The Gunners won 4-0 at Elland Road on Saturday to go seven points clear at the top of the table.
The result also saw Leeds drop to 16th place, six points above the dropzone.
Asked if Leeds will beat the drop, Arteta said: "I think so. What they've done, I think, is very smart. It's really tough, they are really well organised, they have threats, they have quality.
"They have a lot of variation in relation to game contexts to play in different ways, and they have an amazing stadium with a beautiful atmosphere of football that brings the level of the rest of the team to a really difficult level to match."
Indeed, Arteta said of the Elland Road atmosphere: "The word I would use is that it was a beautiful football atmosphere.
"When you talk about the tradition and history of this league, this kind of stadium, this kind of atmosphere and people, that's what makes it unique. It's a joy to play football in these kinds of grounds, these atmospheres."