In the last quarter of 2023, the real estate market in Metropolitan Lima showed a slight decrease in land prices. The data, provided by the Peruvian Chamber of Construction (Capeco), reflect an increase of 2.2% compared to the last three months of 2022.
Despite the slight decrease, the construction sector remains optimistic, anticipating an adaptation of prices to consumer preferences and a growing demand for smaller homes. Below, we detail the exact price per m² and in which areas the least home sales were recorded.
What is the price per square meter in Lima?
The average price per square meter in Metropolitan Lima stood at S/7,419 in the fourth quarter of 2023. Although this value represents a small decrease compared to the previous quarter, it is still 2.2% higher than that registered in the same period in 2022.
In which areas did home sales decrease and why?
In 2023, housing sales in Lima experienced an overall drop of 6.1% compared to the previous year, with a total of 17,000 units sold. The decrease was especially notable in social housing, with a 72.6% reduction in the Techo Propio and MiVivienda programs.
According to Guido Valdivia, executive director of Capeco, the areas of modern Lima, such as Barranco, Jesús María and Miraflores, saw a significant decline of 13.5%, attributed mainly to administrative difficulties and bottlenecks between communes and projects. social interest real estate.
It should be noted that social housing is sold mainly in modern Lima (14.4%: 2,619 homes), central Lima (1,717 homes) and northern Lima (1,695).
Will the price per m² continue to increase?
Although the prices of some construction materials, such as steel and bricks, have seen year-on-year declines in January this year, the value of cement and labor have risen by 5%. These changes in construction costs do not definitively determine the trend in prices per square meter.
According to Guido Valdivia, executive director of Capeco, The price per m² will adapt to the preferences of Peruvians, with a trend towards smaller apartments and a possible reduction in the performance of the finishes to make them more accessible.
How is the construction sector doing in 2024?
The construction sector in Peru has started 2024 on the right foot, registering an advance of 20.7% in the sector’s GDP during January. This growth is due to the increase in cement consumption by 9.5% and the significant progress in public works by 58.5%.
Expectations for the rest of the year are positive, with a growth projection of 4.0%, exceeding the estimates of the Central Reserve Bank of Peru (BCRP) and the Ministry of Economy and Finance (MEF). However, the construction union points out that state inefficiency continues to be the main risk for the sector in the next 12 months.
Source: Larepublica
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