Buying property in Arequipa: is it worth it now?

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

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

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Arequipa. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinvestoR, we explore the Peruvian 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 in cities like Lima, Arequipa, and Cusco. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What kinds of condos are actually available to buy in Arequipa right now?

Arequipa's condo market offers diverse options ranging from budget-friendly units to luxury residences as of September 2025.

Entry-level buyers can find one-bedroom condos near universities starting around $42,000, perfect for students or young professionals. These units typically feature basic amenities but provide solid investment potential in high-demand areas.

Mid-range options include modern two and three-bedroom apartments in well-served neighborhoods like Umacollo and Magisterial, featuring eco-friendly designs, open-concept layouts, and good security systems. These properties typically range from $75,000 to $130,000 and attract families and professionals.

Premium districts such as Yanahuara, Cayma, Cerro Colorado, and José Luis Bustamante y Rivero offer luxury condos with spacious layouts, premium amenities, and spectacular views. These high-end properties start around $250,000 and can exceed $950,000 for penthouse units.

It's something we develop in our Peru property pack.

How much do condos cost compared to renting, and which option makes more sense financially?

The financial comparison between buying and renting in Arequipa clearly favors purchasing for long-term residents planning to stay several years.

Purchase prices vary significantly by location and quality. Entry-level one-bedroom condos near universities start at $42,000, while mid-range two-bedroom units a few blocks from the center range from $53,200 to $73,500. Spacious three-bedroom apartments in upscale areas like Yanahuara cost around $125,000, with luxury properties reaching $430,000 to $950,000.

Rental costs are considerably lower on a monthly basis. Modern apartments rent for $300-$450 per month, while upscale short-term rentals average $31 per night for standard units and $59+ per night for premium properties, translating to roughly $930-$1,800 monthly for furnished accommodations.

The buying decision becomes financially attractive when you factor in Arequipa's strong price appreciation—experts forecast 9% growth in 2025 following 20-30% increases since 2020. Property ownership also provides stability, potential rental income, and protection against inflation.

Renting makes more sense for short-term stays, those requiring maximum flexibility, or buyers still researching the market before committing to a specific neighborhood.

What's the price history of condos in Arequipa, how much are they selling for today, and where are prices likely heading?

Arequipa's condo market has experienced remarkable growth over the past five years, establishing it as one of Peru's strongest regional property markets.

Since 2020, condo prices have climbed 20-30% across key districts, with particularly strong performance in mid-range and luxury segments. The market experienced a temporary slowdown during 2021-2022 due to pandemic impacts, but rebounded strongly with average new apartment prices reaching S/451,000 (approximately $120,000) by late 2024.

Current market prices reflect this upward trajectory. Typical residential units range from $42,000 to $125,000, while luxury properties command $250,000 to $950,000 depending on location, size, and amenities. Prime neighborhoods like Yanahuara and Cayma show the strongest price performance due to their desirable locations and modern infrastructure.

Looking ahead, real estate experts predict continued appreciation with another 9% price increase forecast for 2025, primarily driven by mid-range properties. This optimistic outlook stems from Arequipa's rapid urban growth rate of 1.25% year-over-year, robust mining and infrastructure economy, and persistent housing deficit of 6% annually that creates sustained upward pressure on prices.

What are the main real estate trends shaping the condo market in the city at the moment?

Several powerful trends are driving Arequipa's condo market transformation as of September 2025.

Rapid urban population growth remains the primary driver, with new residents arriving continuously due to economic opportunities in mining and infrastructure development. This creates consistent housing demand that outpaces supply, particularly for quality condominiums in desirable locations.

The growing expat community and internal migration from other Peruvian cities fuel demand for well-located condos near services, schools, and business districts. Families and international buyers increasingly seek modern units with security features and amenities.

New residential and mixed-use developments are emerging in central and upmarket neighborhoods, featuring contemporary designs, smart home technology, and eco-friendly features that attract quality-conscious buyers willing to pay premium prices.

Supply constraints continue to challenge the market, with the persistent 6% annual housing deficit creating favorable conditions for property appreciation. This imbalance between supply and demand supports continued price growth and makes quality properties increasingly competitive.

Rising international interest, supported by Peru's buyer-friendly foreign ownership laws and residency programs, adds another layer of demand that strengthens market fundamentals.

How does the step-by-step buying process work if I want to purchase a condo there?

The condo buying process in Arequipa follows a structured approach that typically takes 2-3 months to complete.

