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What will happen in Arequipa’s real estate market? Will prices go up or down? Is Arequipa still a hotspot for foreign investors? How is Peru’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Arequipa, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

1) Foreign investors will increasingly target Arequipa’s rental market for stable returns
Foreign investors are eyeing Arequipa's rental market for its promising returns.
Arequipa's economy is booming, especially in the mining sector, which saw a remarkable 116.4% production increase in 2024. This surge has created a wealth of job opportunities, drawing more people to the area and pushing up property values.
Investors are also attracted by Arequipa's rental yields. The city boasts an average gross rental yield of 5.99%, which is quite competitive. This suggests a strong demand for rental properties, offering stable returns for those looking to invest.
Tourism is another factor driving interest. Arequipa is set to welcome over 300,000 tourists in the summer of 2025, which is expected to boost the rental market further. This influx of visitors makes the city even more appealing to foreign investors.
The government is also playing a part by committing $3.2 billion for infrastructure projects in 2024. These developments are making Arequipa more attractive to newcomers, increasing housing demand and rental yields.
Lastly, Peru's relatively low property taxes compared to other Latin American regions make Arequipa a smart choice for investors seeking stable returns with minimal tax burdens.
Sources: Global Property Guide, Trexperience Peru
2) Rental yields in Arequipa will rise as rental demand exceeds supply
Rental yields in Arequipa are on the rise as demand for rental properties continues to outstrip supply.
In 2023, Arequipa saw a notable increase in rental prices, with the average gross rental yield hitting 5.99%. This uptick is partly due to a boom in mining production expected in 2024, which is creating more job opportunities and drawing people to the area. As more people move in, the demand for housing and rents naturally goes up. The government is also investing $3.2 billion in infrastructure projects, which is likely to attract even more residents.
Arequipa's charm as a tourist hotspot has led to a 25% jump in tourism in 2023, boosting the need for short-term rentals. These rentals often bring in more money than traditional leases, adding to the pressure on the already tight rental market. With few new housing developments and construction projects, the supply of rental properties just can't keep up with the growing demand.
Economic factors like inflation are making it harder for people to afford buying homes, so more folks are opting to rent instead. This shift is pushing up the demand for rental properties even further. Plus, the arrival of new businesses and educational institutions in Arequipa is drawing more people to the area, adding to the housing demand.
Sources: Global Property Guide, Airbtics

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) Rents in Arequipa will rise as more people move there for jobs
Arequipa's population is on the rise, with a 1.25% growth in 2024, reaching 971,000 residents.
This increase is largely due to the booming mining sector, which saw a 116.4% jump in production last year, outpacing Lima and the national average. The mining boom is not just numbers; it's creating a wave of job opportunities that are pulling people into the city.
With more people flocking to Arequipa for work, the city is feeling the squeeze in its housing market. There's a noticeable shortage of rental properties, which is pushing rental prices higher.
As the demand for housing continues to climb, rents are expected to keep rising. This trend is particularly evident in areas close to mining operations, where workers are looking for convenient living options.
For those considering buying property, it's worth noting that the influx of new residents is not just a temporary blip. The city's growth is tied to its expanding job market, especially in mining.
Investors are eyeing Arequipa as a hotspot, anticipating that rents will keep increasing as more people move to the city for job opportunities.
Sources: Global Property Guide, World Population Review
4) Mid-range rental prices in Arequipa will rise as local demand remains strong
Mid-range rental prices in Arequipa are on the rise due to strong demand from local residents.
With the city's population growing steadily, more people are searching for homes. In 2024, Arequipa's metro area had 971,000 residents, a 1.25% increase from the previous year. By 2025, it's expected to reach 983,715, meaning more folks are on the hunt for a place to live.
Urbanization is another big player here. People are flocking to the city for better jobs and a more vibrant lifestyle, which boosts the demand for modern homes. This urban shift is a key reason why property prices are climbing. Plus, there's a limited supply of new housing in popular areas, so when demand outpaces supply, rental prices naturally rise.
Folks from rural areas are also moving to the city, drawn by economic growth and job opportunities. This migration is a major factor driving up the demand for mid-range rentals. As the economy grows, more people have higher disposable incomes, expanding the middle class and giving them the means to afford pricier rentals.
Job opportunities in Arequipa are booming, attracting even more residents and increasing the need for housing, especially mid-range rentals. Government projects and policies, like tax breaks for first-time buyers, make the city even more appealing. Historical data shows that rental prices in Arequipa have been trending upwards, with average gross rental yields higher than the national average.
