2023-12-15 04:40:00
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 would take the owner to recover his investment.
The profitability rate shows the relationship between the purchase price of the property over the income from its annual rental.
Currently, the average annual profitability rate in Lima is 4.82%, according to the latest report from the Urbania portal, with data as of October 2023.
That is, when renting, each year 4.82% of the value invested in the purchase of the home is recovered. This implies that 20.8 years of rent are needed to repay the investment of purchasing a property.
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But that is the average data for Lima. For a more detailed analysis, the Urbania report shows that Lima Cercado (5.8%), Surquillo (5.5%) and Magdalena del Mar (5.5%) are the districts of the capital where the highest profitability is recorded for the purchase and subsequent rental of a property (see table).
Source: Urbania, report for the month of October 2023.
However, as sales and rental prices are not homogeneous in a district, the Urbania report also zooms in on the interior of each district to show the areas with the highest profitability.
Thus, the report shows that the Costanera area, in San Miguel, is the most profitable in Lima (6.2%). In this area, the investment in the purchase of a property is recovered in 16.1 years of rent.
In this regard, Humberto Marín, Commercial Manager of the Urbana Perú real estate company, said that the attraction of the Costanera – and the Malecón Bertolotto area, also located in San Miguel, next to the Costanera and before reaching Magdalena – is that It offers the possibility of living in an apartment with an ocean view, at a lower cost than it would mean to purchase a home in Magdalena, San Isidro or Miraflores.
“San Miguel is one of the last districts with a boardwalk, to develop buildings with ocean views. Demand has grown and that is why new projects are also being developed,” highlighted Marín, from Urbana Perú, a real estate agency that also has a project on the Costanera.
The executive says that around 20 real estate projects have already been built in these areas. And it is estimated that in the short term another 20 projects will be built, regarding 15 on the Costanera, and the other 5 on the Malecón Bertolotto. They are projects for buildings with 14 to 17 floors.
In second and third place in profitability are the areas of Lima Sur and Chorrillos Este, both with a rate of 6.1%. In these cases the investment is recovered in 16.3 years. Lima Sur is located in the Cercado de Lima, it is a quadrant whose limits are Parque de las Aguas, Arenales and Vía Expresa avenues, and the district of Lince.
In contrast, the San Isidro Sur area is the least profitable (3.4%). There, 29.4 years of rental are required to recover the investment (see table).
Source: Urbania, report for the month of October 2023.
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Other attractive areas to invest in the purchase and rental of a property are those located near the business center of San Isidro and Miraflores, indicated Lizbeth Franco, general manager of Life Inmobiliaria.
“With the complete return to in-person presence, the demand for rentals is growing. Especially in the areas close to the business area, since the tickets are smaller, and therefore more accessible,” Franco noted.
Source: Urbania, report for the month of October 2023.
Source: Urbania, report for the month of October 2023.
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