Global Property Guide

Financial Information for Residential Property Buyers


Gross rental yields in Italy are low

Last Updated: August 14, 2018

Last Updated: Aug. 14, 2018
ROME - Historical Centre Apartments COST () YIELD (p.a.) PRICE/SQ.M. ()
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 347,850 1,295 4.47% 6,957 25.90
120 sq. m. 790,680 2,584 3.92% 6,589 21.53
180 sq. m. 1,266,840 3,910 3.70% 7,038 21.72
300 sq. m. 2,419,500 8,808 4.37% 8,065 29.36
ROME - nearby suburbs apartments
EUR          
150 sq. m. 687,750 2,288 3.99% 4,585 15.25
Pinciano          
120 sq. m. 695,280 2,198 3.79% 5,794 18.32
MILAN - Historical Centre apartments
50 sq. m. 449,250 1,376 3.67% 8,985 27.51
120 sq. m. 1,002,600 2,837 3.40% 8,355 23.64
300 sq. m. 3,704,400 6,933 2.25% 12,348 23.11
MILAN - nearby suburbs apartments
Fiera          
50 sq. m. 377,250 1,203 3.83% 7,545 24.05
120 sq. m. 846,840 2,671 3.79% 7,057 22.26
Moscova-Repubblica          
50 sq. m. 333,900 1,435 5.16% 6,678 28.70
120 sq. m. 922,680 2,717 3.53% 7,689 22.64
VENICE - apartments
San Marco          
50 sq. m. 319,200 974 3.66% 6,384 19.47
100 sq. m. 611,700 1,993 3.91% 6,117 19.93
San polo          
100 sq. m. 542,600 1,701 3.76% 5,426 17.01
VENICE - apartments
50 sq.m. 243,100 989 4.88% 4,862 19.78
120 sq.m. 545,520 2,147 4.72% 4,546 17.89
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Gross rental yields in the historical centre of Rome and of Milan - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - range from 2.4% to 4.5%, with yields in Rome lower than in Milan. Yields on 120 square metre (sq. m.) apartments are really low, yields on smaller apartments a little better.

Prices of apartments. Apartments in the wealthy suburbs of Rome cost on average between €4,400 to €4,900 per sq. m.. A 120 sq. m. apartment in the suburbs would cost around €4,450 per sq. m. In the historic centres of Rome and Milan, prices are nearer €8,000 per sq. m.

Conclusion: Property prices in Italy are beginning to look attractive. But gross rental yields are very poor, and Italy´s predatory taxation system doesn´t 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.

Comments

Sherif | November 21, 2017

Very useful, informative and professional reports. Thank you

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