REAL ESTATE INVESTMENT ALTERNATIVES
LIMA, PERU
INDEX
1. Executive Summary ………………………………..…………………………. 3
2. About Us …………………………………………………………….……………… 4
3. Economic Indicators of Peru ………………………………………………. 5
4. Luxury Condo Rental Investment Alternatives …………………… 7
5. Luxury Residential Real Estate Development ……………………… 13
6. Land Banking Investment Alternatives ………………………………. 19
7. Mixed Use Subdivision Real Estate Development ……………… 23
8. Contact Information …………………………………………………………. 30
Executive Summary
Peru is a proven emerging market and it boasts solid
Investment alternatives in real estate.
In the following report one will learn about four diversified,
yet profitable real estate investment alternatives.

Luxury Residential Rentals

Luxury Residential Development Project

Land Banking Opportunities

Mixed Use Subdivision Development Project
About Us
Palo Alto Inmobiliaria is a leading Peruvian real estate developer and brokerage firm.
For 20 years, they have built luxury condominiums in Lima’s most exclusive locations.
The Palo Alto brokerage firm is engaged in real estate transactions in all segments of the
industry, such as residential, commercial and industrial; targeted for individual buyers and
real estate developers.
We have the expertise to help you enter the Peruvian real estate market in any capacity,
from investing in a single property to developing large-scale projects.
Palo Alto Construction – Miraflores, Lima
Palo Alto real estate brokerage – San Isidro, Lima
Economic Indicators of Peru
Latin America is a strategic real estate investment destination. It is rich in natural resources and has a strong
emerging market. None richer than Peru.
Peru boats several of the world’s biggest mining projects and is a world leader in the production of gold,
silver, copper, zinc among others. It also has a large market cap in industries such as agriculture, fisheries,
textiles and energy.
One of the world wonders is located in Peru, Machu Picchu, one of the world’s biggest tourist attraction fuels
a booming tourism industry in Peru.
In the last 20 years, Peru has benefited from political stability and strong economic policies, which have led
to a fast growing middle class. Demand for goods and services has increased demand for residential,
commercial and industrial real estate. As per the Interamerican Development Bank, the Peruvian middle
class has grown fivefold in the last nine years. (1)
Middle Class Growth
Percentage of the Population
2005
2014
Source:
1
http://elcomercio.pe/economia/peru/clase-media-peruana-casi-se-quintuplico-ultima-decada-noticia-1811416
Economic Indicators of Peru
Peru has a housing deficit of 1,800,000 units. Every year 80,000 new units enter the market. The demand
for housing is so drastic due to the poor living standards the majority of the population currently
survives. There is a shortage of commercial and residential real estate in every mayor city of Peru.
The demand has created a booming construction companies in Peru. The largest construction company in
Peru, Graña y Montero, who specializes in massive middle class developments, is currently listed in the
NASDAQ stock exchange in New York, USA.
Construction Boom in Peru
The World Bank forecasts Peru to have the fastest growing GDP growth in the region. (2)
This is thanks to major mining projects that will be in full effect on 2017 and 2018.
Forecasted GDP Growth Percentage
Source:
2
http://datos.bancomundial.org/pais/peru
Luxury Condo Rental Investment Alternatives
City Center, Lima – Peru
Luxury Condo Rental Investment Alternatives
San Isidro, Miraflores, Lima City Center
San Isidro is known as Lima’s most exclusive residential district. San Isidro is home to:



