House Prices in Peru

"Real estate prices have risen substantially over the past few years (...) However, deviation of prices from fundamentals has apparently been minimal," according to the new IMF report on the Peruvian economy. 

The report also points out that (i) the "ratio of house prices to annual rental income has increased slightly to 15½ in 2013 from around 13½ in 2010" and (ii) the recent macroprudential measures taken--"capital charges on higher loan-to-value mortgages, dollar mortgages, and second homes along with higher dollar reserve requirements"--should moderate growth in credit and house prices.