Lima’s Polvos Azules market enjoys high real estate prices, plans to expand



Rows of stalls at Polvos Azules in Lima. (Photo: Amy Wong)

At Lima’s Polvos Azules market, one “store”—most of which are stalls no larger than four square meters—can cost between $40,000 and $50,000, with premium locales worth up to $100,000, according to president of the association of properties owners of Polvos Azules, Maribel Gutiérrez. Price varies according to size and location.

Gutiérrez said that store values have been increasing every year. Two years ago, the average price was around $30,000. The price of a Polvos Azules store is quickly approaching that of space in the commercial emporium Gamarra, where the cost per square meter is between $15,000 and $20,000.

Despite the fact that each level of Polvos Azules contains 16,000 square meters, space has turned out to be tight, and there is currently no store space available for new vendors looking to buy. The commercial operators are planning to expand in northern Lima, with a project in the district of Los Olivos where purchase of the terrain alone will cost about $15 million.

The Polvos Azules group is also considering expansion to the interior of the country. Gutiérrez said they are in conversations with real estate agencies to look for a space, possibly in the north, which must be large (between 20,000 and 30,000 square meters) due to the number of members the group has.

Among the locations of interest are Chiclayo and Piura, due to the commercial flow and existing demand.

“Our plan is to buy a property outside of Lima to expand. It will all depend on the proposals we receive,” she said.

She added that if a suitable proposal is made, expansion could begin in 2012, seeing as this year the group is busy with its projects in Lima.