What is the average rent in Rome?

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What are the different average rents in Rome depending on property type?

Rome's rental market shows clear price differentiation based on property size and quality as of June 2025.

Studio apartments in Rome command monthly rents between €1,050 and €1,400, with central locations reaching the higher end of this range. The average purchase price for studios is €145,000, generating gross rental yields of approximately 8.69%.

One-bedroom apartments typically rent for €1,500 to €2,000 monthly, with premium central listings exceeding €2,000. These properties average €197,000 in purchase price and deliver gross yields of 9.14%, making them highly attractive for investors seeking strong returns.

Two-bedroom apartments show the widest price range, from €1,600 in peripheral areas to €3,200 in central districts. The average purchase price is €275,000, resulting in gross yields of 6.98%. Location significantly impacts pricing within this category.

Luxury units in prime neighborhoods like Centro Storico, Parioli, and Prati command €3,500 to €5,500+ monthly, reflecting Rome's appeal to high-end tenants and international executives.

Which neighborhoods in Rome have the highest and lowest rental prices right now?

Rome's rental market displays stark geographical price variations that directly impact investment strategies.

Centro Storico leads the market with the highest rents at €27.81 per square meter monthly, reflecting its UNESCO World Heritage status and tourist appeal. Prati, Borgo, Mazzini, and Delle Vittorie follow at €23.29 per square meter, benefiting from proximity to Vatican City and excellent transport links.

Parioli and Flaminio command €22.70 per square meter, attracting affluent residents with their upscale residential character and green spaces. Aventino, San Saba, and Caracalla areas achieve €25.68 per square meter, driven by their prestigious addresses and archaeological significance.

The most affordable rental options are found in peripheral districts. Lunghezza-Castelverde offers the lowest rents at €9.97 per square meter, followed by Borghesiana-Finocchio at €10.00 per square meter. Giustiniana-La Storta-Olgiata provides rents at €11.00 per square meter, while Casal Palocco-Infernetto and Casilino-Centocelle both average around €12.00 per square meter.

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How does the average monthly rent differ by square meter for different districts?

What are the average total rental costs including taxes, service fees, and agency charges?

Rome's rental market involves significant additional costs beyond the monthly rent that investors and tenants must factor into their calculations.

Agent commissions typically range from 1 to 1.5 months' rent, sometimes reaching up to 20% of annual rent for premium properties. Security deposits usually equal 2 to 3 months' rent, creating substantial upfront capital requirements.

Service charges (spese condominiali) add €30 to €200 monthly, covering building maintenance, cleaning, and shared utilities. These charges vary significantly based on building age, amenities, and location within Rome.

Monthly utilities include electricity (€50-€100), gas (€40-€90), water (€20-€40), and internet (€25-€45). The annual waste tax ranges from €100 to €300, depending on property size and location. Landlords face property taxes (IMU) and a 26% tax rate on short-term rental income for second and subsequent properties.

For a typical €1,500 monthly apartment, first-year costs include a €3,000 deposit, €1,500-€2,250 agent fee, and €1,500 first month's rent, totaling €6,000-€6,750 upfront. Ongoing monthly expenses reach €1,750, including rent plus average service charges and utilities.

What kind of net rental yield can I expect based on current rent levels and property prices?

Rome's rental market delivers attractive yields that vary significantly by location and property strategy as of mid-2025.

Average gross rental yields across Rome range from 7.1% to 7.6%, but this masks substantial regional variations. Central areas typically generate lower yields around 4-5% due to premium property prices, while emerging and peripheral neighborhoods can achieve 9% or higher yields.

Short-term rentals through platforms like Airbnb can generate 30% higher gross income compared to long-term leases, but require increased management costs and face growing regulatory scrutiny. Well-managed central Airbnb properties average 285 booked nights annually with 78% median occupancy rates.

Studios offer the highest gross yields at 8.69% due to strong demand from young professionals and students. One-bedroom apartments deliver 9.14% gross yields, making them particularly attractive for investors. Larger properties show declining yields, with three-bedroom units at 6.50% and four-bedroom properties at 6.44%.

Net yields after accounting for management, taxes, and operating expenses typically run 2-3 percentage points lower than gross figures. Central area properties achieve 3-4% net yields, while peripheral locations can deliver 6-7% net returns for patient investors.

How do current rents and yields compare to one year ago and five years ago?