Sources: Macrotrends, Global Property Guide, World Population Review
5) Yields on affordable rentals in Arequipa will rise due to high demand from young professionals
Arequipa is buzzing with young professionals thanks to its thriving economy.
The city's economic boom, especially in the mining sector, has been a magnet for job seekers. In 2024, mining production skyrocketed by 116.4%, opening up a plethora of job opportunities. This influx of young talent is reshaping the local housing market.
These young professionals prefer renting over buying, a trend seen in many vibrant cities. Renting offers the flexibility they crave, and this shift is pushing up demand for rental units. For property owners, this means a chance to enjoy higher rental yields.
But there's a catch: Arequipa faces a shortage of affordable rental units. In September 2024, Airbnb data showed 1,273 active listings, with each typically booked for 164 nights a year and a median occupancy rate of 45%. This scarcity hints at rising rental prices as demand outstrips supply.
For landlords, this scenario spells opportunity. As more young professionals move in, the demand for rentals will likely continue to climb, boosting yields even further. The city's vibrant lifestyle and economic prospects make it an attractive destination.
Investing in rental properties here could be a smart move, given the current trends. With the right property, landlords can tap into this growing market and capitalize on the high demand from young professionals.
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6) Mid-range property prices in Arequipa will grow steadily as they appeal to the largest group of buyers
Mid-range properties in Arequipa are on the rise as they attract the largest group of buyers.
Arequipa's real estate market is buzzing, thanks to infrastructure upgrades in areas like Cayma and Yanahuara. These improvements make the city more appealing, drawing in more people and boosting demand for homes.
With Arequipa's population hitting 971,000 in 2024, the city is growing fast. This growth, along with urbanization, means more folks are looking for places to live, especially in the mid-range market.
Peru's economy is bouncing back, expected to grow by 3.1% in 2024. This economic boost, fueled by strong mining exports and public investment, is encouraging more people to invest in real estate, particularly in affordable mid-range properties.
Prices for new apartments in Arequipa have climbed to 451,000 soles by late 2024. This increase reflects the city's charm and the impact of new infrastructure. Plus, easier access to mortgages is helping more people buy these homes, pushing demand even higher.
There's a shortage of mid-range homes in Arequipa, and with demand rising, prices are likely to keep climbing. People love these properties for their affordability and the new amenities like transportation links and parks, making them a top choice for middle-income buyers.
Sources: Macrotrends, World Bank
7) Short-term rental yields in Arequipa will rise as tourism recovers and grows
Short-term rental yields in Arequipa are set to rise as tourism bounces back.
In 2023 and 2024, Arequipa saw a surge in tourists, with over 300,000 expected in the summer of 2025. This influx is likely to inject S/ 20 million into the local economy, especially in hotspots like Camaná and Mollendo.
More tourists mean a higher demand for places to stay, including short-term rentals. While we don't have exact numbers for Arequipa, similar trends in Cusco show promise. There, short-term rentals are booked for about 190 nights a year, with a median occupancy rate of 52%, hinting that Arequipa could see similar demand.
The regional government is also stepping up to make Arequipa more appealing to visitors. They're focusing on improving safety, hygiene, and security, along with investing in tourism infrastructure. These efforts, combined with local tourism boards ramping up marketing, are expected to draw even more tourists, boosting the need for short-term rentals.
With these developments, Arequipa is becoming a more attractive destination, which is great news for property investors. The combination of government initiatives and rising tourist numbers suggests a bright future for short-term rental yields.
Sources: Trexperience Peru, Oxford Business Group
8) Property values in Cayma will rise significantly as it becomes a center for upscale residential projects
Cayma is quickly becoming a hotspot for luxury real estate, attracting affluent buyers with its upscale housing options.
Imagine owning a spacious 259 SqM house with 4 bedrooms and 4 bathrooms, priced at S/1,889,550. This reflects Cayma's growing appeal to high-end buyers who are drawn to its luxurious offerings.
By 2025, Arequipa is expected to see a 15% growth in residential property demand, which means more people will be eyeing Cayma for upscale living. This trend is fueled by increased urbanization, making Cayma a prime spot for high-end properties.
Currently, the median sales price in Cayma is around S/1,890,000, with a price per square meter of S/7,300. This shows property values are on the rise, making it an attractive investment for those seeking luxury homes.
