The prices per square meter and rental returns in locations on the main Italian lakes have been growing for several years thanks to slower and more in-touch with-nature tourism. This analysis discusses the real estate market’s trends and investment potential in Italian lake areas, focusing on Lake Como, Lake Garda, Lake Maggiore, Lake Iseo, and Lake Bolsena.
In Italy, the lakefront property market offers interesting investment opportunities for those who intend to diversify their portfolio and benefit from the increasing demand for tourist accommodations in these charming locations. Lake Como, Lake Garda, Lake Maggiore, Lake Iseo, Lake Bolsena: these areas are particularly attractive for investors due to the yields offered by rentals, especially in the short-term rental sector, and to the revaluation that has affected properties for sale in recent years.
For instance, if we compare lakeside real estate investment with that in a city of art, we can notice some significant differences. Cities like Florence, Venice, and Rome offer a vast and diversified real estate market, with a constant flow of tourists throughout the year; however, property prices are higher, and competition in the short-term rental sector is substantial. In lake locations, on the other hand, the tourist offer is less frenetic, based on relaxation, and focused on outdoor activities, attracting a wide range of users interested in a unique and rewarding investment experience.
In this analysis, we will examine the potential return of a real estate investment in the lake areas of Northern – Lake Como, Lake Garda, Lake Maggiore, Lake Iseo – and Central Italy, such as Lake Bolsena, observing the revaluation in recent years, the selling and renting prices per square meter, and the available real estate stock.
Lake Como and Lake Garda: average prices up to 6,000 euros per sqm
With their historic villas and breathtaking views, Lake Como and Lake Garda are coveted destinations for Italian and international investors. In recent years, property prices in these areas have grown significantly: the average price per square meter for an apartment ranges from 3,500 to 6,000 €/sqm, while luxury villas can reach prices up to 15 million euros. Rentals offer good returns, particularly for short-term tourist leases, with a gross annual yield that can fluctuate between 4% and 6%.
Lake Maggiore, from Stresa to Arona: prices growing by 2-3% every year
Lake Maggiore, located between Piedmont and Lombardy, is another attractive real estate market. The most prominent locations, such as Stresa, Verbania, and Arona, have increased property prices with an average annual rate of 2-3% in recent years. The average price per square meter for an apartment ranges from 2,500 to 4,000 €/sqm, while lake villas can reach sale figures between 1.5 and 8 million euros. Rentals offer an exciting return, with prices ranging from 9 to 15 €/sqm per month for apartments and daily rates between 250 and 1,200 € for luxury villas. The gross annual yield can vary between 3.5% and 5.5%.
Lake Iseo: short-term rentals yield up to 5%
Lake Iseo, situated between Lake Garda and Lake Como, offers a quieter and less crowded alternative than other famous lake locations. However, the real estate market is also gaining interest thanks to increasing tourist demand and the charm of its picturesque towns such as Sarnico, Iseo, and Lovere. The average price per square meter for an apartment ranges from 2,000 to 3,500 €/sqm, while prestigious villas can reach sale figures between 1 and 5 million euros. Rentals, especially for short-term tourist leases, offer a gross annual yield between 3% and 5%.
Lake Bolsena: lower prices but great potential thanks to a mix of history and nature
Located in the heart of Italy, in Lazio, Lake Bolsena offers a mix of natural landscapes, history, culture, and a unique real estate investment opportunity. The most prominent locations, like Bolsena, Montefiascone, and Capodimonte, have seen a steady increase in property prices in recent years. The average price per square meter for an apartment ranges from 1,500 to 3,000 €/sqm, while historic villas and prestigious properties can reach sale figures between 500,000 and 3 million euros. Rentals offer a gross annual yield between 2.5% and 4.5%, with prices ranging from 7 to 12 €/sqm per month for apartments and daily rates between 150 and 800 € for luxury villas.
In conclusion, the lakefront home market offers diverse investment opportunities. Depending on the available budget and the investment goal, the choice can fall on areas with already high costs and yields or on areas that, while growing in value, still have a lot of untapped potential and more affordable prices.
