Published on and written by Cyril Jarnias
Peru’s vacation rental market has established itself within just a few years as one of the most dynamic segments in Latin American tourism. Between Airbnb’s growth, the rise of digital nomads, the expansion of Lima, and iconic regions like Cusco or the northern coast, the country now offers a particularly interesting playing field for both investors and local property owners looking to optimize their assets.
Over 50,000 vacation homes are now listed on specialized platforms across Peru.
A National Market in Full Acceleration
Peru is benefiting from a major trend: worldwide, travelers are increasingly favoring short-term rentals, perceived as more authentic and often more economical than hotels. The country is following this movement, but with a major advantage: a tourist base in strong recovery and a still moderate cost of living.
Data platforms reveal that tourist rentals (alquileres temporales) have become a pillar of Peruvian tourism. In 2023, this sector generated several million dollars in tax revenue for the state and boosted local economies, from affluent neighborhoods in Lima to villages in the Sacred Valley.
On the supply side, the volume is impressive: over 48,000 vacation rentals listed by some aggregators, and 50,000+ accommodations available for booking according to other sources, across all platforms. Nearly half are apartments, but there are also houses, villas, bungalows, cabins, homestay rooms, and even lodges in the Amazon or beachfront houses with private pools.
Attractive Prices for Travelers… and Interesting for Owners
Comparison platforms like KAYAK or HomeToGo place the average price for a week’s vacation rental in Peru around $546, and for a month’s stay at around $2,341. These rentals are said to be on average 74% cheaper than hotels, explaining their popularity with backpackers and families alike.
Maximum gross yield of a vacation rental property in Lima, exceeding the national average of 6%.
Lima, the Engine of Vacation Rentals
With over 11 million inhabitants and its role as an international gateway, the capital naturally concentrates the largest share of rental activity. The numbers speak for themselves.
The Metropolitan Market: Critical Mass and Solid Yields
According to AirROI data for the Lima metropolitan area, there are approximately 13,000 short-term rental properties, with an average monthly income of $529, a daily rate around $62, and an occupancy rate of about 41%. Other sources (Airbtics) mention over 14,000 active Airbnb listings, a median occupancy rate of 55%, and annual revenues on the order of $9,000 per property.
The profile of the inventory is very clear: the majority of listings are entire homes (over 80%), and apartments/condos represent over 80% of the stock. One- or two-bedroom properties dominate by far, accounting for nearly two-thirds of listings, which matches the demand from a clientele of couples, small groups, and business travelers.
Here is a summary overview of Lima’s performance:
| Indicator (Metropolitan Lima) | Approximate Value |
|---|---|
| Number of active properties | 13,000 – 14,000 |
| Average monthly revenue | ~$529 |
| Average annual revenue (Airbtics) | ~$9,000 |
| Average daily rate (ADR) | $46 – $62 |
| Average/Median occupancy rate | 41 – 55 % |
| Average gross yield (Lima) | 6.45 % |
| Share of entire homes | ≈ 82 % |
| Share of apartments/condos | ≈ 81.8 % |
| Share of 1 and 2 bedroom units | ≈ 63 % |
Seasonally, Lima’s market is surprisingly stable: the variation between high and low season is described as “limited.” According to AirROI, the most lucrative period is around February, while November is the weakest month. Average monthly revenues nevertheless fluctuate between $675 and just over $1,000 depending on the season, with occupancy rates ranging from 36% to over 50%.
A Young, International, and Connected Clientele Profile
Lima attracts both domestic and foreign travelers. Approximately 37% of guests are Peruvian, while the primary foreign market remains the United States, accounting for nearly a quarter of visitors. The dominant languages among travelers are Spanish (around 41%) and English (close to 38%).
A notable fact in Lima is that half of the guests belong to the post-2000 generation (Gen Z / Alpha). This connected and demanding clientele looks for reliable Wi-Fi, suitable workspaces, but also more original lodging experiences than a standard hotel. This profile explains the rise of design studios and lofts in creative neighborhoods like Barranco, or apartments with premium amenities (pool, gym, coworking) in new residences in Miraflores or San Isidro.
Miraflores, Barranco, San Isidro: The ‘First League’ Neighborhoods
Beyond the metropolitan average, some areas clearly stand out for their performance.
Average gross monthly revenue per property in Miraflores, with an occupancy rate of about 65% and an average nightly rate of $47.
