Forget London and Paris: The top 10 European cities for rental yields in 2026
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Europe's best buy-to-let opportunities have moved away from its priciest cities. Here are the ten eurozone markets where rental income is highest — ending with a surprising number one.
Draw a map of where Europe’s property money usually flows, and the bright spots are predictable: the boulevards of Paris, Amsterdam’s canal belt, Munich’s polished districts.
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Prestige addresses. Deep liquidity. Property markets where prices have moved largely in one direction for decades.
Draw a second map, this time showing where landlords earn the highest rental income for every euro invested, and many of those cities disappear.
New data from Global Property Guide, cross-checked against local property portals including Immobiliare.it, Idealista, Fotocasa, Habitaclia and Daft, shows that some of Europe’s strongest buy-to-let opportunities are no longer concentrated in its traditional property hotspots, but in overlooked regional markets, particularly across Southern Europe.
Below is a ranking of the ten cities in the euro area where gross rental yields — annual rent divided by purchase price before taxes, maintenance, fees and other costs — are highest in 2026.
10. Rome: Average rental yield 7.12%
Rome enters the ranking in 10th place, but the Italian capital illustrates one of Europe’s clearest property market contrasts: prestige versus income.
In the historic centre — around the Pantheon, Piazza Navona and Trastevere — international buyers compete for limited housing stock, pushing prices sharply higher and reducing yields.
A one-bedroom flat in Rome's "centro" costs €472,500 but yields only €2,170 a month, equivalent to a gross annual rental yield of 5.51%.
Outside the historic core, however, the economics improve significantly.
Across the wider city, a one-bedroom apartment averages roughly €225,000 and rents for about €1,450 monthly, pushing yields closer to 7.7%. The strongest return comes from the smallest unit: a studio at €149,000 renting for €1,000 delivers 8.05%.
In Rome, the postcard view often comes at the expense of rental income.
9. Dublin: Average rental yield 7.22%
Dublin’s housing shortage continues to support some of Europe’s highest rents.
Ireland's capital — home to Guinness, the Georgian doors of Merrion Square, and a tech sector that keeps the rental market consistently tight — delivers an average rental yield of 7.22%.
RelatedA one-bedroom flat costs €295,000 and rents for €2,000 a month, equivalent to a gross rental yield of 8.14%. That unit size is also the most profitable in the city.
Across Ireland, home prices have nearly doubled since 2012, rising 99% in nominal terms, while rents climbed 71% over the same period.
8. Naples: Average rental yield 7.22%
Naples ties Dublin on yield but undercuts it sharply on price. In the city of pizza margherita, with Vesuvius on the skyline and the Spaccanapoli slicing through a UNESCO-listed old town, a one-bedroom flat costs €145,500 and rents for €950 a month — a 7.84% gross yield.
The standout, however, is the entry-level studio: at just €70,000 against €700 in monthly rent, it delivers a striking 12% gross yield, the joint-highest yield in the ranking.
Strong student demand and year-round tourism continue to support occupancy rates for smaller apartments.
7. Barcelona: Average rental yield 7.40%
The only Spanish city in the ranking — the home of Gaudí's Sagrada Família, vermouth hour and FC Barcelona — averages a rental yield of 7.40% across all locations.
A one-bedroom flat costs €240,000 and rents for €1,590 a month, equivalent to a gross rental yield of 7.95%. One-bedroom units are also the city’s most profitable category on this measure.
Yet Barcelona’s housing market is increasingly defined by scarcity.
Rental supply across Catalonia remains near historic lows while demand continues to come from tourists, students, remote workers and foreign residents.
“Affordable apartments in Barcelona are reportedly increasingly difficult to find, as the supply of rental housing across Catalonia remains at historic lows,” said Lalaine Delmendo, market analyst at Global Property Guide.
"Madrid continued to lead in absolute transaction volume, while stronger year-on-year growth was seen in several other major markets, most notably Barcelona and Seville," Delmendo added.
Related6. Riga: Average rental yield 7.47%
Latvia's capital — known for its Art Nouveau architecture, the spires of a medieval old town and a Central Market built inside former Zeppelin hangars — offers some of Europe’s strongest rental returns, though long-term price growth has been weak.
