Peru is a mid-sized Andean economy with low public debt, a stable central bank and a property market centred on Lima's districts. The Peru real estate market 2026 combines respectable yields with political volatility and a legal system that rewards careful title checks. Below is our reading of the indicators; browse stock on the Peru property page.
Price levels with an age caveat
Our price-per-square-metre series for Peru dates from 2022: about $1,870 in city centres and $1,397 outside. Both had slipped about 4-6% from 2021, with the sol's depreciation accounting for part of the dollar-denominated decline. Those figures are the latest we trust, so use them as a baseline and check present asking prices instead.
Affordability is strained: the price-to-income ratio was 18.9 in 2024 (19.0 in 2023), and average net salary was about $415 a month in 2023, down from $443. That is why most Peruvians buy with family help, state-subsidised schemes or by building incrementally. For what is on the market, see cheap property in Peru and the under $100k page.
Yields and rents
Gross rental yield in the city centre was 5.4% in 2024, up from 4.8% in 2023, and the price-to-rent ratio fell to 18.6 from 20.6, which suggests rents have been catching up with prices. A one-bedroom in the centre rented for about $453 a month in 2023 (down from $512) and about $220 outside, while three-bedrooms rented for about $814 (centre) and $495 (outside).
Lima's best-performing districts, among them Miraflores, San Isidro and Barranco, sit above the national average on both price and rent, and attract expatriates, professionals and short-stay visitors. Outside Lima and tourist cities such as Cusco and Arequipa, rental markets are shallow.
| Indicator | Value | Year |
|---|---|---|
| Gross rental yield, city centre | 5.4% | 2024 |
| Price-to-rent ratio | 18.6 | 2024 |
| Price-to-income ratio | 18.9 | 2024 |
| Price per m², city centre | $1,870 | 2022 |
| 20-year mortgage rate | 9.22% | 2022 |
Read more (3 more sections)Show less
Macro stability and credit
GDP was about $335 billion in 2025, growing 3.4% (3.5% in 2024), with GDP per capita near $9,684. Inflation was low at 1.5%, unemployment about 5.1%, and government debt only 32% of GDP (2024). The central bank's policy rate was 5.25% in 2024. Mortgage data in our database is from 2022, when the 20-year rate was 9.22% (8.34% in 2021); current rates are likely lower in line with the policy rate, but confirm locally.
Population is about 34.6 million, growing 1.0%. The top income tax rate is 30% and VAT is 18%. Peru's low debt and independent central bank are strengths, while mining dependence ties growth to metal prices. Check financing in Peru for lending to non-residents.
Foreign buyers and risks
Foreigners have the same property rights as Peruvians, except within 50 km of the borders, where purchases require special authorisation. Transactions are formalised by a notary and registered in SUNARP (the public registry), and a registry certificate check is essential before paying.
- Political instability. Frequent changes of president and cabinet affect sentiment, though macro policy has stayed orthodox.
- Informality. Many buildings lack proper permits or registration.
- Seismic and climate risk. The coast is earthquake-prone and El Nino can cause flooding.
- Currency. The sol is relatively stable but moves with commodity prices.
- Short-term rentals. Rules vary by district.
The Peru buying guide lists due diligence steps in detail.
Peru's macro is steadier than its politics, and its registry is steadier than its building permits.
Outlook
Low inflation, low debt and steady growth support Lima's market, while political noise and informal construction limit upside. Investors should concentrate on registered, permitted units in established districts, expect modest dollar appreciation and compare with other Latin American options in the analysis hub.
Last updated 8 October 2026