What is the average rent in Milan?

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What's the current average rent in Milan by property type?

As of June 2025, Milan's rental market shows distinct pricing tiers across different property types.

Studios in Milan average between €1,000 and €1,250 per month, making them attractive for young professionals and international students. One-bedroom apartments command €1,150 to €1,200 monthly, though this range extends from €800 in outer areas to €1,500 in premium central locations.

Three-bedroom apartments represent the luxury segment with rents spanning €1,800 to €3,000+ monthly, with median prices around €2,500 to €2,700. High-end properties in prime locations like Brera or Porta Nuova can exceed €3,000 significantly, especially for penthouses with panoramic city views.

Two-bedroom apartments, while not extensively covered in official statistics, typically fall between €1,800 and €2,500 monthly depending on location and amenities. These properties attract small families and professionals seeking more space than a one-bedroom offers.

The Milan rental market remains one of Italy's most expensive, reflecting the city's status as the country's financial and fashion capital.

How do rents vary between Milan's different neighborhoods?

Milan's neighborhood rental pricing reveals stark differences between central prestigious areas and peripheral districts.

Brera stands as Milan's most expensive rental neighborhood, commanding €30-35 per square meter monthly. Studios here range from €1,200 to €1,500, one-bedrooms from €1,500 to €2,000, and three-bedrooms from €3,000 to €4,000. This historic district attracts luxury-seeking tenants willing to pay premium prices for central location and prestige.

Navigli offers a more moderate pricing structure at approximately €23 per square meter monthly, with studios costing €900-1,200, one-bedrooms €1,200-1,600, and three-bedrooms €2,100-2,600. This trendy area appeals particularly to young professionals seeking vibrant nightlife and cultural amenities.

Porta Romana commands similar pricing to Navigli at around €24 per square meter monthly. Properties here cost €1,100-1,400 for studios, €1,400-1,800 for one-bedrooms, and €2,400-3,000 for three-bedrooms. This elegant neighborhood benefits from excellent transportation connections and upscale residential atmosphere.

Bicocca and Niguarda represent Milan's more affordable options at approximately €18 per square meter monthly. Studios rent for €700-900, one-bedrooms for €900-1,200, and three-bedrooms for €1,500-2,000, making these areas attractive for budget-conscious tenants and families.

What are typical property sizes and how does size affect rent pricing?

What's the total monthly cost including utilities and fees?

Milan rental costs extend beyond base rent to include several mandatory and optional expenses that tenants must budget for.

Utilities including electricity, gas, and water typically add €100-200 monthly to rental costs, varying based on property size, season, and usage patterns. Winter heating costs can push utility bills toward the higher end of this range, particularly for older buildings with less efficient systems.

Condominium fees (spese condominiali) represent a significant additional cost, ranging from €50-200 monthly depending on building amenities and services. Buildings with concierge services, elevators, gardens, or gyms command higher fees, while basic residential buildings maintain lower costs.

Internet and television services add €30-50 monthly for standard packages, with premium high-speed options costing more. Most tenants consider reliable internet essential, particularly those working remotely or streaming entertainment content.

Total monthly housing costs therefore range from €1,100-1,500 for studios, €1,300-2,000 for one-bedrooms, and €2,200-3,800 for three-bedrooms, with luxury properties exceeding these ranges significantly.

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What taxes and costs should landlords expect when renting properties?

Milan landlords face several tax obligations and operational costs that significantly impact net rental income.

Income tax on rental income follows Italy's flat-rate system (cedolare secca) at 21% of gross rent for long-term rentals, or 26% for landlords owning multiple properties. This simplified tax structure eliminates the need for complex deductions but provides no reduction for property expenses or maintenance costs.

Municipal taxes including IMU (property tax) and TASI (service tax) vary by property value and location, typically ranging €500-2,000 annually. Properties in central Milan with higher assessed values face steeper tax burdens than peripheral properties.

Property maintenance and management costs consume 5-10% of rental income for landlords who engage professional property management services. Self-managed properties still incur repair, maintenance, and upgrade costs that can fluctuate significantly based on property age and condition.

Condominium fees, when not passed to tenants, add €50-200 monthly to landlord expenses. Property insurance typically costs €100-300 annually, providing essential coverage for liability and property damage risks.

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What are current financing costs for Milan rental properties?

As we reach mid-2025, Milan rental property financing reflects broader European monetary policy trends and Italian banking market conditions.

Fixed mortgage rates for investment properties currently range from 3.2% to 3.5%, providing predictable financing costs for long-term investors. Variable rates span 3.1% to 4.7% depending on loan terms, lender relationships, and borrower creditworthiness, offering potential savings but exposing investors to interest rate risk.

Down payment requirements typically demand 20-30% of property value, with average down payments in Milan reaching approximately €124,000 given current property prices. International investors may face higher down payment requirements and additional documentation compared to Italian residents.

Loan terms generally extend 20-30 years, allowing investors to spread acquisition costs over extended periods while maintaining reasonable monthly debt service ratios. Banks increasingly scrutinize rental income projections and require detailed market analysis for investment property loans.

Additional financing costs include loan origination fees, legal expenses, notary fees, and property appraisal costs that can add 2-4% to total acquisition expenses beyond the property purchase price.

What rental yields can investors expect by property type and location?

Milan's rental market as of June 2025 offers attractive gross yields compared to many European capitals, though net returns require careful expense management.