Over 60 world embassies
The financial district where all major banking head offices are located
The business district that features numerous luxury office towers
The three facts are the main driver for a strong rental market in San Isidro.
San Isidro Business District
Miraflores is recognized as Lima’s most exclusive commercial, entertainment and residential district.
Miraflores feature the following:
 Several luxury hotels
 Highly desirable tourist attractions such as shopping, restaurants and nightlife
 The Malecon, a 20km seawall filled with public parks and amazing ocean views
Miraflores has been highly sought after for international rentals due to its high quality of life, security,
ocean views and proximity to San Isidro.
LarcoMar, Miraflores Oceanfront Luxury Shopping Mall
Luxury Condo Rental Investment Alternatives
Miraflores, Lima City Center
Option #1 – Malecon de la Marina 588
Historically most luxury condominiums were located in the most exclusive areas of San Isidro. Recently the
Miraflores Malecon has become highly sought-after and it has become a destination for upper echelon
condominiums developments.
Malecon de la Marina 588, is an exclusive luxury condo tower designed by Peru’s most famous
architect, Bernardo Fort Brecia, he runs Latin America’s most successful firm Arquitectonica*.
Constructora Palo Alto** is the builder; they are a boutique developer with a 20-year track record of
providing the highest level of luxury condominiums in San Isidro.
The malecon is sought after because of its amazing ocean views, but also thanks to its numerous public
parks, bike lanes and walkways. There are also sporting facilities such as soccer fields, tennis courts, sports
multiplex and a skate park.
Project completion is scheduled for September 2016. The building will be a new luxury standard for the
malecon. The lobby will be one and a half meters from the street level, will feature vaulted ceilings
and will be complexly finished in marble and granite. The amenities include a heated swimming pool,
fully-equipped gym, events room and a BBQ terrace.
* http://www.arquitectonica.com
**http://www.constructorapaloalto.com
Luxury Condo Rental Investment Alternatives
Miraflores, Lima, Peru.
Option #1 Project:
Malecón de La
Marina 588
Ocean view luxury condominiums
Miraflores, Lima, Peru
Ready: September 2016
127m2, 2-bedroom apartment
Average Unit Cost
Furnished Rental
Unfurnished rental
$550,000
$3,000 per month
$2,500 per month
Number of years for investment return
Number of years for investment return
15.28
18.33
Number of years for investment return
Number of years for investment return
18.52
20.83
254m2, 4-bedroom apartment
Average Unit Cost
Furnished Rental
Unfurnished rental
$1,000,000
$4,500 per month
$4,000 per month
Average cost of furnishing and apartment:
$15,000 - $25,000
Av. Malecón de la Marina 588, Miraflores, Lima - Peru
Luxury Condo Rental Investment Alternatives
San Isidro, Lima City Center
Option #2 – Jorge Basadre 1216
Historically most luxury condominiums have been located in San Isidro because it is the most prestigious
residential district. It is where all the major banks and large transnational corporations have their head
offices. There are also over 60 world embassies located in the most exclusive areas of San Isidro. There are
also monumental landmarks that provide a high quality of life.
Jorge Basadre 1216, is an exclusive luxury condo tower designed by Peru’s most famous
architect, Bernardo Fort Brecia, he runs Latin America’s most successful firm Arquitectonica*.
Constructora Palo Alto** is the builder; they are a boutique developer with a 20-year track record of
providing the highest level of luxury condominiums in San Isidro.
* http://www.arquitectonica.com
** http://www.constructorapaloalto.com
Project completion was March 2016. The lobby is one and a half meters from the street level and
is completely finished in marble and granite. The amenities include a heated swimming pool,
fully-equipped gym, events room and a BBQ terrace. It is conveniently located in the heart of San Isidro.
Luxury Condo Rental Investment Alternatives
City Centre. Lima, Peru.
Option #2 Project:
Jorge Basadre 1216
Financial District luxury condominiums
San Isidro, Lima, Peru
Ready: Immediately
150m2, 3-bedroom apartment
Average Unit Cost
Furnished Rental
Unfurnished rental
$480,000.00
$2,500 per month
$2,000 per month
Number of years for investment return
Number of years for investment return
16.00
20.00
Number of years for investment return
Number of years for investment return
18.06
21.67
205m2, 4-bedroom apartment
Average Unit Cost
Furnished Rental
Unfurnished rental
$650,000
$3,000 per month
$2,500 per month
Average cost of furnishing and apartment: $15,000 - $25,000
Av. Jorge Basadre 1216, San Isidro, Lima - Peru
Luxury Residential
Real Estate Development
San Isidro, Lima City Center – Peru
Luxury Residential Real Estate Development
San Isidro, Lima City Center – Peru
San Isidro is recognized as Lima’s most exclusive residential district. San Isidro is home to:



