Buying real estate in Arequipa?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

11 strong reasons to buy property in Arequipa in 2025

Last updated on 

Authored by the expert who managed and guided the team behind the Peru Property Pack

buying property foreigner Peru

Everything you need to know before buying real estate is included in our Dominican Republic Property Pack

Why is Arequipa emerging as a prime location for property investment in 2025? Is it the attractive property prices, the city's rich cultural heritage, or the growing local economy? What makes Arequipa a compelling choice for investors?

We often encounter these questions because we're actively engaged with local developers, real estate agents, and investors like you. With the increasing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.

Our aim is to present a clear case for investing in Arequipa's real estate market, supported by our firsthand experience and market expertise.

If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.

Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.

How this content was created 🔎📝

At The Latinvestor, we study the Arequipa real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

Our process started with insights drawn from these conversations and what we observed firsthand. Then, to make our points more solid, we turned to trusted sources like Statista, World Health Organization, and Purdue University (among many others).

We only include reasons to invest that are backed by credible sources, solid context, and clear information.

If we can’t find enough supporting data or context, we leave it out. There’s no point in presenting vague claims or overly optimistic assumptions that don’t hold up to scrutiny. Our goal is to provide you with a reliable and well-researched analysis of why this market is a smart choice for property investment—not just a list of unsupported ideas.

Every source and citation is clearly listed because we believe in transparency and want you to have the tools to dig deeper if you wish (we always encourage you to conduct your own research).

We also use a bit of AI during the writing process. This ensures that our explanations are clear and free from grammar or syntax errors, giving you content that’s easy to read and understand.

To make the information even more engaging, our team has crafted bespoke infographics that aggregate, summarize, and visualize key market trends. These visuals highlight why this market is such a strong investment opportunity. We hope you’ll find them useful! All additional illustrations and media were designed in-house to ensure the highest quality and relevance.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Arequipa’s mining industry creates jobs, drawing more people to the area

Arequipa's mining industry is a major magnet for new residents, thanks to its booming job market.

In 2023, Arequipa had the largest mining workforce in Peru, with nearly 33,000 direct jobs. This makes it a prime spot for those seeking employment. The Cerro Verde mine, a $5.3 billion project, has been a game-changer, boosting both copper and molybdenum production. This expansion has not only increased output but also extended the mine's operational lifespan, ensuring jobs for years to come.

New projects like Pampa de Pongo and Zafranal are on the horizon, promising to further enhance economic growth and create even more jobs. Mining's impact on Arequipa's economy is huge, significantly contributing to the region's GDP. The higher average income levels, driven by mining salaries, provide a strong economic foundation, making the area more appealing to potential residents.

The influx of new residents due to job opportunities in the mining sector is likely to increase demand for housing, spurring growth in the real estate market. This demand could lead to more housing developments, offering a variety of options for potential buyers. Arequipa's mining industry not only supports the local economy but also attracts a diverse range of people looking for stable employment and a vibrant community.

For those considering a move, Arequipa offers a unique blend of economic opportunity and cultural richness. The city's mining sector is a key player in its development, providing a solid base for future growth. With ongoing projects and a strong job market, Arequipa is poised to remain a top destination for job seekers and property buyers alike.

Sources: Statista, Perumin, Oxford Business Group

2) The focus on sustainable development by the local government boosts long-term property value

In Arequipa, the local government's focus on sustainable development is boosting long-term property values.

One standout initiative is the investment in green infrastructure, like the new Bus Rapid Transit (BRT) corridor. This project not only modernizes transportation but also cuts down on greenhouse gas emissions, making the area more appealing to potential residents and investors.

Arequipa has also rolled out strict environmental regulations, backed by international organizations such as EUROCLIMA+. These efforts have led to the creation of a Sustainable Urban Mobility Plan, which aims to enhance accessibility and quality of life. Areas with better transportation and less pollution often see a rise in property values.

The government is also offering incentives for eco-friendly building practices, encouraging developers to go green. This trend is supported by a growing demand for energy-efficient homes, as people look for properties that are both environmentally friendly and cost-effective over time.

