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Italy: House Prices, Rents, and Rental Yields

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Last Updated: Feb 13, 2006

Yields are low at 4.5% in Italy

Last Updated: Feb. 13, 2006
ROME - Historical Centre COST () YIELD (p.a.) PRICE/SQ.M. ()
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
30 sq. m. 250,000 1,100 5.28% 8,333 36.70
50 sq. m. 420,000 1,650 4.71% 8,400 33.00
100 sq. m. 650,000 2,200 4.06% 6,500 22.00
150 sq. m. 850,000 3,200 4.52% 5,667 21.30
200 sq. m. 1,300,000 4,000 3.69% 6,500 20.00
ROME - Suburbs
70 sq. m. 450,000 1,450 3.87% 6,429 20.70
120 sq. m. 600,000 1,800 3.60% 5,000 15.00
180 sq. m. 780,000 2,500 3.85% 4,333 13.90
250 sq. m. 1,000,000 3,200 3.84% 4,000 12.80
MILAN
50 sq. m. 180,000 600 4.00% 3,600 12.00
80 sq. m. 280,000 1,100 4.71% 3,500 13.80
100 sq. m. 380,000 1,600 5.05% 3,800 16.00
150 sq. m. 500,000 2,000 4.80% 3,333 13.30
250 sq. m. 650,000 2,800 5.17% 2,600 11.20
FLORENCE
70 sq. m. 250,000 1,200 5.76% 3,571 17.10
100 sq. m. 380,000 1,600 5.05% 3,800 16.00
150 sq. m. 600,000 2,400 4.80% 4,000 16.00
250 sq. m.+grd 800,000 3,400 5.10% 3,200 13.60
350 sq. m.+grd 1,200,000 4,800 4.80% 3,429 13.70
VENICE
50 sq. m. 300,000 1,000 4.00% 6,000 20.00
80 sq. m. 440,000 1,500 4.09% 5,500 18.00
100 sq. m. 600,000 2,400 4.80% 6,000 24.00
200 sq. m. 1,400,000 4,400 3.77% 7,000 22.00
Source: Global Property Guide

Italian rental yields are low at around 4.5%. Apartments in the historical centre of Rome yield 3.7% - 5.3%, while similar apartments in cosmopolitan Milan yield 4% - 5.2%. Apartments in Venice fetch 3.8% - 4.8% gross yields while similar apartments in Florence yield a higher return, ranging from 4.8% - 5.8%.

While the housing market has experiencing renewed vigor over the past five years, the rental market has been experiencing a decline. One notable feature of the Italian housing market is the high rate of ownership. Currently more than four-fifths of residents live in non-rented homes.

 

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