Lima, Peru – The real estate market in Metropolitan Lima experienced a significant surge in 2024, closing the year with an impressive 30% growth, according to the Association of Real Estate Companies of Peru (ASEI). This remarkable expansion translates to over 4,900 new homes added to the market compared to the previous year, culminating in a total of 21,479 units sold.
The ASEI report highlights a key indicator of market health: the absorption rate. This metric, which measures the proportion of sold units against available stock, saw a 0.4 percentage point increase, reaching 2.8% in 2024. "This demonstrates the market's improved capacity to absorb available supply and reinforces a climate of confidence for both buyers and investors," stated Ana Cecilia Gálvez, ASEI's general manager.
Several factors contributed to this positive trajectory. Expanded access to mortgage loans, fueled by lower interest rates and a 5% annual increase in credit availability (as reported by the Central Reserve Bank), played a crucial role. Additionally, a stronger alignment between market supply and consumer needs further propelled the market's growth.
Gálvez emphasized that the year's end demand not only surpassed industry expectations but also reflected a robust and dynamic market. Consumer confidence, a diversified supply, and favorable macroeconomic conditions all contributed to this positive performance. The recovery of formal employment also proved significant, expanding the pool of potential homebuyers eligible for mortgage loans.
Market Trends
Demand was primarily concentrated in the Modern Lima, Top Lima, and Central Lima segments, accounting for 86% of total units sold. A notable trend towards smaller, more compact homes also emerged. The average apartment size decreased from 76 m² in 2020 to 65 m² in 2024, resulting in a 4.4% reduction in the average purchase price, settling at 447,590 soles. This shift reflects the industry's response to buyers seeking more functional and affordable options.
Despite the growing popularity of smaller units, the market also witnessed significant activity in the high-value segment, with properties exceeding 479,300 soles. This diverse demand pattern signifies a maturing market with opportunities for various buyer profiles.
2024 Launches and Future Projections
In terms of supply, Metropolitan Lima closed the year with 41,905 available units, valued at over 20,671 million soles. Modern Lima, Top Lima, and Central Lima continued to dominate, accounting for 90% of the available supply. Districts like Miraflores, Cercado de Lima, Jesús María, San Miguel, and Santiago de Surco emerged as key real estate hubs, boasting the highest concentration of new home offerings.
The year also witnessed a surge in new project launches, with 238 projects introduced in 2024, a 14% increase from the previous year. This influx added 23,002 units to the market, backed by a 10,524 million soles investment, reflecting a 10% year-on-year growth.
Looking ahead to 2025, Gálvez anticipates continued market dynamism, driven by new developments in strategic areas. The real estate sector is poised to solidify its position as a key pillar of the national economy. However, she cautioned that factors like changes in housing policies, mortgage interest rates, and consumer confidence will play crucial roles in shaping the market's trajectory. The industry's ability to adapt to evolving consumer preferences and maintain healthy competition will also be vital for attracting buyers and sustaining growth.
This robust performance in 2024 positions Lima's real estate market for continued success in the coming year, offering promising opportunities for both buyers and investors.
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