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Arequipa's Airbnb market presents both opportunities and challenges for property investors. The median Arequipa Airbnb property generates around $318-$424 monthly with 36-45% occupancy rates, while top performers achieve over $962 monthly with 78%+ occupancy. However, traditional long-term rentals in Arequipa typically offer more stable returns at 4% net yield compared to Airbnb's median 2.9% net yield.
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Arequipa's Airbnb market is dominated by apartments and small condos, with the best profits found in prime locations catering to couples and small families.
While median Airbnb properties may underperform long-term rentals, top-performing listings with optimized management can substantially outperform traditional rentals.
| Property Performance Level | Monthly Revenue | Occupancy Rate | Nightly Rate |
|---|---|---|---|
| Top 10% Properties | $962+ | 78%+ | $59+ |
| Top 25% Properties | $500-$962 | 50-78% | $42-$59 |
| Median Properties | $318-$424 | 36-45% | $31-$32 |
| Entry Level Properties | Under $318 | Under 36% | $20-$31 |
| Peak Season (Aug-Oct) | $525 | 46.9% | $37 |
| Low Season (Feb-Mar) | $381 | 36.6% | $38 |
What types of properties in Arequipa perform best on Airbnb and how profitable are they?
The Arequipa Airbnb market is dominated by entire apartment listings, which represent 50.5% of all properties on the platform.
Apartments and condos make up 51.8% of all listings, while houses comprise 19% and private rooms account for about 49% of the market. One-bedroom and two-bedroom apartments consistently perform best in terms of both occupancy rates and monthly revenue generation.
The most successful properties are strategically positioned to serve couples and small families, with the average Airbnb hosting 2.9 guests per stay. Top-performing listings in the upper 10% achieve monthly revenues exceeding $962 with occupancy rates above 78%, while median properties generate approximately $318-$424 monthly with 36-45% occupancy.
Larger homes with 3+ bedrooms cater to group travelers but represent a smaller market segment with more variable occupancy patterns throughout the year.
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Which Arequipa neighborhoods attract the most Airbnb guests and what are the rate differences?
The Historical Center commands the highest demand due to its proximity to major tourist attractions and cultural sites.
Yanahuara, Cayma, Selva Alegre, and Miraflores are particularly popular among travelers seeking tranquility, mountain views, parks, and modern amenities. These upscale neighborhoods consistently attract visitors willing to pay premium rates for enhanced comfort and location advantages.
Nightly rates vary significantly across performance tiers: top 10% properties command $59+ per night, top 25% achieve $42+ per night, while median properties average $31-$32 per night. Entry-level properties typically start around $20 per night.
The Historical Center and Yanahuara neighborhoods tend to achieve both higher nightly rates and superior occupancy rates compared to peripheral areas. Properties in these prime locations benefit from consistent demand throughout the year, though they also face higher competition from other short-term rental operators.
How does property size impact occupancy rates and revenue in Arequipa?
One-bedroom units dominate the Arequipa Airbnb market, representing 42.3% of all listings and delivering the strongest performance metrics.
| Property Size | Market Share | Target Guests | Performance Level |
|---|---|---|---|
| Studio Apartments | 15% | 1-2 guests | Moderate occupancy |
| 1-Bedroom Units | 42.3% | 2-3 guests | Highest performance |
| 2-Bedroom Units | 25% | 3-4 guests | Strong performance |
| 3+ Bedroom Houses | 12% | 5+ guests | Variable performance |
| Private Rooms | 49% | 1-2 guests | Lower revenue potential |
Two-bedroom properties and units accommodating 2-4 guests represent the market sweet spot, catering effectively to couples, small groups, and families visiting Arequipa. These properties balance rental income potential with manageable operating costs and cleaning requirements.
What are the seasonal occupancy patterns for Airbnbs in Arequipa?
Arequipa experiences distinct seasonal variations in Airbnb occupancy rates, with August representing the peak tourism period.
Peak season (August, September, October) delivers the strongest performance with 46.9% occupancy rates and average daily rates of $37, generating median monthly revenues of $525. August specifically can achieve occupancy rates exceeding 50% with nightly rates reaching $43.
Shoulder seasons maintain moderate performance with 36.5% occupancy and $40 average daily rates, producing monthly revenues around $426. Low season periods (February, March, November) show 36.6% occupancy with $38 nightly rates and $381 monthly revenue.
