Lima property prices: what the data shows
According to GlobalPropertyGuide (data consulted 2025–2026):
- Premium districts (Miraflores, San Isidro, Barranco): approximately USD 2,500–3,500/m²
- City-wide average: approximately USD 1,500–1,800/m²
- Mid-range residential districts (Surco, La Molina, Jesús María): approximately USD 1,200–2,000/m²
These ranges are indicative. Within any district, prices vary substantially by building quality, floor, views, finishings, communal facilities and maintenance history. Treat them as orientation, not valuations.
Comparison with European cities
Indicative price benchmarks for quality residential apartments in prime districts of European cities (mid-2026, third-party published sources):
- Geneva (Eaux-Vives, Champel): CHF 15,000–22,000/m² (UBS Real Estate Focus 2024)
- London (Kensington, Chelsea): GBP 12,000–20,000/m² (UK Land Registry published data)
- Paris (6ème, 7ème): EUR 13,000–18,000/m² (Chambre des Notaires de Paris)
- Madrid (Salamanca): EUR 6,000–9,000/m² (Idealista published data)
- Miraflores, Lima: USD 2,500–3,500/m² (GlobalPropertyGuide)
The differential between Geneva and Miraflores is approximately 5–8× on a per-square-metre basis. Even against Madrid, the differential is approximately 2–3×.
These data points are indicative benchmarks from third-party sources. They may be outdated. They are not a basis for investment decisions.
Purchasing power: what your budget buys
To make the differential concrete, using approximate exchange rates:
With EUR 250,000 (~USD 270,000):
- Geneva: not enough for any residential unit
- Paris (prime): approximately 15–19 m² (a very small studio)
- Madrid (prime): approximately 28–42 m²
- Miraflores (Lima): approximately 77–108 m² (a 2–3 bedroom apartment)
With EUR 400,000 (~USD 435,000):
- Geneva: approximately 20–28 m² (a very small studio)
- Paris (prime): approximately 24–31 m²
- Madrid (prime): approximately 44–67 m²
- Miraflores (Lima): approximately 124–174 m² (a spacious apartment with ocean view potential)
These calculations use illustrative exchange rates and price midpoints. Actual outcomes depend on specific properties and market timing.
Rental yields: gross vs net
GlobalPropertyGuide estimates gross rental yields for Lima premium districts at approximately 4.6%–5.6% per year. Compared to Geneva (roughly 2–3.5% gross) or Paris (roughly 2.5–3.5% gross), the raw spread is meaningful.
However, gross yield is not what an investor earns. Net yield requires deducting:
- SUNAT withholding tax: 30% of taxable rental income for non-residents
- Property management fees: typically 8–15% of rent
- Impuesto Predial (annual property tax)
- Building maintenance charges
- Vacancy periods
- Maintenance and repair costs
Always calculate on net yield
No rental yield is guaranteed. Past figures do not predict future performance. A gross yield of 5% can easily become a net yield of 2–3% after all deductions. Model conservatively.
Why are Lima prices structurally lower?
Lima's lower price levels are not a market inefficiency waiting to be corrected — they reflect structural realities:
- Lower local income levels: Peruvian household incomes are substantially below Western European levels, anchoring the ceiling on what local buyers can pay.
- Higher local mortgage rates: Peruvian mortgage rates are significantly higher than European rates, compressing local buyer purchasing power.
- Less institutional buyer presence: Lima lacks the pension fund and REIT activity that drives price compression in Western European markets.
- Emerging market risk premium: a lower-liquidity, politically less stable market commands a discount relative to its European equivalents.
These structural factors are not about to disappear. They also define the risk profile that comes with the price differential.
Currency: USD pricing and FX risk
Lima's premium real estate market is predominantly priced in USD. This means European investors face USD/EUR or USD/CHF exchange rate risk rather than PEN/EUR risk. The BCRP manages the sol's float but USD fluctuations against European currencies remain a genuine factor in long-term return calculations.
What drives price within Lima
Within Lima's premium districts, price variance is large. Key value drivers include:
- Ocean or park views — Pacific-facing floors in Miraflores command a significant premium
- Building quality and age — new or post-earthquake reinforced construction commands higher prices
- Building facilities — concierge, pool, gym, underground parking
- Proximity to services — walking distance to Miraflores' main commercial streets, Larcomar shopping area
- Title clarity — properties with a clean, unencumbered Partida Registral command a premium over those with complications
Key takeaways
- Premium Miraflores prices (~USD 2,500–3,500/m²) are 5–8× lower per m² than Geneva or Paris.
- Gross rental yields (~4.6–5.6%) exceed European benchmarks; net yields are significantly lower after SUNAT withholding and costs.
- The price differential is structural — reflecting income levels, mortgage rates and market development stage, not a temporary anomaly.
- USD pricing reduces PEN risk but introduces USD/EUR or USD/CHF exchange rate exposure.
- Within Lima, price drivers include ocean view, building quality, facilities and title clarity.