Gross rental yields in Italy range from low to moderate
Residential Valuation Specialist | 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 | |||
| FLORENCE 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 | |||
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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 |
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Gross rental yields in the historical centre of Rome, Milan, Venice and Florence - i.e., the return you can earn from rent, compared to the purchase price of a property, before taxation, vacancy costs, and other costs - range from 2.4% to 4.4%, with yields in all four places about the same. Yields on 120 square metre (sq. m.) apartments are really low in Milan, yields on smaller apartments a better.
Prices of apartments. Apartments in central Rome cost around €6,500 to €8,000 per square metre. Apartments in the wealthy suburbs of Rome cost on average between €4,500 to €5,800 per sq. m. Milan is more expensive, with apartments in the centre costing €8,900 to €12,400 per sq. m., and those in the suburbs costing €6,600 to €7,700 per sq.m. Apartments in central Venice cost around €5,400 to €6,400 per sq. m., and in the suburbs between €4,500 to 4,900 per sq.m., with yields in the centre of around 3.7%. Yields in Florence average around 4.7%
Conclusion: Property prices in Italy are beginning to look attractive. But gross rental yields are still 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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