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SUMMARY
We analyzed apartment rental yields in Arequipa, as of 2026, for residential apartment buyers, using the raw dataset provided and our own market interpretation of local sale prices, rents, and neighborhood positioning.
This article is updated regularly, so the numbers should be read as a May 2026 snapshot of the Arequipa apartment market rather than a permanent valuation.
The strongest net-yield areas in the dataset are Cercado, José Luis Bustamante y Rivero, Miraflores, Paucarpata, Selva Alegre, Sachaca, Umacollo, and Vallecito, especially for studios and compact 1-bedroom apartments.
The clearest pattern is that small apartments usually work better than larger apartments. Across the dataset, studios average roughly S/ 162,000 and about 5.0% net yield, while 2-bedroom apartments average roughly S/ 319,000 and about 4.6% net yield.
Cercado is one of the clearest rent-to-price opportunities. A studio is estimated at S/ 161,000 and S/ 950 monthly rent, giving 7.1% gross yield and 5.3% net yield.
José Luis Bustamante y Rivero is the most balanced neighborhood in the table. It reaches estimated net yields of 5.3% for studios, 5.2% for 1-bedroom apartments, and 5.0% for 2-bedroom apartments.
Cayma and Yanahuara are safer lifestyle and resale districts, but their apartment rental yields are weaker. Cayma 2-bedroom apartments show only 4.0% net yield, while Yanahuara 2-bedroom apartments show 4.4% net yield.
The cheaper outer areas, especially Tiabaya, Socabaya, and Hunter, should not be judged only by yield. Low entry prices can hide thinner tenant demand, weaker resale liquidity, and greater sensitivity to vacancy or repairs.
For a beginner foreign buyer, the practical Arequipa strategy is to look first at well-located studios or 1-bedroom apartments in central, practical, and liquid neighborhoods rather than chasing the cheapest apartment in the city.
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Neighborhoods and apartment types in the 2026 Arequipa apartment market
This table compares apartment rental yields in Arequipa by neighborhood and apartment size.
For each area, the table shows estimated purchase price, estimated monthly rent, gross rental yield, and net rental yield for studios, 1-bedroom apartments, and 2-bedroom apartments.
The estimates are designed for residential apartment buyers. They are useful for comparing purchase price, rent, yield, tenant depth, risk, and investment profile, but the detailed operating assumptions behind each segment are available in our real estate pack about Arequipa.
| Neighborhood | Studio average purchase price | Studio average monthly rent | Studio gross rental yield | Studio net rental yield | 1-bedroom average purchase price | 1-bedroom average monthly rent | 1-bedroom gross rental yield | 1-bedroom net rental yield | 2-bedroom average purchase price | 2-bedroom average monthly rent | 2-bedroom gross rental yield | 2-bedroom net rental yield |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cayma | S/ 221,000 | S/ 1,100 | 6.0% | 4.3% | S/ 331,000 | S/ 1,650 | 6.0% | 4.3% | S/ 434,000 | S/ 2,000 | 5.5% | 4.0% |
| Cercado | S/ 161,000 | S/ 950 | 7.1% | 5.3% | S/ 241,000 | S/ 1,400 | 7.0% | 5.2% | S/ 316,000 | S/ 1,650 | 6.3% | 4.7% |
| Cerro Colorado | S/ 176,000 | S/ 950 | 6.5% | 4.9% | S/ 264,000 | S/ 1,400 | 6.4% | 4.8% | S/ 345,000 | S/ 1,650 | 5.7% | 4.3% |
| Hunter | S/ 124,000 | S/ 700 | 6.8% | 5.0% | S/ 185,000 | S/ 1,050 | 6.8% | 5.0% | S/ 243,000 | S/ 1,300 | 6.4% | 4.8% |
| José Luis Bustamante y Rivero | S/ 154,000 | S/ 900 | 7.0% | 5.3% | S/ 230,000 | S/ 1,300 | 6.8% | 5.2% | S/ 301,000 | S/ 1,650 | 6.6% | 5.0% |
