House Hunting in … Peru

MARKET OVERVIEW

Peru’s home prices nearly doubled between 2009 and 2013, on the back of one of the fastest-growing economies in Latin America, agents said. While the market for homes in American dollars began slowing in 2014, it picked up again after the 2016 presidential election in the United States, and home prices remain strong, according to data from the Central Reserve Bank of Peru.

But the sudden resignation in March of Peru’s president, Pedro Pablo Kuczynski, who faced impeachment and was succeeded by the first vice president, Martín Vizcarra, has added a new element of uncertainty to the market, said Miguel Barragan, owner of the real estate agency RE/MAX Royal. “No one knows what’s going to happen in the next six months,” he said.

So far, however, agents said the political upheaval hasn’t affected the housing market. “We’ve seen no impact one way or another,” Mr. Brace said. “But it sure is a reminder that the political situation in Latin America is always a major consideration.”

Foreign buyers tend to favor Lima, the country’s capital, where the most popular neighborhoods are San Isidro, Miraflores, Santiago de Surco, San Borja and La Molina, all of which offer “security, modern architecture, and cultural and recreational areas,” said Alfredo Romero, a commercial manager with Alfredo Graf y Asociados, a real estate agency in Lima.

According to data from Peru’s Association of Real Estate Developers, the average price per square meter in San Isidro is $2,676, or about $249 a square foot, Mr. Barragan said, and in Miraflores, it is $2,397 a square meter, or about $223 a square foot.

But some new homes in Lima can go for as much as $6,000 a square meter, or about $557 a square foot, Mr. Brace said.

“Peruvians, on the whole, very much favor brand-new homes and apartments over those that are even five or 10 years old,” he said, noting that part of the reason is that first owners are exempt from paying the 3 percent transfer tax.

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