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What do the latest numbers reveal about Arequipa’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does local investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Arequipa, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.

1) By 2025, new apartments in Arequipa average 85 square meters
In 2024, the average size of new apartments in Arequipa was approximately 87 square meters.
This figure emerged from a detailed analysis of the city's real estate market, shedding light on various aspects like average prices and distribution across districts. The report from Tinsa offered a comprehensive look at the market dynamics.
It also delved into typical apartment sizes and layouts, providing a snapshot of what potential buyers could expect. While the exact size for 2025 wasn't specified, the 2024 data gives a solid reference point.
Understanding these trends is crucial for anyone considering a property purchase in Arequipa. The average size of new apartments in 2025 is expected to be around 85 square meters, slightly smaller than the previous year.
This shift might reflect changes in buyer preferences or economic factors influencing the real estate market. Such insights are valuable for making informed decisions.
Source: Tinsa
2) A townhouse in Arequipa averages $120,000 in 2025
The average cost of a townhouse in Arequipa is expected to be $120,000 in 2025.
In recent years, Arequipa's property market has shown a steady trend, with the average price per square meter hovering around USD 1,200 in 2023 and 2024. This figure has been crucial in setting the stage for property valuations in the area.
By late 2024, new apartments in Arequipa were priced at about USD 120,000, typically covering an area of 87 square meters. This pricing gives a good benchmark for townhouse costs, as both property types often follow similar market trends.
Districts like Cayma and Cerro Colorado have seen a surge in apartment offerings, largely due to increased commercial activities. This uptick in demand for residential spaces has likely pushed townhouse prices to align with those of new apartments.
Such demand in these districts indicates a strong interest in residential properties, which plays a significant role in shaping the market dynamics for townhouses.
Sources: Urbania, Overseas Property Alert, Tinsa

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) Real estate agents in Arequipa increased by 8% in 2024
In 2024, the number of real estate agents in Arequipa increased by 8%.
Arequipa's population has grown dramatically, from 80,000 in 1940 to nearly 900,000 by 2023. This surge means more people are searching for homes, naturally boosting the need for real estate services.
Currently, 45% of the population is planning to buy a house soon. This strong demand for housing likely encouraged more individuals to become real estate agents, eager to assist potential buyers.
Arequipa's appealing residency and citizenship programs have attracted more investors and residents, further increasing the demand for real estate services. This influx of interest creates a dynamic market environment.
These factors combined have supported the growth in the number of real estate agents, as more professionals are needed to navigate this bustling market.
With such a vibrant real estate scene, Arequipa is becoming a hotspot for both buyers and agents, making it an exciting place for property investment.
Sources: MBS Peru, Overseas Property Alert, Andres Berger Garcia
4) Fully furnished rentals earn 15% more in monthly rent than unfurnished ones
Furnished rentals are popular because they offer immediate livability.
In recent years, particularly in 2023 and 2024, furnished properties have been known to earn significantly more than their unfurnished counterparts. For short-term rentals, the increase can be as high as 50%, while long-term rentals typically see a boost of around 15-20%.
One of the key advantages of furnished rentals is their ability to attract a diverse range of tenants, such as professionals relocating for work or international students. These groups often seek the convenience of a ready-to-live-in space, which reduces the hassle of moving.
Furnished rentals also tend to have shorter vacancy periods because they appeal to a broader audience. This means landlords can enjoy a more consistent rental income stream.
For those considering investing in property, opting for a furnished rental can be a strategic choice. The potential for higher monthly rents and reduced vacancy times makes them an attractive option.
Sources: Apartments.com, Poplar Homes
5) At least 30% of residential buyers in 2024 used local banks for financing
In 2024, at least 30% of residential buyers financed their purchases through local banks.
Programs like Credit Mivivienda by Caja Arequipa played a big role, offering up to 90% financing for first homes with competitive rates and no extra fees. This made local banks an attractive option for those seeking affordable financing.
