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Unbelievable Yields of Up to 12.4% in Italy - The Profitable Rental Housing Market

As the third quarter came to a close, Italy emerged as an unexpected champion in the European real estate market with an impressive average rental yield of 8.8%. While Italy might not be the first country that comes to mind for high yields, there are some regions where real estate investors are reaping the rewards.

Let's explore the Italian cities where rental property investments are flourishing:


1. Ragusa, Sicily - 12.4% Yield
In a surprising turn, Sicily's Ragusa claims the crown for the highest rental yield in Italy. With a remarkable annual yield of 12.4%, Ragusa offers an attractive opportunity for real estate investors. This is especially intriguing considering the relatively affordable average price per square meter for property purchases, ranging from €1,100 to €1,300.

2. Syracuse, Sicily - 11.4% Yield
Syracuse, also located in Sicily, isn't far behind. With an annual yield of 11.4%, it's evident that Sicily is becoming a profitable destination for rental property investments. The region's affordability and growing demand make it an appealing option for investors.

3. Biella, Piedmont - 10% Yield
Heading north to Piedmont, the city of Biella offers a generous 10% annual yield for rental properties. This region is gaining recognition as a promising investment location, thanks to its strong rental market.

However, the story is different in Italy's major cities:

Rome - 6.1% Yield
The Eternal City, Rome, offers a moderate yield of 6.1%. While Rome is an attractive destination for tourists and investors alike, its rental yields are not as high as some other Italian regions.

Milan - 5.6% Yield
Italy's fashion and financial capital, Milan, presents a 5.6% annual rental yield. Despite its global significance, Milan's rental market offers slightly lower returns compared to other parts of the country.


If you're aiming to maximize your returns, consider diversifying into commercial property. Commercial spaces are currently outperforming the residential market in Italy:


- Stores for Rent - 12% Average Yield
Investing in retail spaces for rental purposes is currently the most lucrative option, offering an average annual yield of 12% across Italy. In Rome, you can even achieve a remarkable 14.9% yield, while Milan boasts a competitive 14.8%.

- Office Rentals - 9.6% Yield
For those interested in office spaces, Italy offers an annual yield of 9.6%. While not as high as commercial spaces, this sector still provides favorable returns for investors.

In conclusion, Italy may not be the first country that comes to mind when thinking about high rental yields, but it's proving to be a promising market. Ragusa, Syracuse, and Biella in particular are attracting real estate investors with impressive returns, while commercial property rentals are thriving in the major cities. As the Italian real estate market continues to evolve, these high yields are making it an increasingly attractive destination for property investors.


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