Barranco, the neighboring bohemian district, comes right after in terms of profitability. Studios and lofts there have rates between $40 and $65 per night, with an occupancy rate nearing 60%. The typical gross monthly revenue ranges between $700 and $900, with net yields of 4 to 5%. Seasonality is a bit more pronounced here (15 to 20% variation) and demand peaks between December and April, driven by a young clientele passionate about art, gastronomy, and nightlife.
San Isidro, Lima’s financial heart, positions itself in the high-end segment. Nightly rates are negotiated around $50 and above, with an occupancy rate exceeding 60%, monthly revenues over $1,000, and net yields between 3.5% and 5%. The neighborhood mainly attracts business travelers, with a peak in traffic between January and March and moderate seasonality.
San Miguel illustrates the potential of emerging markets with more accessible purchase prices. An average nightly rate of about $37, combined with an occupancy rate of about 50%, generates a gross monthly revenue of about $670. This allows for net yields of 3 to 4%. The high season corresponds to the Southern Hemisphere summer months, from January to March.
The contrast between neighborhoods can be summarized as follows:
| Neighborhood | Avg. Nightly Rate | Occupancy | Gross Monthly Revenue | Estimated Net Yield | Seasonality |
|---|---|---|---|---|---|
| Miraflores | ~$47 | ~65% | ~$905 | 3.5 – 5 % | Low |
| Barranco | $40 – $65 | ~60% | $700 – $900 | 4 – 5 % | Moderate |
| San Isidro | $50 and up | >60% | >$1,000 | 3.5 – 5 % | Limited |
| San Miguel | ~$37 | ~50% | ~$670 | 3 – 4 % | Moderate |
| Lima Average | ~$42 | ~54% | ~$728 | 3.5 – 4.5 % | Moderate |
For an investor, these disparities suggest differentiated strategies: target Miraflores or San Isidro for premium properties and a “business” or international clientele; bet on Barranco to maximize revenue per square meter through design studios; or position oneself in developing neighborhoods like San Miguel, where the potential for real estate price appreciation remains significant.
The Coastal Exception: Asia and the Beach High Season
On Lima’s southern coast, the resort town of Asia is a unique case. Beach villas and houses there have spectacular rates during the summer high season, with an average price around $175 per night, and over $3,900 in gross monthly revenue during peak periods. Net yields there typically range from 4 to 6%, but at the cost of extreme seasonality: revenue variations between summer and the rest of the year can reach 60 to 70%.
This type of investment is suited for profiles capable of absorbing strong seasonal fluctuations, betting on very well-positioned products (ocean view, pool, direct beach access) and fine-tuned pricing management.
Cusco and Sacred Valley: The Strength of Cultural Tourism
While Lima dominates in volume, Cusco remains the other pillar of Peruvian tourism. The gateway to the Sacred Valley and Machu Picchu, the city captures the majority of foreign tourist flows interested in Andean heritage.
A Contrasted but Highly Visited Market
Available data paint a nuanced picture. Approximately 3,900 active Airbnb listings are in Cusco, with an occupancy rate in the 45-55% range and typical monthly revenues between $500 and $700 depending on the area. Over a year, a short-term rental there is booked for about 190 to 200 nights, with an average daily rate around $30 to $32.
In terms of continental comparison, Cusco ranks among the markets with the lowest rates in South America (in the lowest 4% for nightly price and the lowest 12% for revenue), but compensates with its occupancy rate, which is in the top quartile. In short: prices are modest, but demand is steady and the calendar fills up well.
The net yields of real estate investments, generally between 2.5% and 4%, are lower than those in Lima. This difference is explained by rental levels, fixed costs (maintenance and management fees in a mass tourism context), and more pronounced seasonality, with a marked peak in July and a low in February.
The Structure of the Cusco Market
Detailed analyses of the urban area of Cusco show a market of over 2,000 active listings, where about 62% are entire homes, mostly apartments or condos. One-bedroom properties account for nearly 40% of offers, and 1-2 bedroom units total over 60% of the inventory. The most common capacity is for two people.
Most properties are available almost year-round (nearly half of listings are open for more than 270 days a year), with a minimum stay very often set at one night. The most common cancellation policy is the “flexible” formula, and the average booking lead time is around 32 days.
Nearly 86% of the clientele is foreign, with Peru and the United States as the main markets.
Submarkets of the Region: Cusco, Sacred Valley, and Villages
Within the city itself, neighborhoods like Wanchaq or Santiago concentrate several hundred listings, with average annual revenues around $5,300 to $5,500 for a daily rate around $30 and an occupancy rate near 48-49%. The yields are not spectacular, but demand remains constant.
