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
Looking to understand where Lima's property market stands right now and where it's heading?
This guide breaks down the current housing prices in Lima, recent trends, and what experts expect for 2026 and beyond.
We constantly update this blog post to reflect the latest data and market shifts.
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 Lima.
Insights
- Lima apartment prices rose roughly 3% in the past 12 months, which means property values barely outpaced inflation and delivered near-zero real gains for 2025.
- The typical price per square meter in Lima sits between S/ 6,800 and S/ 7,400, but premium districts like San Isidro and Miraflores often exceed S/ 9,000 per square meter.
- Surquillo has become Lima's spillover hotspot as buyers priced out of Miraflores move just a few blocks inland for 20% to 30% lower prices per square meter.
- Peru's central bank cut its policy rate to around 4.25%, making mortgages more accessible and supporting steady demand for mid-market Lima apartments in 2026.
- Metro Line 2 construction is driving early price increases in Ate and Santa Anita, with properties near planned stations already commanding a 5% to 10% premium.
- Houses and townhouses in Lima's family districts like Surco and La Molina trade at significant premiums because buildable land is genuinely scarce.
- Lima's 2026 election year adds uncertainty, and historically this slows buyer decisions and can delay developer launches by several months.
- Over the next 5 years, Lima property prices are expected to grow 25% to 40% cumulatively, translating to roughly 4% to 7% annual nominal appreciation.
What are the current property price trends in Lima as of 2026?
What is the average house price in Lima as of 2026?
As of early 2026, the average property price in Lima for a typical 80-square-meter apartment is around S/ 560,000 (approximately $150,000 USD or €140,000 EUR), though prices vary widely depending on the district and property type.
When it comes to price per square meter, Lima properties generally range from S/ 6,800 to S/ 7,400 per square meter (roughly $1,800 to $2,000 USD or €1,700 to €1,850 EUR), with apartments clustering at the lower end and houses commanding higher rates due to land scarcity.
For a realistic picture, about 80% of residential property purchases in Lima fall between S/ 350,000 and S/ 1,200,000 (approximately $95,000 to $320,000 USD or €88,000 to €300,000 EUR), covering everything from compact apartments in emerging districts to family homes in established neighborhoods.
How much have property prices increased in Lima over the past 12 months?
Property prices in Lima increased by approximately 3% in nominal terms between January 2025 and January 2026, which translates to roughly flat or slightly positive gains after accounting for inflation.
Across different property types in Lima, the range of price increases varied from about 2% for older apartments in less central areas to around 5% for well-located family homes in districts with strong demand like Surco and La Molina.
The most significant factor behind Lima's modest price growth was the normalization of interest rates, as Peru's central bank lowered the policy rate from its 2023 peak, making mortgages more accessible and supporting steady buyer demand throughout 2025.
Which neighborhoods have the fastest rising property prices in Lima as of 2026?
As of early 2026, the three Lima neighborhoods with the fastest rising property prices are Surquillo, Magdalena del Mar, and San Miguel, all benefiting from spillover demand as buyers seek alternatives to premium districts.
In terms of annual price growth, Surquillo leads with approximately 6% to 8% appreciation, followed by Magdalena del Mar at around 5% to 7%, and San Miguel at roughly 4% to 6%, all outpacing Lima's citywide average.
The main demand driver behind these neighborhoods is their strategic positioning: they offer coastal access, good security, and proximity to job centers at prices 20% to 40% below premium neighbors like Miraflores, making them the sweet spot for middle-class buyers and young professionals.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Lima.
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.
Which property types are increasing faster in value in Lima as of 2026?
As of early 2026, the ranking of property types by value appreciation in Lima places mid-sized apartments (1 to 3 bedrooms) at the top, followed by townhouses in family districts, then single-family houses, with larger luxury apartments trailing behind.
The top-performing property type, mid-sized apartments in upgrade districts like Surquillo, Magdalena, and San Miguel, is appreciating at approximately 5% to 7% annually, outpacing the citywide average by a notable margin.
The main reason mid-sized apartments are outperforming in Lima is simple: they match what most buyers can actually finance with current mortgage rates, and they also generate the strongest rental demand from young professionals and small families.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Lima?
- How much should you pay for an apartment in Lima?
- How much should you pay for a studio in Lima?
What is driving property prices up or down in Lima as of 2026?
As of early 2026, the three main factors driving Lima property prices are interest rate normalization (pushing prices up), steady household formation from Lima's growing population (supporting demand), and election-year uncertainty (limiting aggressive price growth).
The single factor with the strongest upward pressure on Lima property prices is the improved financing environment, as mortgage rates have come down meaningfully from their 2023 peak, allowing more buyers to qualify for loans and compete for available properties.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Lima here.
