Published on and written by Cyril Jarnias
Nestled between lakes and the Prealps, an hour from Milan and at the gates of Switzerland, the city of Varese is attracting more and more investors looking for a more affordable alternative to the major Lombard metropolises. The numbers confirm this interest: rental yields above the Italian average, still reasonable prices, a solid economic fabric, and a quality of life that appeals to families, cross-border commuters, and tourists alike.
This article offers a comprehensive analysis of the Varese real estate market, including market data, neighborhood geography, taxation, and development prospects. It is designed to help a French-speaking investor evaluate various opportunities, from long-term rentals to tourist apartments and high-end villas.
A Dynamic Local Market in a Rapidly Rising Lombardy
To understand why investing in real estate in Varese is becoming strategic, we must first place it in the Italian and Lombard context.
At the national level, residential prices have risen by approximately 3.5 to 4% over twelve months, with an average of €2,167/m² at the start of 2026. Lombardy, the country’s real estate engine, is moving even faster: around €2,753/m² in March 2026, up more than 7% year-on-year. The supply of homes for sale is shrinking (about –4% in 2024), while demand continues to grow, putting upward pressure on prices.
Average price per square meter in the province of Varese in January 2026, a reasonable entry point in a highly sought-after region.
Over two years, the trend in Varese is clearly upward. In the municipality, the average price rose from a low of about €1,738/m² at the end of 2023 to a peak of €1,816/m² in spring 2025, with a slight decline afterward but an annual increase of over 4% between January 2025 and January 2026. On the rental side, the tension is even more pronounced: the average rent increased by just over 10% in one year to reach €11.57/m²/month in fall 2025.
The combination of relatively low acquisition prices, rising rents, and a gradually tightening market creates a favorable context. This translates into an attractive rental yield and a real probability of achieving capital appreciation over the medium term.
Rental Yields Above the Italian Average
Available data shows that Varese ranks among the top in terms of residential rental yield.
For the city of Varese, the average yield is around 7.89%, with an average market value of about €165,000 and an average monthly rent of €950. On this basis, a property pays for itself in an average of 14.5 years. At the province level, the figures are slightly better: 8.19% average yield, an average price of €145,000, and an average rent of €850, with a payback period of about 14.2 years.
Compared to other major Italian cities, Varese offers one of the most attractive price-to-rent ratios in the country, while being located in a highly stable economic region.
A summary table allows you to visualize the key indicators for the city and the province:
| Indicator | City of Varese | Province of Varese |
|---|---|---|
| Average property price | €165,000 | €145,000 |
| Average monthly rent | €950 | €850 |
| Average price per m² | > €1,600 | ≈ €1,600 |
| Average rental yield | 7.89% | 8.19% |
| Estimated payback period | 14.5 years | 14.2 years |
| Market activity index | 32% | 35% |
| Observed starting price | €52,500 | €55,000 |
This yield level is well above what is found in many mature Western European markets, especially in capitals where prices have skyrocketed faster than rents. It also reflects a reality: Varese still remains partially undervalued compared to Milan, while benefiting from its economic influence, proximity to major transport routes, and Switzerland.
Understanding Market Structure: Property Types and Profitability
One of the strong points of the Varese market is the clarity of profitability according to the size of the property. Available data allows for a fairly detailed comparison of the different types, both for the city and the entire province.
City of Varese: Best Yield/Risk Ratio on Small Units
In the city, the following table summarizes characteristics by property type:
| Property Type | Average Price | Average Monthly Rent | Average Yield |
|---|---|---|---|
| Studio | €52,500* | n/a | n/a |
| 1 bedroom | €78,000 | €600 | 9.23% |
| 2 bedrooms | €115,000 | €850 | 8.87% |
| 3 bedrooms | €168,000 | €1,000 | 7.14% |
| 4 bedrooms and up | €250,000 | €1,400 | 6.72% |
– Starting price observed for studios.
The profitability of a rental investment varies inversely with the size of the property. Studios and one-bedroom apartments, with an average entry price of €78,000, offer the highest yields, exceeding 9%. Two-bedroom units remain very attractive with a yield close to 9% and a monthly rent of about €850, matching rental demand and household purchasing power well.
Large properties (three bedrooms and up) show a more modest yield, between 6.7 and 7.1%, but this category remains interesting for an investor seeking stability (families, long stays, low turnover) or a mixed use (future primary residence, rental investment in the interim).