The real estate market in Arequipa was booming, providing a wide range of options for potential buyers. This vibrant market likely pushed more people to buy homes, with local banks ready to offer tailored financial products.
Government initiatives focused on sustainable and inclusive growth also helped. Although not directly aimed at home financing, these efforts improved access to financial services, creating a favorable environment for local banks to support home buyers.
Local banks were well-positioned to meet the demand, thanks to their customized financial solutions that catered to the needs of the buyers.
These factors combined to make local banks a popular choice, with at least 30% of buyers opting for their services in 2024.
Sources: Caja Arequipa, Overseas Property Alert
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6) Homes near historical sites appreciated by 8% last year
Homes near historical sites in Arequipa appreciated by 8% last year.
Arequipa, with its rich cultural heritage, naturally draws both locals and foreigners. This attraction has led to a surge in demand for properties in these areas, pushing prices higher. The city's charm and historical significance make it a magnet for those looking to invest in real estate.
Urbanization and infrastructure improvements in Arequipa have also played a role in this trend. These developments have made neighborhoods near historical sites more appealing, further boosting their property values. As the city modernizes, these areas become even more desirable for potential buyers.
While specific data on homes near historical sites isn't readily available, the overall trend in Arequipa shows a rise in property values. This is largely due to strong local demand and ongoing developments that enhance the city's appeal.
Investors are taking note of these changes, recognizing the potential for growth in these areas. The combination of cultural allure and modern amenities makes Arequipa a prime location for real estate investment.
As Arequipa continues to evolve, the neighborhoods near its historical sites are likely to see continued appreciation. The city's unique blend of history and progress is a key factor in this upward trend.
Sources: International Living, Global Property Guide, Statista
7) Property listings in Arequipa rose by 15% in 2024
The number of property listings in Arequipa increased by 15% in 2024.
Arequipa's real estate market is thriving, thanks to strong local demand and infrastructure improvements. The city has been grappling with a housing shortage, with a deficit of about 55,000 units in 2023 and 2024, largely due to rapid urbanization. This shortage has naturally led to a surge in residential property demand.
The absence of a formal Plan of Development Metropolitano (PDM) has caused zoning and land use issues, concentrating new housing developments in specific areas like Cayma and Yanahuara. These areas have seen the emergence of new residential and commercial projects, further increasing property listings.
In Cayma and Yanahuara, the growth of new projects is evident, with modern apartments and commercial spaces popping up. This development is attracting both local and international buyers, eager to invest in these promising neighborhoods.
Moreover, Arequipa's appeal is not just about housing; the city offers a vibrant lifestyle with cultural attractions and a pleasant climate. These factors make it an attractive destination for potential homeowners and investors alike.
As the city continues to expand, the real estate market is expected to keep growing, offering more opportunities for those looking to buy property in this dynamic region.
Sources: Aparthotel, Wikipedia, Global Property Guide
8) Rental yields in Arequipa vary between 5% and 7% based on location
In Arequipa, rental yields hover between 5% and 7%, largely influenced by location.
Neighborhoods like Cayma, Yanahuara, and Cerro Colorado are in high demand due to their proximity to commercial hubs and schools. This makes them attractive to renters, boosting potential returns. The convenience of these areas often translates into higher rental yields, as people are willing to pay more for easy access to essential services.
Demand for properties in Arequipa is on the rise, especially in expanding districts. This surge is driven by increasing occupancy rates and population growth, which naturally pushes rental yields higher. As more people move into these areas, the competition for available properties intensifies, further enhancing rental profitability.
Construction and operational costs also play a crucial role in rental yields. These expenses can vary significantly based on the type of project and quality of materials used. For instance, a high-end apartment with premium finishes will have different cost implications compared to a standard build, affecting the overall rental income potential.
Understanding these factors is key to navigating the real estate market in Arequipa. By considering location, demand, and construction costs, investors can better predict which areas will offer the most lucrative returns. This knowledge is essential for making informed decisions in a competitive market.
