Italian Real Estate: What to Buy with €200,000 in Milan, Rome, and Turin

If one were to invest in the Italian real estate sector with €200,000, where would it be advisable to buy a house? We Wealth asked Fabiana Megliola, head of the research office at Tecnocasa, who outlined trends and emerging areas where real estate investment could be an interesting move for portfolio diversification. A close look at three major cities: Milan, Turin, and Rome.

Buying a House in Milan

One of the cities where the investment component has grown significantly in the first part of 2023 is Milan. It benefits from numerous ongoing interventions in the area, high demand from students and off-site workers, and, in recent years, a growing tourist appeal.

“In the first part of this year, investors in Milan have shown interest in neighborhoods near Scalo Farini, aiming at the future redevelopment of the area. Among these is Maciachini, where a two-room apartment can yield around 5% gross annually, with a price per square meter just above €3,000 for a used unit,” explained Megliola. She also highlighted Bovisa, where there is demand for university rentals, with average prices of €3,600 per square meter and a two-room apartment renting for €850 per month. Porpora, another area to take a look at, feeling the effects of the redevelopment project at Piazzale Loreto.
“The proximity to Città Studi also works in its favor. Prices here are generally high, between €4,000 and €5,000 per square meter for average used properties, allowing the purchase of smaller units,” Megliola continued. She also highlighted the area around Ludovico il Moro in the southern part of the city, where ongoing works for the San Cristoforo metro and the former Nestlè area are be taken into account when making the investment. “Completed is the former Richard Ginori, now a tertiary hub, where several companies have settled. Along Via Lodovico il Moro, well-maintained used units (from the ’50s-’70s) exchange at €3,000-3,500 per square meter,” illustrated the head of the research office at Tecnocasa. She also mentioned similar prices in Santa Rita (€3,000 per square meter) and noted the ongoing works for the “Porta Naviglio Grande” project, where the new price is €4,000-€5,000 per square meter.

Buying a House in Turin

“Turin has more affordable average prices, so with €200,000, purchases can be made even in the city center, where there is an interesting demand for rentals from university students, off-site workers, and tourists. In central areas like Via Roma, a used unit can be purchased at €3,000 per square meter, allowing the acquisition of a two-room apartment that can be rented for €750 per month with a gross annual return of 5%,” commented Megliola. The Cit Turin neighborhood near Porta Susa and the Tribunal is also interesting, where properties can be bought at average prices of €2,200 per square meter, and a two-room apartment can be rented for €500 per month, and a three-room apartment for €650 per month. The Nizza – Millefonti – Bengasi area is thriving, with notable changes in the southern part of Turin due to ongoing redevelopment operations.

The arrival of the “Regione Piemonte” building has had significant effects, but the real boost has been the arrival of the metro, with the “Italia 61” stop adding to the “Lingotto” stop, connecting the entire area with the city center, Molinette Hospital, and Porta Nuova station. “This has also sparked interest from university students who consider the area due to enhanced connections and easier access to the center. Similarly, there is increased interest from investors opting for tourist rentals. Those who buy for investment spend an average of €50,000 to €60,000 if they choose a completely to-be-renovated two-room apartment, €70,000 to €75,000 if they buy an already renovated unit. In fact, not far away, in Piazza Bengasi, the metro stop of the same has been operational since 2022. In Piazza Bengasi near the “Italia 61″ stop, a used property costs around €1,800 per square meter. On new properties, on Via Nizza, prices reach €2,800-€3,000 per square meter for Class A properties. Values are stable in Borgo Filadelfia, another evolving area where several investments are visible thanks to the presence of the Faculty of Economics and PalaAlpitour,” said Megliola.

In practice, many buy here to rent to university students or to create holiday homes and B&Bs. It’s also worth considering that in the coming years, some university faculties will move here, and the area is also affected by the redevelopment of the former Olympic Village and the abandoned Palazzo del Lavoro, which is now expected to be redeveloped to make way for a shopping gallery, the Museo dei Musei, and the “Cittadella dell’innovazione.” “In this area, average prices are around €1,500 per square meter, while a two-room apartment rents for €500 per month with a gross annual return of 5.6%,” clarified Megliola.

Buying a House in Rome

Finally, Rome cannot be forgotten. In the capital, university areas where demand is always strong, and areas near the most attractive tourist centers, are doing well, although being often in central areas requires a significant investment and could surpass the €200,000 threshold.

“Those with a smaller capital could focus on the Tiburtina – Pietralata area, where a good used property costs around €2,300 per square meter, and a two-room apartment rents for €750 per month. There is demand from university students and off-site workers due to the presence of the metro connecting to various university faculties. Recently, investors are also focusing on the more peripheral Tuscolana – Don Bosco area with average prices around €2,700-€2,800 per square meter, mainly for tourist rentals and university students. In this case, as well, the metro plays a significant role.

Also, Tor Vergata, where another important university hub is located, allows purchases of small sizes below €200,000 with a gross annual return of around 6%, considering the average price for used properties is €1,600 per square meter and the rent for a two-room apartment that stands at 600 euros per month, “Megliana concluded.