Italian cities (and neighborhoods) to focus on in 2023

Read Time: 3'
In a context of inflation and rising rates, with 8-year BTPs yielding around 4% net, what should we do in Italy in the real estate sector in 2023? Insight into Milan, Turin, Rome and Naples: here are the most interesting areas
A stable sector, albeit with more limited growth rates, highly differentiated from city to city. This is how the Italian residential real estate market looks in 2023. But what to do in real estate in the context of rising inflation and rates, with 8-year BTPs yielding about 4 percent net? According to Santino Taverna, national president of Fimaa (Italian Federation of Business Agents Brokers), "housing, historically, has managed to attract investors even in rising inflation because it represents a safe investment for one's savings."

Not all cities are the same. For Patrick Albertengo, co-founder and managing director of Reopla, within the large cities that have seen very interesting revaluations are "Milan, which for at least 10 years has been continuing to invest in infrastructure, innovation, and services to attract students and capital from all over the world, but also Turin, which in the center has seen prices rise by 30 percent from 2016 to today, while the positive trend is less marked in Rome and Naples." In general, however, it is better to focus "on central areas, even better if they are attractive from a tourist point of view in order to be able to practice short renting, on university areas or with a high presence of out-of-town workers, and on other areas affected by redevelopment and land rehabilitation interventions that almost always revalue over time," adds Tecnocasa, which then specifies that "the choice is not always the yield (i.e., how much you can get from renting, ed.), but also the expected future revaluation of the value of the property."

Remaining in the four cities of Milan, Rome, Turin, and Naples, what neighborhoods could have a higher appreciation potential in 2023?


Among the cities that have been the focus of investor attention in recent times is Milan, which is benefiting from several ongoing interventions in the area, high demand from students and out-of-town workers, and, in recent years, a growing tourist attraction. "One of these areas could be Bovisa, which, in addition to enjoying the presence of the university hub, is not far from the redevelopment works of the Farini stopover and has the recovery of the Drop underway," explains Fabiana Megliola, head of Tecnocasa's research office.

In this area, considering a two-room apartment of medium and used type, one can spend around 230,000 euros and get a gross annual yield of 4.30 percent. "The arrival of metro line 4 could then boost the market around Piazza Frattini, where currently a two-room apartment can cost around 220 thousand euros and yield 4.6 percent," Megliola continues.

The real estate offer here is very differentiated. The area towards Via Giambellino, Via Brunelleschi, and Largo Scalabrini is the least expensive, with average values of 2,700-3,000 euros per square meter for solutions in excellent condition from the 1970s. Prices rise instead toward Via Soderini, Via Primaticcio, and Via San Gimignano, where they also touch 3,500-4,000 euros per sq. m. with peaks of 5,500. "Those who are buying in this area are taking into account the future revaluation due to the arrival of the subway," Megliola points out.


In Turin, the downtown areas are where demand from workers, students, and tourists is high for rental properties. According to Tecnocasa data, a two-room apartment, renovated and well furnished, can be rented for around 700 euros per month with peaks of 1,000. In general, the most sought-after streets are Via Lagrange, Via Carlo Alberto and Via Roma, where stately homes can be purchased at average values of between 4,500 and 5,000 euros per square meter, although in Via Lagrange one can reach 6,000 per square meter for renovated types.

Also on the upswing is the Borgo Nuovo neighborhood between Via Roma, Corso Cairoli, and the Po, where green areas are concentrated; much-appreciated post covid. Another exciting neighborhood in Turin is Cit Turin, which enjoys the presence of the Porta Susa station, the Sanpaolo skyscraper, and the Law Court, and this leads to good demand for rental properties from professionals. For a one-bedroom apartment, average rents of 600 euros per month are reported, with yields of around 4.6 percent gross per year. Not far away is also the Polytechnic.

