Property prices in Peru have risen significantly over the past few years.

Apartments in desirable areas like Miraflores, Barranco and San Isidro may cost $2,600-$2,800 per square metre (more for larger apartments) while costs fall to $1,200-$1,500 per square metre (sq. m.) in areas like Chorrillos.

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 4% to 5% for 100 sq. m. apartments. By regional standards house price to rent ratios in Peru are comparatively high, so you earn more in many other Latin American countries. 4%-5% is maybe not a bad yield, but it is certainly not great either. Smaller apartments are likely to yield more.

The currency risk. Peru´s Sol depreciated during the period 2013-2015, but has been stable since. Over the past decade it has done much better the Chilean Peso, Brazilean Real, let alone (heaven forbid!) 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.