February represents the most challenging month with occupancy dropping to 33% and nightly rates around $36. The annual median occupancy across all seasons stabilizes at 45% with $32 nightly rates and $424 monthly revenue.
International guests comprise approximately two-thirds of all visitors, contributing to the pronounced seasonality patterns that align with global travel trends and weather conditions.
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How do Arequipa Airbnb rates compare with local hotel prices?
Median Airbnb properties in Arequipa charge $31-$32 per night, which positions them competitively against local hotel accommodations.
Standard hotel rooms in Arequipa typically price at similar levels or slightly above the Airbnb median rate for private apartments. However, premium Airbnb properties in prime locations command significantly higher rates, with top-tier listings achieving $59+ per night.
The pricing advantage for Airbnb becomes more pronounced for travelers seeking apartment-style accommodations with kitchen facilities, multiple bedrooms, or extended stays. Premium Airbnb properties often provide better value propositions than comparable hotel suites, especially for families or groups requiring more space.
Local hotels maintain competitive advantages in daily housekeeping services, concierge support, and consistent service standards, while Airbnb properties offer greater privacy, local neighborhood experiences, and cost savings for longer stays.
What is the typical monthly income for Arequipa Airbnb properties?
Median Airbnb properties in Arequipa generate gross monthly income ranging from $318 to $424, depending on seasonal performance and property management quality.
Top-performing properties in the upper 10% achieve monthly gross revenues exceeding $962, demonstrating the significant income potential for well-positioned and professionally managed listings. These high-performers typically feature superior locations, enhanced amenities, professional photography, and dynamic pricing strategies.
Seasonal variations significantly impact monthly income, with peak season properties averaging $525 monthly revenue compared to $381 during low season periods. Properties maintaining year-round appeal through strategic pricing and guest experience optimization achieve more stable income streams.
Entry-level properties typically generate under $318 monthly, often struggling with low occupancy rates, suboptimal pricing, or less desirable locations. The median annual gross income for Arequipa Airbnb properties approximates $4,500, though this varies considerably based on property type, location, and management approach.
What is the net monthly income after all expenses for Arequipa Airbnbs?
After deducting Airbnb platform fees, utilities, cleaning costs, and routine maintenance expenses, net monthly income typically ranges from 65% to 75% of gross revenue.
Median properties generate net monthly income between $210-$320 after accounting for operational expenses estimated at 25-35% of gross revenue. Top-tier properties achieve net monthly income ranging from $590-$720, benefiting from higher gross revenues and often more efficient cost management.
Major expense categories include Airbnb service fees (typically 3% host fee plus guest fees), utilities averaging $30-50 monthly, professional cleaning costs of $15-25 per turnover, routine maintenance and supplies, property management fees if applicable, and periodic deep cleaning or repairs.
Successful operators optimize net income through efficient cleaning schedules, strategic utility management, preventive maintenance programs, and professional property management systems that maximize occupancy while minimizing operational disruptions.
It's something we develop in our Peru property pack.
What are the actual yields for Airbnb properties compared to purchase prices in Arequipa?
Based on a typical 2-bedroom apartment price of approximately $118,000 in Arequipa, median Airbnb properties generate gross yields around 3.8% annually.
The gross yield calculation for median properties: $4,500 annual gross income divided by $118,000 property price equals approximately 3.8%. After factoring in operational costs of 25%, the net yield drops to approximately 2.9% for median-performing properties.
Top-performing Airbnb properties generating $962+ monthly ($11,500+ annually) can achieve gross yields of 9.7% and net yields around 7.3% on the same property value. However, these exceptional results require significant management expertise, prime locations, and substantial ongoing investment in guest experience.
Traditional long-term rentals in Arequipa typically offer gross yields of 5.5-5.7% for apartments, with net yields around 4% after management and maintenance costs. This comparison highlights that median Airbnb performance may underperform stable long-term rental returns, while exceptional Airbnb management can significantly outperform traditional rentals.
How does Airbnb profitability compare with long-term rental income in Arequipa?
Traditional long-term rentals in Arequipa provide more predictable returns with approximately 4% net yields and minimal vacancy risk.