Another relevant aspect, then, is the crossing of the Corso Francia axis that connects this area of Turin with the city's first hinterland. "Buyers also include people arriving from Milan, who find lower prices here and then work in the Lombard capital where they arrive via high-speed rail," says Fabiana Megliola, head of the Tecnocasa group's research office. Real estate offerings range from prestigious solutions to those of the 1950s-70s. Numerous Art Nouveau properties are often signed by architects, characterized by frescoes, parquet floors in their original state, and cathedral glass. For these solutions, peaks of 4,000 euros per square meter are reached. Average prices for stately types in good condition are around 3,000-3,500 per sqm. Toward Via Racconigi, values are lower, 1,800-2,000 euros per sqm for solutions to be renovated from the 1950s-70s, mainly sought by investors who buy, renovate and then resell.


In Rome, university areas, where there is always a good demand, and areas close to the most attractive tourist hubs could do well, although being often in central areas, they require a significant investment. One could then focus on neighborhoods that are well connected by a subway. One of these is Prati - Cola di Rienzo - Borgo Pio, whose proximity to the Vatican, the Tribunal, and the Lumsa University determines a good demand for rental properties.

The area most in demand is between Via Cola di Rienzo and Via Ottaviano: the former commercial and well-served and the latter adjacent to the subway stop of the same name. In these streets, values for renovated types are around 6,000 euros per square meter, while prices drop to 4,500-5,000 euros per square meter in the secondary and inner streets. Two-room apartments hover at about 1,000 euros per month, and three-room apartments at 1,200. Always keep in mind the areas close to the university faculties, among them the district of Tiburtina - Pietralata, where investors buy in light also of the excellent connections, thanks to the presence of the subway "Monti Tiburtini" and the proximity of Tiburtina station. For the same reasons, it also appeals to those outside the region to work in Rome.

"Investors are oriented toward three- and four-room apartments, and often they are parents of the students studying in Rome. The real estate offer in the area is very differentiated: there are economic-popular solutions in the Pietralata area and civilian ones near the Monti Tiburtini stop, with prices of 2,500- 3,000 euros per square meter and 3,000-3,500 euros per square meter, respectively," comments Fabiana Megliola, head of the Tecnocasa group's study office, who then adds that even "on the rental market there is a good demand fueled both by students and by those who are unable to buy. For a 2-bedroom apartment, 700-800 euros per month is being asked for, and annual gross yields of 5.4 percent can be achieved. There is also tremendous demand for 3 and 4 rooms that rent at 400 to 450 euros per month per room."


"Naples collects the highest percentage of investment buying and selling: 34.9 percent, an important figure that has been evident for several years since Naples has increased its tourist attractiveness. This has led many investors to buy homes to be used mainly for short rentals," explains Fabiana Megliola, head of the Tecnocasa group's study office.

Among the exciting neighborhoods, the real estate company identifies those positioned in the city center, including Monteoliveto where investors are returning to buy and rent mainly for tourist purposes. The offer dates back to the late 1800s, so these are often properties without elevators, not very bright, and lacking outdoor space, with prices hovering around 2,200 euros per square meter. People like the presence of services, including several metro stops (Toledo and Piazza Bovio), which connect the area to the rest of the city.

Rents in this area are good thanks to the many tourists and the presence of numerous students at Parthenope University: on average, a one-bedroom apartment rents for 500 euros per month, with peaks of 600. The object of investment purchases is always the university areas and, for some time, San Giovanni a Teduccio. "Most purchases are made by families living in the area, but there is also a fair demand for investment properties given the presence of Apple's Devoloper Academy.

Future developments may affect the area, which is part of a broader redevelopment process in the eastern part of Naples: Agritech is expected to settle here, which, with Academy, would confirm the area's scientific and research destination," Megliola concludes. (Article from the December 2022 magazine)

Director of and editor-in-chief of the magazine. A professional journalist, she holds a law degree from the University of Turin. She has worked at MF, Bloomberg Investments, and Finanza&Mercati. She has contributed to Affari&Finanza (Repubblica) and Advisor.


Cookies help improve your experience on the site.
By using our site, you agree to the terms.
Learn More