Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Milan's property market is included in our pack
If you're thinking about investing in Milan's rental market, understanding the actual numbers behind rental yields is essential.
This post breaks down current gross and net yields in Milan, explains which neighborhoods perform best, and shows what costs eat into your returns.
We update this article regularly to reflect the latest market data.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Milan.
Insights
- Milan's citywide gross yield sits around 5.1% in early 2026, but ranges from 3.5% in Centro Storico to nearly 7% in peripheral areas like Baggio.
- The gap between gross and net yield in Milan is typically 1.5 to 2 percentage points, mainly due to IMU tax, maintenance on older stock, and turnover costs.
- Studios and one-beds in Milan often deliver 0.5 to 1.5 percentage points more yield than larger units in the same neighborhood.
- Milan's residential vacancy rate hovers around 3 to 5%, driven by structural demand from students, young professionals, and international workers.
- Neighborhoods near the M4 metro line are seeing stronger renter demand in 2026, as connectivity directly translates into willingness to pay higher rents.
- Porta Romana is emerging as a rental hotspot, boosted by the Olympic Village project and its planned conversion into student housing after the Games.
- Full-service property management in Milan costs 6 to 10% of rent, plus a tenant placement fee of about one month's rent.
- The cedolare secca flat tax at 21% (or 10% for regulated contracts) is the most common regime for Milan landlords, but means giving up rent indexation.
What are the rental yields in Milan as of 2026?
What's the average gross rental yield in Milan as of 2026?
As of early 2026, the average gross rental yield across all residential property types in Milan is approximately 5.1%.
The realistic range for most typical residential properties spans from about 4.7% to 5.6%, depending on neighborhood and property characteristics.
This puts Milan roughly in line with other major Italian cities, though slightly lower than secondary markets because Milan's high purchase prices compress yields.
The key factor influencing gross yields right now is extreme price variation across neighborhoods, since rents don't rise proportionally with prices in prime areas.
What's the average net rental yield in Milan as of 2026?
As of early 2026, the average net rental yield for residential properties in Milan is approximately 3.4%.
The typical difference between gross and net yields is around 1.5 to 2 percentage points, meaning roughly 30 to 40% of collected rent goes toward expenses.
In Milan, the expenses that most significantly reduce gross yield are IMU property tax and ongoing maintenance costs for the city's older building stock.
The realistic net yield range falls between 2.8% and 4.0%, varying by cost management, tax structure, and whether your building has major works planned.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Milan.
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Milan in 2026?
In Milan's rental market in 2026, a gross yield of 5.5% or higher is generally considered "good," while anything above 6.5% is very good and typically requires peripheral neighborhoods or smaller units.
The threshold separating average from high-performing properties sits around 5.5% gross, usually meaning you've found an underpriced property, a well-located peripheral area, or smaller units with premium rent per square meter.
How much do yields vary by neighborhood in Milan as of 2026?
As of early 2026, gross yields span roughly 3.5 percentage points across Milan, from about 3.5% in expensive central zones to nearly 7% in affordable peripheral areas.
Highest yields appear in peripheral zones with lower prices but solid demand, such as Baggio, Corvetto-Rogoredo, and Vialba-Gallaratese, where entry costs are modest but rents remain supported by transit access.
Lowest yields are in prestige zones where buyers pay steep premiums, including Centro Storico, Garibaldi-Moscova-Porta Nuova, and CityLife, where yields compress to 3.5 to 4%.
The main reason for this variation is that purchase prices jump much faster than rents as you move toward desirable central locations.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Milan.
How much do yields vary by property type in Milan as of 2026?
As of early 2026, gross yields range from roughly 4% for large family apartments to around 6.5% for well-located studios.
Studios and micro-units deliver the highest yields because they command the highest rent per square meter and attract a deep pool of students and young professionals.
Large family apartments (three bedrooms or more) deliver the lowest yields, as tenants negotiate harder and rent per square meter drops significantly.
The key reason is the rent-per-square-meter premium that smaller units command, combined with lower purchase prices that make entry more accessible.
By the way, you might want to read the following:
What's the typical vacancy rate in Milan as of 2026?
As of early 2026, the typical residential vacancy rate in Milan sits between 3% and 5%, reflecting strong structural demand.
Vacancy ranges from under 2% in high-demand university and transit areas to around 6 to 8% in peripheral zones with weaker tenant pools.
The main driver is the balance between strong inbound demand from students and professionals versus limited supply of quality rental housing.
Milan's vacancy compares favorably to Italy's national average, as the city continues to attract population inflows that keep rental demand tight.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Milan.
What's the rent-to-price ratio in Milan as of 2026?
As of early 2026, the average rent-to-price ratio in Milan is approximately 0.43% per month (or about 5.1% annually).
