This is why you should buy a home in Sicily. Today.
Paris asks around €12,800 per square metre for a city-centre flat, Rome €7,500, while in Catania roughly €2,000. And the gap is not only in the lower price of entry, but also in the higher returns.
The short answer: Catania has the highest average gross rental yield of any city tracked in Italy, 8.75% in Q3 2026, against 4.69% in Paris and 6.59% in Rome. Per euro invested, Catania is not chasing the capitals: it is ahead of them. How far ahead depends on what you buy and how it is run, and that is where most of the return is made.
The entry price gap
City | Price per m², city-centre flat (Numbeo, Oct 2026) | Average gross rental yield (Global Property Guide, 2026) |
|---|---|---|
Catania | €2,030 | 8.75% |
Rome | €7,470 | 6.59% |
Lisbon | €6,870 | 3.76% |
Berlin | €7,730 | 4.06% |
Madrid | €8,110 | 5.06% |
Amsterdam | €9,260 | 4.86% |
Paris | €12,850 | 4.69% |
A second source with a different method agrees: Numbeo places central Catania's gross yield at 5.81%, above almost every EU capital in its own index.
The Italian Revenue Agency (Agenzia delle Entrate) tells the same story from another angle: the OMI database values homes in normal condition in Catania's historic core (Duomo, Via Etnea, Teatro Massimo, Università) at €1,250 to €1,850 per m² for the second half of 2025. Idealista asking prices for September 2026 are €1,384 per m² in the Centro Storico and €1,714 around Piazza Trento. In other words: whichever source you trust, the gap with the capitals is four to six times.
Why the yield holds up
Foreign demand is growing. Sicily recorded nearly 13 million foreign overnight stays in 2025, up 5.5%, while Catania airport handled 12.36 million passengers in 2025. And the latter is expected to increase significantly once the second runway of the airport will be completed.
Fewer listings, more revenue for each. AirDNA counts 3,945 active short-term listings in Catania, 3.8% fewer than a year ago, while average annual revenue per listing rose 5.9% over the same period. In other words: more demand, less offer, higher prices.
Short-term rental is a key part of the market. In the Bank of Italy's housing survey for Q2 2026, 65% of agencies in the South and Islands describe short-term letting as relevant in their area.
Why today, not tomorrow
The window is narrowing, slowly. What the numbers above say is that the moment when buyers could negotiate hard on large, cheap estates is passing. The same Bank of Italy survey reports that new homes for sale keep falling (a balance of −26 points), that the average discount on asking prices is close to its historic low (9% in the South and Islands), and that agents in the South now report rising prices, where a year earlier the balance was negative. Idealista asking prices in central Catania are up 3.9% year on year.
But let's be clear: this is an income case, not a speculation case. If you are buying purely for capital appreciation, this article is not your argument.
Where the real return is made
The 8.75% above is a city average for long lets, gross, before tax and costs. Yet, the return that should really matter to a foreign buyer is a different one: a well-located, well-renovated home short let to international tourists. Short lets also carry no tenant credit risk, which is the real pain point of Italian long-term letting, where evicting a non-paying tenant can take a long time.
A real example. In the homes Letstay manages, a renovated one-bedroom flat in Catania costs around €180,000 in total, purchase and renovation included, and earns about €30,000 gross a year. About half of that, €15,000, is net of everything: running costs, management and income tax. On the total investment, that is 16.7% gross and 8.3% net, and the best-performing homes in our portfolio exceed 10% net a year. But to achieve these results, three decisions make the difference.
The right property. Location, layout and building decide what guests will pay and how often they book, directly influencing your ADR and RevPar. Well-renovated and guest-ready homes in the historic centre compete for international guests on a much smaller field.
The right renovation. Finishes and furniture should be chosen for short lets, to the standard guests expect in this market and to local preferences, not to personal taste.
The right management. Strategic revenue management, smooth guest communication, pristine cleaning and regular maintenance decide occupancy and reviews, and reviews decide revenue. In our experience, a well-run short let typically delivers at least twice the net return of a long let on the same property. And every unit needs its CIN (Codice Identificativo Nazionale) and CIR (regional registration number) before it goes online, which requires technical forms in Italian and the right property documents: a path you don't want to walk alone.
Run the numbers on the property, not the city
Send us the listing you are considering, and we will tell you: what it can realistically earn, what the renovation should look like and its ideal budget, and what documents it needs to be fully compliant. If you go ahead with Letstay's full management, forecasts and compliance become our problem, not yours.
FAQ
I live outside Italy. Can I buy a home in Sicily?
Yes. EU citizens buy on the same terms as Italians. For non-EU citizens Italy, feel free to schedule a call with us.
I want to buy two apartments to let to tourists. How are they taxed?
With one or two properties you let as a private individual, at a 21% flat rate on one unit and 26% on the second. From the third apartment let short-term by the same person, Italian tax law presumes a business activity, with a VAT number and different obligations. If you plan acquiring more than two units, plan your structure ahead with us, before you sign.
What does buying cost on top of the price?
For a second home bought from a private seller, registration tax is 2% or 9% of the cadastral value (typically well below the market price), then add the notary and agency fees. Ask for the cadastral value and for notary and agency quotes before you make an offer, and share them with us for advice.
Last verified on 11 October 2026 by Letstay
This article is for informational purposes only. It does not constitute legal, tax or professional advice of any kind, and nothing in it should be relied upon as such by the reader. The regulations mentioned may change after the publication date. Letstay accepts no liability for decisions made on the basis of the information provided here. For an assessment of your specific situation and personalized advice, please contact Letstay directly.
Jacopo Potenza - CEO & Head of Finance, Letstay.
He analyses returns, rates and market trends for the homes under Letstay management.