| Miraflores | S/ 131,000 | S/ 750 | 6.9% | 5.1% | S/ 196,000 | S/ 1,150 | 7.0% | 5.2% | S/ 257,000 | S/ 1,400 | 6.5% | 4.8% |
| Paucarpata | S/ 127,000 | S/ 750 | 7.1% | 5.2% | S/ 191,000 | S/ 1,100 | 6.9% | 5.1% | S/ 250,000 | S/ 1,350 | 6.5% | 4.8% |
| Sachaca | S/ 169,000 | S/ 950 | 6.7% | 5.1% | S/ 252,000 | S/ 1,400 | 6.7% | 5.0% | S/ 331,000 | S/ 1,700 | 6.2% | 4.6% |
| Selva Alegre | S/ 172,000 | S/ 1,000 | 7.0% | 5.2% | S/ 258,000 | S/ 1,450 | 6.7% | 5.1% | S/ 338,000 | S/ 1,700 | 6.0% | 4.5% |
| Socabaya | S/ 120,000 | S/ 650 | 6.5% | 4.7% | S/ 180,000 | S/ 1,000 | 6.7% | 4.9% | S/ 235,000 | S/ 1,200 | 6.1% | 4.5% |
| Tiabaya | S/ 112,000 | S/ 600 | 6.4% | 4.6% | S/ 168,000 | S/ 900 | 6.4% | 4.6% | S/ 220,000 | S/ 1,100 | 6.0% | 4.3% |
| Umacollo | S/ 198,000 | S/ 1,100 | 6.7% | 5.1% | S/ 297,000 | S/ 1,600 | 6.5% | 4.9% | S/ 390,000 | S/ 1,950 | 6.0% | 4.6% |
| Vallecito | S/ 195,000 | S/ 1,100 | 6.8% | 5.1% | S/ 292,000 | S/ 1,600 | 6.6% | 5.0% | S/ 382,000 | S/ 1,900 | 6.0% | 4.5% |
| Yanahuara | S/ 213,000 | S/ 1,150 | 6.5% | 4.9% | S/ 320,000 | S/ 1,700 | 6.4% | 4.8% | S/ 419,000 | S/ 2,000 | 5.7% | 4.4% |
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.
Which neighborhoods offer the best net yield among areas people actually want to live in Arequipa?
The best net-yield neighborhoods among areas people actually want to live in Arequipa are Cercado, José Luis Bustamante y Rivero, Selva Alegre, Umacollo, and Vallecito.
These areas combine above-average estimated net yields with real tenant demand, not just cheap purchase prices.
Cercado is one of the clearest examples. Studios and 1-bedroom apartments reach estimated net yields of 5.3% and 5.2%, which is above the table average for small apartments.
José Luis Bustamante y Rivero is especially strong because all three apartment sizes look usable. The dataset estimates 5.3% net yield for studios, 5.2% for 1-bedroom apartments, and 5.0% for 2-bedroom apartments.
Selva Alegre and Umacollo also work because they sit close to central Arequipa demand. Umacollo is useful for small apartments because renters value access to services, universities, transport corridors, and central Arequipa.
The trade-off is that these are not the cheapest areas in Arequipa. A beginner buyer pays more than in Socabaya, Tiabaya, or Hunter, but gets broader renter demand, better liquidity, and fewer cheap-but-hard-to-rent problems.
Where can I find apartments with above-average yields and below-average entry prices in Arequipa?
The best Arequipa areas for above-average yields and below-average entry prices are Cercado, José Luis Bustamante y Rivero, Miraflores, Paucarpata, and selected parts of Selva Alegre.
These neighborhoods are cheaper than Cayma, Yanahuara, Vallecito, and Umacollo, but they still have enough renter demand to make the yield credible.
For studios, Cercado, José Luis Bustamante y Rivero, Miraflores, Paucarpata, and Selva Alegre all show estimated net yields around 5.1% to 5.3%. Their studio purchase prices range from about S/ 127,000 to S/ 172,000, compared with S/ 221,000 in Cayma and S/ 213,000 in Yanahuara.
For 1-bedroom apartments, Miraflores and Paucarpata are especially interesting. Purchase prices are estimated below S/ 200,000, while net yields are around 5.1% to 5.2%.
The local reason is visibility. Foreign buyers often look first at Cayma, Yanahuara, Vallecito, and Umacollo, while local renters may still accept Miraflores, Paucarpata, or José Luis Bustamante y Rivero if the apartment is safe, practical, and well connected.
The warning is important. Tiabaya, Socabaya, and Hunter are cheaper, but the discount partly reflects weaker prestige, thinner tenant depth, and lower resale liquidity.
Where does the rent level justify the purchase price most clearly in Arequipa?
