Peru: Lima real estate triples in value – Safety important factor

Living in Peru
Israel J. Ruiz

As Peru’s economy continues to progress and as an increasing number of construction companies continue to build throughout the country’s most populated region, the price of real estate has jumped in some parts of metropolitan Lima while it has remained the same in others.

Even though districts may be just kilometers from each other, there is a significant difference in the price of land when going from one area to another.

One square meter (10 square feet) of land can cost up to $3,000 in seaside districts such as Barranco, San Isidro and Miraflores while it can cost less than $300 in districts such as Rimac and Breña.

According to El Comercio newspaper, this dramatic difference in property prices has to do with a district’s safety, the organization of its traffic and the type of view it has – whether it be the ocean or parks.

In the case of districts such as Barranco, San Isidro and Miraflores there is real estate that has gone up three times its value.

Furthermore, there is real estate in the districts of Jesus Maria, Pueblo Libre, Magdalena and San Miguel which has doubled in price.

On the other hand, there are also districts in Lima like Rímac, Cercado, Breña, Lince and Surquillo which have not seen a rise in the value of real estate.

Property value has a lot to do with how safe a district is, said security specialist Gabriel Prado.

Another important aspect is the organized flow of traffic, says appraiser Diego La Rosa, explaining there were districts in Lima that had gone up in value because of a better organization of traffic.