Italy: Moderate rental yields from 3% to 6%

Residential Valuation Specialist | February 18, 2022

Last Updated: Feb. 18, 2022
ROME - Monti COST () YIELD (p.a.) PRICE/SQ.M. ()
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
40 sq. m. 220,240 920 5.01% 5,506 23.0
80 sq. m. 401,600 1,826 5.46% 5,020 23
120 sq. m. 673,320 2,021 3.60% 5,611 16.8
ROME - Trastevere
40 sq. m. 264,760 973 4.41% 6,619 24.3
80 sq. m. 486,800 1,346 3.32% 6,085 17
120 sq. m. 652,800 2,375 4.37% 5,440 19.8
ROME - Testaccio
40 sq. m. 208,840 814 4.67% 5,221 20.3
80 sq. m. 329,360 1,418 5.17% 4,117 18
ROME - Parioli
40 sq. m. 216,200 738 4.09% 5,405 18.4
80 sq. m. 364,080 1,240 4.09% 4,551 16
120 sq. m. 578,640 1,876 3.89% 4,822 15.6
ROME - Pigneto
40 sq. m. 114,920 549 5.73% 2,873 13.7
80 sq. m. 199,120 865 5.21% 2,489 11
ROME - Prati-Borgo
40 sq. m. 252,280 1,162 5.53% 6,307 29.0
80 sq. m. 446,560 1,463 3.93% 5,582 18
120 sq. m. 688,440 2,251 3.92% 5,737 18.8
ROME - Ostiense
40 sq. m. 164,480 738 5.38% 4,112 18.5
80 sq. m. 283,520 1,162 4.92% 3,544 15
120 sq. m. 420,720 2,800 7.99% 3,506 23.3
ROME - Tiburtino- San Lorenzo
40 sq. m. 156,440 712 5.46% 3,911 17.8
80 sq. m. 282,080 948 4.03% 3,526 12
ROME - Centro
40 sq. m. 242,960 1,036 5.11% 6,074 25.9
80 sq. m. 426,720 1,786 5.02% 5,334 22
120 sq. m. 646,680 2,454 4.55% 5,389 20.5
ROME - Aventino
40 sq. m. 206,360 911 5.30% 5,159 22.8
80 sq. m. 534,800 1,205 2.70% 6,685 15
120 sq. m. 765,360 2,906 4.56% 6,378 24.2
ROME - Monteverde Vecchio (Suburb)
40 sq. m. 180,320 706 4.70% 4,508 17.7
80 sq. m. 303,520 1,166 4.61% 3,794 15
120 sq. m. 491,880 1,470 3.59% 4,099 12.3
ROME - Balduina (Suburb)
40 sq. m. 152,560 583 4.59% 3,814 14.6
80 sq. m. 283,120 1,052 4.46% 3,539 13
120 sq. m. 447,240 1,588 4.26% 3,727 13.2
MILAN - Duomo-Castello
40 sq. m. 392,840 1,707 5.21% 9,821 42.7
80 sq. m. 778,160 2,598 4.01% 9,727 32
120 sq. m. 1,183,200 2,953 3.00% 9,860 24.6
MILAN - Brera-Montenapoleone
40 sq. m. 551,800 1,455 3.16% 13,795 36.4
80 sq. m. 900,240 2,616 3.49% 11,253 33
120 sq. m. 1,436,760 3,769 3.15% 11,973 31.4
MILAN - Navigli-Porta Genova
40 sq. m. 235,240 920 4.69% 5,881 23.0
80 sq. m. 446,880 1,478 3.97% 5,586 18
120 sq. m. 679,680 2,611 4.61% 5,664 21.8
MILAN - Centro Storico
40 sq. m. 388,920 1,451 4.48% 9,723 36.3
80 sq. m. 754,320 2,518 4.01% 9,429 31
120 sq. m. 1,081,800 3,618 4.01% 9,015 30.2
MILAN - Città Studi - Lambrate
40 sq. m. 138,600 753 6.52% 3,465 18.8
80 sq. m. 318,240 1,421 5.36% 3,978 18
120 sq. m. 408,120 2,000 5.88% 3,401 16.7
MILAN - Garibaldi-Porta Venezia
40 sq. m. 267,920 1,083 4.85% 6,698 27.1
80 sq. m. 522,560 1,976 4.54% 6,532 25
120 sq. m. 820,680 2,952 4.32% 6,839 24.6
VENICE - San Marco
40 sq. m. 235,720 707 3.60% 5,893 17.7
80 sq. m. 458,960 1,316 3.44% 5,737 16
120 sq. m. 787,440 2,156 3.29% 6,562 18.0
VENICE - San Polo
40 sq. m. 202,760 780 4.61% 5,069 19.5
80 sq. m. 382,800 1,214 3.81% 4,785 15
120 sq. m. 563,400 1,312 2.79% 4,695 10.9
VENICE - Dorsoduro
40 sq. m. 199,800 752 4.52% 4,995 18.8
80 sq. m. 433,840 1,686 4.66% 5,423 21
VENICE - Cannaregio
40 sq. m. 196,840 642 3.91% 4,921 16.0
80 sq. m. 377,520 1,210 3.84% 4,719 15
120 sq. m. 528,480 1,381 3.14% 4,404 11.5
VENICE - Santa Croce
40 sq. m. 199,160 627 3.78% 4,979 15.7
80 sq. m. 369,040 1,080 3.51% 4,613 14
120 sq. m. 544,200 1,595 3.52% 4,535 13.3
FLORENCE - Duomo - San Marco
40 sq. m. 204,800 723 4.24% 5,120 18.1
80 sq. m. 373,520 1,367 4.39% 4,669 17
120 sq. m. 593,160 2,320 4.69% 4,943 19.3
FLORENCE - Oltrarno - San Frediano - Santo Spirito
40 sq. m. 209,440 802 4.60% 5,236 20.1
80 sq. m. 375,360 1,690 5.40% 4,692 21
120 sq. m. 543,120 2,492 5.51% 4,526 20.8
FLORENCE - Via Bolognese (Suburb)
50 sq.m. 149,360 686 5.51% 3,734 17.2
120 sq.m. 233,040 794 4.09% 2,913 10
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: idealista Definitions: Data FAQ See also: Update Schedule

Gross rental yields i.e., the rental return on a property if fully rented out, before all expenses, are low to moderate in Rome, Milan, Venice, and Florence. Gross rental yields for apartments in Italy are between 3% to 6%.

The purchase price of apartments in Rome is around EUR 3,000 per square metre (sq. m.) to EUR 6,000 per square metre (sq. m.) and these prices are now more obtainable than in Venice. Venice now has a price range between EUR 4000 to EUR 6,500. Florence is now about as costly as Rome.

Milan is a more expensive city to buy an apartment than any other Italian city, with apartment prices in Milan ranging from EUR 3,000 to EUR 13,000 per square metre (sq. m.). Despite Milan´s high purchase prices, it generates good yields. Ostiense (7.9%), Pigneto (5.7%), Prati (5.5%), and San Lorenzo (5.4%) are the best yielding areas in Milan.

 

Round trip transaction costs are moderate to high in Italy. See our Property transaction costs analysis for Italy.                                                                                  

Comments

Sherif | November 21, 2017

Very useful, informative and professional reports. Thank you

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