Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Sicily's property market is included in our pack
If you're considering rental property investment in Sicily, understanding realistic returns is essential.
This article breaks down current rental yields across Sicily, from Palermo to Catania to smaller coastal towns, and we update it regularly.
We cover which neighborhoods perform best, what costs eat into your profits, and which property types make the most sense in 2026.
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 Sicily.
Insights
- Sicily's average gross yield of around 7% is roughly double Milan's, explaining why the island attracts yield-focused investors despite higher vacancy risks.
- Within Palermo, gross yields swing from about 5% in upscale Libertà to over 8% in working-class Oreto, a spread of 3+ percentage points across a few streets.
- Catania and Messina show headline yields near 9%, but these come with higher tenant turnover and older building stock requiring more maintenance.
- The typical gross-to-net yield gap in Sicily is 2.5 to 3 percentage points, driven by IMU tax, vacancy, and repair costs on older apartments.
- Studios and one-bedrooms in Sicily deliver 7% to 9% gross yields, outperforming larger homes on a return-per-euro basis.
- Vacancy rates range from 3% near universities to over 15% in small inland towns, making micro-location selection critical.
- Infrastructure projects like Palermo's tram lines and Catania's metro extension could lift rents 5% to 10% in nearby neighborhoods once completed.
- Sicily's rent-to-price ratio of about 0.59% monthly (7.1% annually) is notably higher than Italy's national average, reflecting lower prices and strong urban rental demand.
What are the rental yields in Sicily as of 2026?
What's the average gross rental yield in Sicily as of 2026?
As of early 2026, the average gross rental yield across Sicily sits at around 7.1%, notably higher than northern Italian cities like Milan or Turin.
Most typical rental investments fall within a 5.5% to 8.5% gross yield range, depending on city, neighborhood, and property condition.
This puts Sicily well above Italy's national average of 4% to 5.5%, making the island attractive for income-focused investors.
The biggest factor shaping yields is the combination of low purchase prices and steady rental demand in urban centers like Palermo and Catania, where workers and students need affordable housing.
What's the average net rental yield in Sicily as of 2026?
As of early 2026, the average net rental yield in Sicily lands at approximately 4.2%, after accounting for taxes, vacancy, maintenance, and other costs.
The typical gross-to-net gap is around 2.5 to 3 percentage points, standard for Italian markets but wider with older properties or weaker tenant demand.
The expenses most significantly reducing gross yield are IMU property tax and maintenance costs on Sicily's older housing stock, which can eat up 1% to 2% of property value annually.
Most investments deliver net yields of 3.3% to 5.2%, with the lower end reflecting higher repairs or vacancy, and the upper end representing well-located, self-managed units.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Sicily.
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 Sicily in 2026?
In Sicily, local investors consider a gross yield of 6% or higher to be "good," achievable in most major cities if you buy at reasonable prices in decent neighborhoods.
The threshold separating average from high-performing properties is around 7.5% gross yield; anything above typically signals either a well-priced purchase or a higher-risk location.
How much do yields vary by neighborhood in Sicily as of 2026?
As of early 2026, the spread between Sicily's highest and lowest-yield neighborhoods can reach 3 to 4 percentage points, even within the same city.
Highest-yield neighborhoods are typically working-class or student-oriented areas with lower prices but steady demand, such as Oreto-Perez-Montegrappa in Palermo, Centro Storico-Porto in Catania, or Annunziata-Giostra in Messina.
Lowest yields appear in prestigious neighborhoods where prices are bid up relative to rents, such as Libertà-Politeama in Palermo or Litoranea-Panoramica in Messina.
The main reason: purchase prices in desirable areas reflect lifestyle premiums that tenants won't pay through higher rents, while less glamorous areas compensate investors for vacancy risk.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Sicily.
How much do yields vary by property type in Sicily as of 2026?
As of early 2026, gross yields in Sicily range from around 4% for coastal villas up to 9% for well-located studios.