Rome's rental market has experienced significant acceleration over the past year, driven by multiple economic factors.

Rent per square meter increased from €16.06 in May 2024 to €18.03 in May 2025, representing a substantial 12.27% annual growth. This acceleration reflects recovering tourism demand, limited new supply, and anticipation of the Jubilee Year beginning in late 2025.

Property sale prices rose more moderately, from €3,357 per square meter in May 2024 to €3,590 in May 2025, a 6.94% increase. This rent-to-price growth differential has improved rental yields for existing property owners while making new purchases more expensive.

Over the five-year period, Rome has maintained steady but not dramatic growth compared to other European capitals. The market has shown resilience through various economic cycles, with yields remaining stable and attractive for long-term investors. Unlike cities experiencing speculative bubbles, Rome's growth has been supported by fundamental demand drivers including tourism recovery, university enrollment, and international business expansion.

The gap between rent growth and price appreciation suggests Rome's rental market is catching up after years of modest increases, potentially indicating continued yield improvement in the near term.

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What's the forecast for rental prices and yields in Rome in the next 1, 5, and 10 years?

Rome's rental market outlook shows continued growth potential driven by structural demand factors and limited supply constraints.

Over the next year, the Jubilee Year beginning in late 2025 will significantly boost demand in central areas as millions of additional pilgrims and tourists visit Rome. This surge is expected to drive short-term rental rates up 15-20% in prime locations, while long-term rentals will benefit from increased business and diplomatic activity.

The five-year forecast indicates moderate but steady appreciation of 3-5% annually for rental prices, supported by Rome's enduring appeal as a cultural and business center. Property values should rise similarly, maintaining current yield levels with potential for slight improvement in emerging neighborhoods as infrastructure development continues.

Regulatory changes could impact yields significantly. Increasing restrictions on short-term rentals in central areas may redirect investor focus toward long-term strategies, potentially moderating yield growth in tourist-heavy districts while supporting yields in residential neighborhoods.

The ten-year outlook remains positive given Rome's limited ability to expand due to historical preservation requirements and complex building regulations. This supply constraint, combined with Italy's growing role in Mediterranean business and continued tourism growth, should support steady rental demand and stable yields for patient investors.

How do rental prices and returns in Rome compare to similar major cities like Madrid, Lisbon, or Athens?

Rome positions competitively within the Mediterranean property investment landscape, offering distinct advantages in yield and stability.

Compared to Madrid, Rome shows similar or slightly higher rental rates for studios and one-bedroom apartments. Madrid's average yields range from 6-8% for well-located properties, comparable to Rome's central areas but lower than Rome's emerging districts. Madrid benefits from stronger economic growth but faces more volatile political environments affecting property regulations.

Lisbon generally offers lower absolute rental prices than Rome but can deliver higher yields of 8-10%+ in developing areas. Lisbon's short-term rental market remains robust despite increasing regulation, though new restrictions mirror Rome's evolving regulatory landscape. Both cities benefit from growing international business presence and tourism.

Athens presents the most compelling yield opportunity with rental returns of 8-12% in many areas, driven by lower property acquisition costs following the economic crisis recovery. However, Athens faces greater political and economic uncertainty compared to Rome's stable institutional environment.

Rome's advantages include superior infrastructure, established international business presence, and unmatched cultural appeal ensuring consistent long-term demand. The city's rental market shows less volatility than Athens while offering better yields than Madrid's prime areas, making it an attractive middle-ground option for risk-adjusted returns.

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 are typical vacancy rates by neighborhood and type of rental?

Rome's rental market demonstrates strong occupancy rates that vary significantly by location and rental strategy.

Long-term rental vacancy rates remain low at 5-10% in popular central neighborhoods including Centro Storico, Prati, Trastevere, and Testaccio. These areas benefit from consistent demand from professionals, diplomats, and long-term expats working in Rome's business and government sectors.

Peripheral neighborhoods experience higher vacancy rates of 10-15% for long-term rentals, requiring more patient landlords and competitive pricing strategies. However, these areas often provide better yields for investors willing to accept slightly higher vacancy risk.

Short-term rental occupancy rates average 78% for well-managed Airbnb listings citywide, with premium central properties achieving 285+ booked nights annually. Properties in Centro Storico, near major attractions, or in trendy neighborhoods like Trastevere consistently outperform the average.