For buy-to-let investors, a monthly ratio of 0.45% or higher is considered favorable, translating to gross yield above 5.4% and better cash flow cushion.
Milan's ratio is comparable to other European gateway cities like Barcelona or Munich, where high prices compress returns even when absolute rents are strong.
We have made this infographic to give you a quick and clear snapshot of the property market in Italy. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Milan give the best yields as of 2026?
Where are the highest-yield areas in Milan as of 2026?
As of early 2026, the top highest-yield neighborhoods include Baggio (yields approaching 6.5 to 7%), Corvetto-Rogoredo (around 5.5 to 6%), and Vialba-Gallaratese near Certosa (roughly 5.5 to 6%).
In these areas, investors can typically expect gross yields of 5.5% to nearly 7%, significantly above the citywide average of 5.1%.
These high-yield areas share low entry prices combined with solid tenant demand from good transit connections and proximity to employment centers.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Milan.
Where are the lowest-yield areas in Milan as of 2026?
As of early 2026, the lowest-yield neighborhoods are Centro Storico (including Brera), Garibaldi-Moscova-Porta Nuova, and CityLife near Fiera-De Angeli.
In these areas, gross yields typically fall between 3.5% and 4.3%, well below the citywide average.
Yields are compressed because buyers pay substantial capital premiums for location and prestige, while rents, though high, don't keep pace with prices.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Milan.
Which areas have the lowest vacancy in Milan as of 2026?
As of early 2026, the neighborhoods with lowest vacancy include Città Studi (near Politecnico), Navigli-Porta Romana, and the Porta Nuova-Garibaldi-Centrale corridor.
In these areas, vacancy rates often fall below 2 to 3%, meaning landlords rarely experience extended empty periods.
The main demand driver is a combination of university populations, young professionals in nearby business districts, and lifestyle renters in vibrant areas.
The trade-off is that strong demand also drives up prices, which compresses yields and means you're paying extra for occupancy certainty.
Which areas have the most renter demand in Milan right now?
The neighborhoods with strongest renter demand are Porta Romana and Lodi (boosted by Olympic development), areas along the M4 metro line, and the Centrale-Repubblica-Porta Nuova corridor.
Demand is driven by young professionals in finance and tech, international workers, and students at major universities, all prioritizing transit access.
In these high-demand areas, well-priced listings often receive multiple inquiries within days and lease within two to three weeks.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Milan.
Which upcoming projects could boost rents and rental yields in Milan as of 2026?
As of early 2026, the key projects expected to boost rents are the Olympic Village at Scalo Porta Romana, the Scalo Farini and San Cristoforo regeneration, and MIND innovation district expansion.
The neighborhoods likely to benefit include Porta Romana and Lodi, Bovisa and Dergano for Scalo Farini spillover, and the Rho-Fiera axis for MIND.
Once completed, investors in nearby areas might expect rent increases of 5% to 15% above baseline growth, depending on direct project benefits.
You'll find our latest property market analysis about Milan here.
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What property type should I buy for renting in Milan as of 2026?
Between studios and larger units in Milan, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments generally outperform larger units in both yield and occupancy.
Studios typically deliver gross yields of 5.5% to 6.5% (roughly €23 to €28 per square meter monthly, or $25 to $30 USD), while larger units yield only 4% to 5%.
The main factor is Milan's deep pool of single renters, students, and young professionals willing to pay premium rent per square meter for smaller, central units.
That said, larger units can work better for stable family tenants who stay longer and cause less turnover, particularly in neighborhoods like Città Studi or Bicocca.
What property types are in most demand in Milan as of 2026?
As of early 2026, the most in-demand property type is the well-renovated one-bedroom apartment near public transit.
Top three by demand: first, one-beds in semi-central neighborhoods; second, studios near universities and CBD; third, two-beds in livable areas with schools and green space.
This pattern is driven by Milan's influx of young professionals and international workers who prioritize location and move-in readiness over size.
One type currently underperforming is the large, unrenovated apartment in peripheral zones without good transit, as tenants expect modern finishes and connectivity.
What unit size has the best yield per m² in Milan as of 2026?
As of early 2026, units between 25 and 50 square meters deliver the best gross yield per square meter in Milan.
For this optimal size, yield per square meter typically works out to €22 to €28 monthly ($24 to $30 USD), compared to €16 to €20 for larger units.
Units below 25 square meters face livability concerns, while units above 70 square meters see rent per square meter drop as total cost becomes less accessible.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Milan.
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 costs cut my net yield in Milan as of 2026?
What are typical property taxes and recurring local fees in Milan as of 2026?
As of early 2026, annual IMU property tax for a typical rental apartment in Milan ranges from €800 to €2,500 ($870 to $2,700 USD).
