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As of September 2025, house prices in Arequipa have reached an average of S/3,480 per square meter, making it one of Peru's more expensive real estate markets.
The cost of buying a house in Arequipa varies significantly depending on size, location, and finishes, with starter homes beginning around S/278,000 and luxury properties in premium districts like Cayma reaching well over S/1,890,000. Understanding these price ranges is essential for anyone considering purchasing property in Peru's second-largest city.
If you want to go deeper, you can check our pack of documents related to the real estate market in Peru, based on reliable facts and data, not opinions or rumors.
House prices in Arequipa average S/3,480 per square meter, with small homes costing S/278,000-348,000 and luxury properties exceeding S/1,890,000. Premium districts like Cayma command significantly higher prices at S/7,300 per square meter.
Buyers should budget an additional 4.5-6% of the purchase price for closing costs, taxes, and fees when purchasing property in Arequipa.
| Property Type | Size Range | Price Range (Soles) | Price Range (USD) |
|---|---|---|---|
| Starter Home | 80-100 m² | S/278,000 - S/348,000 | $80,000 - $100,000 |
| Family Home | 150-200 m² | S/522,000 - S/696,000 | $150,000 - $200,000 |
| Large Home | 250+ m² | S/870,000 - S/1,890,000+ | $250,000 - $500,000+ |
| Luxury (Cayma) | Varies | S/7,300 per m² | Premium pricing |
| Land Only | Per m² | S/87 - S/174+ per m² | $25 - $50+ per m² |
| Construction Cost | Per m² | S/2,100 - S/2,600 per m² | $600 - $746 per m² |
What's the average price per square meter for a house in Arequipa right now?
The average price per square meter for houses in Arequipa is S/3,480 as of September 2025, which equals approximately US$1,000 per square meter.
This price point places Arequipa significantly above Peru's national average of S/2,713 per square meter. The higher costs reflect Arequipa's status as Peru's second-largest city and its growing economic importance in the southern region.
Premium districts command much higher prices, with luxury areas like Cayma reaching S/7,300 per square meter for upscale properties. These premium neighborhoods offer better infrastructure, security, and proximity to amenities, justifying the substantial price premium.
Standard residential areas typically fall within the S/3,000-4,000 per square meter range, while emerging or less central neighborhoods may offer properties below the city average. Location remains the primary factor determining price per square meter in Arequipa's housing market.
How much does a small starter home of around 80–100 m² usually cost?
Small starter homes ranging from 80 to 100 square meters typically cost between S/278,000 and S/348,000 in average neighborhoods, equivalent to US$80,000-100,000.
These entry-level properties usually feature 2-3 bedrooms, basic finishes, and standard construction materials. Most starter homes in this price range are located in developing neighborhoods or suburban areas with good public transportation access.
In more desirable locations or properties with upgraded finishes, the cost can increase by 20-40% above these base prices. New construction starter homes generally command a premium over older resale properties of similar size.
First-time buyers should expect to make a down payment of 10-20% of the purchase price, plus additional closing costs and fees. It's something we develop in our Peru property pack.
What's the price range for a mid-sized family home of 150–200 m²?
Mid-sized family homes between 150 and 200 square meters range from S/522,000 to S/696,000, equivalent to US$150,000-200,000 depending on location and finishes.
These family-oriented properties typically offer 3-4 bedrooms, 2-3 bathrooms, and often include features like a small garden, garage, or patio area. The price variation within this range depends heavily on neighborhood desirability and property condition.
Homes in established middle-class neighborhoods with good schools and services fall toward the higher end of this range. Properties requiring renovation or located in less central areas may be available at the lower price points.
New family homes with modern layouts and contemporary finishes can exceed S/696,000, particularly in sought-after districts. Buyers should carefully evaluate the total cost of ownership, including property taxes and maintenance expenses.
How much do larger houses above 250 m² typically go for?
Large houses exceeding 250 square meters start from S/870,000 (US$250,000) and can reach over S/1,890,000 (US$500,000), especially in affluent areas like Cayma.
These spacious properties often feature 4-5 bedrooms, multiple living areas, upgraded finishes, and substantial outdoor space. Premium locations and luxury amenities can significantly increase the purchase price beyond the base range.
In Cayma and other high-end districts, large homes with modern architecture, security systems, and premium finishes routinely exceed S/1,890,000. These properties often include features like swimming pools, landscaped gardens, and high-end appliances.
Buyers considering large homes should factor in higher ongoing costs for maintenance, utilities, and property taxes. The resale market for luxury properties tends to be more limited but can offer strong appreciation potential in desirable locations.
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What's the difference in cost between a house in the city center and one in the suburbs?
Houses in Arequipa's city center and prime districts cost 40-80% more than comparable properties in suburban or outer neighborhoods.
Central locations offer immediate access to business districts, cultural attractions, restaurants, and public services, justifying the significant price premium. Properties near the historic center or major commercial areas command the highest prices due to convenience and walkability.
Suburban areas provide more space for the money, often featuring larger lots, quieter environments, and newer construction. Many suburban neighborhoods offer excellent value for families prioritizing space over central location.
Transportation infrastructure and development plans significantly impact suburban property values. Areas with planned metro extensions or major road improvements may see rapid price appreciation, making them attractive for investors.
How much more expensive is it to buy in high-demand neighborhoods compared to average areas?
High-demand neighborhoods in Arequipa can cost 2-3 times more than properties in average areas, with premium districts like Cayma commanding S/7,300 per square meter versus the city average of S/3,480 per square meter.
| Neighborhood Type | Price per m² (Soles) | Premium vs Average |
|---|---|---|
| Luxury (Cayma) | S/7,300 | +110% premium |
| Prime Central | S/5,500-6,000 | +60-70% premium |
| Established Residential | S/4,200-4,800 | +20-40% premium |
| Average Areas | S/3,480 | Baseline |
| Developing Areas | S/2,500-3,000 | 15-30% below average |
| Outer Suburbs | S/2,000-2,500 | 25-40% below average |
What's the typical land price per square meter if I wanted to build instead of buying ready-made?
