Gross rental yields are astonishingly attractive for property investors in Peru.  This is largely due to that country’s rapid rate of economic growth; in the past few years Peru’s growth has ‘taken off’, and the result has been a large increase in consumer spending power. 

We have previously recommended Lima for property investment.  It looks as if we will do so again.

A 180 sq. m apartment in Lima costs about US$200,000. This can be rented out for around US$1,140 a month, giving the landlord an excellent yield of around 10.5%. Smaller apartments produce higher yields of up to 13.5%. 

Prices and rents have risen significantly in the past few years,  but rents have moved ahead of prices. 

In currency terms, Peru’s Sol remains relatively attractive, having appreciated less than some currencies, such as Brazilian Real.