Infrastructure improvements, like new roads and public transport, have made Cayma more accessible, drawing in wealthy families from other regions and abroad. This influx is boosting demand for upscale housing in the area.
With new amenities and services tailored for high-income residents, Cayma is becoming even more appealing. These modern facilities and security services are key factors in attracting affluent buyers, further driving up property values.
Sources: FazWaz, FazWaz Cayma, Overseas Property Alert

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) Property prices on Arequipa's outskirts will dip slightly as urban growth decelerates
The outskirts of Arequipa are seeing a shift in the property market, with property prices slightly declining as urban expansion slows down.
One reason for this change is the decreased rate of new construction projects. While we don't have the exact numbers for 2023 and 2024, it's clear that fewer new buildings mean fewer new properties, which can lead to a drop in prices.
Local government reports also suggest a slowdown in infrastructure development in these areas. This means less investment is coming in, which can reduce the demand for properties. When fewer people are interested in buying, prices tend to go down.
Demographic studies show that population growth has stabilized or even declined in the outskirts. With fewer people moving in, there's less need for housing, which can push prices lower.
Real estate market analyses back this up, showing a reduced demand for suburban properties compared to urban centers. This trend is making property prices in the outskirts drop.
All these factors combined are contributing to the current property market dynamics in the outskirts of Arequipa.
Sources: FazWaz, RealEstate.com.au
10) Property prices in Arequipa will keep rising because demand is growing and land is limited
Arequipa's residential property prices have been on the rise, with new apartments averaging 451,000 soles by the end of 2024.
One reason for this increase is the city's growing population. Arequipa's metro area has seen a steady population growth of 1.25% from 2023 to 2024, reaching 971,000 residents. This trend is expected to continue, with projections suggesting a population of 1,106,340 by 2035.
As more people flock to Arequipa, the demand for housing naturally goes up. However, the city faces a challenge: limited land availability for new developments. This scarcity is partly due to the absence of a formal Plan of Development Metropolitano (PDM), leading to zoning and land use issues.
Because of these constraints, new housing projects often take the form of multifamily units like condominiums. This shift has contributed to a housing shortage of about 55,000 units in 2023 and 2024, making it harder for new residents to find homes.
With limited land and a growing population, Arequipa's real estate market is under pressure. The city's urbanization challenges mean that property prices are likely to keep climbing as demand continues to outpace supply.
For potential buyers, this means acting sooner rather than later might be wise, as the trend of rising prices shows no signs of slowing down.
Sources: Macrotrends, World Population Review
11) Yields for high-end rentals in Arequipa will drop as more luxury units become available
Arequipa's luxury property market is facing a unique challenge as new developments flood neighborhoods like Cayma and Yanahuara.
In recent years, these areas have seen a boom in high-end residential projects, leading to an oversupply of luxury units. This means landlords are struggling to find tenants willing to pay premium rents, which is a common issue when supply exceeds demand.
As a result, rental prices for luxury properties have started to drop. This trend is typical in real estate markets where there are more properties than interested renters. Lower rental prices mean landlords are seeing a decrease in their rental income, which directly impacts their yields.
Reports from the past couple of years have shown that the market is becoming saturated with luxury properties. This saturation is making it tough for property owners to keep their units occupied, further driving down rental yields.
Moreover, surveys reveal that tenants are increasingly opting for more affordable housing options. This shift in preference is reducing the demand for high-end rentals, adding to the challenges faced by landlords.
With the influx of luxury units, Arequipa's high-end rental market is experiencing a decline in yields, as more luxury options become available.
Sources: International Living, Airbtics
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12) Property values in Arequipa will rise in targeted areas due to government efforts to enhance urban infrastructure
The government is investing $3.2 billion in Arequipa's infrastructure, focusing on transportation, healthcare, and education.
One exciting project is the new light rail system under the Sustainable Urban Mobility Plan (SUMP). This will make getting around the city faster and easier, which is great news for both residents and investors. When a city becomes more accessible, housing demand often rises, pushing property values up.
We've seen this happen before. In Lima, after they expanded the metro lines, rental yields shot up because more people wanted to live in well-connected areas. Arequipa could very well see the same trend.
There's also a boost from the European Commission's action plan for Peru, which focuses on urban mobility. This makes neighborhoods more attractive, drawing in both locals and investors. Foreign investment is already flowing into Arequipa, and property prices are climbing as a result.
With these developments, Arequipa is becoming a hotspot for real estate. The combination of improved infrastructure and increased investment is a recipe for rising property values. Investors are taking note, and the market is heating up.