Land prices in Arequipa range from S/87 to S/174+ per square meter (US$25-50+) for suburban and infill plots, with premium locations commanding significantly higher prices.
Residential lots in developing suburban areas typically fall on the lower end of this range, while plots in established neighborhoods or with utilities already installed cost more. Land with mountain views or proximity to amenities commands premium pricing.
Central locations and prime districts can see land prices exceed S/350 per square meter, making self-build projects expensive in desirable areas. Buyers should factor in utility connections, which can add substantial costs to raw land purchases.
Building permits, site preparation, and infrastructure development add to the total project cost. It's something we develop in our Peru property pack.
How much do construction costs per square meter usually run in Arequipa?
Construction costs in Arequipa range from S/2,100 to S/2,600 per square meter (US$600-746) for standard quality construction, with higher costs for premium finishes and custom features.
Basic construction with standard materials and finishes falls toward the lower end of this range. This includes concrete block construction, basic electrical and plumbing, standard flooring, and painted walls.
Mid-range construction with upgraded materials, better finishes, and improved insulation typically costs S/2,300-2,500 per square meter. Premium construction with high-end materials, custom features, and luxury finishes can exceed S/3,000 per square meter.
Labor costs represent a significant portion of total construction expenses, and skilled craftsmen for specialized work command premium rates. Material costs can fluctuate based on global commodity prices and local supply conditions.
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What's the price difference between new houses and older resale homes?
New houses in Arequipa typically cost 15-25% more than comparable older resale homes, with the premium reflecting modern layouts, updated systems, and contemporary finishes.
New construction offers advantages like energy-efficient systems, modern electrical and plumbing, updated building codes compliance, and warranty coverage. Buyers avoid immediate renovation costs and benefit from move-in ready conditions.
Older homes may offer larger lots, established landscaping, and unique architectural character that appeals to some buyers. However, they often require updates to electrical, plumbing, or structural systems that can offset the lower purchase price.
The age premium varies by neighborhood, with newer developments in suburban areas showing larger price gaps compared to central areas where land value dominates pricing. Buyers should evaluate total cost of ownership when comparing new versus resale properties.
How much does it cost to buy a house with modern finishes compared to basic finishes?
Houses with modern finishes cost 10-30% more than properties with basic finishes, depending on the quality and extent of upgrades throughout the home.
Modern finishes typically include features like granite or quartz countertops, hardwood or premium tile flooring, stainless steel appliances, contemporary bathroom fixtures, and updated lighting systems. These upgrades significantly enhance both aesthetics and functionality.
Basic finishes generally feature standard tile flooring, laminate countertops, basic appliances, standard bathroom fixtures, and simple lighting. While functional, these finishes may require future upgrades to meet evolving preferences.
The upgrade premium varies by property size and location, with larger homes showing greater absolute cost differences. Buyers should consider whether immediate move-in convenience justifies the premium or if gradual upgrades suit their budget better.
What's the average monthly mortgage payment for a typical house purchase in Arequipa?
The average monthly mortgage payment for a typical house purchase in Arequipa ranges from S/3,600 to S/4,000 (US$1,000-1,100) before insurance, based on financing S/451,000 over 20 years at current interest rates.
Current mortgage rates in Peru average around 7.4% annually, significantly impacting monthly payment calculations. Most lenders require down payments of 10-20% of the purchase price, reducing the financed amount but requiring substantial upfront capital.
A typical family home purchase of S/500,000 with a 15% down payment would finance S/425,000, resulting in monthly payments of approximately S/3,500 plus property insurance and taxes. Higher-priced properties or longer loan terms will adjust payments accordingly.
Buyers should budget for additional monthly costs including property taxes, homeowner's insurance, and maintenance reserves. It's something we develop in our Peru property pack.
How much additional money should buyers budget for closing costs, taxes, and fees?
Buyers should budget 4.5-6% of the purchase price for closing costs, taxes, and fees when buying property in Arequipa.
1. **Transfer tax:** 3% of the purchase price paid by the buyer2. **VAT on new construction:** 18% if purchasing new-build properties3. **Registration fees:** Property registry and title transfer costs4. **Notary fees:** Legal document preparation and certification5. **Bank fees:** Mortgage processing and related banking charges6. **Legal representation:** Attorney fees for transaction oversight7. **Property inspection:** Professional assessment of property condition8. **Moving costs:** Transportation and setup expenses9. **Utility connections:** Initial setup for electricity, water, and gas10. **Property insurance:** First year premium often required at closingNew construction purchases face higher total costs due to the 18% VAT requirement, significantly impacting the budget for buyers choosing newly built homes. Resale properties avoid this VAT but may require additional inspection and renovation costs.
International buyers may face additional documentation and translation fees, while financing through Peruvian banks may require extra processing charges. Proper budgeting for these costs prevents surprises during the purchase process.
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.
Arequipa's real estate market offers diverse opportunities from affordable starter homes to luxury properties in premium districts.
Understanding the substantial price differences between neighborhoods and the various costs involved in purchasing property is essential for making informed decisions in this dynamic market.
Sources
- The LatinVestor - Arequipa Real Estate Trends
- The LatinVestor - Arequipa Price Forecasts
- The LatinVestor - Arequipa Real Estate Forecasts
- Aparthotel - Peru Market Analysis
- Realtor International - Arequipa Properties
- Living Cost - Peru Cost Analysis
- The Global Economy - Peru Mortgage Rates
- The LatinVestor - Moving to Peru Property Guide