1. **Property identification and research**: Begin by researching listings online and touring potential units in person. Visit neighborhoods at different times to understand the area's character and amenities.2. **Due diligence and verification**: Conduct thorough title searches, lien checks, and property condition assessments. This crucial step prevents costly surprises later in the process.3. **Offer submission and negotiation**: Submit a formal offer and negotiate terms including price, closing date, and any contingencies. Local market knowledge helps secure favorable terms.4. **Financing arrangement**: Secure mortgage pre-approval if needed. Foreign buyers should begin this process early as it often takes longer than domestic financing.5. **Documentation preparation**: Prepare and legalize all required documents, including translations and apostilles for foreign buyers' paperwork.6. **Contract execution and deposit**: Sign the sales agreement and pay the required deposit, typically 10-20% of the purchase price.7. **Final closing**: Execute the final contract, transfer remaining funds, and complete all legal requirements.8. **Property registration**: Notarize the transaction and register the property with SUNARP (Peru's property registry) to establish legal ownership.

Working with experienced local professionals including realtors, lawyers, and notaries familiar with foreign buyer requirements helps avoid common delays and ensures smooth transactions.

Where should I look for condos—are there reliable real estate agencies or platforms to start with?

Arequipa offers several reliable platforms and agencies for condo searches, combining international reach with local expertise.

Major international platforms including Rentberry, FazWaz, Realtor.com, and Century 21 Global provide comprehensive listings with professional photos, detailed descriptions, and filtering options by price, location, and amenities. These platforms often feature English-language support beneficial for foreign buyers.

Established local agencies offer deeper market knowledge and personalized service. LyG Bienes Raíces, Metrópolis Inmobiliaria (managed by Willy Rodríguez), and Arequipa Tupay maintain strong reputations with physical offices and extensive local networks. These agencies understand neighborhood nuances and can provide insights not available through online platforms alone.

Many agencies maintain active social media presence on Facebook and Instagram, offering virtual tours, market updates, and direct communication with agents. This digital approach proves particularly valuable for initial research and long-distance property shopping.

It's something we develop in our Peru property pack.

What types of condos can I realistically expect to find at different budget levels?

Arequipa's condo market offers distinct options across four main budget categories, each providing different features and neighborhood access.

Budget-conscious buyers ($40,000-$75,000) can find small one to two-bedroom units in older buildings near universities or on the city's outskirts. These properties typically include basic amenities like a balcony and modest kitchen, with simple finishes suitable for first-time buyers or rental investments.

Mid-range properties ($75,000-$130,000) offer modern two to three-bedroom condos in desirable neighborhoods like Yanahuara, Umacollo, and Magisterial. These units often feature parking spaces, eco-friendly designs, open-concept layouts, and security systems that appeal to families and professionals.

Upper-mid-range options ($130,000-$250,000) provide spacious three-plus bedroom apartments with upscale amenities in premium districts like Cayma, Cerro Colorado, and Bustamante y Rivero. Expect large terraces, scenic views, en-suite bathrooms, and high-quality finishes.

Luxury properties ($250,000+) deliver penthouse-level experiences in prime locations including Cayma and central historic districts. These condos feature concierge services, fitness facilities, pools, smart home technology, and architectural distinction that justifies premium pricing.

Which mistakes do buyers most often make when purchasing condos in Arequipa, and how can I avoid them?

Foreign and domestic buyers commonly make six critical mistakes that can cost thousands of dollars and create legal complications.

1. **Inadequate title and lien research**: Many buyers skip comprehensive title searches and lien checks, discovering problems only at closing. Always engage a reputable notary and lawyer to verify clear ownership and absence of debts or legal disputes.2. **Underestimating total costs**: Purchase price represents only part of the total investment. Factor in taxes, legal fees, registration costs, and transfer fees that typically add 4.5-6% to the property price.3. **Rushed financing decisions**: Obtaining mortgage pre-approval early prevents delays and strengthens negotiating position. Foreign buyers especially need extra time for documentation and approval processes.4. **Online-only property evaluation**: Photos and virtual tours cannot replace in-person visits. Spend time in neighborhoods at different hours to understand noise levels, safety, and local amenities.5. **Poor negotiation or market research**: Overpaying due to insufficient market knowledge affects long-term returns. Research recent sales, understand neighborhood price trends, and negotiate confidently based on comparable properties.6. **Ignoring resale and rental potential**: Consider long-term prospects including rental demand, neighborhood development plans, and resale potential when selecting properties and neighborhoods.

What's the overall cost of living in Arequipa, and how does that affect condo ownership?

Arequipa offers remarkably affordable living costs that make condo ownership financially attractive for both residents and investors.