Arequipa's commitment to sustainability, through projects like the Sustainable Urban Mobility Plan and partnerships with international organizations, has made the city more attractive to those who value sustainable living. This focus on sustainability is a key driver of rising property values in the area.

With these initiatives, Arequipa is not just improving its infrastructure but also creating a more livable and attractive environment, which in turn boosts the appeal of the real estate market.

Sources: World Health Organization, EUROCLIMA+

infographics rental yields citiesArequipa

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.

3) Arequipa’s varied neighborhoods provide investment options for every budget

Arequipa's neighborhoods offer diverse investment opportunities for every budget.

In areas like Cayma, you can find properties priced at S/1,889,550, while the Arequipa City Center offers more affordable options at S/328,185. This means whether you're looking for a high-end investment or something more budget-friendly, there's something for you.

For those with deeper pockets, Islay presents properties ranging from S/3.99M to S/32M, making it ideal for high-end investors. Meanwhile, Cayma and the city center remain attractive for those seeking more economical choices, ensuring a fit for various financial plans.

Arequipa's charm isn't just in its property prices. The city is a UNESCO World Heritage site, and with the National University of Saint Augustine, there's a steady influx of students and tourists. This boosts the demand for rental properties, offering promising rental yields for investors.

Investing in Arequipa means tapping into a market driven by both tourism and education. The growing student population and tourist interest make it a hotspot for rental property demand, enhancing its investment appeal.

Whether you're eyeing a luxury property or a modest investment, Arequipa's neighborhoods cater to a wide range of financial capabilities, making it a versatile choice for property buyers.

Sources: FazWaz.com.pe, Global Property Guide, BRT.cl

4) The stunning volcano and mountain views make properties in the city more desirable

In Arequipa, the stunning views of volcanoes and mountains make properties highly desirable.

Imagine waking up to the sight of the majestic Misti Volcano from your window. Properties near spots like the Yanahuara Scenic Overlook are in high demand because of these breathtaking views. It's not just about the scenery; it's about living in a place where nature's beauty is part of your daily life.

Arequipa's charm doesn't stop at its natural wonders. The city is home to a historical center that's a UNESCO World Heritage Site. Here, you'll find buildings made from sillar, a white volcanic stone, which gives the city a unique architectural flair. This combination of natural and architectural beauty makes Arequipa a magnet for property buyers looking for something special.

Tourists flock to Arequipa, drawn by its natural landscapes and national reserves. This influx of visitors highlights the area's appeal, not just for a vacation but as a potential place to call home. The local government's efforts to promote these attractions further boost the desirability of properties here.

For those considering a property investment, Arequipa offers more than just a home; it offers a lifestyle enriched by its scenic and cultural treasures. The city's unique blend of natural beauty and historical significance makes it a standout choice for buyers.

Whether you're drawn by the allure of the mountains or the charm of the city's architecture, Arequipa has something to offer. It's a place where every day feels like a getaway, surrounded by the wonders of nature and history.

Sources: Trexperience Peru, Peru Trade Office

5) A diverse local economy in Arequipa lowers your investment risk in real estate

Investing in real estate in Arequipa is less risky thanks to its diverse local economy.

Arequipa's economy isn't tied to just one industry, which is a big plus for investors. The city has a booming tourism sector, expecting 300,000 tourists in the summer of 2025. This influx is set to bring in S/ 20 million, supporting local businesses and creating 65,000 jobs. Such a vibrant tourism scene helps keep the real estate market stable.

Beyond tourism, Arequipa is also making waves in the tech world. The city is home to about 1,800 tech professionals, and this number is on the rise. With initiatives like the Arequipa Tech Hub, the city is becoming a tech hotspot, attracting more professionals and investors. This growth means more demand for housing and office spaces, giving the real estate market a nice boost.

Mining is another pillar of Arequipa's economy. The sector saw a 116.4% increase in production in 2024, with projects like the Tia Maria copper mine driving growth. This expansion means more jobs and a higher demand for real estate, adding to the city's economic strength.