In the Sacred Valley, towns like Calca, Urubamba, Pisac, or Huayllabamba offer a different profile. Calca, for example, combines a daily rate of about $68, monthly revenues around $699, and occupancy of about 33%. Huayllabamba, a smaller market, shows nearly $1,183 in monthly revenue with an occupancy rate of 31% and a daily rate around $139, betting on a more premium offer (lodges, country houses, rural retreats).
This panorama can be summarized as follows:
| Market (Cusco & region) | Active Properties | Average Monthly Revenue | Avg. Daily Rate | Occupancy Rate |
|---|---|---|---|---|
| Distrito de Cusco | 2,141 – 2,279 | ~$403 – $423 | ~$38 – $39 | ~42 – 54 % |
| Wanchaq | ~576 – 695 | ~$325 – $445 (month) | ~$30 – $35 | ~48 – 40 % |
| Santiago | ~639 | ~$5,456 (year) | ~$30 | ~49 % |
| Calca (Cusco region) | 64 – 109 | ~$699 (month) | ~$68 – $106 | ~33 – 39 % |
| Huayllabamba | 50 | ~$1,183 (month) | ~$139 | ~31 % |
| Urubamba | 235 | ~$549 (month) | ~$85 | ~27 % |
| Pisac | 180 | ~$368 (month) | ~$43 | ~34 % |
The lesson for an investor is clear: in Cusco, the strategy is not always to chase the highest gross yield, but to bet on the stability of international demand, a robust occupancy rate, and, in the Sacred Valley, on niche products (country houses, nature retreats, eco-responsible lodges) that can command a significant premium.
Northern Coast, Provinces, and Niche Markets: The New Frontiers
Beyond the Lima-Cusco duo, many regional markets stand out for their performance, often driven by beach or nature tourism.
Máncora, Los Órganos and the North Coast: Low Occupancy, High Cash
AirROI data places Máncora, on the north coast, among the country’s most lucrative markets in terms of average monthly revenue: over $1,100 per property, for a daily rate of nearly $154 and an occupancy rate around 28%. The neighboring village of Los Órganos follows very closely, with over $1,120 in monthly revenue, a daily rate of about $179, and occupancy of 27%.
In this destination, vacation rentals, although expensive per night and not occupied year-round, generate high monthly revenues thanks to the combination of price and occupancy rate. This profitability is particularly marked for beach houses, villas with private pools, and charming seaside bungalows.
Asia, on the south coast, presents a similar profile but with an even higher daily rate, close to $195, for an average monthly revenue of about $786 and an occupancy rate of 24-25% over the year. Here too, dependence on the beach high season is very strong.
| Coastal Market | Properties | Avg. Monthly Revenue | Avg. ADR | Occupancy |
|---|---|---|---|---|
| Máncora | 384 | ~$1,138 | ~$153.86 | ~28 % |
| Los Órganos | 354 | ~$1,128 | ~$178.76 | ~27 % |
| Asia (national) | 371 | ~$786 | ~$195.32 | ~25 % |
These figures illustrate a classic trade-off: an investor who accepts strong seasonality and more complex management (variable pricing, intensive marketing in high season) can obtain monthly revenues far higher than those of a more “quiet” urban apartment.
Other Provinces: Arequipa, Ica, Trujillo and Beyond
Among the 100 markets ranked by AirROI, several regional cities stand out:
Overview of rental performance in three key Peruvian cities, including the number of properties, average revenues, daily rates, and occupancy rates.
Country’s second city. Over 600 properties. Average monthly revenue: ~$295. Daily rate: ~$39. Occupancy rate: 35%.
Gateway to the Huacachina desert and vineyards. Over 400 properties. Average monthly revenue: ~$318. Daily rate: ~$54. Occupancy rate: ~25% (marked seasonality).
On the north coast. About 345 accommodations. Average monthly revenue: ~$196. Daily rate: ~$30. Occupancy rate: 31-32%.
Other small rural or wine markets like El Carmen, Chincha Baja, or Santa Cruz de Flores occasionally show monthly revenues exceeding $1,000, often thanks to very specific properties (country houses, wine estates, high-end weekend bungalows).
Winning Property Types: Small Units, Ocean-View Houses, and Unique Products
Across the entire territory, one trend is confirmed: well-located small units often concentrate the best ratio between occupancy rate, initial investment, and revenue.