Beyond IMU, landlords must budget for TARI (waste tax) at €150 to €400 per year, plus condominium fees adding €300 to €800 annually.
Combined, these typically represent 8% to 15% of gross rental income, a significant chunk many investors underestimate.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Milan.
What insurance, maintenance, and annual repair costs should landlords budget in Milan right now?
Annual landlord insurance in Milan generally costs €200 to €500 ($220 to $545 USD).
A prudent maintenance budget is 0.5% to 1% of property value yearly, roughly €1,000 to €3,000 ($1,090 to $3,270 USD) for typical apartments.
The expense that most often catches landlords off guard is extraordinary condominium works like facade restoration or elevator replacement.
Total combined annual budget for insurance, maintenance, and repairs should be €1,500 to €4,000 ($1,635 to $4,360 USD).
Which utilities do landlords typically pay, and what do they cost in Milan right now?
In Milan, most long-term rental contracts push utilities to the tenant, while landlords cover condominium common-area charges and extraordinary maintenance.
For landlords covering utilities (furnished or all-inclusive rentals), monthly cost runs €100 to €250 ($109 to $272 USD), though this is less common for long-term lets.
What does full-service property management cost, including leasing, in Milan as of 2026?
As of early 2026, full-service property management costs 6% to 10% of collected rent monthly (roughly €80 to €200 per month or $87 to $218 USD).
On top of this, tenant-placement fees typically equal about one month's rent (€800 to €2,000 or $872 to $2,180 USD).
What's a realistic vacancy buffer in Milan as of 2026?
As of early 2026, landlords should set aside 4% to 8% of annual rental income as a vacancy buffer.
In practice, most Milan landlords experience two to four weeks of vacancy per year, shorter in high-demand areas and longer in peripheral zones.
Buying real estate in Milan can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Milan, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Agenzia delle Entrate (OMI) | Italy's official nationwide reference database for property values and rents. | We used it to sanity-check prices and rents for Milan's zones. We also used it to frame neighborhood-level yield dispersion. |
| Idealista (Rent Index) | One of Italy's largest listing platforms with regularly updated indices. | We used it for citywide rent-per-square-meter baselines and neighborhood comparisons. December 2025 data served as our early 2026 reference. |
| Idealista (Sale Price Index) | Same index family as rent data, providing consistent series for yield calculations. | We used it as the sale-price denominator in gross yield calculations and to illustrate why yields differ across Milan. |
| Immobiliare.it | Major Italian portal useful for cross-checking asking prices. | We used it as a second price benchmark to triangulate against Idealista. |
| ISTAT (House Price Index) | Italy's official statistics agency and standard national house price indicator. | We used it for macro context on Italy-wide price direction and to keep assumptions realistic. |
| Banca d'Italia | Italy's central bank, high-trust source for housing and credit conditions. | We used it for national context on housing dynamics and constraints affecting rent affordability. |
| Nomisma | Long-standing Italian research institute frequently cited by institutions. | We used it to corroborate demand shifting toward renting and rent pressure nationally. |
| Tecnocasa Research | Large brokerage network with dedicated research office. | We used it to validate Milan's segmentation and the scarcity narrative keeping vacancy low. |
| Comune di Milano (IMU Info) | The municipality's own property tax guidance. | We used it to describe IMU and why it matters for net yield. |
| MEF (IMU Rate Sheet) | Finance Ministry's repository of official municipal IMU rates. | We used it as official cross-check on Milan's IMU rates. |
| Comune di Milano (TARI Tariffs) | Official local waste tax schedule. | We used it to quantify a real recurring cost affecting net yield. |
| Agenzia delle Entrate (Cedolare Secca) | Official tax authority's explanation of the substitute rental tax regime. | We used it to explain tax rate choices and the trade-off of giving up indexation. |
| Savills (Italian Living Overview) | Global consultancy with professional research standards. | We used it to support the structural demand versus limited supply narrative in Milan. |
| AMAT Milano (M4 Project) | Milan's mobility agency, primary source for transport facts. | We used it to document M4 scope and link connectivity to rent performance. |
| Milano Cortina 2026 | Official Olympics communication on the village and legacy. | We used it to explain why Porta Romana matters and check project credibility. |
| Scalo Porta Romana | Primary project site for the regeneration plan. | We used it to explain the Olympics-to-residential legacy mechanism. |
| FS Italiane | National rail group, primary source for regeneration sales. | We used it to ground Scalo Farini and San Cristoforo timeline and scale. |
| Comune di Milano (Scalo Farini) | Official municipal communication on the Farini programme. | We used it to explain what housing could be delivered and its rent impact. |
| Human Technopole (MIND) | Major anchor institution in MIND with credible district description. | We used it to explain why MIND attracts tenants and supports northwest rental demand. |
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