Where to invest in real estate in Italy
Italy is one of the most visited countries in Europe for its renaissance, fashion, and art industry. Because of its wondrous architecture and tourist attractions, the Airbnb demand in Italy is also on an upward trend!
Not only that – but Airbnb even recently opened the doors of opportunity for those who want to live in Sicily (rent-free) to boost the Italian village of Sambuca.
And while there are several great investment opportunities in Italy, this article will guide you through filtering the best ones! We’ll feature the recent Airbnb market trends and properties in Italy with the most profit. Excited to learn more? Continue reading!
Is Airbnb Profitable in Italy?
YES – Airbtics’ data shows that Airbnb is profitable in Italy! Airbnb host Italy can expect the following:
- Average occupancy rate in Italy: 38%
- Average daily rate in Italy: €137
To be more specific, let’s take a look at the Airbnb data for Municipio I in Rome, Italy:
Studio-type apartment in Rome
- Average annual revenue: €31,961
- Occupancy rate: 89%
- Average daily rate: €92
1-bedroom apartment in Rome
- Average annual revenue: €38,374
- Occupancy rate: 89%
- Average daily rate: €111
2-bedroom apartment in Rome
- Average annual revenue: €52,932
- Occupancy rate: 88%
- Average daily rate: €156
♦ Airbnb Trends in Italy 2023
Airbnb market trends in Italy have recently discovered interesting facts. According to top real estate agents in Italy, luxury properties are thriving in areas such as Lake Como and Capri Island. This is despite the fact that there is high inflation and rising interest rates by central banks!
Homeowners in Hampton, on the other hand, are considering a different technique to sell their properties. They auction their properties in high-profile biddings instead of traditional sales to make more money. Some of the homeowners are also hesitant to sell their properties as they can make a valuable asset, in the future.
Most property investors in Italy are considering markets with incredible views. This includes Lake Maggiore and the Island of Capri! Instead of populated cities like Rome, Milan, or Florence where markets can be oversaturated, the Airbnb trends 2023 is shifting to open vista areas.
♦ Best Areas for Investment in Italy
When starting an Airbnb business in Italy, it’s always best to look at the trends and understand the market. It’s one of the major keys to success! Check out the best areas where to invest in real estate in Italy:
1. Lake Como
Known as the third largest Italian lake, Lake Como presents a breathtaking view of the surrounding nature. Lake Como is situated at the foothills of the Alps which both property investors & Airbnb guests will certainly enjoy! Here is the Airbnb data in Lake Como, Italy:
- Average property price (2-bedroom property): €400,000
- Airbnb annual revenue: €31,491
- Gross rental yield: 7.98%
- Seasonality: 90%
Most luxury property in Lake Como is purchased by property investors for various reasons. You can ask for a price quote or even view a property through Lake Como luxury real estate website. Here are some of the properties in Lake Como as seen on the Airbnb website:
The beautiful island of Capri is situated within the heart of Italy’s Bay of Naples. One of its popular natural destinations is the Blue Grotto, an underwater cave that glows! During the summertime, there are also yachts by the coast which are ideal for tourists and homeowners alike. Here is the Airbnb data in Capri Island, Italy:
- Average property price (2-bedroom property): €520,000
- Airbnb annual revenue: €53,043
- Gross rental yield: 10.20%
- Seasonality: 98%
Capri Island real estate offers various villas, apartments, and flats with a sea view! Here are some of the properties in Capri Island as seen on the Airbnb website:
The region of Umbria is popular for its countryside landscape. It’s certainly filled with all kinds of natural experiences! From rivers, waterfalls, and canals – one can also enjoy freshly harvested vegetables and grains. Here is the Airbnb data in Umbria, Italy:
- Average property price (2-bedroom property): €440,000
- Airbnb annual revenue: €12,036
- Gross rental yield: 2.73%
- Seasonality: 79%
You can look at property for sale in Umbria, Italy, on websites such as Immobiliare IT and Umbria Real Estate. Here are some of the properties in Umbria as seen on the Airbnb website:
4. Lake Maggiore
If you’re looking to invest in stunning villas in the second-largest lake in Italy, Lake Maggiore is the answer! Known for its top attractions such as Isola Bella, Villa Taranto, and even Lake Maggiore itself, there’s plenty to do and see in this area. Check out the Airbnb data in Lake Maggiore, Italy:
- Average property price (2-bedroom property): €540,000
- Airbnb annual revenue: €21,435
- Gross rental yield: 3.96%
- Seasonality: 83%
The majority of properties in Lake Maggiore are villas and apartments. And there are also luxury properties for sale that you can take a look at! Here are some of the properties in Lake Maggiore as seen on the Airbnb website:
Tips Before Investing in Airbnb in Italy
Thinking of investing in an Airbnb business in Italy? Discover some expert tips to make the best investment decisions:
1. Research Profitable Neighborhoods & Best Property Types
Now that you know that Airbnb is profitable in Italy, the research shouldn’t end there! Each neighborhood will have different profitability and occupancy rate. A studio-type apartment can get booked fast in the city center, but a villa might be preferred in the countryside.
You can research profitable neighborhoods using an Airbnb analytics tool. This gives you the superpower to leverage your game in the industry! By looking at your competitor’s performances, common property types, and pricing, you can strategically make an informed investment decision.
2. Speak with local real estate agents
One of the highly recommended actions to understand the market is speaking with local real estate agents in Italy. You can instantly get answers to your questions prior to starting an investment! Knowing the local Airbnb rules, neighborhood vibe, and even area recommendations will help you get ahead in the industry.
3. Plan a Budget and Predict the Profitability
Planning is a primary and crucial step to successful property investment. You can create a list of all the Airbnb expenses – from initial to recurring costs. This will help you anticipate other unexpected expenses!
Apart from this, predicting your property’s potential profitability will also help you have an overview of your expected income. Using an Airbnb calculator, the whole process is made easy!
While there are several excellent property investments in Italy, it’s always best to conduct research and use short-term rental analytics tools for absolute certainty. It’s a huge risk to invest in properties – time, effort, and money should NEVER come to waste. Take advantage of what the digital era can offer and find out where to invest in real estate in Italy!