One- or two-bedroom apartments dominate the most profitable listings. Studios and lofts in “trendy” areas like Barranco in Lima have rates of $40 to $65 per night and generate a revenue per square meter rarely matched by larger units. Two-bedroom units offer a highly sought-after compromise, attracting both small tourist groups and business travelers, with occupancy rates often exceeding 60%.
Luxury penthouses and 3 to 5 bedroom villas in upscale neighborhoods (Miraflores, San Isidro, Asia, north coast) can generate significant gross revenues, but require a high initial investment and have more unstable occupancy rates. Houses with pools or ocean views in beach areas can rent for $175 a night and more in high season, but experience a very marked drop in activity off-season.
Finally, there is a very promising niche segment: “unique” properties. An apartment with a balcony overlooking the ocean in Miraflores, an eco-responsible country house in the Sacred Valley, a lodge on the edge of the Amazon with Starlink, or a loft in a traditional Barranco house. These properties can legitimately charge a premium of 15 to 25% over the average for their market, provided they offer a truly distinctive experience.
Yields, Expenses, and Taxation: What Stays in the Pocket
The yields announced for the Peruvian market may seem attractive, but they must always be placed in the context of operating expenses and local taxation.
Between 4 and 5% Net in Most Cases
Sector analyses place the typical net yield of a property operated on Airbnb or similar platforms around 4 to 5%, once all management, maintenance, service, and tax costs are deducted. In Lima, gross yields range between 5.97% and 6.45%, but the following must be subtracted:
Detail of the main costs to anticipate for managing a vacation rental, with indicative ranges.
The most significant item, typically representing 15 to 40% of gross revenue, with an average around 25% for a complete professional service.
Variable depending on the property: about $40 to $80/month for a studio, and $120 or more for a house.
Monthly costs usually between $50 and $120.
Recommended annual budget: $300 to $500 for a standard apartment, higher for a house or property with a pool.
Essential to cover the specifics and risks of frequent short-term rentals.
After these deductions, a properly managed property in a prime Lima neighborhood or a mature market can reasonably aim for a net yield of 4 to 5%. Some beach or luxury properties may seem to produce more, but their seasonality, maintenance costs, and sometimes a heavier local tax burden, often erode the final profitability.
A Complex Tax Environment, Especially for Foreigners
Peruvian taxation distinguishes several cases. For a resident owner renting out a property outside a professional framework, income from rentals is classified in “first category” and taxed at a rate of 5% on gross rents. If the owner is non-resident, this rate can rise to 10% for this category, but other tax texts also mention a flat-rate withholding of 30% on income of Peruvian source for non-residents, with no possibility of deducting expenses.
For rentals considered a commercial activity, an 18% VAT and a 2% municipal tax apply. Residents must declare their rental income to SUNAT (tax authority) and can deduct justified professional expenses.
Investments are also subject to a property tax (Impuesto Predial), calculated on the cadastral value with progressive rates ranging from 0.2% to 1%, as well as acquisition costs (3% transfer taxes, 3 to 5% agency commissions, lawyer, notary fees, etc.) which bring the total round-trip cost of a real estate transaction into a range of 7.5-10.5% of the price.
For foreign investors, the situation becomes even more complicated, with sometimes double taxation (in the country of origin and in Peru) in the absence of a bilateral tax treaty with certain states, and the obligation, for example for an American, to declare and tax their Peruvian rental income on their federal tax return.
Regulation: Relative Freedom but Signs of Tightening
One of the arguments often put forward for investing in vacation rentals in Peru is the relative permissiveness of national regulations. In fact, the main AirROI market rankings indicate a “low” level of regulation for the 100 markets analyzed, from Lima to Máncora.
A Rather Flexible National Framework
At the national level, short-term rentals are not subject to a specific regime equivalent to that of hotels. To date, there is no generalized licensing requirement or cap on rental nights for listing on Airbnb, Vrbo, or Booking. Most constraints fall under common urban lease law and a few decrees targeting safety, taxation, or immigration control issues.
Property owners must: verify the absence of restrictive clauses in their homeowners association bylaws and loan contracts; comply with safety rules, including mandatory fire insurance in condominiums; declare their income to SUNAT. Furthermore, since December 2024, a decree requires the online registration and transmission of foreign guest data for any accommodation or rental.
Local Counter-Examples: Miraflores and Homeowners Associations
This relative freedom at the national level should not make one forget that some municipalities are experimenting with restrictions. The most emblematic case is that of Miraflores, where a municipal ordinance prohibits the use of homes in residential zones as temporary tourist accommodations. This rule is perceived by many as an attempt to “ban” Airbnb from purely residential areas to protect neighbors’ peace and quiet, although its concrete application and compatibility with property rights are debated.
