Barranco vs Magdalena: which is the better rental investment in Lima? (2026)

Two districts, two very different price tags. Barranco sells at a median $2,529/m², Magdalena at $1,905/m². That's roughly a third more per square meter in Barranco for the same amount of floor space, and the rent doesn't stretch to cover the gap.

On long-term rentals, Magdalena nets 3.9% against Barranco's 3.7%. Not a huge spread, but it goes the wrong way for the pricier district. You pay more upfront in Barranco and get slightly less back in rent.

The Airbnb picture is the same story, only clearer. Gross short-term yields run 1.9% in Magdalena versus 1.5% in Barranco. These are gross figures, so before cleaning, management and vacancy, and I'd treat them as thin either way, but again Magdalena leads.

Barranco has its charms and probably explains why buyers pay the premium, but on the numbers alone there's no case for it as a rental play. You're paying more per meter and earning a lower yield on both long-term and short-term.

So the pick is Magdalena: cheaper entry, higher long-term net yield, higher gross Airbnb yield. This isn't investment advice, and the yield gaps are narrow, so run your own numbers on the specific unit before signing anything.

Related: Barranco · Magdalena · Lima Yield Index