RENDIMENTS: BOOM OF COMMERCIAL PROPERTY (9.7%), STABLE HOUSING (5.7%)
The performance of investment properties is increasing in Italy. According to data from the idealist studies office, the good conditions of the credit market and prices still contracting push property yields. All segments of the market have grown over the last 12 months, guaranteeing returns far in excess of 10-year fixed-rate government bonds.
According to this study, which compares the selling and leasing prices of the different types of real estate to calculate their gross return *, the business premises are confirmed as the most profitable product, with a yield of 9.7%, followed by the boxes (8.7%), offices (7.5%) and housing (5.7%).
Returns in the residential area.
Yields in residential buildings rose, even if only slightly, from 5.4% in the first quarter of 2017 to 5.7% today. In general photography, however, there are two opposite trends, with yields in large cities stable or declining due to gradual increases in sales prices, while in other markets there is the opposite effect due to increases in rents with respect to prices of the buildings.
A trend reflected at the level of large markets in Milan and Turin, stable at 5.4%, in Rome it fell to 4.6%, in Naples even at 3%. Among the Italian capitals, Biella is the most profitable with an average return of 8.2% followed by Taranto and Belluno, both at 7.8%. Naples and Venice, close the ranking with an average return of 3%.
Returns from commercial premises (other than warehouses).
Buying a commercial space to rent it always offers the greatest benefit for the owners even if, when it comes to retail and not logistics, the location of the location in the streets of passage impacts significantly on the return on investment.
The ample product availability has seen a sharp decline in sales values compared to the increase in lease requests, especially in the top locations. In the ranking of profitability Piacenza (18.6%) precedes Padua (18.5%) and Milan (16.2%); the trend is sustained in all the centers of the North and in Tuscany; the lowest returns to Forlì (6.1%) and Terni (6.5%).
Office yields.
Also the office sector under the banner of increases in the last 12 months with the centers of Emilia Romagna at the top of the ranking led by Ferrara (10.4%) ahead of Modena (8.3%) and Bologna (8.1%) ). In Milan, returns stood at 7.1%, in Rome at 6.2%, while Naples rose to 6.3%.
The lowest yields among the centers recorded were recorded in Rimini, bringing up the rear with an average yield of 5.2%, followed by Pescara (5.3%) and Monza 5.8%.
Performance of the boxes.
The car garages are those that have marked the biggest leap in the last year, rising from 5% to 8.7% of average return. A change determined by the collapse in prices that affected this segment, thanks to the crisis and a number of other factors that have changed the attitude of investors.
The ranking sees Genoa (11.9%) the undisputed leader of this market, ahead of Turin and Milan, both standing at a yield of 5.6%. In the capital, rent a fruit box 4.8%, as in Naples, while Catania (4.1%) is the city with the lowest profitability.
* rental yield is understood as pre-tax (imu, dry coupon) and management fees
Join The Discussion