Studios and one-bedrooms deliver the highest yields, typically 7% to 9% when near demand anchors like universities, hospitals, or transit hubs.
Villas and prime coastal homes deliver the lowest yields, often 4% to 6%, because their prices reflect lifestyle appeal that long-term renters won't fully pay for.
The key reason: smaller units attract a deeper renter pool (students, singles, young workers), while larger properties command prices above what rents can justify.
By the way, you might want to read the following:
- What rental yields can you expect for an apartment in Sicily?
- What rental yields can you expect for a villa in Sicily?
What's the typical vacancy rate in Sicily as of 2026?
As of early 2026, the average residential vacancy rate in Sicily sits at approximately 6%, though this masks significant variation between micro-markets.
Vacancy ranges from 3% to 5% in high-demand urban areas near universities and hospitals, up to 8% to 15% in smaller towns with weaker tenant pools.
The main driver is the strength of local demand anchors: areas with universities, hospitals, transit, or steady employment fill units quickly, while isolated locations struggle.
Compared to Italy's national average, Sicily's vacancy is slightly higher due to the island's economic structure, making careful neighborhood selection essential.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Sicily.
What's the rent-to-price ratio in Sicily as of 2026?
As of early 2026, the average monthly rent-to-price ratio in Sicily is approximately 0.59%, translating to an annual ratio of around 7.1%.
For buy-to-let investors, a monthly ratio above 0.5% (6% annually) is considered favorable; this ratio directly reflects gross rental yield.
Sicily's ratio is notably higher than northern Italian cities like Milan (often below 0.4% monthly), reflecting lower prices and stronger rental demand.
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 Sicily give the best yields as of 2026?
Where are the highest-yield areas in Sicily as of 2026?
As of early 2026, the top three highest-yield areas are Oreto-Perez-Montegrappa in Palermo, Centro Storico-Porto in Catania, and Annunziata-Giostra in Messina.
In these neighborhoods, investors can expect gross yields of 8% to 9%, with some Catania Centro Storico properties approaching 9.5% when well-priced.
What these areas share is affordable purchase prices combined with consistent demand from students, workers, and service-sector employees needing practical housing.
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 Sicily.
Where are the lowest-yield areas in Sicily as of 2026?
As of early 2026, the lowest-yield areas are Libertà-Politeama in Palermo, Litoranea-Panoramica-Villaggio Pace in Messina, and premium islands like Favignana in Trapani province.
In these neighborhoods, gross yields typically fall in the 4% to 5.5% range, closer to northern Italian cities than most of Sicily.
Yields are compressed because purchase prices reflect prestige, sea views, or second-home appeal that long-term tenants won't pay premium rents for.
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 Sicily.
Which areas have the lowest vacancy in Sicily as of 2026?
As of early 2026, the lowest-vacancy neighborhoods are Università-Zisa in Palermo, Cittadella-Cibali near Catania's university, and transit corridors around Palermo's new tram lines on Via Libertà and Croce Rossa.
In these areas, landlords typically experience vacancy rates of just 3% to 5%, with units rarely empty for more than two to three weeks between tenants.
The main demand driver is proximity to universities, hospitals, and improving transit, which create reliable year-round tenant pools rather than seasonal demand.
The trade-off: purchase prices tend to be higher and gross yields somewhat lower, so you're paying for stability rather than maximizing cash returns.
Which areas have the most renter demand in Sicily right now?
The three neighborhoods with strongest renter demand are Centro Storico and Porto-Borgo Vecchio in Palermo, Centro Storico-Porto in Catania, and Ognina-Rotolo in Catania.
The renter profile driving demand is young professionals, students, and service workers prioritizing walkable neighborhoods with good transport over space or parking.
In these neighborhoods, well-priced listings typically fill within one to two weeks, with landlords receiving multiple inquiries in the first few days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Sicily.
Which upcoming projects could boost rents and rental yields in Sicily as of 2026?
