local buyers, enabling them to compete effectively in bidding situations.
This increased foreign investment has become a significant driver of the premium property market, helping sustain price growth even when local affordability becomes stretched. The trend shows no signs of slowing and continues to influence market dynamics in Lima's most desirable neighborhoods.
What government policies, subsidies, or tax changes are expected to impact Lima's housing market in the next 12 months?
The Peruvian government maintains several programs designed to support housing accessibility and market growth.
The MiVivienda program continues to offer reduced mortgage rates and down payment assistance specifically targeting first-time buyers. This program helps qualifying buyers access financing at rates below market levels and reduces the barrier of large down payments.
Tax incentives and benefits remain available for qualifying buyers, particularly under affordable and social housing programs. These initiatives focus on increasing homeownership rates among middle and lower-income families.
Expected policy changes include potential updates to property taxes and housing subsidies, with a focus on increasing affordability and stimulating urban growth. The government continues to balance supporting homeownership while managing urban development patterns.
Infrastructure investments and urban development projects also indirectly support the housing market by improving connectivity and livability in emerging districts.
It's something we develop in our Peru property pack.
What do major real estate agencies and banks forecast for Lima's housing prices over the next year?
The consensus among major real estate agencies and financial institutions points to continued moderate growth in Lima's property market.
Most forecasters predict nominal price growth of 3-7% annually for 2025-2026, with real price appreciation remaining limited due to inflation adjustments. This represents a more moderate pace compared to the strong growth experienced in 2024.
Prime districts including Miraflores, San Isidro, and Barranco are expected to outperform the broader market, while mid-market and emerging locations should see stable to modest growth. The premium segment benefits from continued foreign investment and limited supply.
Some market volatility is possible due to political and election uncertainty, though infrastructure investments should provide support. Rental yields are expected to continue their gradual decline as property prices rise faster than rental rates.
The overall outlook remains positive for property owners and investors, with sustained demand and limited supply in prime areas supporting continued appreciation.
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.
Lima's property market shows resilience with continued growth expected, though at a more moderate pace than the strong gains of 2024.
Prime districts will likely continue outperforming while foreign investment sustains demand in the most desirable neighborhoods.
Sources
- The Latinvestor - Peru Price Forecasts
- Zillow - Lima Home Values
- The Latinvestor - Lima Market Data
- The Latinvestor - Lima Average Apartment Prices
- Statista - Peru Lima Apartment Prices by Neighborhood
- The Latinvestor - Peru Best Areas
- Fazwaz - Lima Properties for Sale
- Trading Economics - Peru Interest Rate
- Global Property Guide - Peru Rental Yields
- The Latinvestor - Peru Real Estate Forecasts