How to know the real value of a lot in Peru

In Peru, a lot's value depends on three references that rarely coincide: the MVCS tariff value, the autoavalúo declared to the municipality and the market value. For sales, investment decisions or succession proceedings, what matters is reaching a defensible, well-supported value. This article shows you how to do it step by step.

The three key references

• Official tariff: published annually by the Ministry of Housing, Construction and Sanitation. It's the base for the Impuesto Predial.
• Autoavalúo (HR/PU): declared by you. Usually close to the tariff value and below market.
• Market value: set by real supply and demand. Confirmed by a REPEV expert through professional appraisal.

Method 1: market comparables

Most useful for lots in areas with frequent transactions like Lima Top, Lima Moderna, Arequipa, Trujillo and Piura.

1. Compile 8 to 12 similar lots listed in the last 3 to 6 months.
2. Verify they're comparable: zoning, frontage, depth, services.
3. Compute price per m² for each.
4. Exclude top 10% and bottom 10%.
5. Adjust the average down by 5% – 12% to approach real closing prices.

Method 2: tariff value as floor

Although usually well below market, the tariff serves as a minimum benchmark. In consolidated districts of Lima, market value can be 3 to 8 times the tariff; in intermediate provinces, 2 to 4 times.

Method 3: project residual

Especially useful when the lot allows a multifamily building or habilitación urbana:

• Define the product you can build under urban parameters.
• Estimate sellable m² (deducting ducts and common areas).
• Apply a sale price per m² based on nearby projects.
• Add up all revenue, deduct IGV differential.
• Subtract direct construction cost, financing cost, sales commission, general expenses and minimum expected profit (15% – 22%).
• The residual is the lot's maximum value.

Method 4: official REPEV appraisal

It's the only valid reference for bank mortgages, COFIDE, judicial cases, expropriation, trusts and liquidation of sociedad de gananciales. It costs between S/700 and S/3,500 depending on size and area.

A REPEV appraisal follows a standardized methodology and is the document that best supports the price before SUNAT, banks or judges.

Minimum information you must gather

• Updated partida registral at SUNARP.
• HR and PU of the autoavalúo for the current year.
• Certificate of urban and building parameters issued by the district municipality.
• Zoning certificate from the provincial municipality where applicable.
• Proof of service feasibility from SEDAPAL/EPS and the electricity company.
• Perimeter and location plans.

Factors that move value

• District and area: Surco, San Isidro, Miraflores and Barranco are priced high; Comas or Carabayllo have a lower floor but more volatility.
• Zoning and height: a change from RDM to RDA can double the value.
• Minimum parking: when regulation requires more spaces, it reduces sellable m².
• Risks: lots in cones, hillsides or near ravines have a discount for geological risk.
• Service availability: lack of SEDAPAL in the area strongly impacts value.

Example: lot in Surco

RDM residential lot of 200 m² in Santiago de Surco, regular frontage, with services and well located:

• Tariff: S/2,800/m² → S/560,000 (minimum benchmark).
• Active comparables: S/8,500 – S/9,800/m² → adjusted: S/9,000/m² → S/1,800,000.
• AVM: S/1,840,000.
• Residual assuming a 5-story multifamily building and sale prices near S/8,500/m²: S/1,950,000.

Defensible range: S/1,820,000 – S/1,980,000. If you're offered S/1,500,000, you're underselling; if you ask S/2,400,000, you'll need a technical argument to justify it (better location, possibility of setback exoneration, etc.).

Errors worth avoiding

• Trusting only the tariff to set price.
• Comparing lots with different zoning.
• Ignoring maximum height in the residual calculation.
• Not reviewing the partida registral before setting price.
• Underestimating physical-legal saneamiento cost when there are registry observations.

Final recommendations

• Combine at least three methods and publish the range, not a single number.
• Keep a dossier with the partida registral, parameters and comparables. That backs you up before buyers and investors.
• For deals above S/600,000, the cost of a REPEV appraisal pays for itself.
• If you're going to sell, also prepare a residual project analysis: it helps you speak the same language as developers.

Want to know what your property is worth? Get a free Realio valuation in under a minute.