Investing in Real Estate in Udine: The Discreet Market That Checks All the Boxes

Published on April 28, 2026 and written by Cyril Jarnias

Udine does not make headlines like Milan, Rome, or Florence. Yet, looking closely at the numbers, the city and its province offer exactly what more and more investors are looking for: still reasonable prices, solid yields, multiple rental demand (residential, student, tourist, professional), and a very stable economic and urban environment.

A local market under pressure… but still affordable

The first thing to note is that Udine’s market is already under pressure, but remains far from the levels of major Italian cities.

In September 2025, the average sale price of homes in the municipality of Udine stood at €1,734/m², up 9.82% year-on-year. This is the highest level in two years, well above the low of May 2024 (€1,543/m²). Rents follow the same trend, with an average rent of €9.43/m² in September 2025, up 3.63% year-on-year.

To put Udine in context, we can compare prices in the Friuli-Venezia Giulia (FVG) region to the rest of the country.

Udine in the regional and national context

In February 2026, the average price in the FVG region reached €1,776/m², up 8.89% year-on-year. Within the region, the province of Udine is at the lower end of the range, with €1,536/m², while Trieste exceeds €2,600/m². In other words, Udine is still a relatively cheap entry point in a generally dynamic region.

At this stage, Udine clearly appears as a mid-sized city with contained prices, in a quiet, transparent, and low-speculation region where demand is mainly local.

How much does a property cost in Udine by neighborhood and size?

To understand where the real opportunities lie, we need to look neighborhood by neighborhood, then by property type.

Price map within the city

September 2025 data provides a clear map of sale prices and rents in the municipality.

Udine Ovest is the most expensive area to buy (€1,981/m²), ahead of the Centre (€1,900/m²), while Udine Est is significantly more affordable (€1,383/m²). In terms of rents, the Centre remains in the lead, which is logical for an attractive historic core.

Property types: how much for a studio, one-bedroom, two-bedroom?

In the residential market, price ranges by apartment size are well established.

More detailed data by number of rooms confirms this profile, for example studios around €118,000, two-bedroom apartments at €154,000, or four-bedroom apartments at €177,000. In the province, you can still find studios starting at €45,500 and one-bedrooms around €120,000.

For an investor, this means that with a budget of €120,000 to €150,000, it is possible to target a good quality 1 or 2 bedroom in the city itself, and aim for even lower prices in the outskirts or province.

Rental yields above the Italian average

Udine’s great advantage is the combination of moderate price levels and rents high enough to generate interesting gross yields.

Average yields: where does Udine stand?

At the city level, the average rental yield across all property types is estimated at 6.51%, with an average annual rent of around €10,200 for a typical property (€850/month). This is already well positioned compared to the Italian average, where gross residential yields hover around 7.7% when including much riskier or speculative markets.

Within Udine itself, we can break it down by apartment type:

Smaller units are significantly more profitable: a 1-bedroom can exceed 12% gross based on these figures, which is very high for an Italian city, while the profitability of 3-bedroom apartments drops below 5%. This reflects a fairly classic reality: strong demand for smaller units (students, young professionals, couples), and less stretched sale prices for 1-bedroom/2-bedroom units compared to larger apartments sought by families.

Here too, 2-bedroom apartments dominate in yield (7.5%). At the provincial level, the maximum average potential is estimated at 7.21% for an apartment.

City center vs. outskirts: playing on the yield differential

Indicators such as the price-to-rent ratio and gross yield confirm the interest in investing slightly outside the hyper-center.

– Gross yield in the city center: 4.96%

– Gross yield outside the center: 7.22%

– Price-to-rent ratio in the center: 20.16

– Price-to-rent ratio outside the center: 13.85

Which neighborhoods to target in Udine?

Beyond the broad statistical areas (North, South, East, West, Center), several neighborhoods or clusters stand out for an investor.

Centro Storico: heritage showcase and short-stay hotspot

The historic center is clearly the most expensive area, but also the most liquid and sought-after.

The Centro Storico concentrates the great squares (Piazza della Libertà, Piazza San Giacomo), the castle, shops, cafes, and osterie. It is the tourist heart of the city and the area with the highest rents per square meter. Commercial streets like Via Mercatovecchio, just north of Piazza della Libertà, attract a clientele willing to pay a premium to be “in the middle of it all.”

