Three districts where investment in rental property recovers the fastest | Mortgage Loans | Banks | Rates | Price per m2 | Your money

There are two indicators that reflect the profitability of investing in the purchase of a property for rental purposes: the annual rate of return and the time it takes the owner to recover his investment.

The profit ratio shows the relationship between the purchase price of the property over its annual rental income.

Currently, as of October 2023, the average annual profit rate in Lima is 4.82%, according to the latest report by the Urbania portal.

That is, 4.82% per annum will be invested in buying a home, while renting. This implies that 20.8 years of rent is required to pay back the investment to purchase a property.

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But this is the average data for Lima. For a more detailed analysis, the Urbania report shows that the districts of the capital are Lima Cercato (5.8%), Surquillo (5.5%) and Magdalena del Mar (5.5%). A property (see table).

However, because sales and rental prices are not the same in a district, the Urbania report zooms in on the interior of each district to show the most profitable areas.

Thus, the report shows The Costanera area in San Miguel is the most profitable in Lima (6.2%).. In this area, investment in buying a property Reclaimed on 16.1 year lease.

In this regard, Humberto Marin, commercial manager of Urbana Peru Real Estate, the attraction of Costanera and the Malecon Bertolotto area, located next to Costanera, before reaching Magdalena, in San Miguel – offers. An opportunity to live in an apartment with an ocean view for less than buying a house in Magdalena, San Isidro or Miraflores.

“San Miguel is one of the last districts with a boardwalk to build buildings with sea views. The demand has increased, and that’s why new projects are being created,” highlighted Marin from Urbana Peru, a real estate agency that has a project in Costanera.

According to the executive, around 20 real estate projects have already been built in these areas. It is estimated that another 20 projects will be built in the short term, around 15 in Costanera and another 5 in Malecon Bertolotto. They are plans for 14 to 17 storey buildings.

are second and third in profitability Lima Sur and Chorrillos este regions, both at 6.1%. In these cases the investment is recovered in 16.3 years. Lima Sur is located in Cercato de Lima, bordered by Parque de las Aguas, Arenales and Via Expressa avenues and the district of Linz.

In contrast, the San Ysidro Sur area is less profitable (3.4%). There, 29.4 years of rent is required to recover the investment (see table).

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Lisbeth Franco, general manager of Life Inmobiliaria, pointed out that other attractive areas for investing in buying and renting a property are located near the commercial center of San Isidro and Miraflores.

“As people fully return to stock, the demand for rentals is increasing. Especially in areas near commercial areas, tickets are smaller and more accessible,” noted Franco.