The gross profitability of buying a house to put it on the rental market shows a slight decline in the second quarter, to 7.9%, compared to 8% in the second quarter of 2021. According to the study conducted by idealista, a leading real estate portal for technological development in Italy, the yield offered by homes is more than double the rates offered by 10-year government bonds (3.4%). According to this study, which correlates the sale and rental prices of different real estate products to calculate their gross return, commercial premises (shops) remain the most profitable real estate investment. Buying a shop in Italy to rent it offers a gross return of 12%, up from 11.6% twelve months ago. Offices offer a yield of 9.0% (8.7% a year ago) and in the case of garages it stands at 7.2%, higher than 6.9% in June 2021. Residential yields Among the Italian capitals, the most profitable is Ragusa with 10.2%. Biella (9.1%) and Syracuse (9.4%) follow. On the other hand, Siena (4.3%), Venice (4.4%) and Salerno (4.6%) are the least profitable markets. In Milan, profitability drops to 5% (compared to 5.4% in the second quarter of 2021), in Rome to 5.5% (a year ago it was 5.8%).Yields of commercial premises (no warehouses) Commercial premises are the product that has the highest profitability in almost all the capitals. The best performance is obtained in Milan (16.5%), which precedes Monza and Pavia (both at 15.5%) at the top of a ranking that sees in the lower part Crotone (7.7%) Barletta and Trapani (7, 8%). Among the large markets, Milan is the queen of returns in this segment, Naples stops at 14%, while Rome at 12.6%. Office returns Office buildings have lost something - 3 tenths of a point - compared to last year. In the meantime, Pistoia (10.7%) has moved to the top of the ranking of returns in the sector, ahead of Turin and Cagliari (both (at) 9.3%), which in turn precedes Perugia (9.2%). . Among the large markets, the best is Rome (8.1%), up ahead of Naples (7.8%) and Milan (6.6%), which are in sharp decline. In the lower part of the ranking, the last is Bari (6%), then Rimini and Pescara, with 5.7% and 5.8% respectively. The office market is not as uniform as that of other products, which makes it impossible to obtain statistical data on more than half of the Italian capitals. Pits yield Pits remain a fairly stable product, albeit less profitable for the investor in all the cities detectable by the study. Milan, Florence and Catania, all with yields reaching 6.7%, lead the ranking ahead of Rome (6.5%), Naples (5.5%) and gradually the others to close with 4.1% of Genoa, finally Padua, at the rear, with a return of 3.5%. Methodology For the preparation of this study, idealista divided the sale price offered by the rental price requested by the owners in the different markets by referring to the quarterly indexes of houses, commercial premises, garages and offices corresponding to the second quarter of 2020. The result obtained is the gross percentage of return a landlord gets from renting his home. This data facilitates the analysis of the current state of the market and is a basic starting point for all those investors who want to buy real estate in order to obtain benefits.
- Data: 28-07-2022