This area suffers from some constraints (limited parking, restricted car traffic), but these are almost an advantage for investors targeting short-term rentals or car-free rentals: the neighborhood is designed for pedestrians and city-breakers.

For an investor, the Center is therefore:

Rizzi, Cormor-Rizzi-Viale Venezia, Chiavris-Paderno: the attractive residential belt

North of the city, Rizzi and the Cormor-Rizzi-Viale Venezia area form a modern residential complex, very popular with families. You’ll find green spaces, playgrounds, supermarkets, schools: everything needed for stable long-term rental demand.

Nearby, Chiavris and Chiavris-Paderno are described as quiet, residential neighborhoods, with more affordable rents and quick bus access to the center. This is typically the kind of area that allows you to aim for the gross yield of over 7% observed outside the center, while benefiting from a good quality of life, which limits vacancy risk.

San Rocco, Udine South, Cussignacco: for family rentals and tighter budgets

To the south, neighborhoods like San Rocco, about a fifteen-minute walk from the city walls, offer a quiet residential atmosphere, sought after by professionals looking for calm but well connected.

Further south, Udine South and Cussignacco offer large homes with parking, suitable for families and groups. These areas are cheaper to buy and particularly suitable for:

– long-term rentals for families;

– student shared housing configurations;

– medium-term furnished rentals for workers on assignment.

San Gottardo, Laipacco-San Gottardo, San Paolo-Sant’Osvaldo: authenticity and tight budget

San Gottardo and Laipacco-San Gottardo are known for their authentic feel, with traditional trattorie and neighborhood markets. Accommodation here is budget-friendly, which translates to contained purchase prices and potentially high yields, provided the location is well chosen.

San Paolo-Sant’Osvaldo has a similar profile: residential neighborhood, with less stretched prices than the center, but decent connections to the city.

Borgo Pracchiuso and Borgo Stazione: historic charm and transport hub

Borgo Pracchiuso, close to the castle and museums, stands out for its historic and picturesque atmosphere. It is an interesting area for small charming units, targeting a tourist clientele or residents sensitive to character.

Borgo Stazione, on the other hand, benefits from direct access to the train station and Viale Europa Unita. This area attracts business travelers, people passing through, and those using Udine as a hub to Trieste, Venice, or Austria. For an investor, it is a prime location for short or medium-term rentals, well connected.

Long-term rentals: solid and diversified demand

Investing to rent year-round in Udine rests on several demand pillars.

A well-stocked university city with students

The University of Udine has between 10,000 and 15,000 students. This population generates sustained demand for studios, 1-bedroom apartments, and shared housing in 2-3 bedroom units, especially in areas close to the campuses and well served by transport.

For an investor, this means: a commitment of financial resources in assets or projects with the expectation of future returns. This involves risk analysis and opportunity assessment in order to optimize the return on investment.

– good tolerance for “modest but well-located” products;

– high turnover potential, but low vacancy if the property is correctly positioned (price, equipment, proximity).

A significant base of local households

The municipality of Udine has just under 100,000 inhabitants, with a high proportion of families, employees, and skilled professionals. The city is described as one of the main lifestyle hubs of Friuli, with good quality services (schools, healthcare, transport), making it a solid residential market.

Microeconomic data confirms this profile:

– average net monthly salary around €1,556;

– price-to-income ratio at 6.71, which remains reasonable on a European scale;

– a marked preference of local households for move-in ready properties, well located, with increasing attention to energy efficiency.

Rents on a continuous rise

Rents have been increasing in Udine for at least eight years without interruption, and further growth of around 3.9% is expected in the 12 months following October 2025. This trend is consistent with the overall Italian context, where access to homeownership is becoming more difficult, pushing part of the demand toward renting.

For the investor, this means a non-negligible probability of increasing rents over time, especially if energy renovation or comfort improvement works are carried out.

Short-term stays and seasonality: an interesting yield supplement

Udine is neither Venice nor Florence, but its short-term rental market is far from negligible. Available data provides a quantified overview.

Average performance of short-term rentals

The vacation rental market in Udine has about 294 active listings, mostly entire apartments. Average figures are as follows:

– average daily rate (ADR): around €85;

– average occupancy rate: 66%;

– average annual revenue per property: close to €20,000.

Breaking down the year, we see a marked seasonality, but milder than in beach or ski resorts:

– high season (summer, especially August): monthly revenue around $1,700–$1,800, occupancy close to 50%, ADR around $120–$125;

– shoulder seasons: average revenue around $1,500, occupancy around 45%, ADR around $110;

– low season (January, February, November): revenue around $1,100, occupancy close to 35%, ADR around $100–$105.