The rent level most clearly justifies the purchase price in Cercado, José Luis Bustamante y Rivero, Selva Alegre, Miraflores, and Paucarpata.
These neighborhoods show a stronger rent-to-price relationship than Arequipa's premium districts.
In Cercado, a 1-bedroom apartment is estimated at S/ 241,000 with monthly rent near S/ 1,400. That gives 7.0% gross yield and 5.2% net yield.
That is a cleaner rental-income equation than Cayma, where a 1-bedroom is estimated at S/ 331,000 and S/ 1,650 rent, producing only 4.3% net yield.
José Luis Bustamante y Rivero is also rational because its 2-bedroom estimate still reaches 5.0% net yield, one of the strongest 2-bedroom results in the table.
Tenants pay these rents because these areas are practical. They offer access to services, jobs, schools, retail, and cross-city movement without always requiring a premium Cayma or Yanahuara address.
We have actually built the our real estate pack about Arequipa to make sure you won’t buy in the wrong area. Check it out.
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Where is the best place to buy if I want stable rental income rather than maximum yield in Arequipa?
For stable rental income rather than maximum yield in Arequipa, the best choices are Yanahuara, Cayma, Vallecito, Umacollo, and José Luis Bustamante y Rivero.
These are not always the highest-yield areas, but they have deeper and more reliable tenant pools.
Yanahuara and Cayma have lower estimated net yields, around 4.0% to 4.9% depending on unit type. They compensate with stronger perceived safety, lifestyle appeal, access to services, and resale liquidity.
Vallecito and Umacollo are useful middle-ground choices. Their 1-bedroom net yields are estimated around 5.0% and 4.9%, while they still benefit from central access and renter familiarity.
José Luis Bustamante y Rivero is the most balanced stability-yield option. It has estimated net yields near or above 5.0% across most apartment sizes, while remaining a normal residential district with practical local demand.
The trade-off is that stable areas cost more. A buyer seeking maximum spreadsheet yield may prefer Paucarpata or Miraflores, but a beginner who wants fewer leasing surprises may accept a slightly lower yield in Yanahuara, Cayma, Vallecito, or Umacollo.
Which apartment type gives the best return for the lowest total investment in Arequipa?
The best return for the lowest total investment in Arequipa is usually a studio apartment or compact 1-bedroom apartment.
Studios have the lowest entry price, while 1-bedroom apartments often give the best balance between rentability and tenant quality.
Across the table, studios average roughly S/ 162,000 purchase price and around 5.0% estimated net yield. One-bedroom apartments average roughly S/ 243,000 and around 4.9% net yield.
Two-bedroom apartments require much more capital, around S/ 319,000 on average, while average net yield falls to about 4.6%.
Studios work best in Cercado, Umacollo, Vallecito, Selva Alegre, and Yanahuara, where renters accept smaller spaces because the location saves time.
One-bedroom apartments are the safest middle format. They fit singles, couples, young professionals, and some expats, and a well-located 1-bedroom is usually easier to rent than a very small studio in a weak location.
We give you more details in the our real estate pack about Arequipa.
Which neighborhoods offer strong rental income with the lowest vacancy risk in Arequipa?
The Arequipa neighborhoods that combine strong rental income with lower vacancy risk are Yanahuara, Cayma, Umacollo, Vallecito, and José Luis Bustamante y Rivero.
These areas are better for dependable income than for chasing the highest yield.
Monthly rents are highest in premium and central-west areas. Estimated 2-bedroom rents reach S/ 2,000 in Cayma and Yanahuara, S/ 1,950 in Umacollo, and S/ 1,900 in Vallecito.
These rent levels are supported by stronger tenant profiles, not only by larger unit size. Renters value safer-feeling streets, services, shopping, transport routes, and proximity to central employment and education nodes.
José Luis Bustamante y Rivero is attractive because it offers lower entry prices than Yanahuara or Cayma, but still has a broad local tenant base.
That makes its estimated 5.2% net yield for 1-bedroom apartments more credible than a higher yield in a thinner market.
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.
Which areas look overpriced relative to their rental income in Arequipa?
The areas that look most expensive relative to rental income in Arequipa are Cayma, Yanahuara, and parts of Vallecito and Umacollo.
These are excellent residential areas, but the rental-yield case is weaker than the lifestyle and resale case.
