Because short-term rentals remain one of the most solid real estate investments
Short-term rentals have established themselves in recent years as one of the most attractive forms of real estate investment in Italy, with higher returns than traditional rentals and a structurally solid demand linked to tourism. But like any investment, they have specific characteristics to understand before committing capital.
The fundamentals of investing in short-term rentals
The return on an investment in short-term rentals is measured as the ratio between the annual net revenues and the invested capital (purchase price + renovation + furnishings). In Italian tourist cities, gross returns of 7-12% per year are achievable with good management — significantly higher than the 3-5% traditional rent and 10-year BTP yield. The markets with the best balance between purchase cost and generateable revenues are typically the cities of the South (Naples, Palermo, Bari) and emerging tourist destinations, where property prices are still low compared to tourist demand.
Risks not to be underestimated
The real risks of short-term rentals: Regulatory risk — local regulations may limit or prohibit short-term rentals in central areas (Milan, Venice, Florence have already introduced restrictions). Before purchasing, check the regulations in force in the Municipality. Seasonality risk — some destinations have very short seasons; always calculate average annual revenues, not just those for July and August. Risk management — performance collapses if management is mediocre; a professional property manager is almost mandatory to preserve returns.
The most interesting cities to invest in today
The destinations with the best opportunity/risk ratio in 2025 are: Naples (tourism boom, prices still accessible), Bari and Puglia (strongly growing international tourism), Catania and eastern Sicily, the capitals of Central Italy (Perugia, Bologna, Ancona). The large cities (Milan, Rome, Florence) remain solid but require much higher capital for the same percentage return.
The risks to consider before investing in short-term rentals
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Content reproduced from the current YouBnB website for this preview. Figures, returns and regulatory information have not been verified or updated in this version.