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What is the property price forecast for Lima in 2026?
How much are property prices expected to increase in Lima in 2026?
As of early 2026, Lima property prices are expected to increase by approximately 3% to 6% in nominal terms over the course of the year, translating to roughly 1% to 4% in real terms after inflation.
Forecasts from different analysts for Lima's property price growth in 2026 range from a conservative 2% (assuming political disruptions slow buyer activity) to an optimistic 7% (if interest rates fall further and confidence remains strong).
The main assumption underlying most 2026 price forecasts for Lima is that Peru's economy will grow near its potential rate of around 3%, inflation will stay controlled, and there will be no major political or external shocks to derail buyer confidence.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Lima.
Which neighborhoods will see the highest price growth in Lima in 2026?
As of early 2026, the Lima neighborhoods expected to see the highest price growth are Surquillo, Magdalena del Mar, San Miguel, Jesús María, and Pueblo Libre, all characterized by strong buyer pools and relative affordability compared to premium districts.
The projected price growth for these top Lima neighborhoods ranges from 5% to 9% for the year, with Surquillo likely at the higher end due to continued Miraflores spillover demand.
The primary catalyst driving expected growth in these neighborhoods is their positioning as "upgrade districts" where buyers get better value per square meter while still enjoying good security, coastal proximity, and access to Lima's main job centers.
One emerging neighborhood in Lima that could surprise with higher-than-expected growth is Ate, particularly areas near planned Metro Line 2 stations, where accessibility improvements are already creating early buyer interest and a potential repricing opportunity.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Lima.
What property types will appreciate the most in Lima in 2026?
As of early 2026, mid-sized apartments with 1 to 3 bedrooms are expected to appreciate the most in Lima, particularly those located in high-demand upgrade districts with strong rental potential.
The projected appreciation for top-performing mid-sized apartments in Lima is approximately 5% to 8% for 2026, driven by their alignment with what most buyers can finance and what tenants want to rent.
The main demand trend driving appreciation for apartments in Lima is the combination of improved mortgage accessibility and steady household formation among young professionals and small families seeking practical, well-located living spaces.
On the other hand, large luxury apartments and penthouses in premium districts like San Isidro are expected to underperform in Lima during 2026, as their high price points limit the buyer pool and rental yields remain compressed.
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 will interest rates affect property prices in Lima in 2026?
As of early 2026, current interest rate trends are providing moderate support to Lima property prices, as the central bank's easing cycle has made mortgages more affordable and expanded the pool of qualified buyers.
Peru's benchmark policy rate currently sits around 4.25%, and mortgage rates in Lima are expected to remain stable or edge slightly lower through 2026, keeping financing conditions favorable for buyers.
In Lima's property market, a 1% change in mortgage interest rates typically shifts monthly payment affordability by roughly 10% to 12%, which can either bring thousands of new buyers into the market or push them to the sidelines.
You can also read our latest update about mortgage and interest rates in Peru.
What are the biggest risks for property prices in Lima in 2026?
As of early 2026, the three biggest risks for Lima property prices are political uncertainty related to the election year, potential credit tightening by banks even if policy rates stay stable, and localized oversupply in micro-areas where too many similar new apartments compete for buyers.
Among these risks, election-year political uncertainty has the highest probability of materializing in Lima, as Peru's history shows that buyer decisions often pause during campaign seasons, and developers sometimes delay project launches until the political picture clears.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Lima.
Is it a good time to buy a rental property in Lima in 2026?
As of early 2026, it is generally a reasonable time to buy a rental property in Lima if you focus on the right product in the right district, particularly 1 to 2 bedroom apartments in high-demand areas like Surquillo, Magdalena, San Miguel, or Jesús María where tenant pools are deep.
The strongest argument in favor of buying a rental property now in Lima is that financing conditions are supportive, competition for well-priced units is not yet overheated, and steady population growth ensures reliable tenant demand for years to come.
On the other hand, the strongest argument for waiting is the election-year uncertainty, which could create better buying opportunities later in 2026 if some sellers become more motivated or developers offer incentives to move inventory.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Lima.
You'll also find a dedicated document about this specific question in our pack about real estate in Lima.
Buying real estate in Lima can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Lima?
What is the 5-year property price forecast for Lima as of 2026?
As of early 2026, cumulative property price growth in Lima over the next 5 years is expected to range from 25% to 40%, assuming Peru maintains macroeconomic stability and avoids major political disruptions.
The range of 5-year forecasts for Lima spans from a conservative 20% (if growth disappoints and rates rise) to an optimistic 50% (if infrastructure delivery accelerates and the economy outperforms), with the base case sitting between these extremes.
This translates to a projected average annual appreciation rate of approximately 4% to 7% in nominal terms for Lima properties over the next 5 years, which is consistent with the city's historical pattern of steady rather than explosive growth.