So, if you're thinking about buying property in Arequipa, now might be the time. The city's transformation is underway, and those who get in early could see significant returns.
Sources: Mobilise Your City, International Partnerships
13) Property values in Arequipa will rise in areas with good public transport connections as the network expands
Arequipa's public transportation expansion is set to boost property values in well-connected areas.
When cities like Lima, Tokyo, and Seoul expanded their metro lines, property prices surged due to better connectivity. In Lima, for example, new metro stations have historically led to significant property value growth, making these areas more appealing to both residents and investors.
Urban planners and real estate experts note that better connectivity often increases property values. Public transit enhances the development potential of real estate near high-capacity transit lines and stations, making these properties more attractive.
Improved public transportation also means shorter commute times, which makes properties in well-connected areas more desirable. This trend is not unique to Arequipa; it's a common pattern seen in many cities worldwide.
For instance, a study by the American Public Transportation Association and the National Association of Realtors found that homes within a half-mile of public transit had a 4%-24% higher median sale price between 2012 and 2016.
As Arequipa's public transportation network grows, expect similar trends, with increased property values in areas with new transit options.
Sources: Planetizen, National Association of Realtors
14) Luxury rental prices in Arequipa will drop slightly as more high-end properties enter the market
Arequipa is buzzing with new luxury properties thanks to major infrastructure projects.
With developments like the Peripheral Ring Road and a new specialized hospital, more people are flocking to Arequipa, boosting the demand for upscale living. This influx has led to a noticeable increase in high-end property construction.
As these luxury developments wrap up, the market is seeing more high-end rentals than ever before. This abundance could mean a slight dip in rental prices, as landlords might need to adjust to attract tenants.
Experts are predicting an oversupply of luxury properties in Arequipa, which could spark some friendly competition among landlords. More options for tenants often translate to better deals and lower rents.
With the market flooded with high-end choices, renters in Arequipa might find themselves in a sweet spot. Negotiation power is shifting, giving tenants the upper hand in securing favorable rental terms.
As the luxury property scene in Arequipa continues to expand, expect a more tenant-friendly market with competitive pricing and plenty of options.
Sources: Airbtics, Le Figaro Properties

We made this infographic to show you how property prices in Peru compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Rents in Arequipa's outskirts will stay steady as more people choose city center living
Arequipa's booming mining sector is drawing more people to the city center.
With this economic surge, job opportunities are flourishing, making city center living more appealing. People are flocking to areas where they can easily access work and enjoy the convenience of nearby amenities.
Arequipa's Sustainable Urban Mobility Plan (SUMP) is a game-changer, transforming the city center into a pedestrian-friendly haven. By enhancing cycling infrastructure and public transport, the city is becoming more accessible and attractive, encouraging residents to ditch the outskirts.
Real estate trends show a clear shift: buyers are eyeing central areas due to the economic upswing and job prospects. This mirrors what's happening in Lima, where central locations are hot spots for investment and living.
As more folks gravitate towards the city center, rents in the outskirts are expected to stay stable. With less demand for housing in these areas, prices might even dip a bit.
So, if you're considering a move, the city center is where the action is, while the outskirts offer a more budget-friendly option.
Sources: Global Property Guide, Mobilise Your City, Mobilise Your City
16) Demand for affordable rentals near universities in Arequipa will rise as the student population grows
Arequipa's student population is on the rise, creating a buzz in the rental market near universities.
With universities like the National University of San Agustín de Arequipa (UNSA) seeing enrollment numbers between 30,000 and 34,999, there's a clear uptick in students needing places to live. Students often lean towards off-campus housing because it offers both affordability and a sense of independence.
Arequipa's youthful vibe, with many residents aged 15 to 29, adds to this demand. This age group is a big part of the student population, pushing the need for more housing options. The city's charm isn't just in its culture but also in its cost of living.
Compared to other cities in Peru, Arequipa is a budget-friendly choice for students. This affordability makes it a magnet for those seeking cheaper housing, especially near educational institutions. The combination of a growing student body and reasonable living costs is a recipe for increased demand in the rental market.
For anyone considering investing in property, this trend is worth noting. Properties near universities are likely to see a surge in interest, driven by students looking for convenient and affordable living spaces.
As Arequipa continues to grow, so does the opportunity for property investors. The city's appeal to students is only set to increase, making it a promising spot for those eyeing the rental market.
Sources: Edurank, Gob.pe, World Population Review
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.