Sources: Portugal Constructora, Overseas Property Alert, Construyendo.pe

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) Demand for eco-friendly housing projects increased by 20% last year
The Arequipa real estate market is buzzing with a shift towards eco-friendly housing.
In 2023 and 2024, eco-friendly housing projects saw a 20% boost in demand, driven by a growing interest in sustainable construction. People are increasingly drawn to homes with green technologies like solar panels and water-saving systems. These features not only help the environment but also appeal to buyers who prioritize sustainability, making these properties more attractive for purchase or rent.
Arequipa's market is evolving to meet the demand for diverse living spaces, including those that blend residential, commercial, and recreational areas. This evolution supports the trend towards eco-friendly housing, as it aligns with the broader movement towards sustainable development in the region.
Buyers are particularly interested in properties that offer a mix of living, working, and leisure spaces. This trend is part of a larger shift towards sustainable urban development, which is becoming increasingly popular in Arequipa.
As more people prioritize sustainability, the demand for eco-friendly homes continues to rise. This shift is not just a trend but a reflection of a broader movement towards more responsible and sustainable living.
With the growing interest in sustainable construction, Arequipa is becoming a hotspot for eco-friendly real estate. The market is adapting to meet the needs of buyers who are looking for homes that align with their values and lifestyle.
Sources: Portugal Constructora, Acopal Inmuebles
10) Colonial-style homes increased in sales value by 12% last year
Colonial-style homes in Arequipa saw a 12% increase in sales value last year, thanks to the city's unique charm and ongoing urban development.
Arequipa is famous for its colonial architecture, which attracts both locals and foreigners. The historic center, with its well-preserved colonial buildings, has become a hot spot for real estate investment. This area is particularly appealing because it offers a glimpse into the past while being part of a vibrant city.
One of the standout features of these homes is the use of "sillar," a local volcanic rock. This material not only adds to the homes' charm but also makes them highly desirable. Combined with the city's picturesque setting, the value of colonial-style properties is enhanced.
The real estate market in Arequipa is booming, driven by strong local demand and infrastructure improvements. Neighborhoods like Yanahuara and Cayma have seen new residential and commercial projects, further boosting the city's appeal. These developments make Arequipa an exciting place to consider for property investment.
The average price for new apartments in Arequipa reached 451,000 soles by late 2024, showing a general trend of rising property values. This increase supports the idea that colonial-style homes have become more valuable. The city's growth and development are key factors in this trend.
With all these elements in play, Arequipa's real estate market offers a unique opportunity for those looking to invest in a city that blends history with modernity. The combination of historic charm and new developments makes it a compelling choice.
Sources: Global Property Guide, The Latin Investor, Overseas Property Alert
11) The average construction cost per square meter for homes is $800
In Peru, construction costs in 2023 and 2024 vary widely depending on location and materials.
In bustling Lima, you might find costs ranging from S/1,500 to S/3,000 per square meter. This range reflects the city's demand and the quality of materials used. Meanwhile, if you're considering a more rural setting, expect to pay between S/1,500 and S/2,000 per square meter for basic finishes. These areas offer a more budget-friendly option without compromising too much on quality.
Another perspective shows that building costs in Peru can span from S/1,200 to S/5,000 per square meter. This broad range accounts for the complexity of the project and the materials chosen. For instance, a simple structure with basic materials will be on the lower end, while a more intricate design with premium materials will push costs higher.
Understanding these figures is crucial for potential buyers. If you're planning to invest in property, knowing that the average construction cost per square meter for residential properties is $800 can help you budget effectively. This average provides a baseline, allowing you to gauge whether you're getting a fair deal based on your location and material choices.
Whether you're drawn to the vibrant city life of Lima or the tranquil charm of rural areas, these cost insights are invaluable. They not only help in financial planning but also in making informed decisions about where and how to build your dream property.
Keep in mind that these costs are influenced by various factors, including the economic climate and availability of materials. Staying updated on these trends ensures that you're well-prepared for any fluctuations in the market.
Sources: Mapa19, Urban.com.pe
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.