Legal Restrictions on Property Ownership by Foreign Nationals in Peru
There are no restrictions on property ownership by foreign nationals in Peru. According to Peruvian law, foreign nationals have the same rights as Peruvian citizens to own and purchase property in the country. This includes both residential and commercial properties.
Average Property Prices in Peru
The average property prices in Peru vary depending on the location and type of property. In the capital city of Lima, the average price for a two-bedroom apartment is approximately US$200,000, while in other popular cities such as Arequipa and Trujillo, the average price is around US$100,000.
The prices of properties also vary based on their location. Properties in the city center and popular tourist destinations tend to be more expensive than those in less densely populated areas.
Popular Locations to Buy Property in Peru
Lima is one of the most popular locations for foreign nationals to buy property in Peru, due to its diverse range of properties, stable economy and growing tourism industry. The district of San Isidro and the surrounding areas are some of the most sought-after residential areas in Lima, known for their upscale properties and high-end amenities.
Another popular location for property purchases in Peru is Cusco, a city known for its rich cultural heritage and growing tourism industry. Properties in Cusco range from traditional colonial-style homes to modern apartments, making it a popular choice for both retirees and young professionals.
New Upcoming Areas in Peru
In recent years, there has been growing interest in coastal cities such as M√°ncora and Piura, which offer a relaxed lifestyle, beautiful beaches, and increasing tourism and real estate development. M√°ncora in particular has seen significant growth in both property prices and demand in recent years, and is attracting foreign investors looking for a more laid-back lifestyle.
New Trends in the Property Market in Peru
There is a growing trend towards sustainable and eco-friendly living in Peru, with a growing demand for properties that are energy-efficient and environmentally friendly. This is particularly true in coastal cities like M√°ncora, where there is a growing demand for properties that are designed with nature in mind and offer easy access to the beach and surrounding natural landscapes.
Another trend in the Peruvian property market is the increasing popularity of co-living spaces, where residents share common spaces such as kitchens, living rooms and outdoor areas. This trend is particularly popular among young professionals and students, and offers a more affordable and social housing option.
Is Buying Property a Good Investment in Peru?
Buying property in Peru can be a good investment, especially for those looking for a second home or investment property in a growing tourism destination. The property market in Peru has been steadily growing in recent years, and is expected to continue to grow in the coming years, making it a good investment for those looking for long-term growth.
Common Property Types in Peru
In Peru, the most common property types include apartments, townhouses, and single-family homes. Apartments are the most popular type of property in Lima, while single-family homes are more popular in coastal cities and rural areas. In recent years, there has been a growing demand for luxury villas and eco-friendly properties, particularly in popular coastal destinations like M√°ncora.
Typical House Buying Procedure in Peru
Conduct due diligence: Before making an offer, it is advisable to conduct a thorough due diligence of the property, including a property title search, a property survey, and an inspection.
Make an offer: Once you are satisfied with the results of your due diligence, you can make an offer to the seller through a real estate agent or directly.
Sign a contract: If the seller accepts your offer, you will sign a Purchase and Sale Agreement (Contrato de Compraventa), which outlines the terms of the sale, including the purchase price, the closing date, and any contingencies.
Obtain financing: If you need to finance the purchase, you should apply for a mortgage or other loan and have the necessary funds available to close the sale.
Close the sale: The sale is typically closed in the presence of a Notary Public (Notario), who will verify the signatures on the contract and ensure that the transfer of ownership is registered in the Property Register (Registro de Propiedad).
Pay taxes: After the sale is closed, you will need to pay transfer taxes and other fees associated with the transfer of ownership.
Finding a Reputable Lawyer in Peru
Ask for recommendations: You can ask friends, family, or colleagues for recommendations of lawyers who have experience with property purchases in Peru.
Check credentials: You can also check the credentials of potential lawyers by searching for them on the website of the Peruvian Bar Association (Colegio de Abogados de Perú).
Contact the lawyer: Once you have identified a potential lawyer, you can contact them to discuss your needs and determine whether they are the right fit for your situation.
Ask about fees: You should also ask about the lawyer’s fees and whether they charge an hourly rate or a flat fee.
Lawyers in Peru do not need to be members of a particular professional organization, but the Peruvian Bar Association is a reputable source for finding qualified lawyers.
Pitfalls and Problems
Lack of knowledge: Expats may be unfamiliar with the local laws, customs, and procedures involved in purchasing property in Peru, which can lead to misunderstandings and difficulties.
Title issues: There may be issues with the title of the property, such as outstanding liens or encumbrances, which can complicate the process of purchasing the property.
Fraud: There have been instances of fraud in the Peruvian real estate market, including the sale of properties that do not actually exist or that are subject to outstanding debts.
Inefficient bureaucracy: The bureaucracy involved in transferring ownership of property in Peru can be slow and inefficient, which can delay the closing of the sale.
Purchasing Property Through a Company in Peru
It is possible to purchase property through a company in Peru. In fact, many expats prefer to purchase property through a company in order to protect their assets and reduce their tax liability. However, it is important to seek the advice of a qualified lawyer before making a decision to purchase property through a company in Peru.
