The Italian real estate market continues to deliver impressive returns for investors. According to the latest data from Idealista, a leading real estate portal, returns in the third quarter of 2024 show an overall increase in various property segments. It is a promising sign for investors looking for profitable opportunities in Italy.
Commercial buildings lead the way
Commercial properties, such as shops, remain the most profitable property investment in Italy. With a gross yield of 12%, stable compared to last year, they continue to be attractive to investors. In some cities, such as Verona, yields for shops can reach as high as 20.4%, making it the most lucrative location for commercial investment. Other cities such as Mantua and Genoa follow with 18%and 15.9%respectively.
Not only shops, but also offices show strong growth. The average return in this segment has risen to 10.3%, with cities such as Siracusa at 13.6%and Ancona at 11.6%leading the rankings. Even in large markets like Rome (10.2%) and Milan (7.4%), offices remain attractive for investors seeking stable income.
Homes and garages: solid growth
The housing market also remains attractive, with an average return of 9,3%. This is a slight increase compared to last year's 8.8%and a testament to the market's stability. The capital Ragusa stands out with a return of 11%, while Biella and Messina follow with 10.7%and 9.4%respectively. In the main urban markets, Rome offers a higher return than Naples, at 6.7% versus 6.4%, while Milan records a return of 5.5%.
Garages, while remaining the least profitable investment, are showing significant growth. The average return rose to 8.2%, with Bari leading the way at 8.3%. Rome and Bologna are also showing strong returns of 8%and 7.6%respectively. Even in large markets like Milan and Naples, garages continue to be relatively safe investments with returns of 5.7%and 4.8%.
Conclusion
The excellent returns in both residential and commercial sectors are further validation of the many opportunities that purchasing property at an (foreclosure) auction has to offer.
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