The distribution of rental listings in the city also reflects this dynamic: about 38% of listings are for two-bedroom units, 40% for three-bedroom units, and 15% for four-bedroom and larger properties. In other words, the core of the rental market lies in these mid-sized units, which enhances liquidity at resale.
Province of Varese: Sometimes Spectacular Yields on Studios
In the rest of the province, the yield hierarchy is even more pronounced, especially for smaller units:
| Property Type | Average Price | Average Monthly Rent | Average Yield | Payback Period |
|---|---|---|---|---|
| Studio | €55,000 | €750 | 16.36% | 13.8 years |
| 1 bedroom | €75,000 | €650 | 10.40% | 17.4 years |
| 2 bedrooms | €105,000 | €750 | 8.57% | 16.4 years |
| 3 bedrooms | €154,000 | €950 | 7.40% | 16.2 years |
| 4 bedrooms and up | €220,000 | €1,200 | 6.55% | 16.1 years |
The case of studios is striking: an average price of €55,000 with a rent of €750 yields a gross return above 16%. This is clearly a niche segment (few listings, limited stock), but for an investor willing to accept a bit more tenant turnover and a younger audience, these micro-units in the province can constitute a very profitable strategy.
The maximum rental yield for 1- and 2-bedroom apartments can reach 10.4%.
This structure suggests a pragmatic approach: prioritize small and medium-sized units for pure performance, target large properties for wealth-building strategies (second home, prestige villa, lakeside house) or for high-end rentals to a specific clientele (expatriates, cross-border commuters, affluent tourists).
Where to Invest in Varese: Neighborhood Mapping and Prices per Square Meter
The Varese market is not homogeneous. Prices and rents vary significantly from one neighborhood to another, allowing for the construction of genuine “micro-location” strategies.
In September 2025, sale prices per m² and average rents per m²/month were as follows in the city:
| Zone / Neighborhood | Sale (€/m²) | Rent (€/m²/month) |
|---|---|---|
| Casbeno, Masnago, Brunella | 2,140 | 12.84 |
| Bobbiate, Schiranna, Capolago, Lissago, Calcinate, Cartabbia | 1,889 | 11.02 |
| Varese Centro, Biumo Inferiore, Biumo Superiore | 1,840 | 11.79 |
| Sant’Ambrogio, Velate, Avigno, Santa Maria del Monte | 1,836 | 10.05 |
| Ippodromo, San Gallo, Montello | 1,811 | 10.92 |
| Viale Europa, Bosto | 1,727 | 11.62 |
| Giubiano, San Carlo, Bizzozero | 1,674 | 11.28 |
| Belforte, Valle Olona | 1,343 | 9.59 |
Casbeno–Masnago–Brunella clearly dominates the ranking, with the highest prices and rents. This is a sought-after residential area, well-served, with a high quality of life that attracts both residents and tourists. The city center and adjacent neighborhoods like Biumo Inferiore and Superiore maintain a premium positioning, with slightly lower prices but excellent liquidity and strong demand for short- and medium-term rentals.
The Belforte–Valle Olona neighborhood has the lowest real estate prices in the city, both for purchase and rental. For an investor, this can offer high yield potential, provided you bet on medium-term appreciation, driven notably by future urban regeneration projects.
Between these extremes, areas like Bobbiate–Schiranna–Capolago–Lissago–Calcinate–Cartabbia play the card of proximity to Lake Varese, houses with gardens, and green environments. They are particularly appealing to families, affluent retirees, and foreigners seeking second homes.
The ground reality confirms this segmentation: the center remains the most in-demand for properties for sale, the Ippodromo, Biumo Superiore, and San Gallo neighborhoods are highly appreciated for their accessibility, while Sant’Ambrogio, Velate, and Avigno offer an attractive compromise between tranquility, greenery, and proximity to the historic center. For large houses with gardens, you often need to look toward Capolago, Cartabbia, or Gaggio, while Calcinate, Bobbiate, and Lissago focus on direct lake proximity.
Varese, “Garden City”: A Living Environment That Supports Demand
Profitability is not solely explained by numbers. Varese benefits from a particularly favorable urban and natural environment for sustained real estate demand.
The city is nicknamed “Città Giardino” because of its many parks, historic villas, and green spaces. It combines several decisive advantages for real estate:
Discover the main assets that make Varese an attractive city for living, working, and relaxing.
