What is an off-plan purchase in Peru?
In Peru, buying off-plan is legally defined as a compraventa de bien futuro — the sale of a property that does not yet exist at the time of signing. The contract commits both buyer and developer on the basis of architectural plans, a finish specification sheet and a delivery schedule.
The standard mechanism in Peru works as follows:
- Reservation (separación): a small upfront payment (typically S/ 1,000–5,000) to secure the unit;
- Purchase contract: signed with a first deposit, generally 10–30% of the total price;
- Staged payments during construction: according to a schedule defined in the contract;
- Balance and escritura pública: notarised final deed and balance payment at delivery, once the unit has been individually registered at SUNARP (independización).
This is fundamentally different from buying a completed property. In that case, the title deed already exists, the property is physically verifiable, and the transaction can close in a matter of weeks. An off-plan purchase requires waiting — and that waiting period introduces specific risks.
Why the price can be attractive
Peruvian developers typically list off-plan units below the price of equivalent completed properties. The discount is real and stems from three factors:
- Construction pre-financing: buyers' deposits reduce the developer's need for bank credit, enabling a lower entry price;
- Risk transfer to the buyer: by purchasing a non-existent asset, you accept the risk of delay or developer default — that risk justifies a discount;
- Stage effect: the earlier in the sales process, the lower the price. First units — sometimes sold before the building permit is obtained — are the cheapest.
According to market data published by CAPECO (Cámara Peruana de la Construcción), the average new-build price per m² for completed units in Miraflores and San Isidro exceeds USD 2,500/m² in 2025–2026. An off-plan purchase in the same area can typically be secured between USD 2,000 and USD 2,300/m², depending on construction stage and developer reputation — a discount of roughly 10–20%.
This price advantage is only justified if the project is sound. A developer who turns out to be unreliable transforms an apparently good deal into a costly legal recovery process.
Risks to anticipate
Off-plan purchases in Lima carry specific risks that are distinct from those of buying a completed property.
Construction delays
The most common risk. Delays of 6 to 18 months are frequent in Lima, even among established developers. Causes include slow municipal permits, cash-flow difficulties, rising material costs and skilled labour shortages. A foreign investor counting on a specific delivery date for rental income or resale purposes must factor this into their planning from the outset.
Developer default or insolvency
Rarer but more serious: if the developer ceases operations before delivery, recovering funds paid may require lengthy and expensive Peruvian court proceedings. Some contracts include a fideicomiso de administración — a bank trust that protects buyers' deposits and releases funds to the developer only according to actual construction milestones. This is a meaningful protection mechanism.
Non-conformity at delivery
The delivered property may differ from what was sold: smaller actual floor area, altered finishes, missing equipment, incomplete common areas. Buyers' rights are governed by Ley 29571 (Peru's Consumer Protection Code), and INDECOPI can be called upon in disputes. These remedies exist but are most effective when the original contract precisely documents what was promised.
Land title problems
If the land has an uncleared mortgage, an ownership dispute or a registry irregularity at SUNARP, the independización — the individual registration of your apartment — may be permanently blocked. You would be the physical owner of a property without a legally registered title.
Essential documents before signing
Before paying any significant deposit, verify — directly or through a local representative — the existence and validity of the following documents.
Land due diligence
- Land title entry (SUNARP): confirm that the land is registered in the developer's name (or an entity that has granted them rights) with no uncleared mortgages, problematic easements or ongoing disputes. Searchable at sunarp.gob.pe.
- Building permit (licencia de edificación): issued by the district municipality. Without a valid permit, the building is illegal and the declaratoria de fábrica will be impossible. Must be displayed on the construction site.
- Approved plans: verify that the architectural plans presented in the brochure match the ones approved in the building permit application.
Developer due diligence
- Company articles and legal representative: corporate registration at SUNARP (company registry).
- Recent financial statements: request the last two or three fiscal years. A developer who refuses to share financial data should raise immediate concerns.
- Previously delivered projects: list with exact addresses and actual delivery dates, verifiable on site or via Google Maps.
- No INDECOPI sanctions: searchable at indecopi.gob.pe.
Contract due diligence
- Complete compraventa de bien futuro contract, reviewed by a Peruvian real estate lawyer;
- Signed finish specification sheet (memoria descriptiva de acabados) appended to the contract;
- Payment schedule and binding delivery date, with explicit tolerance period;
- Delay penalty and contract termination clauses.
