Rental prices in 12 Lima districts have increased over the last 12 months, outpacing the current rate of inflation, according to a report from Urbania. The most significant price hikes were recorded in Jesús María at 11.6% and San Isidro at 9.5%, driven by high demand for residential living and limited rental supply.
Which Lima districts have the highest rental costs?
For 100m2 apartments, Barranco currently holds the highest average monthly rent at S/ 4,317, followed by San Isidro at S/ 4,213. Lince and La Victoria also rank among the districts with the highest rental prices.
In contrast, the average monthly rent for a 60m2 apartment with two bedrooms across Lima is S/ 2,200, according to Urbania.
Why are rents rising in Jesús María and San Isidro?
The 11.6% price surge in Jesús María is linked to a rise in demand. Luciano Barredo, marketing manager at Urbania, stated that many new projects have been delivered since last year, attracting significant interest from buyers. Carlos Vourakis, project manager at DMayo Real Estate, added that demand from residents looking to live in the area is outpacing the available supply.
Vourakis explained that high sale prices in Jesús María make the district less profitable for rental investors. This lack of investment interest results in a smaller pool of available rental properties, which further drives up prices for residents.
In San Isidro, prices increased by 9.5%. Vourakis attributed this trend to the district’s status as a financial center, which maintains high demand from people wanting to live near their workplaces, even though there are not many new development projects currently in progress.
Why are rental prices falling in Cercado de Lima?
Cercado de Lima reported a 4% reduction in rental prices over the last 12 months. Barredo noted that demand has dropped as residents migrate to districts such as Jesús María, Lince, or San Miguel to access better services, more green areas, or closer proximity to work.
Because of this migration, property owners in Cercado de Lima have attempted to reduce prices to attract new tenants.
What is the expected trend for rental prices?
Regarding future market conditions, Vourakis estimated that the upward price trend in Jesús María and San Isidro may continue in the coming months.
Frequently Asked Questions
Which districts saw the largest rent increases in the last year?
Jesús María saw an 11.6% increase and San Isidro saw a 9.5% increase.
Why is the rental supply low in Jesús María?
High sale prices make the area less profitable for investors, leading to a smaller supply of available rentals for those looking to live there.
What is causing the decline in Cercado de Lima’s rental prices?
A migration of residents toward districts like Jesús María, Lince, or San Miguel for better services and green spaces has decreased demand.
How do these shifting rental trends impact your housing decisions?