Immediate proximity to lakes (Varese, Lugano, Maggiore) and mountains, with a rich offering of outdoor activities.
Fast connection to Milan and international airports, ideal for partial remote work while staying close to economic centers.
Swiss border less than 20 km away, with rail links to Ticino, attracting a growing number of cross-border commuters living on the Italian side.
Cleaner air than in most Lombard cities: Varese is regularly cited for its good air quality.
Good educational and social services, positioning the city as a preferred family destination.
After the pandemic, these advantages have taken on even greater value. Many buyers are leaving Milan or other large cities to settle in Varese, seeking more square meters, a home office for remote work, a balcony or garden, while remaining connected to employment centers. Demand is particularly strong for houses or apartments with outdoor spaces, in quiet but well-served areas.
This shift in demand supports prices, especially in recently redeveloped or transforming neighborhoods (Masnago, Bobbiate, Mustonate, Lissago) where new-build programs in energy class A are multiplying.
Population Growth and Resident Profile: A Solid Foundation for Investment
Unlike many Italian areas experiencing demographic decline, the province of Varese is holding steady, even growing. Between 2011 and 2021, the provincial population rose from about 872,000 to nearly 878,000 inhabitants, with a new estimate of over 881,000 people at the start of 2025. Density is high (approximately 735 inhabitants/km²), reflecting a dense urban and peri-urban territory, far from rural Italy with low real estate liquidity.
This is the number of additional inhabitants in Varese in 2024, thanks to a positive net migration balance.
The age structure is certainly still aging, as everywhere in Italy, but the weight of working-age adults (18–64) remains largely predominant, while the proportion of foreigners is around 8–9% in the province, which strengthens the diversity of rental demand. For an investor, this demographic profile translates into a stable tenant base, with a growing component of mobile and international workers.
Urban Projects, PNRR, and Infrastructure: Value Catalysts
Another very important factor for investing in real estate in Varese lies in the ongoing urban transformation projects, largely funded by the National Recovery and Resilience Plan (PNRR).
The municipality has embarked on a set of projects that touch on schools, sports facilities, transport, social housing, the environment, and culture. Among the most structuring achievements and projects:
Recent municipal initiatives to modernize infrastructure, strengthen the ecological transition, and improve residents’ quality of life.
Complete renovation of schools and nurseries (kindergarten ‘Le Costellazioni’, Don Bosco school cafeteria) and construction of an educational hub in San Fermo with a middle school, elementary school, auditorium, and gymnasium.
Creation of a large indoor sports hall in San Fermo, equipped with climbing walls, padel courts, parkour areas, and football spaces.
Landslide stabilization work on the slopes of Martica and Rasa to protect inhabited areas.
Commissioning of ten 100% electric buses, funded by the PNRR, significantly reducing pollutant emissions.
Development of social housing and temporary accommodation schemes for vulnerable families through programs like ‘Una casa per te’.
Redevelopment of brownfields (former slaughterhouse area in Belforte) and restoration of historic villas (Villa Baragiola, Villa Mylius) for new uses.
In addition, there are innovative infrastructure projects, such as the future “VVHUB” vertiport near the train station, conceived as a zero-emission urban air mobility hub for connections to Malpensa, Milan, and Ticino. Or the study of a “tram-train” system linking the various neighborhoods and the lake to the station, modeled on what exists in some German or Swiss cities.
Terna, the grid operator, is strengthening the province’s high-voltage lines. This investment includes burying several kilometers of cables and removing pylons, freeing up hectares of land and improving the resilience of the electricity grid.
For the investor, these projects have two major implications: they improve quality of life and accessibility, thereby supporting real estate demand, and they revalue certain neighborhoods undergoing transformation (Giubiano, Belforte, San Fermo, areas around the station).
Investing in real estate in Varese is not limited to a single model. Available data allows for comparison of several strategic axes: traditional year-round rental, shared housing for students or young professionals, and short-term rental like Airbnb.
Long-Term Rentals: The Market Foundation
The majority of rental demand is concentrated on 2- and 3-bedroom properties, occupied by couples, families, or small group shared housing. With an average rent of €950 in the city and a price-to-rent ratio allowing the investment to be covered in about fifteen years, this segment constitutes the most stable foundation.