Cayma 2-bedroom apartments show an estimated 4.0% net yield, the lowest figure in the dataset. Yanahuara 2-bedroom apartments are also lower at around 4.4% net yield.
This happens because purchase prices are high relative to achievable long-term rents. Cayma 1-bedroom apartments cost an estimated S/ 331,000 and rent for S/ 1,650, while Cercado 1-bedroom apartments cost S/ 241,000 and rent for S/ 1,400.
The local reason is prestige and scarcity. Cayma and Yanahuara attract buyers who want quality of life, views, safer-feeling residential streets, access to malls and services, and better resale liquidity.
The trade-off is simple. These are not bad neighborhoods. They may be good for capital preservation or personal use, but for a rental-income investor, the price premium weakens the yield.
Which neighborhoods should I avoid even if the rental yield looks attractive in Arequipa?
Beginner investors should be cautious with Tiabaya, Socabaya, Hunter, and some lower-liquidity parts of Paucarpata even when the yield looks attractive.
The apparent yield can be caused by low purchase prices, not by deep tenant demand.
Hunter shows estimated net yields around 5.0% for studios and 1-bedroom apartments, but rents are low. The studio rent is about S/ 700 and the 1-bedroom rent is about S/ 1,050.
That means one vacancy month or one repair can hurt the annual return more than the headline percentage suggests.
Socabaya and Tiabaya also look affordable, with studio purchase prices around S/ 120,000 and S/ 112,000. But their lower rents, weaker foreign-buyer visibility, and thinner resale market make them harder for a beginner who may need to sell quickly or rent without deep local knowledge.
Paucarpata is more nuanced. Compact, safe, well-connected apartments can work, but older buildings, poor maintenance, or weak micro-location can turn a reasonable gross yield into a frustrating net return.
Which neighborhoods look risky even though the rental yield is high in Arequipa?
The high-yield but riskier Arequipa neighborhoods are Hunter, Paucarpata, Miraflores, Socabaya, and Tiabaya.
They can produce attractive net yields, but the risk-adjusted return may be weaker than the headline yield suggests.
Miraflores and Paucarpata show estimated 1-bedroom net yields of 5.2% and 5.1%, which is strong. The risk is not the rent math, but the fact that buyer demand, tenant depth, and resale liquidity can vary sharply by street and building.
Hunter and Socabaya have low purchase prices, which mechanically lift yields. But low prices often signal weaker demand, weaker building stock, fewer high-income tenants, and less foreign-buyer liquidity.
Tiabaya is the clearest caution case. Its estimated 1-bedroom entry price is only S/ 168,000, but rent is also lower at about S/ 900 per month.
A safer alternative is to accept slightly lower yield in José Luis Bustamante y Rivero, Selva Alegre, Umacollo, or Vallecito, where tenant demand is broader and resale should be easier.
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What neighborhoods should I avoid when buying a rental apartment in Arequipa?
For a beginner rental-apartment investor in Arequipa, the main avoid-or-be-careful list is Tiabaya, Socabaya, Hunter, and weak micro-locations in Paucarpata or Miraflores.
These areas are not automatically bad, but they require stronger local selection skills.
Tiabaya should usually be avoided by beginners unless the price is clearly discounted. Estimated net yields are around 4.3% to 4.6%, which is not high enough to fully compensate for weaker liquidity and lower rent levels.
Socabaya is better than Tiabaya on some measures, but still has lower rent depth. A 2-bedroom rent estimate near S/ 1,200 means the investor needs tight cost control.
Hunter can work for yield, but building quality and tenant screening matter. A beginner who buys the wrong unit may face more vacancy and repair risk than expected.
Paucarpata and Miraflores should not be avoided completely. They should be approached selectively, because compact, safe, well-connected apartments can work while poorly maintained buildings or awkward streets should be avoided.
Which neighborhoods are seeing rental demand weaken, and why, in Arequipa?
The neighborhoods most vulnerable to weaker rental demand in Arequipa are outer or lower-liquidity areas such as Tiabaya, Socabaya, Hunter, and weaker pockets of Paucarpata.
The issue is not always falling rent. It is thinner tenant depth.
In these neighborhoods, rent levels are lower and the tenant base is more price-sensitive. If household budgets tighten or better-located units discount their rent, tenants may move toward more central or better-connected areas.
Demand weakness is also linked to apartment quality. Older buildings, limited parking, poor maintenance, and weaker public-realm conditions can make a unit harder to rent, even if the headline price is cheap.