As of September 2025, estimated monthly living costs reach S/6,744 ($1,730) for a family of four and S/2,702 ($693) for single persons, significantly lower than Lima or major international cities. These costs include groceries, transportation, utilities, healthcare, and entertainment, providing excellent value for money.

Affordable daily expenses mean condo owners face lower carrying costs relative to their property values. Property taxes, maintenance fees, and utility costs remain moderate compared to Western standards, making ownership sustainable even for modest incomes.

The favorable cost structure supports strong rental demand as tenants can afford higher-quality accommodations than in more expensive cities. This dynamic benefits property investors seeking consistent rental income and capital appreciation.

Lower living costs also attract growing numbers of domestic migrants and international expats, creating sustained demand for quality housing that supports property values and rental markets.

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 neighborhoods are considered affordable, up-and-coming, or upscale, and what are the pros and cons of each?

Arequipa's neighborhoods offer distinct characteristics and investment potential across different price points and lifestyle preferences.

Affordable areas like Vallecito and the PeruRail Station vicinity provide authentic local atmosphere, excellent walkability, and convenient public transportation access. However, these neighborhoods feature older building stock, less prestige, and fewer luxury amenities compared to upscale districts.

Up-and-coming neighborhoods including Umacollo and Magisterial attract families and professionals with their proximity to universities, services, and developing infrastructure. These areas offer moderate pricing with good growth potential, though infrastructure improvements continue and market competition increases steadily.

Upmarket districts like Yanahuara and Cayma deliver modern developments, abundant green spaces, premium amenities, and excellent safety records. The trade-offs include higher purchase prices, increased market competition, and premium maintenance costs that reflect the quality lifestyle.

Central areas including the Historic Centre and Bustamante offer colonial charm, exceptional walkability, vibrant nightlife, and cultural richness. Limited property supply and older building stock present challenges, while location premium commands higher prices for available units.

How does life feel as an expat living in a condo in Arequipa?

Expat life in Arequipa provides a comfortable, safe, and culturally rich experience that attracts growing international communities.

Modern condos offer excellent amenities and security systems that provide peace of mind for foreign residents. Many developments feature 24-hour security, controlled access, and contemporary facilities that meet international standards for comfort and safety.

Arequipa's mild climate year-round creates ideal living conditions without extreme weather variations. The city's compact size and walkable neighborhoods make daily life convenient, while excellent public transportation connects residential areas to business districts, shopping, and entertainment.

Popular expat districts including Yanahuara, Cayma, and the historic center host growing international communities with English-speaking professionals, diverse restaurants, and cultural services tailored to foreign residents. This creates social networks and support systems that ease the transition to Peruvian life.

The city's vibrant social scene, rich cultural heritage, colonial architecture, and proximity to natural attractions like Colca Canyon provide year-round entertainment and exploration opportunities that enhance quality of life significantly.

If I buy, is it smarter to live in the condo, rent it out long term, rent it short term, or plan to resell later—and how profitable could each option be?

Each ownership strategy offers distinct advantages depending on your financial goals, time commitment, and risk tolerance.

**Owner-occupancy** provides stability, lifestyle benefits, and protection from rising property values while building equity through mortgage payments and market appreciation. The 9%+ annual appreciation forecast for 2025 means living in your property while it gains value offers excellent long-term wealth building.

**Long-term rental** generates steady monthly income in the $300-$450 range for quality units, producing yields around 4-6% annually. Low vacancy rates due to strong housing demand minimize income interruption risks, making this strategy reliable for passive income seekers.

**Short-term rental (Airbnb)** offers higher income potential with occupancy rates of 45-75% and average daily rates of $31-$59. Well-managed properties can gross $5,000-$11,000 annually, though this requires active management, marketing skills, and tolerance for seasonal fluctuations.

**Resale strategy** capitalizes on Arequipa's strong appreciation trends, with 9%+ annual growth forecast meaning profitable exits within 1-3 years in desirable districts. This approach works best in hot neighborhoods with proven demand and limited supply.

It's something we develop in our Peru property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Rentberry - Apartments for Sale in Arequipa
2. FazWaz - Condos for Sale in Arequipa
3. Overseas Property Alert - Arequipa Real Estate
4. Realtor.com International - Arequipa Properties
5. AirROI - Arequipa Airbnb Market Report
6. Airbtics - Annual Airbnb Revenue in Arequipa
7. The LatinvestoR - Peru Real Estate Market
8. The LatinvestoR - Arequipa Price Forecasts
9. The LatinvestoR - Peru Price Forecasts
10. The LatinvestoR - Peru Real Estate Trends