Real Estate Market in Perú
The real estate market is one of the most linked to the economy development, and in cities as Lima, that experience a great economic growth, it can pe proved.
If the economy improves, work options increases and among more work options appear, there will be more demand on properties.
Real Estate high demand areas
In the city of Lima, socio-economic areas with high demand on properties are focused mainly on layers A and B; for example, requirements on offices or stores foe rental had increased, mainly those who have a design known as “boutique”, which are smaller and innovative, ideal for medium and small investors.
Houses and lands on sale had decreased considerably in Lima real estate market, because they are acquired by people with greater purchasing power that not only acquire a one kind of houses but also tend to acquire together with the main house a beach house too.
A part of the market that has experienced a greater demand is the apartments sell, due to the increase of young men that are searching for their own house. Particularly, apartments with 1 or 2 rooms.
Real Estate Market: 2018 Trends
One of the aspects that has been more considered on real estate market this last year is the location of the housing. This, because of the traffic theme, one of the biggest problems of the city that generate the population preference on acquiring properties near the commercial areas, universities and schools, in case of having students at home.
Thanks to the new generations that have entered the work market, the quantity of possible housing purchasers has increased and even some show interest for renting houses, taking into consideration the Location of these, the facilities of transportation and the closeness to their jobs.
The areas with greater choice by this younger population segment are: Lince, in limits with San Isidro; Surquillo, by Principal avenue; thearea of Roca y Boloña avenue and the way to Paseo de la Republica, in Miraflores.
There trend will also be set on apartments of only one room, since in previous years there existed a few possibilities on this aspect. These properties must have the following characteristics:
• Must have a room.
• Located in buildings with common areas: to interact and recreate.
• Located in areas with good access to transportation and near to jobs.
In Lima there are many different projects that are considering these demanded characteristics, including other innovations that include LED illumination on the apartments, sensors to permit the saving of energy or natural gas installations.
Real Estate Development during 2018
In comparison with year 2017, This year the selling of properties will have a great recovery because of the impulse to social housing, nevertheless, for the real estate sector to go back on being a profitable business it is necessary to realize greater efforts.
It is expected an increase in social housing and land selling. Nevertheless, another type of properties as offices won’t have much recovery in the market This year, hoping its completely recovery by 2019.
One of the reasonswhich will increase the housing acquisition is because of the giving of grants or subsidies for the housing purchase; for example, the GoodPayer Bond (BBP) that gives facilities to people for accessto a decent housing, favoring the real estate market.
This year 2018, the banking sector makes available to population around 8000 mortgage credits, increasing that way the amount given on 2017. This will convert banking in oneof the partners for the development of real estate market, thanks to the new real estate projects that will arise.
Viability of investing on Real Estate in Lima
Investing on the real estate market in Lima has its advantages, for example, they presentavalue that won’t generate loses because of changes in the country economic level; also its value has less variations before any economic or financial crises. The properties prices increase at the same level in which the inflation does and its value can be increased doing some remodeling orthroughnegotiations.
There are many options for investing in the country, of which people with savings capacity and purchasing power have no idea.
One of the forms that is used to a greater extent is the construction of some properties on land, for later being rented or sold, for which it is necessary to have an extensive knowledge of real estate sector, as well as of legal procedures for these cases.
Another option is to invest on real estate business that have experience but not with funds to develop the project andthat do not wish to request for loans to financial or bank entities. There are many small real estate companies in search for investors in Lima.
In the first option there is guaranteed a fixed payment, while in the second one there is a bit of risk, because the incomes will depend on the success that the project can be.
As we can see it is viable to invest on real estate in Lima, nevertheless we must study well all the possibilities for avoiding a bad Investment experience.