Over 60 world embassies
The financial district where all major banking head offices are located
The business district that features numerous luxury office towers
The three facts are the main driver for a strong rental market in San Isidro.
The Lima Golf Club is Lima’s most exclusive social club. It is surrounded by the most expensive real estate in
San Isidro. Having a view of the golf course is considered not only a luxury but also a secure, stable
investment.
The Olive Tree Forest is a Heritage Park featuring several hundred 500-year old olive trees. It is a major
tourist destination and a highly sought after location not only because of its natural beauty but also because
of its proximity to Conquistadores Av. An exclusive drive that has several boutiques, coffee shops and
restaurants.
The proposed luxury condominium site is closely located to all these San Isidro landmarks.
Luxury Residential Real Estate Development
San Isidro, Lima City Center – Peru
The proposed Project site boasts 2257m2 in area (68.40m x 39.80m).
The current zoning permits allows for a high-rise 15-story residential tower. There are very few golf course
facing lots available. Potentially in the future one could apply for a zoning change that could see the land
turn into commercial use or also to allow for more floors being permitted. Such move would generate a
significant windfall. This would require the proper lobbying efforts.
Luxury Residential Real Estate Development
San Isidro, Lima City Center – Peru
Economic feasibility study
Lot Size
Non buildable area
Buildable area per floor
Service area per floor
Total Area for Sale per floor
Area for sale rooftop
No. of floors for sale
Maximum building height
Total area for sale
No. of underground levels
Total area underground
Avg. Selling Price
$
2257.53
35.00%
1467.39
50
1417.3945
366.85
14
15
19843.52
4
9030.12
3,500
Revenue
$
Aggregate Construction Costs* $
PROFIT (minus cost of land)
$
69,452,331
26,696,703
42,755,627
*Does not include the cost of the land
m2
m2
m2
m2
m2
m2
m2
/m2
Land Banking Investment Alternatives
Asia, Lima South – Peru
Land Banking Investment Opportunity
Asia, Lima South – Peru
There lies an attractive land banking opportunity in the municipality of Asia, located in the south
Lima, Peru’s capital city. Peru has proven to have the fastest growing economy on the LATAM
region thanks to its rich natural resources such as mining (gold, copper, silver, zinc, etc.), oil and
gas, fisheries, agriculture and tourism. Peru has the highest forecasted GDP for 2017 and 2018 in
LATAM, as per the World Bank. (3)
Solid economic policies and political stability over the last 20 years has led the Peruvian middle class
to grow at a fast rate. In the last ten years alone, the middle class has grown from 11.3% to 50.6%
of the population, as per the Interamerican Development Bank. (4)
Industrial space is at a premium in Lima. The Price of industrial use land is the highest in LATAM.
This is due to two factors: 1) A shortage of large space for industrial use due to the nature of the
urban sprawl and 2) Large industry demands thanks to the fast growing economy.
Several future infrastructure projects will positively affect Peru and specifically the south of Lima.
For example the interoceanic highway that will connect the Pacific and Atlantic ocean, new port
terminals for ocean freight and a train connecting the south of Lima to the city center.
Sources:
3
4
http://datos.bancomundial.org/pais/peru
http://elcomercio.pe/economia/peru/clase-media-peruana-casi-se-quintuplico-ultima-decada-noticia-1811416
LOT #1 – Km89 Panamerican Hwy, Asia, Lima Peru
Location: Km 89 Panamerican Hwy, Asia, Lima, Peru.
Surrounding area: Beach communities, housing developments, shopping strips nearby.
Potential: Housing complex, shopping center, educational grounds.
Size of the lot: 1.7 hectares.
Price: $3,150,000
LOT #2 – Km100 Panamerican Hwy, Asia, Lima Peru
Location: Km 99 Panamerican Hwy, Asia, Lima, Peru.
Surrounding area: Prime luxury Beach communities, housing developments, large commercial strips
featuring restaurants, bars, cinemas, shopping.
Potential: Housing complex, self-storage, commercial, hotel.
Size of the lot: 2.1 hectares.
Price: $3,200,000
LOT #3 – Km103 Panamerican Hwy, Asia, Lima Peru
Location: Km 103 Panamerican Hwy, Asia, Lima, Peru.
Surrounding area: 10 minutes from Prime luxury Beach communities, housing developments, large
commercial strips featuring restaurants, bars, cinemas, shopping. Adjacent to the town of Asia.
Potential: Mixed use, industrial, commercial, services and residential.
Size of the lot: 93 hectares.
Price: $121,000,000
LOT #4 – Km103 Panamerican Hwy, Asia, Lima Peru
Location: Km 107 Panamerican Hwy, Asia, Lima, Peru.
Surrounding area: Several Beach communities, housing developments. Walking distance to the
beach. Ocean view thanks to the slope of the land.
Potential: Mixed use, low and midrise, residential and commercial.
Size of the lot: 19.2 hectares.
Price: $25,000,000
Mixed Use Subdivision,
Residential/Commercial, Real Estate Development
Sarapampa, Lima South, Peru
Mixed Use Subdivision, Residential/Commercial, Real Estate Project
Sarapampa, Asia, Lima South, Peru
Sarapampa is located on the 107km of the Panamerican Hwy, right in front of great Pacific
Ocean beaches. There are several middle class Beach homes communities, which house
roughly 20,000 people during the summer months and 10,000 all year round. It is conveniently
10km away from the Asia Shopping mall which features luxury restaurants, nightlife and
shopping. Due to the slope of this 200,000km lot (20 hectares), all homes have ocean views.
Traditionally this area would be targeted for season beach goers, but the recent trend is that
middle class families are buying property in this area as their primary home due to the recent
increase of industrialization in nearby municipalities such as Lurin (70km north), Chilca (40km
north) and Chincha (100km south). It is also a short two-hour drive from the Lima City Center.
The mixed-use subdivision proposed in this document is located on the second row of
developments in Sarapampa, which is approximately 500m2 away from the beach. This poses
a more affordable option than beachfront properties. This project is targeted to the rising middle
class segment. We are proposing 5-story towers with 100m2 condominiums, 120m2 and 90m2 housing
lots and a large shopping center that would service this development and all the other
communities nearby. It should be noted that currently there is no shopping available in Sarapampa.
Mixed Use Subdivision, Residential/Commercial, Real Estate Project
Sarapampa, Asia, Lima South, Peru
Mixed Use Subdivision, Residential/Commercial, Real Estate Project
Sarapampa, Asia, Lima South, Peru
Mixed Use Subdivision, Residential/Commercial, Real Estate Project
Sarapampa, Asia, Lima South, Peru
Mixed Use Subdivision, Residential/Commercial, Real Estate Project
Sarapampa, Asia, Lima South, Peru
Feasibility Study
Contact Information
Alfredo Rolando Grosman
General Manager, Palo Alto Inmobiliaria
Address: Av. Conquistadores 461, San Isidro, Lima - Peru
Cell: +51 989173199
Wechat: PaloAltoPeru
Email: [email protected]
Website: www.paloalto.com.pe