Seasonal variations significantly impact short-term rentals, with peak occupancy during spring and fall tourist seasons reaching 90%+ in prime locations. Summer can be challenging due to extreme heat, while winter occupancy drops to 60-70% except during holiday periods.

University areas including San Lorenzo and neighborhoods near La Sapienza experience predictable seasonal patterns, with high demand during academic years and lower occupancy during summer months when students return home.

What are the profiles of typical renters in Rome?

Rome's rental market serves diverse tenant demographics that drive different investment strategies and rental approaches.

Young professionals aged 25-40 represent the largest rental segment, typically earning moderate to high incomes and seeking central locations with transport connectivity. This group prioritizes proximity to business districts, nightlife, and cultural amenities, making neighborhoods like Prati, Testaccio, and Ostiense particularly popular.

University students form a significant segment, especially around La Sapienza and other academic institutions. Students typically prefer shared accommodations or studios in affordable areas like San Lorenzo, Centocelle, or Casilino, accepting longer commutes for budget-friendly rents.

International expats, including EU professionals and diplomats, often seek furnished apartments in central or well-connected areas. This segment values neighborhoods like Parioli, Flaminio, and EUR for their international character and proximity to embassies and multinational companies.

Short-term rental guests primarily consist of tourists, business travelers, and digital nomads. Peak demand comes from cultural tourists visiting Rome's historical sites, business travelers attending conferences, and couples seeking romantic getaways in the Eternal City.

Italian families relocating to Rome often prefer peripheral neighborhoods offering better value, larger spaces, and family-friendly environments. These tenants typically sign longer leases and provide stable rental income for investors in areas like Giustiniana or Casal Palocco.

What are the smartest investment choices in Rome today?

Rome's rental market rewards strategic investors who understand location dynamics and tenant preferences as of mid-2025.

Studios and one-bedroom apartments generate the highest yields and strongest demand, particularly in university areas and business districts. These property types suit the dominant tenant demographics of young professionals and students while requiring lower initial investment compared to larger units.

Central neighborhoods like Centro Storico, Prati, Testaccio, and Trastevere offer excellent long-term stability and capital appreciation potential, though yields are lower at 4-5%. These areas suit investors prioritizing security and steady income over maximum returns.

Emerging neighborhoods including Garbatella, Pigneto, Ostiense, and San Lorenzo provide compelling yield opportunities of 7-9% while benefiting from ongoing gentrification and infrastructure improvements. These areas offer the best balance of current returns and future appreciation potential.

Short-term rental strategies work best in central, tourist-friendly locations but require active management and face increasing regulatory scrutiny. Long-term rentals provide stability and lower management burden while generating consistent cash flow for patient investors.

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What are example case studies of rental income and costs for different properties?

Real-world examples demonstrate the range of investment outcomes possible in Rome's diverse rental market.

A small studio in Centro Storico purchased for €145,000 can generate €2,000-€3,000 monthly through Airbnb after expenses, delivering 16-24% gross yields before costs. Net yields after management, cleaning, taxes, and repairs typically reach 8-12%, making this strategy highly profitable but management-intensive.

A mid-size two-bedroom apartment in an emerging neighborhood like Garbatella, purchased for €275,000, rents long-term for €1,600 monthly. This generates approximately 7% gross yield and 5-6% net yield after standard operating expenses, providing steady income with minimal management requirements.

A high-end three-bedroom property in Parioli, costing €925,000, can achieve €6,000-€8,000 monthly through luxury short-term rentals. Gross yields range from 7-10% before expenses, with net yields settling around 4-6% after accounting for premium management services, maintenance, and taxes.

A one-bedroom apartment near university areas, purchased for €197,000, generates €1,500 monthly in long-term rent, delivering 9.1% gross yield and approximately 7% net yield. This strategy benefits from stable student demand and moderate management requirements.

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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.

Sources

1. Global Property Guide - Italy Rental Yields
2. Aparthotel.com - Average Rent in Italy
3. Immobiliare.it - Rome Real Estate Market
4. Idealista - Rental Prices in Rome
5. A New Life in Italy - Renting Costs
6. Uniplaces - Renting in Italy Guide
7. InvestRopa - Rome Real Estate Analysis
8. Airbtics - Airbnb Revenue in Rome
9. Lofty - Short-term vs Long-term Rentals
10. Global Property Guide - Italy 10-Year Price Changes