This is different from seasonal weakness. In central Arequipa, temporary vacancy may be solved by pricing. In weaker outer areas, vacancy may reveal a structural issue: fewer tenants actively searching there.
The recommendation is to monitor rather than automatically reject. Buy only if the purchase price is low enough, the unit is easy to maintain, and the rent assumption is conservative.
Which neighborhoods are seeing new developments that could create stronger rental demand in Arequipa?
The Arequipa neighborhoods most likely to benefit from new demand-creating development are Cerro Colorado, Cayma, and transport-connected parts of Tiabaya and the northern and western city.
The strongest story in the dataset is Cerro Colorado because of the airport modernization path.
Airport-area improvements can support jobs, services, business travel, and logistics demand over time. That matters for Cerro Colorado because rental demand can deepen when an area becomes more connected to employment and services.
Cerro Colorado already has active apartment development and higher-price pockets. The investor must separate demand creation from supply risk.
More development can deepen the tenant pool, but too much apartment supply can also increase competition. That is why the table's Cerro Colorado studio yield of 4.9% net yield should be read with micro-location discipline.
Cayma benefits from established retail, services, and premium residential demand. However, much of that story is already priced in, which is why its yields are lower than those in Cercado, José Luis Bustamante y Rivero, Miraflores, and Paucarpata.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Peru. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which neighborhoods are becoming more attractive to renters because of recent infrastructure or transport changes in Arequipa?
The neighborhoods becoming more attractive because of transport changes are Cerro Colorado, Cayma, Tiabaya, and some cross-city corridors linked to the SIT modernization.
The strongest near-term impact is better bus coverage and more modern public transport.
For renters, transport matters because Arequipa congestion and commute friction can make a cheaper apartment feel expensive in time. Better routes can make a lower-cost district more acceptable to workers and students.
Cerro Colorado gets an additional infrastructure angle from airport modernization. That supports its medium-term rental story, especially in sub-areas close to jobs, services, and transport.
Cayma benefits differently. It is already desirable, so transport and service improvements may support rent stability more than yield expansion.
The caution is pricing. If sellers already price in the infrastructure upside, the yield may not improve. The best opportunity is where transport improves renter demand before purchase prices fully adjust.
Which neighborhoods have become less attractive for apartment investors over the last 12 months in Arequipa?
The neighborhoods that have become less attractive for rental-income investors are Cayma, Yanahuara, and some high-price pockets of Cerro Colorado.
They remain desirable places to live, but prices have moved faster than rents in the rental-yield equation.
In the table, Cayma's estimated net yields fall to 4.3% for studios and 1-bedroom apartments and 4.0% for 2-bedroom apartments. Yanahuara is stronger, but still below the best yield areas, especially for 2-bedroom apartments.
Cerro Colorado is mixed. Airport modernization improves the story, but high-priced sub-areas can lose yield if buyers pay too much for future growth.
The recommendation is not to avoid these districts completely. It is to buy only if the unit has a clear advantage: below-market price, strong layout, parking, elevator, good security, or a rent premium that is already visible.
For a foreign individual buyer, the honest interpretation is that premium Arequipa districts are now more about stability and resale than maximum rental income.
Which apartment types are becoming harder to rent in Arequipa, and in which neighborhoods?
The apartment type becoming harder to rent in Arequipa is the overpriced 2-bedroom apartment in high-price or weaker-demand locations.
Studios and 1-bedroom apartments remain more liquid when they are well located and correctly priced.
The table shows why. Average estimated net yield is about 5.0% for studios, 4.9% for 1-bedroom apartments, and only 4.6% for 2-bedroom apartments.
The larger unit produces more rent, but not enough extra rent to offset the higher purchase price. In Cayma, a 2-bedroom apartment costs about S/ 434,000 and rents for S/ 2,000, producing only 4.0% net yield.
In Socabaya, Tiabaya, Hunter, and weaker parts of Paucarpata, 2-bedroom apartments can be harder because tenant budgets are lower and the pool of renters able to pay family-sized rents is narrower.
For beginners, the safest rule in Arequipa is clear: buy a studio or 1-bedroom apartment in a strong micro-location, and only buy a 2-bedroom apartment when building quality, parking, safety, and family demand are clearly strong.
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INSIGHTS
These insights are drawn from the Arequipa apartment rental yield dataset, with a focus on what a foreign individual buyer should understand before buying a residential apartment to rent out.