Remote due diligence
Based in Switzerland, you may not be able to visit the construction site or access Peruvian registries in person. Swiss Lima Property can commission a local verification — SUNARP, building permit, site visit — before you commit any funds.
How to assess a developer
The developer's quality is the single most important variable in an off-plan purchase. Here is how to assess them concretely.
Delivery track record
Ask for a list of completed projects with exact addresses. Verify physically or via Google Street View that the buildings exist. Where possible, speak to residents: was delivery on time? Were warranty issues handled?
CAPECO membership
CAPECO (Cámara Peruana de la Construcción) is Peru's main construction industry association. Members adhere to a minimum code of conduct. CAPECO membership is not a guarantee, but a developer absent from its directory should prompt questions.
Bank financing
A developer with an approved construction loan from a recognised Peruvian bank (BCP, BBVA Perú, Interbank, Scotiabank Perú) is structurally more solid than one who funds construction solely from buyers' deposits. Ask whether bank financing is in place for the project.
Fideicomiso mechanism
If the developer offers a fideicomiso de administración managed by a licensed bank trustee, this is a strong positive signal. Your deposits go to the trustee, who releases funds to the developer according to verified construction progress. If the developer defaults, unreleased funds remain protected.
Sales offices do not replace due diligence
Developer showrooms in Lima are often impressive: detailed scale models, 3D renderings, English-language brochures, online financial simulators — all designed to instil confidence. Independent due diligence — SUNARP, INDECOPI, building permit, site visit — is the only way to verify the facts behind the marketing.
Key contract clauses
A specialist Peruvian lawyer must review the contract before you sign. Here are the points that cannot be overlooked.
Precise property description
Exact private floor area (m²), total area including common parts, floor, unit number, orientation, number of parking spaces and/or storage units included. Any ambiguity on these elements can be used against you at delivery.
Delivery date and contractual tolerance
The planned delivery date must be stated explicitly. Most Peruvian contracts allow the developer a tolerance of 90 to 180 days without penalty. Beyond that period, penalties must automatically apply.
Delay penalties
Verify their existence, amount and any cap. A common rate in Peruvian contracts is 1/1,000 of the sale price per day of delay, i.e. 0.1% per day, approximately 3% per month. A contract with no delay penalty clause is a red flag.
Signed finish specification sheet
The memoria descriptiva de acabados must be appended to and signed with the main contract. It describes in detail the materials, brands and equipment included (hob, water heater, flooring, etc.). Without a signed appendix, the developer can substitute cheaper materials without legal recourse.
Contract termination conditions
In the event of serious developer default — delay exceeding maximum tolerance, project abandonment, major defect — your rights to terminate and the refund timeline must be explicitly described, not left to interpretation.
Independización commitments
The developer must commit to completing the declaratoria de fábrica, reglamento interno and independización within a specific timeframe after physical delivery. Without these steps, you will not have your own SUNARP title entry.
When to walk away
Certain signals should lead you to decline a project, even if the price and location seem attractive:
- The developer cannot provide a valid building permit (licencia de edificación);
- The land title search (SUNARP) reveals an uncleared mortgage or an ongoing dispute;
- The developer refuses to share financial statements or a list of previously completed projects;
- INDECOPI records show recent unresolved sanctions or complaints against this developer;
- The contract contains no delay penalty or contract termination clause;
- No fideicomiso or bank construction financing is in place;
- The delivery timeline is unrealistic given actual construction progress;
- The developer applies high-pressure tactics to sign quickly and without a reflection period.
Swiss Lima Property's role
Swiss Lima Property is neither a financial adviser nor a real estate agent in Switzerland. Our partner Adriana is a licensed real estate agent in Peru, and it is in that capacity that she accompanies you on the ground in Lima.
Concretely, we can help you:
- Identify credible off-plan projects in Lima by pre-screening developers based on their track record, completed buildings and financial solidity;
- Commission documentary due diligence before any commitment: SUNARP, building permit, INDECOPI, site visit;
- Coordinate the Peruvian lawyer who will review and negotiate the contract on your behalf;
- Monitor construction progress through regular site visits and photo reports, without you needing to travel;
- Coordinate the property handover: checking conformity with contract specifications before you pay the balance.
To discuss a specific off-plan project or for an initial orientation: contact us.