Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.

Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean


Financial Overview


Property Search

Global Statistics

Regional Statistics

Last Updated: Jul 23, 2015

Lima's house prices continued to surge in 2014, rising by 12.03% (8.53% in real terms) to PEN 5,614.34 (US$ 1,760) per sq. m.† During the latest quarter, apartment prices rose 1.6% (1.2% in real terms), according to the Central†Reserve†Bank†of†Peru (BCRP).

Price rises in the previous four years were even higher, so it is possible to make a case that house price rises are moderating:
  • In 2010, residential prices rose by 15.18% y-o-y
  • In 2011, residential prices rose by 17.89% y-o-y
  • In 2012, residential prices rose by 18.13% y-o-y
  • In 2013, residential prices rose by 15.49% y-o-y

The average price of homes sold in Lima Metropolitan Area rose by 7.65% y-o-y to Q2 2014, to PEN 289,260 (US$ 90,704), according to the consultancy Peru Tinsa.† During the latest quarter, the average price of homes rose by 0.25%.

The slowdown is reflected in low home sales. Only around 16,930 units were sold in 2014, according to Peruvian Chamber of Construction (Capeco), down 23.8% from the previous year and the lowest figure since 2010. One factor was a mismatch between supply and demand. Despite the abundance of projects in modern Lima districts (including Jesķs MarŪa, Lince, Magdalena del Mar, and San Miguel) with an average price of more than US$100,000 there is still a large unmet demand, maybe another 36% above what is supplied, consisting of potential buyers looking for homes priced under US$ 30,000, an offer almost nonexistent in the area.

The number of new housing units sold in Q2 2014 was 2,930, 41.9% down from the 5,045 sold during the same quarter of the previous year, according to Peru Tinsa.

Peru house pricesNevertheless, the construction sector in expected to grow by 2% by the end of 2015, according to Cesel Ingenieros' president Raul Delgado, because of higher investment by real estate companies. Around 59% of property developers are expected to raise their level of investment this year compared to last year, up from the 46% recorded in the previous survey, according to Capeco.

Analysis of Peru Residential Property Market »

Last Updated: Sep 30, 2015

Property prices in Peru have risen significantly over the past few years.

Smaller apartment sizes typically cost around US$1,800 per square metre, with larger apartments US$2,300 per square metre.

Rental yields in Lima are no longer as good as they were. Yields on smaller apartments have fallen in the last few years from over 13% to around 7.5%, while yields on larger apartments are nearer 5.0%).

In currency terms, Peruís Sol has somewhat depreciated over the last two years, but by less than the Chilean Peso, Brazilean Real, or Argentinian Peso.

Read Rental Yields  »

Last Updated: May 28, 2015

Rental Income: Rental income is taxed at flat rate of 30%, without any deductions.

Additionally, leasing real estate in Peru is subject to VAT at 18%. VAT is imposed when legal entities (individuals and corporations), resident or not, rent out Peruvian properties.

Capital Gains: Gains earned by nonresidents selling Peruvian property are taxed at a flat rate of 30%.

Inheritance: There are no inheritance or gift taxes in Peru.

Residents: Residents are taxed on their worldwide income at progressive rates, from 15% to 30%.

Read Taxes and Costs  »

Last Updated: May 29, 2015

Total round trip transaction costs, i.e. the total cost of buying and selling a property, are between 6.10% and 9.06%. The biggest cost is the estate agentís fee, which is between 3% and 5%. Five procedures must be completed to register property, which can be accomplished in about 6 to 16 days.

Read Buying Guide  »

Last Updated: Jun 05, 2006

Rent: Although rents may be freely agreed by the landlord and the tenant, strong security of tenure is given to the tenant.

Tenant Eviction: Legal proceedings to evict the tenant can be burdensome and highly time-consuming (even tedious).

Read Landlord and Tenant  »

Last Updated: Jul 23, 2015

Economic recovery in 2015, after 2014 slowdown

Peruís economy slowed sharply to only 2.4% GDP growth in 2014, after four years of relatively high economic growth: 8.5% in 2010; 6.5% in 2011; 6% in 2012; and 5.8% in 2013. Peruís weakest output growth since 2009 (1% GDP growth) was caused by declining investment and weak external demand for copper. In Q1 2015 growth was only 1.7% y-o-y.

This weak growth, way below the 6% growth forecast by the Central†Reserve†Bank†of†Peru (BCRP) in December, prompted President Humala in June 2015 to ask Congress for special powers to introduce new economic reforms. These executive powers are expected to last for 120 days. The government did not reveal the details of the new reform package, however Finance Minister Alonso Segura assured that the new measures will make the country more competitive, through increased construction and manufacturing activities and reduced red tape.

The IMF predicts that Peruís economy will bounce back in 2015 with 3.8% growth.

Unemployment reached 7.4% in May 2015, much higher than the 5.6% unemployed the same month last year, but an improvement over 8.3% recorded in January 2015.

Inflation rose to 3.54% y-o-y in June 2015, its highest rate for 13 months.

  • High yields in Lima
  • Low transaction costs
  • High rental income tax
  • Pro-tenant rental market
  • Volatile political situation
Price (sq.m): $2,074 For a 120 sq. m. property, usually an apartment.
Rental Yield: 5.81% For a 120 sq. m. property, usually an apartment.
Rent/month: $1,206 For a 120 sq. m. property.
Income Tax: 30.00% Assumptions: Owners are a non-resident couple drawing US$ / €1,500 per month in rent, with no other local income.
Roundtrip Cost: 7.58% The total cost of buying and then reselling an apartment. Includes:

* all transaction taxes and charges:
* lawyers' and notaries' fees
* agents' fees

Assumptions: The buyers are non-resident foreigners. The apartment cost US$250,00 / €250,000.
Cap Gains Tax: 30.00% Assumptions: The property was bought for US$250,000 / €250,000, and sold 10 years later, after a 100% appreciation.
Landlord and Tenant Law: Pro-Tenant Rating is based on a detailed study of each country’s law and practice.

News & Discussion

Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.

Email Address:

Connect to professional advice in Peru


Download free property reports from international research houses

Our Newsletter

Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions
Chinese property buyers and Asian buyers, there is great property for high net worth Chinese buyers on

Which parts of the world are most attractive for property investment today?

Click here to download our FREE Property Recommendations Reports!

Close Me