Housing prices in Lima will not be reduced until at least September

The costs of the households in metropolitan Lima have had an upward trend in recent years. By December 2022 they rose to a maximum of S/6,800 per square meter, a trend that has been seen in the first months of this year and would continue until September.

This increase is mainly due to the rise in raw materials for home construction and the exchange rate, which came to exceed the S/4.00 barrier last October.

“Prices are still not going to decrease in the second and third quarters of 2023. The average will be maintained according to each district,” said Numa León, Executive Director of Real State Peru of Credicorp Capital.

Also, regarding sales, last year 15,926 homes were traded and now it is expected to exceed that figure, taking into account that the new projects would be aiming at lower cost tickets.

However, the trend towards rentals — rather than purchases — is gaining ground, as is the development of buildings multifamily, which plans to accumulate more than five assets by 2024.

Rising rents

In Lima, 30% of households rent a home, and of that percentage, 70% invest in apartments. Thus, the value of the rents has reached a historical price of S/2,900 per month for March.

The district that has increased the most is Chorrillos, which rose by 14.11%: from costing S/2,041 in 2022, it is now at S/2,329. They are followed by Cercado de Lima (11.74%), Surquillo (10.90%), Barranco (10.18%) and Jesús María (9.76%), according to the index real estate from Urbania.

The greatest demand for rentals would be in Modern Lima, in the districts of Miraflores and San Isidro.

Mortgage credits

To date, the Central Reserve Bank of Peru (BCRP) has maintained, for three consecutive months, a interest rate benchmark of 7.75%.

This would have favored mortgage loan rates, which have shown a slight decrease: from 10.10% they have gone to 9.86% in soles and 8.6% for dollars.

“The mortgage rate is going to adjust down slightly during the year in line with what the Central Bank does, which has maintained a stable rate,” added León.

Thus, Credicorp It does not estimate that costs may increase in the medium term.

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percentages. In 2022 there was an increase in the price of homes of 5.8% per year.

Districts. The financial zone in San Isidro is the one with the rent more expensive and reaches up to S/4,429 per month. For its part, Los Olivos Norte is the cheapest area with S/1,237, according to Urbania.

Situation of the housing market in Lima this 2023