Property prices in Peru have risen significantly over the past few years.
Smaller apartment sizes typically cost around US$1,900 per square metre, with larger apartments US$2,000 per square metre.
How much can you earn?† Rental yields in Lima are much less good than they used to be. Yields on smaller apartments have fallen over several years from an amazing 13% to around 6% for 120 square metre (sq. m.) apartments.† By regional standards house price to rent ratios in Peru are comparatively high.† 6% is not a bad yield, however. †Smaller apartments are likely to yield more.
The currency risk. In currency terms, Peruís Sol has somewhat depreciated over the last four years, but by less than the Chilean Peso, Brazilean Real, let alone (heaven forbid!) by as much as the Argentinian Peso.
Round trip transaction costs are moderate in Peru. See our† property transaction costs analysis for Peru and property transaction costs in Peru, compared to the rest of Latin America.†
#1 SUSANA | May 28, 2010
Hi, the rental yield calculation in the article is wrong, it is using the monthly rental for a 120sqm apartment and not the 180sqm one.
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