The strong presence of cross-border workers employed in Switzerland, young professionals leaving Milan to reduce expenses, and families attracted by local schools and services ensures sustained demand in this niche. For an investor seeking simplicity of management, targeting 2- or 3-bedroom units in the city or in the most dynamic municipalities of the province (Busto Arsizio, Gallarate, Saronno, Sesto Calende, Somma Lombardo) remains a robust strategy.
The very high yields of studios and small apartments, especially in the province, indicate significant potential for more flexible formats: shared housing, rentals to students, young workers, temporary workers, or digital nomads.
The presence of the university, a major hospital, and several business hubs in Varese generates strong demand for compact, well-located, and affordable housing. Neighborhoods near the train station (such as Giubiano and Biumo Inferiore) or the city center are particularly well-suited to meet this demand.
An investor willing to accept a bit more management (tenant turnover, furnished rentals, move-in/move-out management) can thus target yields well above 9–10%, especially on one- and two-bedroom units. Provided, of course, that Italian regulations on leases, rental income declarations, and, where applicable, the “cedolare secca” (flat tax of 21% or 10% in rent-controlled areas) are respected, simplifying rental taxation.
Short-Term Rentals and the Tourist Market: An Interesting Complement
Even if Varese is not Venice or Florence, the tourist rental market is far from negligible. Between March 2024 and February 2025, there were 149 active Airbnb listings, with an average occupancy rate of 44% over the year and an average monthly income of about $1,651 (around €1,500 depending on exchange rates). The top 10% of listings reach nearly $3,000 in monthly income, with occupancy rates above 80% during peak season.
Monthly incomes exceed $2,200 during peak demand periods in spring and summer.
The clientele is varied: Italian travelers, but especially French and Germans, with English as the most commonly used language. Stays are short (1 to 2 nights in more than 60% of cases), but a non-negligible segment of monthly or longer stays is emerging (around 10%), which could interest investors positioned on “extended stay” (consultants, cross-border commuters in transition, exchange students).
In this context, a well-located apartment in the city center, in Sant’Ambrogio (for access to the Sacro Monte, a UNESCO site) or in Casbeno (for its tranquility and gardens) can offer interesting short-term performance, provided management is optimized, local rules on tourist rentals are respected, and taxation is properly calibrated (income declaration, possible limitation of the “cedolare secca” for short-term rentals).
Provincial Comparisons: Where Are the Best Yields in the Varesotto?
At the province level, yield disparities are marked between the different municipalities. Some small towns or villages display spectacular theoretical yields, sometimes above 15% or even 20%, while others hover around 6–8%.
Among the municipalities with very high average profitability, we can cite:
| Municipality | Average Yield | Estimated Annual Rental Income |
|---|---|---|
| Cislago | 21.89% | €16,200 |
| Cuasso al Monte | 15.69% | €10,200 |
| Comabbio | 15.62% | €11,400 |
| Brebbia | 15.86% | €11,200 |
| Maccagno con Pino e Veddasca | 15.19% | n/a |
| Sumirago | 13.98% | €14,400 |
| Casorate Sempione | 13.46% | n/a |
In the “moderate but solid” yield category, we find larger urban centers:
| Municipality | Average Yield | Estimated Annual Rental Income |
|---|---|---|
| Varese | 7.89% | €11,400 |
| Busto Arsizio | 8.50% | €10,200 |
| Gallarate | 7.76% | €11,000 |
| Tradate | 8.17% | n/a |
| Sesto Calende | 7.44% | n/a |
| Somma Lombardo | 10.92% | n/a |
These figures should be interpreted with caution. The very high yields in small municipalities are often explained by very low purchase prices and limited resale liquidity. In other words, it may be easy to rent out in the short term, but exiting the investment can take longer and capital appreciation prospects are more uncertain than in major hubs like Varese, Busto Arsizio, or Saronno.
The savvy investor diversifies risk by combining very high-yield properties in second-ring municipalities with more stable, “core” assets in the city of Varese or the province’s structural centers, where demand is broader and more diversified.
Specific Risks and Points of Caution on the Italian Market
Investing in real estate in Varese, as elsewhere in Italy, requires mastering a number of legal, urban planning, and tax risks. The Italian framework is characterized by a high demand for documentary compliance, without the safety net of “title insurance” as in common law countries.
Among the main points of caution:
Acquiring real estate in Italy, particularly in the province of Varese, requires a thorough verification of several legal and technical aspects to avoid costly surprises. It is essential to check the cadastral and urban planning compliance of existing improvements, clarify any usufruct rights encumbering the property, and verify the nature of land rights (full ownership or surface rights). You must also identify hidden charges or liabilities in condominiums, learn about constraints related to protected areas (landscape, historical, hydro-geological), and carefully examine the origin of the title deed, especially for properties acquired through donation that may be contested.
