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The average price per square meter in Arequipa currently stands at S/3,480 (roughly $1,000) for residential properties as of September 2025.
Arequipa's real estate market shows significant price variations depending on location, property type, and condition. City center apartments command premium prices reaching S/7,300/m², while outskirt properties can be found for as low as S/510/m². The market has experienced steady growth with a 9% year-over-year increase in median prices, driven by infrastructure improvements, growing local demand, and foreign investment.
If you want to go deeper, you can check our pack of documents related to the real estate market in Peru, based on reliable facts and data, not opinions or rumors.
Arequipa's residential property market offers diverse pricing options, with average costs of S/3,480/m² citywide. Prime neighborhoods like Cayma and Yanahuara command the highest prices at S/5,180-S/7,300/m² for new developments.
The market shows strong growth potential with 9% annual price increases, attractive rental yields of 5.99%, and significant price differences between city center (S/766-S/999/m²) and outskirt locations (S/510-S/743/m²).
| Property Type | Price Range (S/m²) | Typical Location |
|---|---|---|
| New Prime Apartments | S/5,180 - S/7,300 | Cayma, Yanahuara |
| Mid-Range Apartments | S/3,480 - S/5,180 | Central areas |
| City Center Properties | S/766 - S/999 | Historic center |
| Outskirt Properties | S/510 - S/743 | Peripheral areas |
| Houses (Well-located) | S/850 - S/1,100 | Cayma, Yanahuara |
| Land (Development-ready) | S/278 - S/1,200+ | Various locations |
| Luxury Properties | S/5,200 - S/7,300 | Prime locations |
What's the average price per square meter in Arequipa right now?
The average price per square meter in Arequipa currently stands at S/3,480 (approximately $1,000) for residential properties as of September 2025.
This citywide average encompasses all property types and locations within Arequipa. New mid-range apartments in centrally located or desirable neighborhoods typically range from S/5,180 to S/7,300 per square meter, while more typical new units across the city fall closer to the S/3,480 to S/4,800 range.
The price reflects Arequipa's position as Peru's second-largest city, with strong local demand driven by population growth and economic development. Foreign investment has also contributed to price stability and growth, particularly in premium segments.
It's something we develop in our Peru property pack.
How does the price per square meter differ between the city center and the outskirts?
City center properties in Arequipa command significantly higher prices compared to outskirt locations, with a price differential of approximately 30-50%.
In the city center, apartment prices typically range from S/766 to S/999 per square meter, with most transactions clustering around S/900/m². These premium prices reflect superior location, better amenities, established infrastructure, and higher demand from both residents and investors.
Outskirt properties offer more affordable options, with apartment prices falling to S/510 to S/743 per square meter. The lower prices reflect reduced accessibility, fewer amenities, limited public transportation, and generally newer or less developed neighborhoods.
The price gap between center and outskirts has remained relatively stable, making outskirt properties attractive for first-time buyers and investors seeking higher rental yields relative to purchase price.
What are the prices per square meter in the most popular neighborhoods of Arequipa?
Arequipa's most sought-after neighborhoods show distinct pricing patterns based on their desirability, infrastructure, and development level.
| Neighborhood | Property Type | Price Range (S/m²) |
|---|---|---|
| Cayma | New Apartments | S/5,180 - S/7,300 |
| Cayma | Houses | S/900 - S/1,100 |
| Yanahuara | Modern Apartments | S/7,300 |
| Yanahuara | Resale Properties | S/850 - S/1,050 |
| Selva Alegre, Vallecito | Houses and Land | S/850 - S/1,000 |
| Cerro Colorado, Miraflores | Mixed Properties | S/600 - S/900 |
| Socabaya, Paucarpata | Various Types | S/510 - S/700 |
What's the lowest and highest price per square meter currently on the market?
The Arequipa real estate market shows a dramatic price range from S/278 to S/7,300 per square meter, reflecting diverse property types and locations.
The lowest prices at S/278 per square meter are found in rural fringe areas or undeveloped outskirts, typically for raw land, older buildings requiring significant renovation, or unfinished properties. These represent opportunities for investors willing to develop or significantly improve properties.
At the premium end, luxury developments and new prime apartments in the city core reach S/7,300 per square meter. These properties feature modern amenities, prime locations, high-quality construction, and often target affluent local buyers or foreign investors.
The wide price range provides options for various budgets and investment strategies, from affordable entry-level properties to luxury investments in established neighborhoods.
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How does the price per square meter change between apartments, houses, and land?
Property type significantly influences pricing in Arequipa, with apartments generally commanding the highest per-square-meter prices, followed by houses, then land.
Apartments, particularly new central units, top out at S/7,300 per square meter, with typical apartments ranging from S/3,480 to S/5,180/m². The higher prices reflect efficient use of urban space, modern amenities, and strong rental demand from young professionals and small families.
Houses typically price slightly lower at S/850 to S/1,100 per square meter for well-located standalone homes. Older or peripheral houses can range from S/500 to S/800/m², offering more space but potentially requiring more maintenance and updates.
Land shows the widest price variation, from S/278 per square meter in outskirts to above S/1,200/m² for urban core development-ready plots. Raw land prices depend heavily on zoning, accessibility, and development potential.
What is the trend in price per square meter over the last 12 months in Arequipa?
Arequipa's real estate market has experienced robust growth over the past 12 months, with median price per square meter rising approximately 9% year-over-year as of September 2025.
This growth has been most pronounced in new and well-located apartments, driven by strong local demand, limited supply of quality properties, and continued population growth. The increase reflects both nominal price appreciation and underlying market strength.
