Investment Property in Arequipa

Investment Real Estate in Arequipa

Arequipa property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Arequipa and LATAM .

Get Our Latest List of Investment Property in Arequipa and LATAM

Searchable Map of Arequipa Investment Real Estate

Arequipa (Spanish pronunciation: [aɾeˈkipa]; Aymara and Quechua: Ariqipa) is a city located in the province and the eponymous department of Peru. It is the seat of the Constitutional Court of Peru and often dubbed the “legal capital of Peru.” It is the second most populated city in Peru, after Lima, with an urban population of 1,008,290 inhabitants according to the 2017 national census.

Its metropolitan area integrates twenty-one districts, including the foundational central area, which it is the seat of the city government. The city has a Nominal GDP of 9,445 million (USD) and a nominal GDP per capita of US$10,277, which represents a GDP per capita PPP of US$18,610 in the period 2015, being the city with the second-highest economic activity in Peru.

Arequipa is also an important industrial and commercial center of Peru, and is considered as the second industrial city of the country. Within its industrial activity the manufactured products and the textile production of wool of camelids. The town maintains close commercial links with Chile, Bolivia, and Brazil and with the cities connected by the South trainway, as well as with the port of Matarani.

The city was founded on 15 August 1540, under the name of “Beautiful Villa of Our Lady of the Assumption” in the name of Marquis Francisco Pizarro. On 22 September 1541, the monarch Carlos V ordered that it should be called the “City of Arequipa”. During the viceregal period, it acquired importance for its outstanding economic role, and is characterized by the fidelismo towards the Spanish Crown, which honored Arequipa with titles such as “Very Noble and Very Loyal.” In the Republican history of Peru, the city has been the focus of popular, civic and democratic rebellions. It has also been the cradle of notable intellectual, political and religious figures. In the Republican era, it was awarded the title of “Heroic city of the free people of Arequipa”.

Its historical center extends over an area of 332 hectares and has been declared a UNESCO World Heritage Site. Historical heritage and monumental that it houses and its diverse scenic and cultural spaces turn it into a host city of national and international tourism, in its historical center it highlights the religious architecture viceregal and republican product of mixture of Spanish and autochthonous characteristics, that constituted an own stylistic school called “Arequipeña School” whose influence arrived in Potosí (Bolivia).

Get Our Latest List of Investment Property in Arequipa

The increasing financial and political stability of Arequipa has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Arequipa

Renting out your Arequipa buy-to-rent out investment property can grow wealth and income.

Whatever your goals with investment property in Arequipa are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Arequipa and be prepared to change your initial outlook.
Thoroughly research the Arequipa location with a special emphasis on fringe areas outside the main Arequipa metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Arequipa.
Ensure that your target investment property in Arequipa appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Arequipa properties yourself is an easy option, but are these savings justifiable when you run into Arequipa red tape? Physis Realty Arequipa office in downtown Arequipa provides you with peace-of-mind and leaves you time to plan your next move in the growing Arequipa buy-to-rent sector.

With our expert guidance, investing in Arequipaprovides the secure knowledge that your money is working harder than it would in a local Arequipa bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Arequipa, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Arequipa property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Arequipa

Flipping property in Arequipa

Flipping property is when we advise clients to buy a Arequipa property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Arequipa market has a time to react to the renovation.

The Flipping Strategy in Arequipa

Investment property flipping in Arequipa is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Arequipa real estate investments are sometimes referred to by professionals as ‘distressed’ Arequipa real estate.

What is distressed Arequipa property:

Arequipa property in need of renovation
Arequipa real estate with a change of purpose and use
Oversold Arequipa property
Bank repossessions in Arequipa

Put simply, long term investors in Arequipa purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Arequipa investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Arequipa property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Arequipa use a minimum profit value of 22% when looking at potential Arequipa projects. The reason for this is because there are lots that can go wrong in Arequipa property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Arequipa

For luxury property investors hoping to add a superb property in Arequipa to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

Click Here for the Physis Realty Facebook Page

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Arequipa, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Arequipa should be entrusted to only the highest-quality agency.

Featured