The Italian real estate market continues to yield 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 real estate segments. It is a promising sign for investors looking for profitable opportunities in Italy.
Commercial buildings lead the way
Commercial properties, such as stores, remain the most profitable real estate investment in Italy. With a gross yield of 12%, stable compared to last year, they remain attractive to investors. In some cities, such as Verona, returns for stores can be 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 stores, but also offices are showing strong growth. The average yield in this segment rose to 10.3%, with cities such as Siracusa at 13.6% and Ancona at 11.6% leading the rankings. Even in large markets such as Rome (10.2%) and Milan (7.4%), offices remain attractive to investors looking for stable income.
Homes and garages: solid growth
The housing market also remains attractive, with average returns of 9,3%. This is a slight increase from last year's 8.8% and a testament to the stability of the market. 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, with 6.7% versus 6.4%, while Milan records a return of 5.5%.
Garages, although they remain the least profitable investment, are showing significant growth. Average returns rose to 8.2%, with Bari at the top with 8.3%. Rome and Bologna also show strong returns of 8% and 7.6%, respectively. Even in large markets such as Milan and Naples, garages remain relatively safe investments with returns of 5.7% and 4.8%.
Conclusion
The excellent yields in both residential and commercial are an additional validation of the many opportunities that buying property at a (foreclosure) auction has to offer.
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