Top-performing listings (top 10%) exceed $2,700 in monthly revenue, with occupancy rates of 80% and above, and ADRs over $170.

Which neighborhoods work best for short stays?

The historic heart around Piazza della Libertà and the castle remains the number one target for vacations and city breaks, especially for accommodations for 2 to 4 people. The station area and Viale Europa Unita attract transit travelers and professionals.

Events and demand peaks

Udine is not an extreme market in terms of seasonality, but several events boost demand:

With dynamic pricing management (markups on event dates, fine-tuning in low season), it is possible to outperform market averages.

Short-term rental regulations

The Friuli-Venezia Giulia region, and Udine in particular, apply quite strict regulations on tourist rentals: near-systematic licensing, reporting obligations, and a high share of already registered listings (around 72% according to some sources).

For the investor, this requires: a rigorous examination of investment opportunities and an adapted strategy.

– to inquire precisely about regional and municipal procedures;

– to budget for compliance costs (tourist tax, safety obligations, etc.);

– to favor a professional operating structure if targeting multiple properties.

The positive side is that this regulation limits wild competition and protects the quality of the rental stock and the living environment in the long term.

The province of Udine: between UNESCO, sea, and gastronomy

Investing in Udine is not limited to the city. The province holds several interesting niche markets with very different profiles.

Cividale del Friuli: UNESCO heritage and cultural tourism

A UNESCO World Heritage site, founded by Julius Caesar and former capital of the first Lombard duchy, Cividale del Friuli combines historical assets with a spectacular setting above the Natisone Gorges.

You’ll find prestigious properties (vineyards, villas, renovated village houses) targeting an international clientele attracted by wine tourism and heritage. Prices are obviously higher for these products, but the potential for heritage appreciation is strong.

San Daniele del Friuli: capital of prosciutto

On a hill, San Daniele is the gastronomic heart of the region, world-famous for its ham. The town hosts a major summer festival dedicated to prosciutto, creating a seasonal demand spike for accommodation.

Palmanova: star-shaped fortress and character real estate

Another UNESCO site, Palmanova is a star-shaped fortress city built by the Venetians in the Renaissance. The housing stock includes historic palaces, townhouses, and apartments in old buildings, sometimes with very high-end products (e.g., properties over €800,000).

Lignano Sabbiadoro: the seaside side

On the coast, Lignano Sabbiadoro is the province’s major seaside resort. Prices are significantly higher, especially for apartments (average €4,452/m², despite a slight recent decline), while houses trade around €2,918/m² (rising).

The seasonal rental potential is strong, but seasonality is much more pronounced than in the city of Udine. This is more of a market for investors already experienced in seaside properties, or with a view to a second home heavily offset by rental income.

Financing and taxation: what an investor should anticipate

Investing in Italy, and therefore in Udine, requires a good understanding of financing and tax rules.

Access to credit: favorable but selective conditions

Mortgage interest rates in Italy have recently been between 2.7% and the middle of the 3% range on average, with stricter conditions for non-residents.

Key points to remember:

– most banks finance up to 70–80% of the price for residents, and more like 50–60% for non-residents;

– monthly payments must not exceed 30–35% of net monthly income;

– loans exceeding 80% of the property value are very rare;

– non-residents are often offered shorter terms (15–20 years) and higher rates (often 1–2 percentage points higher than residents).

Available options are varied: fixed rate, variable rate indexed to Euribor, hybrid, or mixed fixed/variable. “Green mortgages” offer better rates for highly energy-efficient properties (classes A or B), which can appeal to renovation-focused investors.

Purchase taxation: registration tax, VAT, notary fees

When purchasing, you need to factor in a total transaction cost (taxes, notary, agency) of around 10–15% of the price.

Annual taxes: IMU, waste tax, rental income tax

A property held in Italy is subject to several recurring charges:

Capital gains realized upon resale are, in principle, taxed if the property is sold within five years of purchase. Beyond that, exemption is possible in many cases. For non-residents, a flat 26% withholding tax may apply on the capital gain, collected directly by the notary.

International taxation and treaties

Italy has signed tax treaties with more than 100 countries to avoid double taxation. Generally, real estate income is taxable in the country where the property is located (thus Italy for a property in Udine), with a possible tax credit in the owner’s country of residence.