A one-bedroom flat costs €125,000 and rents for €750 a month, yielding 7.20% gross, while the best return comes from larger units: a two-bedroom at €187,000 yields 8.34%.
The trade-off is capital growth. Over the past five years, real Riga prices have fallen by 23.66%, with nominal growth of just 3.77%.
That stagnation is both the risk and the attraction for investors: weak appreciation, but entry prices low enough to make the rental income the whole story.
5. Turin: Average rental yield 7.68%
Italy's first capital — the city of the Mole Antonelliana and the birthplace of gianduiotto chocolate — hides a buy-to-let bargain behind its baroque grandeur.
Long overshadowed by Milan, the former industrial centre of Fiat combines lower acquisition costs with strong student demand, engineering employment and a growing cultural and food scene centred around Piazza Castello and the Po riverfront.
The numbers are striking. A one-bedroom apartment across Turin costs around €99,000 and rents for roughly €850 monthly — enough to generate gross yields above 10%.
Returns at that level are increasingly rare to find in large Western European cities.
In the historic centre, however, the picture changes quickly.
There, one-bedroom apartments cost around €255,000 and generate roughly €1,200 in monthly rent, reducing yields to around 5.6%
4. Jyväskylä: Average rental yield 8.02%
Finland’s university city of Jyväskylä is perhaps the ranking’s biggest surprise.
Located in the Finnish lakeland region between Helsinki and Lapland, Jyväskylä contains the world’s largest collection of buildings designed by Alvar Aalto anywhere in the world, and fills its streets each summer with the engines of the World Rally Championship.
Nearly a third of its residents are students.
A one-bedroom flat costs €90,000 and rents for €680 a month, equivalent to a gross rental yield of 9.07%. One-bedroom units are also clearly the strongest-performing apartment type among those analysed.
Strong student demand and relatively low property prices make Jyväskylä the highest-yielding city in northern Europe within the eurozone.
3. Cork: Average gross yield 8.20%
Ireland's second city — built across the marshy islands of the River Lee, proud of its English Market food hall and its spiced beef — ranks third.
Cork demands far lower entry prices than Dublin while drawing solid rental demand from a growing local economy.
The southern Irish city benefits from pharmaceutical investment, a growing technology sector and strong population growth.
A one-bedroom flat costs €235,000 and rents for €1,600 a month, equivalent to a gross rental yield of 8.17%. Larger units do better still: two-bedroom apartments deliver the city’s strongest returns.
In Ireland, Cork increasingly stands out as a market driven by rental income rather than prestige pricing.
2. Palermo: Average rental yield 8.25%
Sicily's capital — a city of Norman cathedrals, the roar of the Ballarò street market and a street-food culture built on arancine and panelle — sits just short of the top spot.
Palermo combines Mediterranean lifestyle appeal with pricing levels that remain unusually low by Western European standards.
A one-bedroom flat costs €85,000 and rents for €700 a month, a 9.88% gross yield.
Larger apartments also remain relatively inexpensive.
A two-bedroom property averages €115,000 and rents for around €800 a month, equivalent to a yield of roughly 8.3%.
"Parts of Sicily offer surprisingly affordable homes. Italy also has tax incentives for new residents, which can make a difference for foreigners moving in," said Mikk Kalmet, global real estate expert at Global Property Guide.
1. Catania: Average rental yield 9.17%
The highest rental yield in the eurozone belongs to a city built from black volcanic stone in the shadow of Mount Etna.
Catania — with its baroque cathedral, and the dawn clamour of the Pescheria fish market — tops the ranking with an average rental yield of 9.17%.
The numbers behind it are striking. A one-bedroom flat costs around €70,000 and rents for €650 a month, an 11.14% gross yield.
The entry-level studio performs even better, returning 12% on a €51,000 outlay — the cheapest price tag anywhere on this list.
Catania also sits roughly 50 kilometres from Taormina, one of the Mediterranean's most coveted holiday destinations, supporting a short-term rental market that runs almost year-round.
According to the data, Catania is the strongest-performing buy-to-let market in the eurozone in 2026.
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