Wealth & Investment
Rental Yields in Milan: What a Luxury Property Really Earns
Gross yield is the number brochures quote. This is what a luxury property in Milan earns after the costs nobody prints.
99Habitat Research · 28 Aug 2026 · 6 min read
In short
Well-chosen luxury property in Milan produces 3.5–4.5% gross. Net returns typically land one to two percentage points lower after management, service charges and vacancy.
The gross number
3.5–4.5% gross in Milan. That is the number to start from, not the number to plan with.
Milan combines design-led prime stock, corporate leasing demand and favourable flat-tax treatment for qualifying new residents — a rare pairing in southern Europe.
What comes off the top
Service charges, management fees, letting commission, insurance, maintenance reserve and void periods. In prime markets these routinely absorb a fifth to a third of gross rent, and service charges on branded or amenity-heavy buildings are the most commonly underestimated line.
Tax matters too: registration tax on purchase; annual municipal tax on second homes
Where the demand actually is
Quadrilatero & Brera: Heritage prime; strongest resale.
Porta Nuova: New-build towers, corporate tenants.
Lake Como (day trip): Second-home estates within an hour.
How we underwrite it
Ten months of occupancy, three years of comparable evidence, and a resale assumption of flat real pricing. If the case only works on twelve months and rising rents, it is not a case — it is a hope.
Cadastral and condominium compliance issues are common in older buildings. Verify before deposit.
References
This article is general information, not investment, tax or legal advice. Rules change — confirm current requirements with qualified counsel before you transact.
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