Italy: Moderate rental yields from 3% to 6%

Residential Valuation Specialist | June 03, 2022

Last Updated: June. 03, 2022
ROME -Trastevere apartments COST () YIELD (p.a.) PRICE/SQ.M. ()
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 329,850 1,520 5.53% 6,597 30.39
120 sq. m. 735,360 2,712 4.43% 6,128 22.60
ROME -Prati apartments
50 sq. m. 303,100 1,176 4.66% 6,062 23.52
120 sq. m. 578,040 1,820 3.78% 4,817 15.17
ROME - Testaccio apartments
50 sq. m. 259,450 991 4.58% 5,189 19.81
120 sq. m. 700,320 2,128 3.65% 5,836 17.73
ROME - Monti apartments
120 sq. m. 752,640 2,500 3.99% 6,272 20.83
ROME - Aventino-San Saba apartments
120 sq. m. 882,240 2,220 3.02% 7,352 18.50
ROME - Balduina apartments
50 sq. m. 199,850 898 5.39% 3,997 17.96
120 sq. m. 424,560 1,450 4.10% 3,538 12.08
ROME -Gianicolense-Monteverde apartments
50 sq. m. 247,600 907 4.40% 4,952 18.14
120 sq. m. 497,520 1,793 4.32% 4,146 14.94
Milan Centro Storico-Brere Montenapoleone apartments
100 sq. m. 1,430,700 3,520 2.95% 14,307 35.20
Milan Centro Storico-Duomo-Castello apartments
120 sq. m. 1,377,000 3,283 2.86% 11,475 27.36
Milan Vittorio Emanuelle-Augusto apartments
100 sq. m. 1,201,200 3,013 3.01% 12,012 30.13
Milan Garibaldi - Isola apartments
120 sq. m. 801,480 3,020 4.52% 6,679 25.17
Milan Fiera apartments
120 sq. m. 733,200 2,225 3.64% 6,110 18.54
Milan Navigli-Porta Genova apartments
120 sq. m. 776,400 2,081 3.22% 6,470 17.34
Venice San Marco apartments
50 sq. m. 313,800 1,019 3.89% 6,276 20.37
120 sq. m. 742,200 2,057 3.33% 6,185 17.14
200 sq. m. 1,285,200 3,476 3.25% 6,426 17.38
Venice Dorsoduro apartments
60 sq. m. 329,580 1,061 3.86% 5,493 17.68
Venice Castello apartments
50 sq. m. 262,150 931 4.26% 5,243 18.61
120 sq. m. 541,080 2,008 4.45% 4,509 16.73
Venice San Polo apartments
50 sq. m. 272,650 865 3.81% 5,453 17.30
120 sq. m. 582,480 2,591 5.34% 4,854 21.59
Venice Cannaregio apartments
50 sq. m. 262,050 902 4.13% 5,241 18.03
120 sq. m. 604,440 2,191 4.35% 5,037 18.26
Florence San Marco apartments
50 sq. m. 302,350 1,417 5.62% 6,047 28.33
120 sq. m. 570,600 2,094 4.40% 4,755 17.45
Florence Santo Spirito apartments
50 sq. m. 258,800 1,233 5.72% 5,176 24.66
120 sq. m. 524,400 2,113 4.84% 4,370 17.61
Florence Santa Croce apartments
50 sq. m. 271,950 1,421 6.27% 5,439 28.42
120 sq. m. 629,400 2,515 4.80% 5,245 20.96
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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