1. **Income Stability**: Long-term rentals offer consistent monthly income with annual lease agreements, while Airbnb income fluctuates significantly based on seasonality, occupancy rates, and market competition.2. **Management Requirements**: Long-term rentals require minimal day-to-day management, while successful Airbnb operations demand continuous guest communication, cleaning coordination, pricing optimization, and listing management.3. **Revenue Potential**: Top-performing Airbnb properties can potentially double traditional long-term rental income, but median Airbnb properties may yield similar or lower returns with substantially higher operational complexity.4. **Vacancy Risk**: Long-term rentals typically experience minimal vacancy between tenants, while Airbnb properties face ongoing vacancy risk with median occupancy rates of 36-45%.5. **Operational Costs**: Airbnb properties incur higher operational expenses including frequent cleaning, higher utility costs, guest supplies, and platform fees, while long-term rentals have lower ongoing costs.Investors seeking passive income with minimal management should consider long-term rentals, while those willing to actively manage properties and optimize guest experiences may achieve superior returns through Airbnb in prime locations.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Peru versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What regulations and restrictions apply to Airbnb operations in Arequipa?
As of September 2025, Arequipa maintains relatively lenient citywide regulations for short-term rental operations.
Current regulatory requirements include simple registration with local authorities in some districts, though less than 1% of active listings maintain formal licensing. Some neighborhoods may impose specific restrictions or additional requirements, particularly in historic preservation areas.
Tax obligations apply to all Airbnb income, with hosts required to declare rental earnings and pay applicable income taxes. Property taxes may increase for properties generating commercial income, though enforcement varies across different municipal areas.
Future regulatory changes remain possible as the short-term rental market continues growing. Local authorities may implement stricter licensing requirements, occupancy limits, noise restrictions, or tourism taxes similar to regulations adopted in other major Peruvian cities.
Hosts should monitor regulatory developments and maintain compliance with existing requirements to avoid potential penalties or operational disruptions. Professional property management services often assist with regulatory compliance and tax obligations for international investors.
How competitive is the current Airbnb market in Arequipa and is supply outpacing demand?
The Arequipa Airbnb market shows clear signs of supply growth outpacing demand growth, creating increasingly competitive conditions for property owners.
As of July 2025, 1,383 active Airbnb listings operate in Arequipa, with 55.9% showing high annual availability indicating abundant supply. The median occupancy rate of 36-45% suggests that supply expansion has exceeded demand growth in recent years.
Market saturation affects property performance differently across neighborhoods and property types. Prime locations in the Historical Center and upscale areas like Yanahuara maintain stronger occupancy rates, while peripheral neighborhoods experience more pronounced competition effects.
New market entrants face significant challenges differentiating their properties and achieving profitable occupancy rates. Successful operators increasingly rely on superior guest experiences, professional photography, dynamic pricing strategies, and enhanced amenities to maintain competitive advantages.
The competitive environment rewards properties with exceptional locations, professional management, and unique value propositions while making it difficult for average properties to achieve profitable returns without significant optimization efforts.
What tourism trends could influence future Airbnb profitability in Arequipa?
Several key tourism trends are shaping the future profitability landscape for Arequipa Airbnb properties through 2025 and beyond.
International visitor growth, particularly among Gen Z travelers and U.S. tourists, could boost overall demand for short-term accommodations. These demographic groups often prefer apartment-style accommodations with local neighborhood experiences over traditional hotel stays.
However, the seasonal nature of Arequipa tourism continues limiting year-round profitability potential. Properties achieving success focus on targeting key demographics including couples, small groups, and culturally-interested travelers during peak periods while developing strategies for off-season occupancy.
Technology integration becomes increasingly important, with travelers expecting fast Wi-Fi, mobile check-in capabilities, local guidance through apps, and seamless booking experiences. Properties failing to meet these technological expectations may lose bookings to more modern competitors.
Sustainability trends influence traveler choices, with eco-conscious tourists preferring properties demonstrating environmental responsibility through energy efficiency, waste reduction, and local community support initiatives.
It's something we develop in our Peru property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The Arequipa Airbnb market presents a mixed opportunity for property investors, with significant variation between top performers and median properties.
While exceptional operators can achieve substantial returns exceeding traditional rental yields, most properties face competitive pressures and seasonal challenges that may limit profitability compared to stable long-term rental alternatives.
Sources
- Arequipa Airbnb Data 2025, AirROI, Airbtics
- GlobalPropertyGuide Arequipa yields June 2025
- AirROI Arequipa Market Report
- Airbnb Arequipa Region Listings
- AirDNA Arequipa Market Overview
- Airbtics Tourism Statistics Arequipa
- Brevitas Latin American Airbnb Analysis
- The LatinVestor Arequipa Real Estate Trends