Articles
The impact of the pandemic on the real estate market in Peru
Analyzing how the Covid-19 crisis has affected property prices and demand in the country and the current contrast
The COVID-19 pandemic has had a profound impact on various economic sectors worldwide, and the real estate market in Peru has been no exception. The health crisis has significantly affected property prices and demand in the country, creating a noticeable contrast with the situation before the pandemic.
One of the first visible effects was the slowdown in real estate market activity, especially during the initial months of the pandemic. Mobility restrictions and economic uncertainty led to a decrease in property buying and selling. Real estate developers were forced to halt projects or reevaluate their investment strategies, contributing to a decline in new home construction.
Property prices also experienced significant fluctuations. At the onset of the pandemic, there was a downward trend in rental and home sale prices, as many people postponed their buying decisions and moved to more affordable locations or reduced their expenses. However, as economic stimulus measures were implemented and vaccination progress was made, a gradual recovery in property prices began to be noticed.
The demand for properties in Peru has also been affected diversely. While high-value housing segments experienced a reduction in demand due to economic uncertainty, more affordable properties and those intended for short-term rentals, such as tourist apartments, saw an increase in demand as restrictions eased and mobility resumed.
Another significant factor in the real estate market has been the growing interest in homes with suitable spaces for remote work. The pandemic drove the adoption of remote work, leading to a growing demand for properties with home offices and recreational areas within the home.
As the health situation stabilizes, and the economy gradually recovers, the real estate market in Peru is experiencing a contrast compared to the early days of the pandemic. Prices have stabilized and, in some cases, have begun to rise, especially in urban and tourist areas. The demand for housing has resumed growth, driven by the need for suitable spaces for remote work and a return to normalcy as much as possible.