The key assumption most forecasters rely on for Lima's 5-year property price predictions is that Peru will continue its track record of controlled inflation, gradual income growth, and no return to the high interest rate environment of 2023.
Which areas in Lima will have the best price growth over the next 5 years?
The three Lima areas expected to deliver the best price growth over the next 5 years are Surquillo (continued Miraflores spillover), Magdalena del Mar (coastal access at mid-market prices), and emerging pockets along the Metro Line 2 corridor in Ate and Santa Anita.
The projected 5-year cumulative price growth for these top-performing Lima areas ranges from 35% to 55%, outpacing the citywide average by roughly 10 to 15 percentage points.
This 5-year outlook largely aligns with our shorter-term forecast, but the infrastructure-driven areas like Ate gain more relative importance over time as Metro Line 2 completion makes accessibility improvements tangible rather than speculative.
The currently undervalued Lima area with the best potential for outperformance over 5 years is Pueblo Libre, which offers central location and improving perception but has not yet seen the same price run-up as neighboring Jesús María.
What property type will give the best return in Lima over 5 years as of 2026?
As of early 2026, mainstream apartments with 1 to 3 bedrooms in high-demand upgrade districts are expected to give the best total return over 5 years in Lima, combining steady appreciation with strong rental income potential.
The projected 5-year total return for this top-performing property type in Lima is approximately 45% to 65% when you add together capital appreciation (25% to 40%) and cumulative net rental income (20% to 25% of initial investment).
The main structural trend favoring mid-sized apartments over the next 5 years in Lima is the growing cohort of young professionals and small families who prefer renting or buying practical units in well-connected districts rather than stretching for larger properties in peripheral areas.
For investors seeking the best balance of return and lower risk over 5 years in Lima, well-located townhouses in established family districts like Surco offer solid appreciation potential with less volatility than apartments, though they require higher upfront capital.
How will new infrastructure projects affect property prices in Lima over 5 years?
The three major infrastructure projects expected to impact Lima property prices over the next 5 years are Metro Line 2 (connecting Ate to Callao), the expanded Jorge Chávez International Airport terminal, and ongoing road and transit improvements in peripheral growth corridors.
Properties near completed infrastructure projects in Lima typically command a price premium of 10% to 20% compared to similar properties without such access, though this premium builds gradually as projects move from construction to operation.
The specific Lima neighborhoods that will benefit most from these infrastructure developments are Ate and Santa Anita (Metro Line 2), areas near the airport in Callao (new terminal and economic activity), and districts along improved transit corridors like San Miguel and Magdalena.
How will population growth and other factors impact property values in Lima in 5 years?
Lima's population is projected to grow at roughly 1.2% to 1.5% annually, and combined with ongoing household formation, this steady demographic pressure is expected to support property values by ensuring consistent demand for housing over the next 5 years.
The demographic shift that will have the strongest influence on Lima property demand is the expansion of the urban middle class, particularly young professionals aged 25 to 40 who are forming new households and prioritizing location and convenience over sheer space.
Migration patterns, including both internal migration from other Peruvian regions and some international arrivals, are expected to add incremental demand pressure in Lima, particularly in districts offering affordable housing and good transport connections.
The property types and areas that will benefit most from these demographic trends in Lima are compact apartments in upgrade districts like Surquillo, Magdalena, San Miguel, and Jesús María, where the target demographic can afford to buy or rent.
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 is the 10 year property price outlook in Lima?
What is the 10-year property price prediction for Lima as of 2026?
As of early 2026, cumulative property price growth in Lima over the next 10 years is expected to range from 50% to 100% in nominal terms, reflecting a baseline of continued economic stability with room for variance depending on political and global conditions.
The range of 10-year forecasts for Lima spans from a conservative 40% (if Peru faces extended political instability or commodity downturns) to an optimistic 120% (if infrastructure delivery accelerates and income growth exceeds expectations).
This translates to a projected average annual appreciation rate of approximately 4% to 7% in nominal terms for Lima properties over the next decade, consistent with the city's historical performance during stable periods.
The biggest uncertainty factor in making 10-year property price predictions for Lima is political risk, as Peru's governance trajectory over a full decade is inherently unpredictable and can significantly affect investor confidence and economic policy.
What long-term economic factors will shape property prices in Lima?
The three long-term economic factors that will shape Lima property prices over the next decade are sustained income growth and formal employment expansion, the depth and accessibility of mortgage credit, and the successful delivery of urban mobility infrastructure like Metro Line 2.
The single long-term economic factor with the most positive potential impact on Lima property values is rising household incomes, because only genuine income growth can sustainably push real estate prices higher without creating affordability bubbles.
