The average price per square meter (m²) of first-use homes in metropolitan Lima and Callao stood at S/6,742 at the end of May, according to the Association of Real Estate Companies of Peru (ASEI).
This amount represents an increase of 16.5% —approximately S/1,000— compared to the same month last year, when the average value was S/5,788 (see infographic).
This is explained by the increase in the exchange rate and fuel prices, which are aggravated by prolonged inflation, according to ASEI.
Prices will continue to rise
In this sense, Ricardo Arbulú, president of ASEI, maintains that this trend will continue for the next twelve months because the global financial and health crisis will continue to hit the country; since, when the dollar rises —for example—, the cost of construction materials, the importation of some inputs and freight, together with the higher cost of transportation, will affect the final value of a home.
“For July (2023) we project an additional 9%. The price per square meter would be approximately S / 7,300. Housing prices are not going to go down and will continue to rise in a more limited way”, he told The Republic.
The real estate union detailed that the units sold contracted by -8.2% in the last year due to the increase in interest rates on mortgage loans.
It is worth noting that according to data from the Central Reserve Bank of Peru (BCRP), during the fifth month of the year, mortgage credit rose to 8.1%, its highest rate since March 2020.
Secondly, the housing supply fell -12.0% as a result of the political crisis that began in April last year —summarizes ASEI—, which is why there is less private investment that affects the amount of projects launched on the market and their size.
“We calculate that the sale will fall by 5% and that it will have a correlation with the decrease in supply, which has fallen much more,” concluded Arbulú.
Most expensive price per district
According to the ASEI report, the most expensive price per square meter is in the district of Barranco, with S/8,620; while the cheapest are Comas and Carabayllo, with S/3,597 and S/2,710, respectively.
In May 2022, 1,022 units were placed, a decrease of 8.2% compared to the same period in 2021 (1,113 placements).
ASEI anticipates that at the end of the year the rate of sale will not fall below 1,000 units per month.