North Nolo Claims Milan's Top Rental Yield—Investors Take Note

Nolo, the once-overlooked northern fringe of Milan, has now emerged as the city’s top performer for rental yields, outpacing better-known neighbourhoods and drawing a new cohort of property investors. According to new figures released this week by the Milan Chamber of Commerce, residential rentals in Nolo now offer average gross yields of 5.6%—the highest in the city for the fourth consecutive quarter.

This uptick in returns lands at a pivotal moment for Milan’s property market. With average citywide property prices hovering around EUR 5,000 per square metre and an ongoing cost-of-living squeeze reshaping renter demand, attention is shifting away from the premium corridors of Brera and Porta Nuova. Investors, priced out of the historic centre, are fanning out along new transit lines in search of healthier yields as the war in Ukraine and spiralling inflation across Europe put pressure on returns from both residential and commercial real estate.

Nolo: From Fringe to Favourite

Nowhere is this shift more visible than above Piazzale Loreto, on Via Venini and around the bustling Mercato Comunale in Viale Monza, where Nolo’s affordability and cool factor are drawing renters in droves. Creative hubs like the Q21 Club and new co-working spaces on Via Martiri Oscuri have added a hip edge, echoing the transformation Navigli underwent in the last decade. According to real estate consultants at Gabetti Property Solutions, the influx of students from the Bicocca and Politecnico campuses is fuelling demand for micro-apartments and sharable three-bedroom flats, driving annual rental growth above the city average.

City records show the average sale price for a renovated one-bedroom in Nolo reached EUR 3,400 per square metre at the end of June, with median monthly rents approaching EUR 970. By comparison, a similar apartment in Brera now fetches in excess of EUR 6,300 per square metre to buy, but average yields languish below 3%. Across Nolo, low entry prices—combined with consistent rental demand—have underpinned its top-tier yield even as the Milan metropolitan area added nearly 13,000 new residents last year, many of whom arrived in search of affordable housing within a 15-minute metro ride to the Duomo.

Where Next—and What to Watch

Local letting agencies such as Solo Affitti on Viale Monza are reporting a surge in both Italian and foreign applicants for Nolo’s newer apartment blocks, with summer 2026 vacancy rates dropping below 1%. Landlords are advised to seek out flats within five minutes’ walk of M1 Metro stops like Pasteur or Rovereto, where proximity ticks up returns even further, especially on units below 60 square metres. While prices have risen over 9% in the past twelve months, agents caution that the area’s reputation as an investment hotspot will likely persist so long as Milan’s tech and fashion sectors continue their northward march.

For would-be buyers weighing up returns in suburban districts like Isola or San Siro, the numbers still favour Nolo—provided investors act fast and target smaller units primed for the city’s ever-mobile workforce. As Milan braces for another heatwave and economic anxieties rumble across Europe, Nolo’s blend of value and rental resilience sets a new benchmark for suburban investment in 2026. Analysts at Tecnocasa note that ongoing infrastructural improvements, including new tram lines and a forthcoming community park near Stazione Centrale, could cement the area’s status even further. For investors on the hunt for returns, Milan’s north has never looked so promising.