Holding through an Italian company or a real estate investment fund (REIF, SIIQ) can offer certain tax and structuring advantages, but these setups are more suited to professional or highly capitalized investors.

A structurally supportive market: rising demand, limited supply

What makes investing in Udine particularly interesting right now is the combination of several underlying trends.

Strongly rising demand, declining supply

Data from Immobiliare.it for 2025 is telling:

– in the municipality of Udine, demand jumped 26% in one year;

– supply (number of properties for sale) fell by 15%;

– prices rose 9% over the same period;

– at the provincial level, demand increased by 21%, prices by 3.8%;

– at the regional level, demand rose by 16.7% and prices by 5%.

Public policies favoring renovation and urban regeneration

The Friuli-Venezia Giulia region and the province of Udine are heavily betting on rehabilitating existing buildings rather than urban expansion.

– up to €60,000 in aid covering 50% of expenses for converting commercial or industrial spaces into housing;

– a future call for projects targeting major interventions on buildings, blocks, or degraded areas, with contributions exceeding €300,000.

Local authorities have clearly identified “intelligent recovery of the past” as the key to the future real estate market. For an investor, this means opportunities in the conversion of old workshops, warehouses, offices, or shops, provided well-structured projects are put together and competent professionals are engaged.

Udine vs. major Italian cities: risk/return profile

How does Udine compare to the champions Milan, Rome, Florence, or even Trieste?

In return, Udine does not offer the same potential for explosive capital gains as some neighborhoods in Milan or Florence driven by events like the 2026 Winter Olympics or a massive influx of foreign capital. Instead, it is more of a “blue-chip” market, oriented toward preservation and stable returns.

Concrete investment strategies in Udine

From this overview, several strategies emerge for investing in real estate in Udine.

1. Small units in the center or semi-center for a mix of long-term/medium-term rentals

Objective: secure demand (students, young professionals, small households) with the possibility of occasionally operating on a medium-term or seasonal basis.

Typical target:

– 1 or 2-bedroom units around €60–120,000;

– location in or near the Centro Storico, or in well-served neighborhoods like Rizzi, Chiavris, Borgo Stazione;

– property already renovated or easy to modernize to capture the quality premium (energy, comfort).

With possible gross yields above 7% outside the center and low vacancy, this strategy suits an investor seeking stable cash flow, without excessive exposure to tourism.

2. Family apartments in established residential neighborhoods

Objective: target rental security and slow but steady property appreciation.

Typical target:

Gross yields will generally be more modest (4.5–6%), but the stability of demand and the solidity of the local fabric reduce macro risk.

3. High-end product for short-term rentals in the historic center

Objective: maximize income per square meter by targeting a tourist and business clientele.

Typical target:

– small charming apartment (studio, 1 bedroom) in the Centro Storico or immediately adjacent (Borgo Pracchiuso, Via Mercatovecchio);

– very high-standard renovation, professional management, strong price optimization according to season and events.

4. Betting on urban regeneration and conversion

Objective: take advantage of regional subsidies and the price differential on undervalued assets (former shops, offices, workshops) to create housing.

Typical target:

– buildings or parts of buildings to be converted into apartments;

– location in changing areas or near transport axes;

– structuring projects eligible for aid (up to 50% of costs in some cases).

This type of investment is more technical, but corresponds exactly to the political and economic direction taken by the region. In the medium term, it can generate significant capital gains, while helping to address the housing shortage.

In summary: why Udine has all the makings of a real estate “safe bet”

Investing in real estate in Udine means betting on a market:

– where demand is growing fast (+26% in one year in the municipality) while supply is becoming scarcer (-15%);

– where prices are rising quickly (+9% in one year) but remain far below major Italian hubs;

– where gross yields are often above 6%, and sometimes exceed 8–12% on certain small units;

– where rental demand is diversified (students, families, workers, cultural tourists, professionals), reducing dependence on a single segment;

– where public authorities are clearly focused on rehabilitation, urban quality, and innovation rather than a speculative race.

The key to success, as always in real estate, will be careful selection: choosing the right neighborhood, property type, level of renovation, and rental strategy, relying on local professionals (notary, lawyer, surveyor, agency) and a good understanding of Italian financing and tax rules.

In this context, Udine has all it takes to become, in an investor’s portfolio, the “stable yield and peaceful asset” line that offsets riskier bets taken in other Italian or European cities.

Cyril Jarnias

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.

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