“`html
Peru’s Real Estate Market Sees Price Adjustments, Fueled by Increased Supply and Stable Financing
Table of Contents
Peru’s housing market is undergoing a significant shift, with property values in key districts of Metropolitan Lima falling to levels not seen in over a decade. Data from the Central Reserve Bank (BCRP) indicates a notable price correction, coupled with a surge in housing supply and resilient mortgage financing, creating a new landscape for both buyers and developers.
Price Declines Across Lima’s Districts
The value of real estate per square meter has decreased across various segments of Lima. In affluent areas like San isidro and Miraflores, prices have retreated to 2013 levels, dropping from a peak of S/ 5,610 in 2021 to S/ 4,305 in 2025 – a reduction of more than 23%.The adjustment is even more pronounced in middle-income districts such as Jesús MarÃa and Pueblo Libre, where current prices mirror those of the first quarter of 2015.A high of S/ 4,586 per square meter was recorded in 2021,but the value now stands at S/ 3,742.
This price decrease, combined with increased accessibi
lity, has led to a surge in sales. the number of apartments sold in Metropolitan Lima has increased significantly, jumping from 6,733 to 12,184 over the same period, representing an increase of over 80%. In some sectors, apartments are being sold at a faster rate than they are being built.
“The decrease in price responds to the fact that new supply is being placed at a cheaper price than the market average. That is, a large part of the new supply offers more competitive prices, which leads to a drop in the average price,” explained the analyst.
Though, this trend isn’t uniform across the capital. In the higher-priced segments – Lima Top, Lima Moderna, and Lima Centro – sales have outpaced supply growth. For example, sales in Lima Top have more than doubled in percentage terms (134%) over the last five years, driven in part by lowered reference interest rates from the BCR, making credit more affordable. Apartment construction in these areas has grown at a slower pace (57%). Conversely, in areas like Lima Sur, the real estate supply (94%) has significantly exceeded the pace of sales (77.9%).
Market Recovery Following Periods of Instability
The current growth in the sector is viewed as a recovery following challenging periods. One observer noted, “In 2011 and 2012, almost 2013, the economy was going like a plane and so was the real estate market. Then,in 2014 and 2015,the market fell due to political instability,and then in 2020 – with COVID – it declined again. Since 2023, it began to grow strongly again, but we are still recovering a level we had 12 years ago.” While the market is currently performing well, it has not yet reached the peak levels seen in those earlier years.
Factors such as access to public services, security, transportation, and credit availability are influencing demand across different sectors of Metropolitan Lima, making certain areas more attractive to both developers and buyers. [A map illustrating these factors and their impact on demand would be beneficial here.]
Stable Mortgage Financing Supports growth
Despite the price adjustments,the mortgage financing sector in Peru remains robust. The My Home Fund, a crucial pillar for access to housing in the middle segments, has expanded by almost 40% in the last five years, exceeding S/ 11.9 billion. While the fund’s growth rate is slowing as existing loans are paid off,new credit placements continue to increase.
Importantly, loan quality has consistently improved since the pandemic, with the percentage of loans in arrears stabilizing at a healthy 3.8% as of June 2025 – the lowest point in the last five years. This resilience is attributed to borrowers prioritizing mortgage payments over other debts. As one expert stated, “It is important to emphasize that, after the pandemic and the political turbulence of 2023, delinquency for Mi Home credit is the lowest of all types of delinquency. In the event of an eventuality, people prefer to leave the credit card, the car, but not the house. This has favored the stability of the market in 2024 and 2025.”
<