As of early 2026, the three projects most likely to boost rents are Palermo's new tram lines (A, B, C), Palermo's Passante ferroviario railway, and Catania's metro extension toward Misterbianco.
Neighborhoods likely to benefit include Via Libertà-Croce Rossa and Zisa in Palermo, plus western Catania along the Monte Po-Misterbianco metro route.
Once completed, investors might realistically expect 5% to 10% rent increases in directly affected neighborhoods as improved connectivity attracts more tenants.
You'll find our latest property market analysis about Sicily here.
Get fresh and reliable information about the market in Sicily
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What property type should I buy for renting in Sicily as of 2026?
Between studios and larger units in Sicily, which performs best in 2026?
As of early 2026, studios and one-bedrooms outperform larger units on both yield and occupancy, attracting a deeper tenant pool at lower acquisition cost.
Studios in well-located neighborhoods deliver 7% to 9% gross yields (€7,000 to €9,000 yearly, or $7,600 to $9,800 on a €100,000 property), while two or three-bedrooms land at 6% to 7.5%.
The main factor: smaller units have lower total rents (more affordable for tenants), while their prices don't drop proportionally, so landlords capture more rent per euro.
That said, larger two-bedrooms can work better in family neighborhoods with good schools, where lower turnover improves net yield despite lower gross yield.
What property types are in most demand in Sicily as of 2026?
As of early 2026, the most in-demand rental property is the well-maintained condominium apartment, ideally one or two bedrooms in a walkable, serviced neighborhood.
Top three by demand: first, studios and one-bedrooms near universities or transit; second, two-bedrooms in family-friendly urban areas; third, renovated historic-center apartments with modern amenities.
The trend driving this: Sicily's mix of young professionals, students, and singles prioritizing affordability and location, plus families seeking practical urban housing.
One underperforming type is the standalone villa or large detached house, which appeals mainly to seasonal renters and often sits vacant during off-peak months.
What unit size has the best yield per m² in Sicily as of 2026?
As of early 2026, the optimal size for gross yield per square meter is 35 to 55 square meters, corresponding to studios and compact one-bedrooms.
For this size, landlords can expect €8 to €11 per square meter monthly ($8.70 to $12), translating to 7.5% to 9% gross yield at €1,100 to €1,400 per m² purchase prices.
Micro-studios under 30m² have lower yield per m² because they're harder to let; larger units over 70m² see rents plateau faster than prices, diluting returns.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Sicily.
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 Sicily as of 2026?
What are typical property taxes and recurring local fees in Sicily as of 2026?
As of early 2026, annual IMU property tax for a typical rental apartment falls between €400 and €1,200 ($435 to $1,300), depending on municipality and cadastral value.
Beyond IMU, budget for TARI (waste tax) at €150 to €350 yearly ($165 to $380), plus condominium fees of €500 to €1,500 annually depending on building amenities.
Combined, these typically represent 10% to 18% of gross rental income, a meaningful chunk when calculating realistic net returns.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Sicily.
What insurance, maintenance, and annual repair costs should landlords budget in Sicily right now?
Annual landlord insurance typically costs €150 to €400 ($165 to $435), higher for standalone houses or older buildings.
For maintenance and repairs, budget 0.7% to 1.2% of property value annually, or 10% to 15% of annual rent, accounting for Sicily's older building stock.
The repair expense most commonly catching landlords off guard is plumbing and water heater issues, which can run €300 to €800 ($325 to $870) per incident.
All told, budget €1,000 to €2,500 yearly ($1,090 to $2,720) for combined insurance, maintenance, and repairs on a typical Sicilian rental.
Which utilities do landlords typically pay, and what do they cost in Sicily right now?
In standard long-term rentals, tenants pay day-to-day utilities (electricity, gas, water, internet), while landlords cover common-area charges and utilities during vacancy.
When landlords pay utilities (during vacancy or furnished lets), monthly cost runs €100 to €200 ($110 to $220), spiking in summer for AC or winter for heating.
What does full-service property management cost, including leasing, in Sicily as of 2026?
