© 2018, Universidad de Chile, Instituto de la Vivienda. All rights reserved.The debate on the Peruvian real estate boom, which began in 2006, focuses on its role in driving the national economy, ignoring its consequences on the access to housing for vulnerable people and its socio-spatial effects. This research starts with analysis of the main policy and regulatory changes that have been taking place at different governmental levels, which have also modified the characteristics of local urban management within the Metropolitan Area of Lima (LMA). It then explores the formal supply of apartments –which are regarded as the main real estate product within the MAL, and two major socio-spatial consequences associated with this process: the intensification of segregation patterns and an extension of the compact city model. It is suggested that these dynamics are the result of the interaction, convergence and conflicts of interests among different national, metropolitan and local governments and among real estate actors, banks and the demand for housing. To this end, this paper systematizes and analyzes census information and data of formal building activity over the period 2000 to 2014. This is complemented by qualitative information obtained through interviews and a spatial analysis supported by geographic information systems.