Overall gross rental yields in Milan average 5.4%, with studios performing best at 5.7% gross yield due to strong demand from young professionals and international students. One-bedroom apartments achieve 5.9% gross yields, representing the market's sweet spot for consistent tenant demand and manageable maintenance costs.

Three-bedroom apartments generate lower gross yields at 4.7% due to higher purchase prices and more selective tenant markets. However, these properties often attract longer-term tenants, reducing vacancy periods and turnover costs that improve net yield calculations.

Net yields typically fall 1-2 percentage points below gross yields after accounting for taxes, maintenance, management fees, and vacancy periods. Most Milan rental properties achieve net yields ranging 3.5-4.5%, making them competitive with other European investment opportunities.

Central neighborhoods like Brera command premium purchase prices that compress yields despite higher rents, while peripheral areas like Bicocca offer better yield potential with lower entry costs but reduced tenant demand and longer marketing periods.

How do current rents compare to previous years?

Milan's rental market has experienced significant growth over recent years, with acceleration since 2023 driven by increased international demand and limited housing supply.

Rental prices have increased 10-20% over the past five years, with sharper rises occurring in the last two years as post-pandemic demand recovered and international mobility resumed. Central neighborhoods experienced the steepest increases, while peripheral areas saw more moderate growth.

Year-over-year rental growth from 2024 to 2025 shows 5-10% increases, particularly affecting studios and one-bedroom apartments in central and trendy areas like Navigli and Porta Romana. This growth rate exceeds Italian inflation, reflecting genuine supply-demand imbalances rather than monetary factors alone.

Rental yields have remained relatively stable despite price increases, as property purchase prices have risen in parallel with rental rates. Some yield compression occurred in premium segments where property prices increased faster than rental rates, but overall investment returns remain attractive.

Market analysts expect continued but moderating rental growth through 2025-2026, with annual increases likely settling into 3-7% ranges as supply catches up with demand and regulatory interventions potentially constrain further rapid increases.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What's the rental demand like and who are typical tenants?

Milan's rental market attracts diverse tenant profiles reflecting the city's role as Italy's financial and fashion capital.

International professionals represent a significant tenant segment, including employees of multinational corporations, finance firms, and fashion houses establishing Milan operations. These tenants typically seek furnished one or two-bedroom apartments in central locations with excellent transportation connections to business districts.

Students form another major tenant group, particularly international students attending Bocconi University, Polytechnic University of Milan, and other prestigious institutions. Student demand concentrates in affordable areas like Bicocca and properties near university campuses, with shared accommodations increasingly popular.

Business travelers and short-term corporate assignments create steady demand for furnished apartments with flexible lease terms. These tenants often require premium amenities and central locations, willing to pay higher rates for convenience and quality.

Local families and young Italian professionals round out the tenant mix, typically seeking longer-term leases in residential neighborhoods with good schools and family amenities. The citywide vacancy rate averages 7.9%, but central and trendy areas like Brera and Porta Nuova maintain significantly lower vacancy rates due to strong demand.

Which rental types perform best in today's market?

Milan's rental market rewards different property types and management strategies depending on investor goals and risk tolerance.

1. Furnished vs. Unfurnished Properties: Furnished rentals command 15-20% rent premiums and attract international professionals and short-term tenants, but require higher maintenance and more frequent tenant turnover management.
2. Short-term vs. Long-term Rentals: Short-term rentals through platforms like Airbnb can generate higher gross income but face increasing regulatory restrictions and require intensive management effort.
3. Central vs. Peripheral Locations: Central properties in areas like Brera and Porta Nuova achieve higher rents and yields but require larger initial investments, while peripheral areas offer better entry prices with stable family-oriented demand.
4. Property Size Optimization: Studios and one-bedroom apartments show strongest demand and highest yields per square meter, particularly in central locations where space commands premium pricing.
5. Amenity-Rich Buildings: Properties with concierge services, gyms, parking, and modern appliances attract premium tenants and support higher rental rates, though they carry higher operational costs.

Can you provide specific rental examples from different market segments?

How does Milan compare to other European cities for rental investment?

Milan's rental market positioning within Europe shows competitive advantages in yields while maintaining lower entry costs than major capitals.

Compared to Barcelona, Milan offers similar rental rates but higher gross yields at 5.4% versus Barcelona's 4.5-5.5%. Barcelona faces increasing regulatory challenges for short-term rentals, while Milan's regulations remain more investor-friendly currently.

Paris commands higher rental rates across all property types but offers lower yields of 4.0-4.5% due to extremely high property prices. Milan's €1,000-1,500 studio rents compare favorably to Paris's €1,200-1,800 range while providing better yield potential for investors.

Berlin presents lower rental rates with studios renting €800-1,200 compared to Milan's €1,000-1,500, but Berlin's strict rent control policies limit yield potential to 3.5-4.0%. Milan's more flexible rental market allows for better rent growth and yield optimization.

Looking ahead, Milan's outlook appears positive for 1-year prospects with continued rent growth expected, especially in central areas. Five-year projections show moderate rent appreciation with stable yields as the market matures. Ten-year fundamentals remain strong given Milan's business hub status, though regulatory changes and market saturation in some segments pose potential risks to consider.

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Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

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Sources

1. Housing Anywhere - Milan Cost of Living
2. Global Property Guide - Italy Rental Yields
3. InvestRopa - Milan Real Estate Market
4. Immobiliare.it - Milan Property Market
5. Statista - Milan Rental Prices by Area
6. Idealista - Italy Rental Market
7. Cushman Wakefield - Italian Real Estate Trends
8. Numbeo - Milan Cost of Living