Italy

Top Locations for Rental Properties in Italy (2025): A Price and Yield Analysis

Jul 11, 2025

Panoramic view of Florence, illustrating the market for rental properties in Italy.

Investing in rental properties in Italy is often driven by the la dolce vita dream—a secure income from a beautiful apartment in the heart of Rome or overlooking the Tuscan hills. The constant influx of tourists, students, and business professionals, drawn by priceless cultural heritage and a strong economy, makes the Italian rental market a potential goldmine.

But to achieve “maximum income,” emotion must give way to cold analysis. The market isn’t monolithic; yields in Milan are driven by entirely different factors than those in Sicily. Choosing the wrong location, even in the “right” city, can mean the difference between a successful invest in property in Italy and a costly headache.

Content

This analysis will guide you through the top locations, focusing on the hard data: average price per square meter, realistic gross rental yields, and the insider perspective every investor needs.

What Makes a Location Profitable? Data vs. Intuition

Before we dive into the cities, let’s define the key metrics for success in rental properties in Italy:

Gross Rental Yield: This is your compass. It’s calculated by dividing the annual rental income by the property’s purchase price. We’ll use Italian market analysis data to see where the numbers are strongest.
Price Per Square Meter: “Expensive” is subjective. “An average price of €9,000/sqm” is data. We will compare the barrier to entry across different markets.
Economic Drivers: Tourism is obvious, but it’s seasonal. We’re also looking for other drivers: corporate headquarters (Milan), major universities (Bologna), or world-class events (like the 2025 Jubilee in Rome).
Local Regulations: This is critical. A city like Florence recently imposed strict limitations on new short-term rentals (Airbnb-style) in its historic center, drastically changing the investment landscape.

Comparative Analysis: Where to Invest?

Here is a breakdown of the primary markets, based on late 2024 data and 2025 forecasts from leading Italian portals and market reports.

1. Milan (Lombardy): Stability and Business

Italy’s economic heart is a magnet for corporate tenants, fashion events, and international students. Demand here is year-round and less reliant on tourism, making it the safest bet(blue chip) for rental properties in Italy.

Average Price: ~ €5,400 – €5,600 / sqm (Prices in the center, like Porta Nuova or Brera, easily exceed €11,000 / sqm.)
Estimated Gross Yield: ~ 4.5% – 5.0%
Investor Profile: Seeking stability and low void periods.
Insider Tip: While established areas are expensive, neighborhoods like Bisceglie and Baggio (on the M1 metro line) offer prices around €3,100 – €3,200 / sqm and attract young professionals and families looking for more affordable living close to the center.

2. Rome (Lazio): The Eternal Tourist Flow

As the capital, Rome has a non-stop flow of tourists, students, and government workers. The market is vast and diverse. The big driver right now is the 2025 Jubilee – a global religious event expected to attract over 30 million visitors, which is already pushing up rental and property prices in key areas.

Average Price: ~ €3,100 – €3,300 / sqm (In the Centro Storico or Prati, prices are double that).
Estimated Gross Yield: ~ 4.8% – 5.2%
Investor Profile: A balanced investor looking for a mix of tourism and long-term tenants.
Insider Tip: Forget the overcrowded center. Analysts point to neighborhoods on the metro line benefiting from the Jubilee. Garbatella-Ostiense (near the Basilica of Saint Paul) is a prime example, with prices around €3,700/sqm and huge demand growth.

3. Florence (Tuscany): Premium Rents Under Regulation

The pearl of the Renaissance is a market for high-value, short-term rentals. Tourists here are willing to pay premium prices. But, as mentioned, the city has imposed strict limits on new Airbnb licenses in the historic (UNESCO-defined) center.

Average Price: ~ €4,500 – €4,700 / sqm (In the center and Oltrarno, this easily hits €6,000 – €6,300 / sqm.)
Estimated Gross Yield: ~ 5.0% – 5.5% (If you can navigate the regulations).
Investor Profile: A savvy, luxury-focused investor who can manage the regulatory environment or pivot to long-term rentals for foreign university students.
Insider Tip: Look for properties outside the restricted zone that are still walkable. Neighborhoods like L’Isolotto (west of the center, ~€3,700/sqm) or Coverciano offer lower entry prices and are outside the ban’s scope.

The “Hidden Diamonds”: Higher Yields, Lower Entry

While the “Big Three” get all the attention, the best invest in property in Italy might be hiding elsewhere.

4. Bologna (Emilia-Romagna): The Yield Champion

Italy’s culinary capital and home to the world’s oldest university. Bologna has a dual-engine demand: a constant stream of 100,000 students seeking long-term rentals and a growing number of tourists and business travelers (thanks to the Fiera di Bologna exhibition center).

Average Price: ~ €3,500 – €3,700 / sqm.
Estimated Gross Yield: ~ 5.5% – 6.0% (One of the highest among major cities).
Insider Tip: Students and trade-fair professionals look for properties in neighborhoods like San Donato (~€2,900/sqm)—it’s affordable and strategically located between the university and the Fiera.

5. Naples (Campania): The Gateway to the South

Long-undervalued, Naples is experiencing a renaissance. It’s the gateway to the Amalfi Coast and Pompeii and attracts millions of tourists. The key here is that property prices have not yet caught up to the city’s popularity. This is a market focused on capital growth potential.

Average Price: ~ €2,700 – €3,000 / sqm.
Estimated Gross Yield: ~ 5.0% – 5.8% (Forecasts show up to an 8% rise in rental prices alone in 2025).
Insider Tip: Investors are targeting neighborhoods like Vomero (a wealthier, hilltop district with funicular access) or Montesanto (authentic, near the historic center).

6. Coastal Areas (Puglia and Sicily)

For those seeking vacation rental properties in Italy, these southern regions offer the lowest entry prices but also the highest seasonality.

Average Price (Puglia): ~ €1,450 / sqm.
Average Price (Sicily): ~ €1,150 / sqm (Palermo ~€1,350/sqm).
Investor Profile: Requires active management during the high season (May-Sept) to generate the entire year’s income. The massive growth potential in these regions, however, is undeniable.

A Strategic Guide for the Investor

Choosing a location is just the first step. Before you finalize your invest in property in Italy, consider these critical aspects:

Taxes and Acquisition Costs: Your net yield depends entirely on this. Acquisition costs (notary, fees) can add 10-15% to the price. As for income tax, Italy offers an extremely attractive regime. We have covered this topic in detail in our complete guide to property taxes and purchase costs in Italy.
Rental Type: Long-term (stable, lower yield, less hassle) or short-term (high yield, active management, regulatory risk)? Bologna is ideal for the former, Amalfi for the latter.
Property Management: If you don’t live in Italy, you will need a reliable property manager. Their fees are typically 15-25% of revenue for short-term rentals but are vital for success.

Conclusion: Which Location is Yours?

There is no single “best” location for rental properties in Italy—only the best location for your profile.

For Maximum Stability: Milan.
For Balance and Tourism: Rome.
For the Highest Gross Yield: Bologna.
For Capital Growth and Lower Entry: Naples and Southern Italy.

A successful investment requires more than intuition; it demands data and an understanding of local dynamics. By starting with the right basics of real estate investing and armed with this market analysis, you are one step closer to finding your profitable Italian property.