Homeowners associations can prohibit tourist rentals in apartments through internal regulations. If the clause exists before acquisition, the new owner is deemed to have accepted it. If it is added later, an arbitration is needed between individual property rights and the collective right to regulate the use of private areas, often for security or peace and quiet reasons.
In this context, caution is still advised: before buying a property with the intention of renting it out short-term, it is essential to examine the homeowners association bylaws in detail, seek local legal advice, and verify current municipal policies.
Risks: Saturation, Seasonality, Costs, and Economic Volatility
Even if the overall picture is promising, the Peruvian short-term rental market is not without risks.
First, saturation: in Lima, the rapid growth in the number of listings, especially in “fashionable” neighborhoods, could eventually outpace the growth in tourist demand, leading to downward pressure on occupancy rates and prices. In some tourist villages, field studies have already documented tensions between residents and Airbnb development, with concerns about rising rents, congestion, or safety.
In tourist markets like Cusco or beach areas, revenue variations between high and low season can be extreme, with drops of up to 50%. Rigorous cash flow management is essential to anticipate these fluctuations and secure the investment project’s profitability.
Add to that rising operating costs (cleaning, maintenance, energy) and the country’s macro-economic volatility (GDP growth, inflation, mortgage interest rates around 7.4% in 2025), likely to impact both tourist demand and the cost of real estate financing.
Finally, regulatory risk is very real: even if Peru remains relatively permissive today, the global trend is toward stricter regulation of short-term rentals (caps, licensing requirements, heavier taxes). There is no guarantee that the country will not take this path in the medium term, especially in large cities where housing tensions are increasing.
Long-Term vs. Vacation Rentals: Trade-off Between Stability and Yield
To measure the interest in vacation rentals, one must compare them to the classic alternative of long-term leases.
In Lima, the traditional residential market offers annual yields around 3 to 5%, with average rents for a 100 m² apartment around $850. In prime districts (Miraflores, Barranco, San Isidro), rents for a one-bedroom hover around $737, two-bedrooms around $1,000, and three-bedrooms around $1,450. Rents have increased by about 5% per year for the past five years, and a further increase of 3 to 7% is anticipated for 2026.
The average gross yield of vacation rentals in Lima, outperforming traditional leases.
The choice between long-term and vacation rentals will therefore depend on the investor’s profile (risk appetite, ability to withstand low months), the type of property (a well-located studio lends itself better to vacation rentals than a large family house in the suburbs), and the local market (a very touristy area like Miraflores is more suited than a purely residential neighborhood).
Growing Role of Management Companies and Data
Faced with the operational complexity of vacation rentals (dynamic pricing, multi-platform marketing, customer relations, intensive maintenance, regulatory compliance), many owners are turning to specialized management companies.
Local managers like Premier Casa or Wynwood House manage hundreds of properties in Lima. They offer complete services including lease drafting, distribution across platforms (Airbnb, Booking.com), check-in/check-out management, utility payments, accounting follow-up, and tax optimization. Their fees, generally 20 to 25% of rents, reduce direct profitability but help optimize occupancy rates and prices, saving owners considerable time.
In parallel, the rise of data and pricing tools (AirROI, AirDNA, Pricelabs) is transforming how investors approach this market. Far from buying “blindly,” they now compare the performance of dozens of cities, cross-reference the number of listings, average revenues, occupancy rates, and regulation levels to identify pockets of opportunity.
Conclusion: Real Potential, Provided One is Selective and Informed
The opportunities for vacation rentals in Peru are very real. The country brings together almost all the conditions sought by investors in this sector: a growing tourist destination, a still contained cost of living, affordable real estate prices compared to many capitals, gross yields nearing 6%, and a regulatory framework so far relatively flexible.
Peru’s tourism potential is concentrated in specific areas: Lima (especially Miraflores, Barranco, San Isidro), Cusco and its region, the north coast (Máncora, Los Órganos), and beach resorts like Asia. Each presents strengths but also constraints such as strong seasonality, a risk of saturation, and sensitivity to potential regulatory tightening.
To succeed, an owner or investor must adopt an approach based on data: precisely analyze average revenues, occupancy rates, inventory composition, client profiles, and local rules, rather than being guided solely by tourist intuition. And keep in mind that, behind the announced yields, the key to a successful project remains the same as everywhere else: property quality, management quality, and the ability to offer travelers an experience that is reliable, local, and memorable.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