These risks should not discourage investing in Varese, but they require surrounding yourself with professionals: a notary, a lawyer specialized in Italian real estate law, a surveyor, an experienced local agent. The foreign buyer should in particular avoid relying solely on the seller’s agent and should have an independent review of all documents.
Taxation and Acquisition Costs: What an Investor Must Anticipate
On the tax and financial side, the Italian framework must be integrated from the business plan. The main cost items at purchase are:
For a real estate purchase from a private individual, the base rate of the registration tax is 9% of the cadastral value.
Overall, the acquisition cost for the buyer ranges in practice between 7 and 16% of the price, depending on whether it is a primary residence with tax benefits or a standard investment from a professional.
Then come recurring taxes:
For a non-resident investor, the main taxes are: IMU (between 0.4% and 1.06% of the base, often due for rental properties), TARI (calculated on surface area), and income tax on rents. For the latter, the ‘cedolare secca’ option (flat tax of 21% on gross rent, sometimes 10%) simplifies taxation by replacing the IRPEF.
For a foreign investor, add reporting obligations in your home country and check the existence of a tax treaty. For example, a French resident will have to declare Italian rental income, with a tax credit mechanism to avoid double taxation.
Finally, for those considering moving to Italy, there are attractive tax regimes for new residents or retirees, but these schemes go beyond the strict scope of rental investment and require specialized tax advice.
Financing, Non-Residents, and Legal Security
Non-residents, including nationals of non-EU countries with a reciprocity agreement with Italy (United States, Canada, United Kingdom, Switzerland, Australia, among others), can freely purchase real estate in Varese. However, property ownership does not confer any automatic right to stay beyond the 90 days allowed in the Schengen area for non-European nationals.
On the financing side, Italian banks grant loans to non-residents, generally up to 60–70% of the property value, with terms up to 20–25 years and rates that have eased since the 2023 highs. Applications require the presentation of a “codice fiscale” (equivalent to a tax identification number), proof of income, bank statements, and sometimes certified translations of foreign documents.
The deposit paid upon signing the preliminary sales agreement (compromesso) in Italy generally represents between 10 and 20% of the purchase price.
In this context, the foreign investor would be wise to:
– Obtain their codice fiscale as early as possible (via consulate or Italian tax agency).
– Open an Italian bank account to facilitate payments and tracking of expenses.
– Engage a trusted notary (chosen by the buyer) and, ideally, an independent lawyer familiar with the Varese market.
– Have a complete technical and urban planning audit of the property carried out, especially for older homes, country villas, and properties in protected areas.
How to Build an Investment Strategy in Varese
Based on these elements, several coherent strategies emerge.
An investor seeking a balance between yield and security could target two- or three-bedroom units in the city of Varese, in neighborhoods like the center, Masnago, Bobbiate, Ippodromo, or Viale Europa. The entry ticket will be between €100,000 and €200,000, for monthly rents ranging from €800 to €1,200, a gross yield of around 7 to 9%, and very strong rental demand.
The potential rental yield for studios and small apartments in certain provincial municipalities is between 12 and 15%.
A wealth-building investor could position themselves on luxury villas or apartments by the lake or in the hills (Bobbiate, Lissago, Mustonate, Maccagno, Lavena Ponte Tresa, Luino), targeting a Swiss, German, or Northern European clientele, or high-end short-term rentals. The yield will be more modest, but the use value and capital appreciation prospects, especially with the upscaling of Lombardy ahead of major international events, can be significant.
An opportunistic investor can target redeveloping neighborhoods like Giubiano, Belforte, San Fermo, as well as the areas around the train station and the future vertiport. Prices there are still moderate, but public projects such as the tram-train, the PNRR, and the development of soft mobility should drive up property values in the coming years.
In all cases, investing in real estate in Varese means betting on a city and a province that combine several strengths rarely found together: a powerful economic region, a sought-after quality of life, still reasonable prices compared to Milan, high rental yields, an influx of new residents, a growing tourist market, and a wave of structuring public investments.
For a patient, well-advised investor attentive to the specifics of Italian law, Varese thus appears to be one of the most promising markets in Lombardy for the years to come.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
