The rental market in Peru

In recent years, the housing rental market in Peru has undergone significant changes that have affected both landlords and tenants. These trends reflect the country`s economic and social evolution, as well as the changing preferences of the population.

One of the most notable trends is the increase in demand for housing rentals in urban areas, especially in Lima, the country`s capital. This is partly due to the growing migration of people from rural areas to cities in search of employment opportunities and better living conditions. As a result, the supply of rental housing has not always been able to keep pace with demand, leading to rising rental prices.

For landlords, this has been beneficial as they have been able to achieve a higher return on investment by renting their properties at higher prices. However, for tenants, especially those with limited incomes, this has raised concerns about housing affordability. Many have had to allocate a significant portion of their monthly incomes to rent, leading to increased economic pressure.

Another significant trend is the increase in formalization in the rental market. Previously, many rental transactions were conducted informally, leaving tenants with little legal protection. However, the Peruvian government has implemented measures to promote formalization, providing tenants with a greater degree of security and stability in their rental contracts.

On the other hand, landlords have also experienced increased legal security and greater ease in enforcing the terms of rental contracts. This has led to greater confidence in the rental market and attracted more investors to invest in properties for rent.

In summary, the rental market in Peru is experiencing notable changes in terms of demand, prices, and formalization. These trends have a significant impact on both landlords and tenants, and it is important for both parties to be informed and adapt to this evolving market.