With tourism, tech, and mining all thriving, Arequipa offers a balanced economic environment. This diversification reduces investment risk in real estate, making it an attractive option for potential buyers.

Sources: Trexperience Peru, HeroHunt.ai

Get fresh and reliable information about the market in Arequipa

Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.

buying property foreigner Arequipa

6) With more expats moving in, there’s a higher demand for various housing options in the city

The city's growing expat community is significantly increasing the demand for diverse housing options in Arequipa.

In recent years, especially in 2023 and 2024, Arequipa has become a magnet for expats, thanks to its rich cultural and historical attractions and its pleasant climate. This isn't just a temporary trend; it's a steady rise. More expats are choosing Arequipa as their new home, and this is reshaping the housing market.

One clear sign of this shift is the growing enrollment in international schools like the Peruvian Anglo American School Prescott. This uptick indicates that expat families are moving to Arequipa in search of quality education for their children. The city's expanding international business scene is also a big draw, offering job opportunities that attract even more expats.

Neighborhoods such as San Juan Bautista are seeing a surge in demand for rental properties, a testament to the expat community's search for comfortable living spaces. Real estate agencies are increasingly catering to foreign buyers, highlighting the need for housing options that suit expat preferences.

Arequipa's appeal is not just about its climate and culture; it's also about the lifestyle it offers. The city provides a unique blend of modern amenities and traditional charm, making it an attractive destination for those looking to relocate. This blend is a key factor in the rising demand for diverse housing.

As more expats settle in Arequipa, the housing market continues to evolve, with new developments and properties designed to meet their needs. This ongoing transformation is a clear indicator of the city's growing international appeal. The demand for diverse housing options is a direct result of this influx.

Sources: Expat Arrivals, International Schools Database, Prescott School

7) Arequipa’s location between Lima and Cusco makes it a prime spot for travelers

Arequipa is perfectly nestled between Lima and Cusco, making it a prime spot for travelers.

With over 300,000 visitors expected this summer, Arequipa is buzzing with excitement. The city’s stunning beaches and top-notch infrastructure are big draws, promising a lively tourist season. New hotels and tour services are popping up, adding to the city’s charm and making it a must-visit destination.

Arequipa is a traveler's dream, thanks to its central hub status and improved flight and transport options. The city’s airport, the third busiest in Peru, is expanding to meet the growing travel demand, making it a breeze for tourists to get here. International travel agencies are also offering packages that include Arequipa, making it an easy and appealing stopover.

The Regional Government of Arequipa is on a mission to make the city a top-notch tourist spot. They’re focusing on quality services and preserving the city’s rich cultural identity. This initiative, along with more investment in local businesses and cultural sites, is enhancing the travel experience for those seeking adventure and cultural enrichment.

Sources: Trexperience Peru, Time Travel Turtle, USC Gal

8) Arequipa’s expanding wine industry draws wine lovers to the area

The local wine industry in Arequipa is booming, drawing wine lovers from near and far.

Arequipa is becoming a hotspot for wine enthusiasts thanks to its growing number of vineyards and wineries. The region is known for its small, artisanal producers who craft unique wines from old Criolla varieties, giving Arequipa's wines a special charm that can't be found elsewhere.

Wine tourism is on the rise here, and it's no wonder. With the global wine tourism market valued at USD 46.47 billion in 2023, Arequipa is perfectly positioned to attract more visitors eager to explore its distinctive wines.

Locally, the wine scene is buzzing with the discovery and production of new Criolla varieties. This is largely driven by a surge in interest in premium and organic wines, especially among younger folks like millennials and Gen Z, who are always on the lookout for something special.

Arequipa's wines are not just gaining local fans; they're also earning international recognition. This global attention only adds to their allure, making the region a must-visit for wine aficionados.

With its unique offerings and growing reputation, Arequipa is becoming a key player in the wine world, attracting enthusiasts who are eager to taste what the region has to offer.

