Italian Cities with the Highest Rental Yield for Apartments

Italy, renowned for its rich history, culture, and stunning landscapes, has long attracted investors interested in real estate. One of the most popular ways to generate income from property here is through renting apartments. However, profitability varies significantly depending on the city. Let’s explore the Italian cities that offer the highest rental yields and what makes them attractive to investors.
Milan: The Financial and Fashion Hub
Milan ranks as one of the top cities in Italy for rental demand. As the financial and business capital of the country, it provides a steady stream of tenants, from students to employees of major international corporations.
The most sought-after areas for renters include neighborhoods near the financial district, universities, and fashionable quarters such as Brera and Navigli. Rental demand is fueled by a large influx of professionals, students, and tourists. In addition to long-term rentals, short-term leases in Milan can also be highly lucrative, particularly during major events such as Fashion Week, Salone del Mobile, and other international gatherings.
Rome: Eternal Demand in the Eternal City
Rome, the capital of Italy, has always been one of the most in-demand cities for rental properties. As a political and economic hub, it attracts millions of tourists each year while hosting a large local population in need of housing.
Districts such as Trastevere, Monti, and Prati are particularly popular for their central locations and proximity to major landmarks. Apartments in these areas perform well in both long-term and short-term rental markets. However, due to the high cost of property in the city center, more investors are turning their attention to suburban zones, where rental yields tend to be higher.
Florence: The City of Art and Tourism
Florence, the capital of Tuscany, is known for its historic landmarks and artistic heritage. The city remains attractive to both tourists and students, ensuring a stable rental market.
Central areas of Florence, such as Santa Croce and Santo Spirito, are especially in demand. Tourists are willing to pay a premium for short-term rentals in these districts to stay close to attractions like the Uffizi Gallery and the Cathedral of Santa Maria del Fiore. Additionally, Florence’s universities and design schools attract a steady stream of students, creating opportunities for long-term rental income.
Bologna: Italy’s Academic Hub
Bologna is renowned for its university, one of the oldest in Europe. This makes it an ideal city for rental investments, with a large portion of tenants being students, ensuring consistent demand for apartments.
The most desirable neighborhoods are those near the university campus and the historic city center. Property prices in Bologna remain relatively affordable, making it an attractive investment opportunity for those seeking stable rental income.
Turin: A Rising Star for Rentals
Turin, famous for its industrial and innovation sectors, is gaining popularity among renters. It is one of the more affordable major cities in Italy, attracting students, young professionals, and families.
Districts such as San Salvario and Crocetta offer a variety of housing options at reasonable prices. Rental demand in Turin is growing thanks to its expanding transport infrastructure and the development of new educational institutions. Additionally, its proximity to Alpine resorts makes it appealing to tourists, further boosting the rental market.
Naples: High Returns with Low Costs
Naples, located in southern Italy, stands out for its relatively low property prices. This makes it particularly appealing to investors looking to maximize rental income with minimal initial costs.
Central neighborhoods such as Chiaia and Vomero are the most popular among tenants. Tourists also favor Naples as a base for exploring the Amalfi Coast, making short-term rentals highly profitable. Despite the region’s economic challenges compared to northern cities, Naples continues to attract attention for its high rental yields.
Palermo: Opportunities in the South
Palermo, the capital of Sicily, is becoming an increasingly attractive city for rental investment. Rising tourist numbers and improved infrastructure have led to growing demand for both short-term and long-term rentals.
Properties in the city center and near the coastline are especially in demand. Affordable property prices allow investors to achieve high returns with relatively low upfront costs. Sicily’s warm climate and unique culture also attract tourists year-round, contributing to a stable rental market.
Factors Affecting Rental Yields
When choosing a city for rental property investment, it is crucial to consider several factors that can influence profitability:
1. Supply and Demand: Cities with high tourist influx or a significant student population ensure consistent rental demand.
2. Type of Rental: Short-term rentals, particularly in tourist hotspots, can generate higher income but require more active management.
3. Infrastructure: Good transport accessibility and local amenities increase the attractiveness of a neighborhood.
4. Regional Characteristics: Southern Italy offers lower property prices but may be less stable in terms of income compared to northern regions.
Italy offers a wide range of cities for rental property investment. Milan, Rome, Florence, and Bologna provide stable and high returns thanks to consistent demand from students, tourists, and professionals. At the same time, Naples and Palermo offer opportunities for high yields at relatively low investment costs.
Before investing, it is essential to evaluate not only the current profitability but also the long-term growth prospects of the chosen region. The Italian real estate market remains a strong draw for both local and international investors, providing numerous opportunities for generating stable rental income.