Lima’s Housing Market Surges 25% and Projects 16% Growth in 2025
Lima’s real estate market is showing remarkable momentum. In the first half of 2025, new home sales in the Peruvian capital jumped 25%, driven by mortgage availability and stronger demand for affordable housing. By year-end, the sector is expected to expand by around 16%, according to a report by Scotiabank.
Mortgage Lending Drives Growth
Carlos Asmat de la Cruz, a Scotiabank analyst, explained that the housing market is set to outperform the broader construction sector, which is forecasted to grow by just 4.5% this year. The difference lies in the stronger issuance of New Mortgage Loans (NCH), which are expected to grow by 13%, reaching more than 38,000 placements in 2025.
Lower interest rates on mortgages, combined with the Central Bank’s gradual cuts to its reference rate, have improved financing conditions. In addition, the performance of Peru’s 10-year bond in soles has helped stabilize long-term lending.
Exchange Rate and Construction Costs
The recent decline in the exchange rate has made property prices more attractive in local currency, since most homes are priced in U.S. dollars.
At the same time, stable construction material costs compared to previous years have encouraged developers to launch new projects in Lima. Rising formal employment and household income, in a context of lower inflation, are also fueling homebuyer demand.
Outlook for 2025
The Peruvian Real Estate Developers Confederation (CODIP) projects that Lima will close 2025 with just over 24,000 housing units sold, representing a 16% annual increase.
Affordable housing is also set for recovery. The government’s New Mivivienda Credit (NCMV) program is expected to slightly surpass 2024 levels, a year when placements fell 20% — the lowest since the pandemic in 2020.
What About Apartment Prices?
According to the latest Urbania report, Lima’s apartment prices registered a “real decrease” of 0.2% in 2025. While nominal prices rose 1.1%, this was below the annual inflation rate of 1.3%, resulting in a slight decline in real terms.
Here are the current averages:
- A 645 sq. ft. (60 m²) two-bedroom apartment: ~$113,000
- A 1,076 sq. ft. (100 m²) three-bedroom unit: ~$175,000
- Average price per square foot in Lima: ~$169 (≈ $1,821 per m²)
Smaller apartments have seen the sharpest price increases so far this year.
In short, Lima’s housing market is experiencing a healthy recovery: sales are up, financing conditions are improving, and real prices remain stable. A favorable environment for both investors and families looking for a new home.
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