As of early 2026, full-service management fees run 8% to 12% of monthly rent (€50 to €100, or $55 to $110, on a €700/month apartment).
On top of ongoing management, tenant-placement fees are typically one month's rent (€600 to €900, or $655 to $980), charged each time a new tenant is found.
What's a realistic vacancy buffer in Sicily as of 2026?
As of early 2026, landlords should set aside 6% to 8% of annual rental income as a vacancy buffer for time between tenants and collection delays.
This translates to roughly three to four vacant weeks yearly for well-located city properties; smaller towns should budget six to eight weeks or more.
Buying real estate in Sicily 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 in our blog articles or the market analyses in our property pack about Sicily, we rely on the strongest methodology we can and don't throw out numbers at random.
We aim for full transparency, so below we've listed the authoritative sources used and explained how we applied them.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| ISTAT House Price Index | ISTAT is Italy's official statistics agency with reference-baseline price indices. | We anchored Italy-wide price context behind Sicily. We cross-checked so Sicily yields aren't seen as anomalous. |
| Eurostat Housing Price Statistics | Eurostat is the EU's official statistical office for cross-country benchmarks. | We corroborated Italian residential price trends. We triangulated alongside ISTAT. |
| Banca d'Italia Housing Survey | The central bank publishes structured housing market surveys. | We grounded assumptions on negotiation, time-to-let, and demand/supply. We kept net yield assumptions realistic. |
| ISTAT FOI Index | Official index referenced in Italian rental contracts for rent updates. | We explained how rents adjust over time. We supported the early 2026 rent narrative. |
| Immobiliare.it Palermo | One of Italy's largest portals with consistent rent/price indicators. | We used December 2025 figures to compute gross yields. We showed neighborhood yield variations. |
| Immobiliare.it Catania | Same methodology as other cities for fair comparisons. | We computed a second major-city yield reference. We gave neighborhood examples. |
| Immobiliare.it Messina | Consistent city-level snapshot close to January 2026. | We used Messina as a third anchor city. We showed zone-level yield variation. |
| Immobiliare.it Trapani Province | Province-level coverage for investors looking beyond big cities. | We represented non-metro dynamics. We illustrated yield/vacancy divergence. |
| Idealista (Tecnocasa yields) | Major portal citing Tecnocasa research desk. | We cross-checked Palermo gross yield. We sanity-checked our calculations. |
| MEF IMU Database | Official source for municipal IMU settings. | We framed property tax as a net-yield drag. We justified realistic ranges. |
| Agenzia delle Entrate OMI | Official market observatory widely referenced in Italian analysis. | We used OMI as an official price monitoring anchor. We triangulated the broader price discussion. |
| ARERA Energy Tariffs | Italy's energy regulator for utility cost context. | We grounded utility discussion in official sources. We explained utility impact on yield. |
| Regione Siciliana Tourism Observatory | Official Sicilian government tourism observatory. | We explained seasonal, tourism-linked rental demand. We supported neighborhood examples. |
| ISTAT Tourism Statistical Note | Official publication with transparent methodology. | We cross-checked tourism fluctuations. We kept demand assumptions realistic. |
| Comune di Palermo Tram Notice | Municipality notice is the most direct source for infrastructure timing. | We identified Palermo corridors benefiting from transit. We linked micro-area uplift to concrete projects. |
| RFI Passante di Palermo | National rail infrastructure manager with credible project status. | We supported connectivity-shifts-demand claims. We identified benefiting Palermo areas. |
| RAI News Catania Metro | National broadcaster reporting official project milestones. | We anchored Catania project discussion. We identified Catania directions with demand tailwinds. |
| AirDNA Palermo | Widely used short-let data provider with standardized metrics. | We quantified short-let supply pressure. We cross-checked alongside official tourism data. |
| Immobiliare.it Agency Fees Guide | Transparent agency commission structure information. | We estimated management and leasing fees. We gave realistic cost expectations. |
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