If a person decides to acquire a property to rent it, it will take them 20.7 years to recover their investment, since the average annual rate of return in metropolitan Lima, as of November 2023, remained at 4.82%, details Urbania.
In good faith, the owner will receive 4.82% per year of what he spent to purchase the home. This sector, despite the economic adversities that plague the country, continues to be profitable, the agency clarifies.
“It is always a good year to invest in real estate. It is an asset that not only generates income if it is rented, or allows savings if it is used to live in it yourself, but also gains value or capital gains over time. In many cases, it is the great capital that a family accumulates over time,” the commercial manager of Urbania and Adondevivir, Eduardo González-Prada, told La República.
Profitability reaches 6.3%
By area, profitability is more auspicious in the Costanera de San Miguel (6.3%) and the southwest of Cercado de Lima (6.2%); Therefore, the repayment period is shorter. At the district level, again, Cercado de Lima has a return rate of 5.8%; They are followed by La Molina and Surquillo (5.5%, respectively), Magdalena (5.4%) and Jesús María (5.3%).
Meanwhile, those that offer a lower ratio are San Isidro (4.5%), Miraflores and Surco (4.4%) and San Borja (4.2%).
Prices skyrocketed in La Victoria and Chorrillos
The average price of a square meter for sale is S/6,624. Although it is far from the peak of S/6,728 seen in mid-2021, it is well above the S/5,481 at the beginning of 2017.
The most expensive districts per m2 are Barranco (S/9,411), San Isidro (S/9,139) and Miraflores (S/8,567), although the most pronounced variation occurred in La Victoria and Chorrillos, with 15.1% and 9. 3%, respectively.
Leandro Molina, country manager of the QuintoAndar Group, explains that the significant increase in La Victoria is due to the dynamism in real estate development in areas such as Santa Catalina (La Victoria) and its proximity to high demand points such as Lince and San Isidro; and in the case of Chorrillos, for being an alternative for beachfront apartments with costs not as high as Miraflores and Barranco.
On the other side of the coin, the average price in Los Olivos fell 6.7% during November due to the increase in the interest rate in much of 2023, which motivated real estate companies to reduce the price per square meter to that can be more affordable for potential buyers,” Molina added.
And the rents?
The average rental price for a 100 m2 home is S/2,861 per month. In real terms, it fell 1.1% in the last 12 months, but it is far from the S/2,465 of six years ago. Barranco, San Isidro and Miraflores have the highest values, which reach peaks of S/3,817; and by area, the financial center of San Isidro has an average of S/4,406 per month. Traditional Barranco follows with S/3,936.
Jesús María and Magdalena raised their averages by 9.2% and 12%, since they concentrate the largest amount of real estate construction investment in various sizes and do not target only the traditional family, but also young people and couples without children.
Source: Larepublica
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