Italy ranks 29th in the world for property values, which is 13% above the global average. The average cost per square meter reaches €3,500. Major cities and the capital show stable prices of €7,000-8,000 per square meter, regardless of global conditions. Purchasing property in Italy does not grant automatic residency, but owning real estate can significantly simplify obtaining residency on other grounds.
The main feature of the Italian real estate market is its conservatism and low volatility. The purchasing procedure has remained unchanged for years. For example, while in the UAE, a buyer can even pay with cryptocurrency, an Italian notary would be truly shocked by such an offer! On the plus side, the practice of payment by check is widespread, and it's even possible to make an advance payment to reserve a property before signing an official contract. All actions can be conducted remotely: selecting properties, creating video tours, and even signing contracts!
Since the easing of COVID-19 restrictions, foreign residents began to massively purchase villas and seaside homes in March-April 2022, significantly revitalizing the Italian real estate market. The recovery of tourist flow and demand for housing contributed to increased interest among investors and the rise in the value of premium properties!
Best Italian Cities for Investment and Profit
Investing in Italian real estate is an excellent way to obtain stable passive income. Before purchasing a property, it’s important to study and analyze the market thoroughly, and our detailed analytical material will help with that.
Investment No. 1 – Shops and Commercial Spaces
This category is considered the most profitable for landlords. As expected, metropolises and large cities are prioritized, where shops and commercial spaces are extremely popular among foreign investors:
- Milan – at least 16.5%.
- Ferrara – up to 15.4% annually;
- Taranto and Genoa – yield around 14.5%;
- Rome and Naples – offer about 13.5% from rentals and 12.3% upon selling the property;
- Ragusa, Vicenza, Cuneo, and Andria, with the lowest rates, offer 8.1%, 8.5%, and 8.6% respectively.
The liquidity of a property is influenced by price growth and the purchasing cost of the property.
Investment No. 2 – Residential Properties
Residential real estate is the second most profitable category after shops:
- Syracuse and Taranto – rental income can reach up to 11.4%;
- Biella – shows a profitability level of about 10.5%;
- Ragusa – a good option for investors, guaranteed passive income from renting properties at a level of 9.6%;
- Trapani – another promising location offering about 9.1%;
- Siena (3%), Salerno (3.1%), Venice (4.2%), Rome (4.5%), and Milan (about 5.5%) – cities ideally suited for those planning to profit from short-term rentals.
Notably, metropolises like Rome and Milan did not make the top list where one could expect high rental income. In this regard, they were outpaced by smaller tourist locations, where visitors and guests of the country prefer to stay and explore local attractions.
Investment No. 3 – Office Spaces
Office buildings and spaces for corporate clients are among the top three most profitable real estate segments for owners. There are also leaders and regional distinctions where it's best to acquire commercial properties and receive stable passive income:
- Ancona – takes the leading position in our ranking, guaranteeing a return of no less than 9.7%;
- Lecco, Trieste, and Turin are nearly on par, with liquidity in these cities at 9.2%, 9.1%, and 9% respectively.
- In Rome and Milan, one can also expect a high level of return on investment – 8.6% and 7.8% respectively.
- Naples offers 7.6%, Reggio Calabria – 6.1%, Pescara – 6.2%, and Modena – 6.8%.
Garages and garage cooperatives deserve special mention. Owning a garage can earn up to 6.7% in Rome and slightly less in Florence – up to 6.5%.
Remember, owning property does not equal obtaining residency, but property ownership will be a significant plus when applying for a new status.