When adjusted for inflation, real growth moderates to approximately 1-2% net, indicating genuine market appreciation beyond general price increases. This suggests sustainable growth rather than speculative bubble conditions.
The upward trend has been consistent across most property types and neighborhoods, though premium locations have seen stronger appreciation than peripheral areas. Foreign investment and infrastructure improvements have contributed to sustained price momentum.
How do prices per square meter vary depending on new construction versus older properties?
New construction commands a significant premium over older properties in Arequipa, typically ranging from 10-15% higher for similar locations and sizes.
New units, especially in prime locations, benefit from modern construction standards, updated amenities, energy efficiency, and contemporary design features that appeal to today's buyers. These properties often include features like modern kitchens, updated electrical and plumbing systems, and better security.
Older properties, particularly those in outskirt areas, typically price 20-35% below new builds of comparable size. This discount reflects potential modernization needs, outdated systems, and changing buyer preferences for move-in-ready properties.
However, well-maintained older properties in desirable central locations can still command competitive prices, especially if they offer unique architectural features or larger spaces that newer developments cannot match.
It's something we develop in our Peru property pack.
What's the price difference per square meter between furnished and unfurnished properties?
Furnished properties in Arequipa command a premium of approximately 12-18% per square meter compared to unfurnished equivalents, with the highest premiums in city center locations.
This premium is most pronounced for properties intended for short-term rentals or targeting expatriate tenants who prefer move-in-ready accommodations. Furnished units in the city center and popular neighborhoods can justify the higher prices due to convenience and immediate rental potential.
The furnished premium varies by property type, with smaller studios and one-bedroom apartments showing higher percentage premiums than larger family homes, where furniture represents a smaller proportion of total value.
For investors, furnished properties can generate higher rental income that often justifies the additional investment, particularly in neighborhoods with strong tourist or business traveler demand.
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.
How do rental yields per square meter compare to purchase prices in Arequipa?
Arequipa offers attractive rental yields averaging 5.99% gross annually, making it competitive for real estate investors seeking steady income streams.
Net rental yields vary significantly by neighborhood and property type. Furnished units and smaller studios in central areas typically produce superior yields compared to larger homes in outskirt locations, due to stronger rental demand and higher per-square-meter rental rates.
The relationship between purchase price and rental yield generally favors investors in mid-range properties over luxury segments, where purchase prices may not be fully reflected in proportional rental premiums.
Properties in emerging neighborhoods with improving infrastructure often offer the best yield potential, as rental growth may outpace purchase price appreciation in the short to medium term.
What are the price per square meter ranges for luxury properties versus mid-range ones?
Arequipa's property market shows clear segmentation between luxury and mid-range properties, with distinct pricing tiers and target markets.
Luxury properties range from S/5,200 to S/7,300 per square meter, typically located in prime city core areas, featuring brand new construction, high-rise buildings, or large penthouse apartments. These properties target affluent local buyers and international investors seeking premium accommodations.
Mid-range properties span S/3,480 to S/5,180 per square meter, representing the citywide average and including solid older stock in desirable neighborhoods. This segment offers the best balance of value and quality for most buyers.
The luxury premium of approximately 40-60% over mid-range properties reflects superior locations, high-end finishes, exclusive amenities, and prestige value that appeals to status-conscious buyers and investors seeking differentiated assets.
How do prices per square meter in Arequipa compare to similar cities in Peru?
Arequipa's real estate prices position the city competitively within Peru's urban hierarchy, sitting between the premium Lima market and more affordable secondary cities.
| City | Price Range (S/m²) | Market Position |
|---|---|---|
| Lima | S/1,200 - S/2,000 | Premium national market |
| Cusco | S/1,000 - S/1,200 | Tourist-driven pricing |
| Arequipa | S/766 - S/999 | Major secondary city |
| Trujillo | S/750 - S/900 | Regional center |
| Piura | S/750 - S/900 | Northern regional hub |
Arequipa generally prices 25-30% below Lima but maintains a premium over other secondary cities, reflecting its economic importance, population size, and infrastructure development.
What factors are currently driving the price per square meter in Arequipa?
Multiple interconnected factors are driving Arequipa's real estate price appreciation, creating a supportive environment for continued market growth.
1. **Infrastructure upgrades** including road improvements, new hospital facilities, and retail developments like Mallplaza are enhancing neighborhood desirability and property values2. **Growing local demand** from family formation, internal migration, and economic growth is creating sustained pressure on housing supply3. **Rapid urbanization** as rural populations move to urban areas, increasing demand for housing and driving development in previously undeveloped areas4. **Foreign investment** attracted by Peru's favorable residency programs and international buyers seeking emerging market opportunities5. **Land scarcity** in core urban zones as developable land becomes increasingly limited, supporting price appreciation in established areasThese factors combine to create a multi-layered growth dynamic that supports both short-term price stability and long-term appreciation potential.
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.
Arequipa's real estate market offers compelling opportunities for both investors and residents, with diverse pricing options across neighborhoods and property types.
The combination of steady price appreciation, attractive rental yields, and ongoing infrastructure development positions Arequipa as a promising market for real estate investment in Peru.
Sources
- The LatinVestor - Arequipa Real Estate Trends
- Aparthotel - Peru Market Analysis
- Numbeo - Arequipa Property Investment
- The LatinVestor - Arequipa Real Estate Forecasts
- The LatinVestor - Peru Area Guide
- The LatinVestor - Peru Real Estate Market
- Overseas Property Alert - Arequipa Real Estate
- Rentberry - Arequipa Apartments
- Global Property Guide - Peru Price History
- Expatistan - Arequipa Cost of Living