Facing economic uncertainty along with a stagnant real estate market in Chile, Chilean real estate companies are actively redirecting their focus to Peru, where they see potential for significant returns in a dynamic and growing market. Forecasts show Chilean real estate firms will allocate over US$200 million to Peru’s property market by 2025, demonstrating their strategic redirection and trust in the Peruvian economic environment.
This migration of capital represents a clear trend: Chilean real estate companies are seeking to manage risk through diversification while exploring new growth prospects throughout Latin America during their extended domestic crisis. Peru stands out as an attractive destination for investors because of its relative macroeconomic stability combined with growing urban housing demand and favorable investment policies.
Chile’s real estate difficulties drive companies to expand their operations across Latin America
While Peru generates investor optimism, Chile’s real estate sector has faced significant difficulties. The industry suffers from reduced customer demand while construction costs escalate alongside increased regulatory demands and ongoing political unrest. Developers face a challenging market environment, which has led many to review their business models and growth strategies.
Throughout 2024, multiple top Chilean real estate firms experienced a reduction in profits along with unchanging sales figures in Chile. Consumer caution combined with restricted credit access further weakened the market demand for new housing units. These difficulties have led businesses to search for better opportunities beyond their national borders.
Peru: A Booming Market with Strong Fundamentals
Peru has presented an enticing alternative. The Peruvian Association of Real Estate Companies (ASEI) reported that Lima experienced a 30% increase in home sales during the first quarter of 2025 versus the same quarter in 2024. The middle-class expansion, combined with urban development and infrastructure progress, makes districts like Miraflores, San Miguel, Santiago de Surco, Jesús María, and Cercado de Lima central to the escalating surge.
Real estate experts observe that Lima maintains strong appreciation prospects as demand focuses on areas with quality transportation networks and safe services. This momentum has not gone unnoticed. Chilean real estate companies exploit this market development by focusing on the busiest city areas that enable rapid development, followed by sales and reinvestment.
Market Leaders Make Bold Moves
Paz Corp experienced a 123% profit increase from its Peruvian business in 2024, while Chilean earnings fell by 42%. The dramatic differences between regional performances highlight Peru as a dependable source for economic development. Paz Corp allocated US$34 million for Peruvian projects out of its total US$100 million investment plan for 2025. Peru generates 10% of Paz Corp’s profits and 18.5% of its revenue, which is projected to increase as the company continues to expand its operations within the country.
Peru serves as the main component of Besalco’s global expansion strategy. The company moved 159,000 m² in Peru while its Chilean operations sold less than 20,000 m² in 2024. In 2025, Besalco will allocate US$30 million to Peruvian development projects as part of its US$300 million total investment for that year.
The prominent Chilean developer Echeverría Izquierdo is increasing its focus on operations within Peru. The company achieved 40% of its real estate sales in Peru during 2024 while initiating construction on two major commercial developments in Lima. The company intends to strengthen its market position by allocating US$35 million towards commercial and residential projects in 2025.
Chilean real estate firms are rapidly moving into Peru to capitalize on emerging market opportunities
There are multiple important reasons why Chilean real estate companies view Peru as an attractive investment destination.
- Economic Stability: Peru anticipates its economy to expand at a rate above 3% per year until 2026 due to strong support from the mining, trade, and service sectors. The financial stability of Peru draws investors who prioritize secure long-term earnings.
- Rising Urban Demand: The continuous population increase and movement toward urban areas result in escalating housing demands throughout Lima and other cities. Accessible yet modern neighborhoods are seeing increased new home purchases led by middle-income families.
- Regulatory Environment: Peru presents a regulatory and tax framework that stakeholders find simpler and more predictable than Chile’s system. New development permits are processed more rapidly, which helps companies complete projects with greater efficiency.
- Undersupplied Market: Even with its recent expansion, Peru’s housing market continues to face supply shortages. According to government figures, Peru faces a 1.8 million unit housing shortage, which provides developers with significant expansion opportunities.
Looking Beyond Lima: New Opportunities in Secondary Cities
Chilean companies maintain their real estate investment focus in Lima yet seek opportunities within secondary cities, including Arequipa, Trujillo, and Piura. These cities demonstrate increasing trends in population size as well as rising income levels and expanding infrastructure projects. The combination of better connectivity and urban growth makes secondary cities strong prospects for residential and commercial development.
Developers benefit from higher profit margins in these regions because land prices remain low while competition stays weaker than in Lima. The government is channeling funds into regional infrastructure like roads, public transport systems, and utilities to make these cities more appealing for real estate developments.
Strategic Long-Term Positioning in Peru
While Chilean developers have yet to make substantial investments in Peru, these projects represent a clear directional trend in their business strategy. The growing number of successful business ventures in Peru will lead companies to widen their market footprint while developing permanent operations and forming strategic partnerships, along with initiating expansive mixed-use development projects.
The move represents a strategic shift from short-term crisis management to building a long-term market presence abroad. This development approach aims to secure market share through long-term plans in a nation expected to maintain economic and demographic expansion.
Paz Corp investigates multiple real estate avenues, including affordable housing projects and mixed-use developments that integrate retail and residential spaces. Echeverría Izquierdo uses its engineering and commercial construction expertise to focus on high-traffic business corridors in Lima for its upcoming projects. Besalco is developing new suburban projects directed at the expanding upper-middle-class population in Peru.
A Blueprint for Regional Expansion
Major real estate companies moving capital from Chile to Peru demonstrate their belief in the country’s extended potential rather than reacting solely to momentary domestic disturbances. Due to positive demographics, together with stable government and rising demand for contemporary living and business spaces, Peru shows potential to become a major regional hub for real estate investments.
The ongoing expansion of Chilean real estate firms in Peru could establish a model for their future growth throughout Latin America. The successful investment strategy in Peru could lead to more financial opportunities for neighboring nations that exhibit comparable economic and demographic profiles. At present, Peru emerges as the top real estate hotspot in the region, which attracts Chilean developers to its market.