Country PE Cost of Living Analytics

Living expenses and utilities

Basic Utilities (85m²)

$52

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

$12

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

$28

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

$415

Average monthly net salary after tax

Data Availability Note: Mobile phone plan data is only available from 2023 onwards, as this metric was added to Numbeo's database in that year. All other cost of living indicators have historical data from 2010-2023.

Basic Utilities (85m²)

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

Average monthly net salary after tax

Additional Insights

Expert analysis of Country PE Cost of Living trends and investment implications

Market Overview

Peru's real estate market presents a dynamic investment opportunity, driven by economic growth and urbanization trends. Despite fluctuations, property prices have generally outpaced GDP growth, suggesting robust demand. However, rental yields are under pressure from rising interest rates, and the tax burden can significantly impact net returns. Investors should carefully assess timing and location to maximize potential gains.

Key Findings

Data-driven insights

•From 1960 to 2024, Peru's GDP grew at an average annual rate of 3.5%, while house prices increased by approximately 4.1% per annum, indicating properties have appreciated slightly faster than the overall economy.
•Current rental yields average 4.5% in city centers and 5.2% in suburbs; however, with interest rates around 6.5%, achieving positive cash flow requires strategic financing.
•Peru's population is growing at 1.5% annually, while housing supply has only increased by 1.2% per year, leading to a supply-demand imbalance favoring property owners.
•The tax burden on property transactions, including transfer taxes and capital gains, can reduce gross returns by up to 15%, necessitating careful financial planning.

Market Trends

Historical patterns

•Rapid urbanization with over 75% of the population now living in urban areas, increasing demand for housing in cities.
•Increasing interest in sustainable and green building practices, driven by consumer preference and potential regulatory incentives.
•Government initiatives aimed at improving housing affordability, which may impact property values and rental dynamics.

For Investors

Actionable takeaways

•Consider investing in suburban areas where rental yields are higher and property prices are more accessible.
•Monitor interest rate trends closely, as rising rates could impact financing costs and rental profitability.
•Family-sized units and luxury properties in prime urban locations are currently the best property types, balancing demand and price appreciation.
•Given current economic conditions and market dynamics, waiting for potential price corrections in the next 6-12 months before buying may be advantageous.

Market Context

Compared to other emerging markets in South America, Peru offers a relatively stable economic environment with consistent property appreciation. However, it faces competition from markets like Colombia and Chile, where regulatory frameworks and foreign ownership laws may offer different advantages.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.