real estate BCRP study reveals that the ratio of access to a property recovers. However, the rise in the mortgage interest rate would cause this indicator to rise.
The Central Reserve Bank of Peru (BCRP) monitors the evolution of the real estate market through indicators of sale and rental prices of departments. In his last report, he carried out an analysis of the sale price ratio with respect to the formal average annual income in Lima, which shows the number of years that a formal employee must work to pay the value of a medium-sized property. This indicator reveals the affordability of buying a home.
In this sense, the monetary entity revealed that, by the second quarter of 2022, the average value of the imedium furniture is equivalent to 15.1 years of formal annual labor income in Lima.
In detail, in the second quarter of 2022, the average price of a property was S/627,786, while the average annual income of a formal worker was S/42,062.
According to the BCRP, the affordability ratio increased from 15.6 years in 2019 to 16.3 years in 2020 as a result of the pandemic; however, with the resumption of activities and the recovery of the income, an improvement has been observed in this indicator.
However, for Gisella Postigo, commercial director of Urbania and Adondevivir, this ratio could increase due to the fact that the current context is different, since the mortgage interest rate exceeds 10% per year.
“In October 2022, the rate could fluctuate between 7.8% or 9%, today it is between 12% and 13%. This difference means that the average number of years has increased and that people no longer qualify for mortgage loans,” Postigo said.
Infographic – The Republic
Source: Larepublica
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