Italy is a place where stunning landscapes, rich history, and refined culture combine to create a unique atmosphere for both living and investing. Whether you’re searching for a comfortable residence or a high-yield investment, Trevi Elite Real Estate Agency will help you buy an apartment in Italy and find the perfect property tailored to your goals and aspirations.
Why Should You Buy an Apartment in Italy?
Purchasing an apartment in Italy is not only a chance to live in one of the world’s most beautiful countries, but it’s also a strong investment opportunity. Your choice of location will depend on your goals. Buying an apartment in Milan, buying an apartment in Rome, or buying an apartment in Sicily — each region offers unique advantages for various types of buyers and investors.
Costs of Buying Property in Italy
Buying property in Italy comes with certain costs that should be taken into account:
- Registration tax: 9% for non-residents or 2% for residents (including those who have applied for a residency permit).
- Cadastral and mortgage fees: A flat fee of €100.
- Notary fees: Starting from €3,500, depending on the transaction’s complexity.
- Agency commission: 3-5% of the property price plus VAT, with the percentage depending on the total property cost.
How to Buy Property in Italy
The process of buying an apartment in Italy involves several key steps:
- Property selection: A Trevi Elite agent will prepare a selection of properties based on your signed search mandate.
- Viewing arrangements: The agent will schedule viewings of selected properties.
- On-site viewings: You will visit properties accompanied by the agent.
- Purchase offer: Once you choose a property, the agent will prepare an irrevocable purchase offer, and a deposit of 10% of the offer amount will be required.
- Preliminary sale contract: When this contract is signed, an additional deposit of 20-25% of the property’s value is required to secure the transaction.
- Final sale agreement: This final contract is signed in the presence of a notary, witnesses, and a translator.
Who Should Consider Buying an Apartment in Milan?
Milan is a dynamic city known for fashion, business, and innovation. It’s ideal for professionals and investors seeking high liquidity and steady rental income. With an average price per square meter of €4,989, Milan is Italy’s most expensive city for purchasing property. However, buying an apartment in Milan’s suburbs or in surrounding towns, such as Sesto San Giovanni, provides more affordable housing options with lower prices than the city center.
Who Should Consider Buying an Apartment in Rome?
Rome attracts those looking for a home in a historic setting near cultural landmarks. Central Rome is ideal for short-term rentals due to its status as a top tourist destination. The average price per square meter is €3,042, which is lower than in Milan. Buying an apartment in areas like Velletri (€1,352/sq.m.) or Ardea (€1,543/sq.m.) provides affordable options in Rome’s surrounding areas, offering a good opportunity for long-term investments with price growth potential.
Buying an Apartment in Sicily: Ideal for Life and Investment
Sicily is a picturesque island offering a relaxed lifestyle and seasonal rental income. Choosing to buy an apartment in Sicily is a great alternative for those wanting a year-round seaside lifestyle or summer rental property. With an average price per square meter around €1,163 (up 3% from last year), Sicily’s affordability is appealing. Properties in popular cities and resorts like Taormina, Catania, and Palermo attract tourists and have a high demand for short-term rentals.
The Importance of Location
When buying property in Italy, location is one of the most crucial factors. As real estate experts say, the top three factors are location, location, and location. Where a property is located impacts its rental yield, potential appreciation, and income stability, making this an essential consideration for long-term investments.
Resale Properties or New Builds?
The choice between resale properties and new builds in Italy depends on your goals and preferences. Resale properties are popular among those who value architecture and prime locations in historic city centers. These properties may require renovations but are highly sought-after for tourist rentals, especially in Rome, Milan, and other popular cities.
New builds are often located in modern areas with advanced infrastructure and energy-efficient features. New builds represent only 6.8% of the Italian market, concentrated mostly in Milan (where new builds account for 12.6% of sales). In smaller Italian cities, new properties are rarer, such as Florence (8.1%) and Genoa (0.4%). Environmentally friendly and energy-efficient new builds are highly in demand as buyers increasingly prioritize sustainable features and access to communal amenities.
Italian Real Estate Market in 2024
In early 2024, Italy’s real estate market slowed down, with transactions decreasing by 7.2% compared to the previous year. The primary reasons include economic uncertainty and reduced purchasing power. At the same time, demand for energy-efficient new properties and quality resale properties remains strong, particularly in Milan, which leads the market in new, eco-friendly developments.
Prices for Two-Bedroom Apartments in Italy
- Rome: From €500,000 to €1,000,000 in the center, with prices starting at €250,000 in the suburbs.
- Milan: From €600,000 to €1,200,000 in the center, with suburban prices ranging from €300,000 to €600,000.
- Sicily: Significantly lower prices, with two-bedroom apartments costing between €50,000 and €150,000.
Location, Property Type, and Other Key Factors
One of the most crucial considerations for investors is rental yield, calculated as the annual rental income divided by the purchase price, expressed as a percentage. Maximizing rental yield is essential to get the most from your investment. Several factors influence rental yield, with location and property type being the most important.
- Location: Properties in high-demand areas, especially near public transport, key employers, and facilities like shopping centers and restaurants, tend to have higher rental yields. Such locations typically allow for higher rental rates and lower vacancy risk.
- Property Type: Commercial properties tend to offer higher rental yields than residential ones because of their potential for generating business-related revenue.
- Property Age and Condition: Newer properties generally have higher rental yields as they require less maintenance and often include modern amenities, allowing for higher rent.
- Local Rental Market: High demand in specific areas also affects rental yield. Properties near universities and business centers, for instance, typically have stable rental demand, ensuring better rental yields. Carefully choosing the right property will maximize return and minimize risk.
Contact Trevi Elite to Find Your Ideal Home in Italy
With Trevi Elite, your plan to own a home in Italy is within reach, supported by clear steps and a real perspective. We’re with you every step of the way to make the process straightforward and enjoyable. Bring your dream of owning a property in Italy to life — start this journey with us today.
