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Residential Real Estate Leases - Peru

Peru

In Peru, the revenue of the Residential Real Estate Leases market market is forecasted to reach US$16.52bn by 2024.
Apartment Leases holds the largest market share, with a projected market volume of US$8.74bn in 2024.
Over the period of 2024 to 2029, the revenue is anticipated to exhibit a compound annual growth rate (CAGR) of 6.32%, leading to a market volume of US$22.44bn by 2029.
Peru's residential real estate lease market is experiencing a surge in demand due to the country's growing economy and increasing urbanization.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Peru is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in customer preferences towards renting rather than buying properties. This can be attributed to several factors, including changing lifestyles, a desire for flexibility, and the increasing cost of purchasing a home. Renting allows individuals to have more mobility and freedom to move to different locations as their needs change. Additionally, renting provides a more affordable option for those who may not have the financial means to purchase a property.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Peru is the increasing demand for rental properties in urban areas. As the population continues to grow and urbanization accelerates, there is a higher demand for housing in cities. This has led to a rise in the construction of apartment buildings and condominiums, which are primarily targeted towards the rental market. The availability of rental properties in urban areas provides individuals with convenient access to amenities, transportation, and job opportunities. Another trend in the market is the emergence of co-living spaces. Co-living is a housing concept where individuals rent a private room within a shared living space. This trend has gained popularity among young professionals and students who are looking for affordable housing options that also offer a sense of community. Co-living spaces often provide shared facilities such as kitchens, living areas, and social spaces, creating a more communal living experience.

Local special circumstances: Peru has experienced steady economic growth in recent years, which has contributed to an increase in disposable income and improved living standards. This has resulted in a growing middle class with higher purchasing power. As a result, more individuals are able to afford rental properties and are choosing to rent rather than buy.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the Residential Real Estate Leases market in Peru. The country's stable economy and low inflation rate have created a favorable environment for investment in real estate. Additionally, the government has implemented policies to promote the development of the housing sector, including tax incentives for real estate developers and the introduction of mortgage financing programs. These factors have attracted both domestic and foreign investors, leading to increased construction activity and the expansion of the rental market. In conclusion, the Residential Real Estate Leases market in Peru is experiencing growth and development due to changing customer preferences, urbanization trends, and favorable macroeconomic factors. The increasing demand for rental properties in urban areas, the emergence of co-living spaces, and the country's stable economy are all contributing to the expansion of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.