You’ll find even more insights in our our real estate pack about Arequipa.
- Arequipa studios usually beat 2-bedroom apartments because small-unit rents are high relative to entry price. For a beginner buyer, this means a smaller apartment can be more efficient than a larger unit with a higher monthly rent.
- Cercado has one of Arequipa's clearest rent-to-price gaps for small apartments. A studio at S/ 161,000 and S/ 950 monthly rent gives a stronger income equation than most premium districts.
- Cayma is expensive, so investors buy stability more than yield there. The area can make sense for personal use, resale comfort, and tenant quality, but the net-yield numbers are not the best in Arequipa.
- Yanahuara rents well, but purchase prices reduce the net-yield advantage. It is a better stability market than a maximum-income market.
- José Luis Bustamante y Rivero gives buyers a strong livability-yield balance. It is one of the few areas where studios, 1-bedroom apartments, and 2-bedroom apartments all look reasonable.
- Miraflores and Paucarpata look better for yield than prestige. They can work for rental income, but unit selection matters more than the neighborhood label.
- Socabaya and Tiabaya are cheap, but resale liquidity is weaker there. A foreign buyer should not confuse a low entry price with a low-risk investment.
- Umacollo works best for investors wanting students, professionals, and central access. The area is not the cheapest, but the renter base is easier to understand.
- Vallecito is more defensive than high-yield in the Arequipa apartment market. Its 1-bedroom apartments look solid, but the main attraction is stability rather than a bargain entry price.
- Cerro Colorado has airport-side growth, but not every sub-area has equal tenant depth. The future demand story is useful only if the building sits near real jobs, transport, and services.
- Arequipa 2-bedroom apartments need stronger locations because rent per sol invested is lower. A weak 2-bedroom can tie up too much capital for too little extra income.
- Selva Alegre offers better yields than Cayma while staying close to central Arequipa demand. That makes it useful for buyers who want income without moving too far into lower-liquidity areas.
- Sachaca's yields are moderate because buyers pay for lifestyle and lower-density appeal. It can work, but it is not the cleanest pure-yield story.
- Hunter can show attractive yields, but beginners should check building quality carefully. Low rents mean a single repair or vacancy month can damage the annual return.
- The best beginner product in Arequipa is usually a well-located studio or 1-bedroom apartment. The safest choice is not always the cheapest apartment, but the apartment with the clearest renter base.
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OUR METHODOLOGY TO BUILD THIS TRACKER
To estimate purchase price, monthly rent, and rental yield in different Arequipa neighborhoods, we built the analysis manually from the ground up by neighborhood and apartment type. We did not reuse a third-party yield dataset.
For each area, we researched current residential apartment sale listings across major platforms relevant to Arequipa, including Adondevivir, Ubicasa, and Properati.
For each neighborhood and apartment type, we collected comparable sale listings, then cleaned the sample. We removed duplicates, unrealistic asking prices, luxury outliers, distressed assets, serviced-style offers, incomplete listings, and properties that were not comparable by location, type, size, condition, or listing quality.
Sale prices were normalized where possible. We used the median price as the main reference when the sample was broad enough, and the average only when the sample was clean and not distorted by outliers.
We then built the rental side of the dataset separately. For the same neighborhood and apartment type, we manually reviewed rental listings, removed outliers and non-comparable units, and estimated a realistic monthly rent using the median rent where possible.
Purchase prices and rents were then matched by neighborhood and property type. Gross rental yield was calculated as annual rent divided by estimated purchase price.
Net rental yield was estimated by adjusting for the costs and risks that matter for each segment. These include vacancy risk, repairs, maintenance, management time, agent fees, tax friction, common-area charges, utilities that cannot be fully recovered, building costs, and other operating costs when relevant.
We do not apply one flat deduction to every property. A small central apartment, a larger 2-bedroom unit, a premium-area apartment, and a lower-liquidity outer-area apartment can have different operating cost profiles, so the net-yield adjustment is adapted by neighborhood and apartment type.
Each estimate is assigned a confidence level based on the quality and size of the comparable listing sample. Around 30 to 40 comparable listings means higher confidence, 20 to 30 means usable but less robust, and fewer than 20 means directional only unless the comparable area is widened.
These estimates are updated regularly and should be read as structured market estimates, not as guarantees of future rental income. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about Arequipa.
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