Nowadays, creating a second source of income in addition to one’s main job is a life-changing choice for the better. What matters, of course, is proceeding methodically.
Real estate is one of the sectors worth focusing on. That’s no surprise: property has always been a safe haven.
Looking at the international landscape can be a winning strategy and Italy in particular stands out as a very interesting reference point. With its architectural and natural beauty and excellent cuisine, tourism in the Bel Paese consistently delivers strong numbers.
In recent years, international real estate investors have shown a growing interest in the benefits of buy houses in Tuscany. This region boasts unique features. It is especially known for the presence of numerous art cities.
Famous worldwide for its natural beauty, Tuscany is also appreciated by tourists for its prestigious seaside resorts, including Forte dei Marmi.
How profitable is it to buy a house in Tuscany and place it on the rental market (medium and long term)? The question makes perfect sense, as this is also a region that attracts people from other parts of Italy – and beyond – thanks to job opportunities and the presence of important universities.
A noteworthy fact about real estate rental returns in Tuscany is the strong performance of provincial capitals such as Livorno, Pistoia and Pisa, which statistically prove to be more advantageous for property owners than more media-famous – and tourist-heavy – cities like Florence.
By analyzing data from a report compiled by experts from the research office of a well-known nationwide real estate agency group, we can observe that the yields in the first three mentioned Tuscan cities are actually higher than those in cities like Rome and Palermo.
Real estate investments in smaller tuscan cities: what to know about yields
Now it’s time to get down to the numbers. If we consider purchasing a two-room apartment in Livorno, we’re talking about an average return of 8.5%, a figure that drops to 8.1% for three-room apartments.
Pistoia takes second place, with returns of 7.9% and 7.2% for three-room and two-room apartments respectively.
Pisa ranks third, with figures corresponding to 6.1% and 6.2%.
These percentages, based on data regarding average-size apartments of 65 square meters in the case of two-room units, are significantly lower in Florence compared to the other urban centers mentioned.
In the Tuscan capital, renting out two- and three-room apartments yields 4.3% and 3.8% per year, respectively.
According to real estate experts, this is due to the dominance of short-term rentals driven by tourist demand, whereas these figures refer to medium- and long-term contracts.
Still, buying a home in Florence and placing it on the medium- and long-term rental market is a choice worth considering. To get an idea of the average rent near Santa Maria Novella, the range is between €1100 and €1500 per month for two- and three-room apartments.
However, opting for medium- and long-term rentals carries a risk of non-payment.
To prevent this, it’s always a good idea to turn to a reputable real estate agency, which guarantees careful tenant screening.
Keeping this common-sense advice in mind, one might also consider locations historically tied to summer tourism, such as Forte dei Marmi or the small inland villages, increasingly chosen by international clients looking to spend their later years in a setting with a human-scale atmosphere.
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