|Last Updated: June 28, 2014|
|ROME - Historical Centre Apartments||COST ()||YIELD (p.a.)||PRICE/SQ.M. ()|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|40 sq. m.||263,840||884||4.02%||6,596||22.09|
|70 sq. m.||436,940||1,382||3.79%||6,242||19.74|
|90 sq. m.||548,460||1,632||3.57%||6,094||18.13|
|120 sq. m.||711,600||2,288||3.86%||5,930||19.07|
|180 sq. m.||1,083,240||3,371||3.73%||6,018||18.73|
|ROME - Suburbs Apartments|
|50 sq. m.||202,750||797||4.72%||4,055||15.94|
|85 sq. m.||331,925||1,046||3.78%||3,905||12.31|
|120 sq. m.||516,120||1,495||3.48%||4,301||12.46|
|200 sq. m.||986,200||2,444||2.97%||4,931||12.22|
|MILAN - Apartments|
|40 sq. m.||186,320||636||4.09%||4,658||15.89|
|75 sq. m.||334,875||1,098||3.93%||4,465||14.64|
|120 sq. m.||524,520||1,580||3.62%||4,371||13.17|
|200 sq. m.||968,000||3,452||4.28%||4,840||17.26|
|Rome- Historical Centre: Aventino, Centro Storico, Esquilino, San Saba & Trastevere
Rome- Suburbs: Camilluccia, Cassia, EUR, Fleming, Olgiata, Vigna Clara
Milan: Brera, Citta Studi, Fiera, Porta Romana, San Siro & Stazione Centrale
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
In the historical centre of Rome, apartments now cost between 6,000 and 6,600 per square metre (sq. m.), unchanged from last year. The property slump was caused by a number of factors, including the euro zone crisis and austerity measures like higher property taxes such as the Imposta Municipale Unica (IMU) - in English, the Local Property Tax.
Prices of apartments. Apartments in the wealthy suburbs of Rome cost on average between 3,900 to 4,900 per sq. m.. A 120 sq. m. apartment in the suburbs would cost around 4,300 per sq. m.
A 120 sq. m. apartment in Milan would cost on average 4,800 per sq. m. Milan apartment prices range from 4,400 per sq. m. to 4,800 per sq. m. These prices are lower than last year.
Rents of apartments. In the historical centre of Rome, monthly rents range from 18 to 22 per sq. m., so you can rent a 120 sq. m. apartment here for around 2,300 per month.
In the suburbs of Rome, rents range from 13 to 16 per sq. m. per month. So a 120 sq. m. apartment can be rented for around 1,500 per month.
In Milan, monthly rents range from 13 to 17 per sq. m., so you can rent a 120 sq. m. apartment here for around 1,600 per month.
Rental returns. Gross rental yields on apartments in Rome and Milan are poor. Gross rental yields on apartments in Romes historical centre range from 3.57% to 4.02%, with little difference in returns by size.
In the suburbs, rental yields range from 2.97% (200 sq. m.) to 4.72% (50 sq. m.), with large apartments clearly yielding poorer investment returns.
Apartments in Milan return rental yields of between 3.62% to 4.30%, with again no clear pattern of rental returns.
Conclusion: Property prices are beginning to look attractive. But gross rental yields are very poor, and Italys predatory taxation system doesnt help.
Round trip transaction costs can be very high on residential property in Italy. See our Italy residential property transaction costs analysis and our Residential property transaction costs in Italy compared to other countries.
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