Sources: Straits Research, Everyday Drinking, Grand View Research

statistics infographics real estate market Arequipa

We have made this infographic to give you a quick and clear snapshot of the property market in Peru. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

9) With tourism booming in Arequipa, you can easily rent out your property short-term

Arequipa is becoming a hot spot for tourists, with more visitors flocking to the region each year.

This surge in tourism is creating a buzz in the property market, especially for short-term rentals. With a median occupancy rate of 45%, platforms like Airbnb are thriving here. This means tourists are actively choosing these rentals, pushing the demand even higher.

As of September 2024, Arequipa boasted 1,273 active Airbnb listings, a clear sign of the growing interest in short-term stays. Property owners are catching on, seeing the potential for good returns.

Short-term rentals in Arequipa are not just popular; they’re profitable. The average daily rate is higher than long-term leases, making them a lucrative choice for owners. Tourists are willing to pay more for these stays, drawn by positive reviews and high ratings.

With Arequipa’s tourism on the rise, property owners are finding short-term rentals to be a smart investment. The steady stream of visitors ensures a constant demand, making it a win-win for both tourists and property owners.

As the city continues to attract more tourists, the demand for short-term rentals is expected to keep climbing, offering promising opportunities for those looking to invest in the property market.

Sources: Airbtics, MyLighthouse

10) Arequipa’s closeness to Colca Canyon increases demand for eco-tourism housing

Arequipa's closeness to Colca Canyon is a major draw for eco-tourism housing.

Colca Canyon, a stunning natural wonder, has become Peru's second most popular tourist spot. Since the 1970s, visitor numbers have steadily climbed, and in 2023 and 2024, over 2 million tourists flocked to Peru between January and August, with many making their way to this breathtaking canyon.

This surge in tourism is a boon for Arequipa, as it fuels the region's eco-tourism revenue. Tourism is a cornerstone of Peru's economy, contributing more than 5.6% to the GDP and creating nearly 1 million jobs. Arequipa rides this wave, with tourism spurring economic growth and community-focused tourism projects.

The steady stream of tourists keeps the demand for short-term rentals robust, ensuring stable rental yields. In Arequipa, this trend is clear, as the rise of eco-tourism is leading to the development of sustainable tourism ventures, including eco-friendly lodges and accommodations.

For those considering property investment in Arequipa, the eco-tourism boom offers promising opportunities. The region's commitment to sustainable tourism not only attracts visitors but also supports long-term property value growth.

Investing in Arequipa means tapping into a market driven by natural beauty and a growing eco-conscious traveler base. The area's focus on sustainability and community engagement makes it an attractive option for those looking to invest in a thriving tourism sector.

Sources: Salkantay Trekking, Purdue University

11) Arequipa's cultural festivals boost demand for short-term rentals

The city's cultural festivals are a big draw for visitors, especially events like the Hay Festival Arequipa and the Virgen de Chapi festival.

These festivals are not just about fun; they create a buzz that leads to a surge in demand for short-term rentals. During these times, Airbnb properties in Arequipa see a noticeable increase in bookings. Tourists flock to the city, eager to soak in the vibrant cultural scene, and they need places to stay.

For property owners, this is a golden opportunity. They experience higher occupancy rates and increased revenue during festival periods. The average host income in Arequipa goes up significantly when these events are happening, making it a lucrative time for those renting out their spaces.

Imagine the Hay Festival's 10th edition in 2024, which is expected to draw a large crowd. This means more people looking for accommodations, and property owners can capitalize on this influx. It's a win-win situation: tourists get to enjoy the festivals, and hosts see their earnings rise.

These festivals are more than just cultural highlights; they are economic boosters for the local rental market. The spike in occupancy rates during these events is a clear indicator of their impact. Property owners in Arequipa are well aware of this trend and often prepare in advance to meet the demand.

So, if you're considering buying property in Arequipa, keep in mind the potential for increased income during festival times. It's not just about owning a piece of this beautiful city; it's about tapping into the economic benefits that these cultural events bring.

Sources: Airbtics, Acción Cultural, Colourful Peru

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.