Conversely, the long-term economic factor that poses the greatest structural risk to Lima property values is commodity price volatility, since Peru's economy remains heavily dependent on mining exports and a prolonged downturn would ripple through employment, confidence, and housing demand.
You'll also find a much more detailed analysis in our pack about real estate in Lima.
Is buying a property in Lima a good long-term investment then?
As of early 2026, buying a property in Lima is generally a sound long-term investment if you choose a liquid property type in a district with deep and consistent demand, rather than betting on niche products or speculative locations.
The strongest argument for Lima real estate as a long-term investment is the combination of steady population growth, controlled inflation, and a market that tends to grind upward rather than experience dramatic booms and busts, providing relative stability for patient investors.
However, potential investors should recognize that Lima property returns are unlikely to be spectacular compared to higher-risk markets, and success depends heavily on buying the right product at a reasonable price in a genuinely liquid district.
The best long-term property profile for most individuals in Lima is a mainstream apartment in districts like Magdalena, San Miguel, Surquillo, Jesús María, Pueblo Libre, or Lince, or a well-located family home in Surco or La Molina if budget allows.
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 Lima, 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 | Why we trust it | How we used it |
|---|---|---|
| BCRP Housing Price Indicator | Peru's central bank with documented methodology for housing data. | We used it to anchor Lima's apartment price trends with an official, long-running series. We also relied on its methodology notes to separate list prices from transaction prices. |
| BCRP Real Estate Note 88-2025 | Official BCRP research with transparent inputs and definitions. | We used it for the latest price per square meter data and year-over-year changes across 12 key Lima districts. We used the district list to keep neighborhood examples specific and realistic. |
| BCRP Policy Rate Time Series | Official public time series for Peru's monetary policy rate. | We used it to explain why financing conditions matter for housing demand. We also used it to anchor our discussion of rate tailwinds with verifiable numbers. |
| BCRP Inflation Report (September 2025) | The central bank's flagship forecast document for growth and inflation. | We used it for Peru's 2026 macro baseline and risk framing. We used it to keep our housing scenarios consistent with official economic assumptions. |
| BCRP Inflation Report Presentation | Official BCRP summary with key projections displayed clearly. | We used it to verify the 2026 GDP growth projection. We used it to confirm our base case forecast is not assuming an unrealistic boom. |
| SBS Mortgage Rate Statistics | Peru's banking supervisor publishing official system-wide rate data. | We used it to anchor early 2026 mortgage rate levels. We used it to explain affordability and sensitivity to rate changes in Lima. |
| INEI Population Projections | Peru's national statistics institute with official demographic data. | We used it to support the structural demand argument for Lima housing. We used it to ground our 5 to 10 year demographic assumptions. |
| IMF Peru Article IV (2025) | Top-tier international institution with standardized macro analysis. | We used it to cross-check Peru's medium-term risk factors. We used it as external validation for our scenario risks through 2031. |
| IMF World Economic Outlook (October 2025) | The IMF's global forecast reference used widely by governments. | We used it to keep Lima's outlook consistent with the global 2026 backdrop. We used it to avoid forecasting that ignores external conditions. |
| World Bank Global Economic Prospects | Major international organization publishing macro outlooks and risks. | We used it to triangulate the global environment affecting Peru via commodities and capital flows. We used it as a second international cross-check alongside the IMF. |
| BBVA Research Peru Forecast | Large-bank research team with transparent, regularly updated views. | We used it to triangulate the private-sector base case for Peru's momentum. We used it to sanity-check that our price growth range is realistic. |
| Fraport Lima Airport Press Release | Primary source from the airport operator's parent group. | We used it to support the connectivity and jobs channel affecting Lima sentiment. We used it as a factual anchor for major 2025 infrastructure news. |
| Reuters BCRP Rate Coverage | Global wire service reporting directly on central bank decisions. | We used it to corroborate timing and narrative around rate moves. We still rely on BCRP and SBS for official numbers. |
| Reuters Peru Economic Context | Reputable source for time-stamped macro reporting. | We used it to support the election-year risk framing. We use it as context rather than a primary dataset. |
| La República Metro Line 2 Report | Major Peruvian newspaper with direct infrastructure coverage. | We used it to track Metro Line 2 progress and completion timelines. We used it to identify which neighborhoods benefit from improved transit access. |
| Infobae Peru Price Report | News outlet with district-level listing price coverage. | We used it to cross-reference price per square meter data across Lima districts. We used it to validate our citywide price range estimates. |
| TVPerú INEI Inflation Report | State media reporting official INEI inflation statistics. | We used it to confirm that Lima inflation stayed within target in 2025. We used it to translate nominal price gains into real terms. |
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If you want to go deeper, you can read the following: