Paz Centenario released on May 5 new insights into the short-term rental market in Lima, highlighting trends for investors considering properties for platforms like Airbnb and Booking.
The report outlines how Lima has become a leading tourist destination in South America, which has driven significant demand for short-term rentals. For real estate investors, this means there are opportunities to achieve higher returns compared to traditional long-term leases. However, competition is increasing and not all districts perform equally well.
According to Paz Centenario, there are more than 14,000 active vacation rental properties in Lima. The typical property is booked about 201 nights per year with a median occupancy rate of 55% and an average daily rate of $46. This results in an average annual income of around $9,000 per property. “Miraflores remains a solid bet for those prioritizing high occupancy and capital appreciation,” the report says, but it also notes that growing supply is putting downward pressure on nightly rates. Barranco stands out as offering a better balance between purchase price and return on investment due to less saturation.
Other districts such as San Isidro attract business travelers with some of the highest nightly rates in the city but represent only about 15% of Airbnb bookings. Santa Beatriz offers some of the highest gross yields at approximately 7.3%, while historic central areas provide competitive returns if properties are well maintained. Santiago de Surco appeals to families staying longer periods but generally sees lower occupancy rates than prime districts.
Paz Centenario highlights that operational factors—such as professional photography, modern furnishings, review management, dynamic pricing strategies, and fast response times—can significantly impact profitability for hosts using platforms like Airbnb or Booking.according to the official website.
The company also points out that between 25,000 and 35,000 new apartments are built annually in metropolitan Lima—with up to 40% located in areas attractive for temporary rentals—which increases competition among hosts. Many successful owners now turn to professional property management firms who charge between 15%–25% of gross income but handle guest communication and maintenance tasks.according to the official website.
Paz Centenario operates within Peru’s real estate sector by providing listings for apartments, houses and offices available for rent or sale along with informational content related to property sales and legal matters.according to the official website
