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

The short version: on long-term rental yield, Magdalena wins. It nets 3.9% against San Miguel's 3.6%. That is a modest gap, but it is a gap, and it holds despite Magdalena costing more to buy.

On price per square meter, San Miguel is the cheaper entry: a median of $1,680/m2 versus Magdalena's $1,905/m2. So you pay roughly 13% more per square meter in Magdalena and still get the better long-term return. That tells you rents in Magdalena carry the higher price rather than being dragged down by it.

The picture flips on Airbnb. San Miguel runs 3.0% gross against Magdalena's 1.9%. If short-term letting is your plan, San Miguel is clearly the stronger of the two on that number. Bear in mind these are gross figures, so they are not comparable to the net long-term yields above, and they say nothing about occupancy, cleaning, management or regulatory risk.

So it depends on what you are running. Long-term buy-and-hold, lower price sensitivity: Magdalena, on the 3.9% net yield. Short-term rental focus: San Miguel, on the 3.0% gross Airbnb figure and the cheaper $1,680/m2 entry.

My pick for a straightforward rental investor is Magdalena. The higher net long-term yield is the more reliable number here, and it wins even though you pay more per meter. This is not investment advice, and the data I have is thin on costs and occupancy, so run your own on the specific unit.

Related: Magdalena · San Miguel · Lima Yield Index