Published on and written by Cyril Jarnias
Investing in real estate in Novara is attracting more and more Italian and foreign buyers. The city, the second-largest urban center in Piedmont after Turin, is located just a few dozen miles from Milan, at the intersection of major European road and rail routes. With a market still affordable compared to neighboring metropolises, yet dynamic and driven by ambitious development projects, Novara is establishing itself as a destination worth watching for rental or wealth-building investments.
This article summarizes all key data for investing in Novara: prices, rents, rental yields, taxation, and development prospects. It addresses investors interested in various property types, from student studios to upscale villas, including new-build energy-efficient homes.
A Real Estate Market That Is Dynamic but Still Under the Radar
The starting point for assessing the appeal of investing in Novara real estate is the snapshot of the residential market. The municipality has just over 102,000 residents, a fairly stable long-term population, with slight recent growth due to a positive net migration balance. In other words, the city continues to attract new residents, while natural demographic growth is declining, as in most Italian cities.
In June 2025, the average asking price for homes for sale in the municipality was around €1,607/m².
Another source puts the average apartment price at €1,730/m², slightly above this overall average. This level is about 17% higher than the regional Piedmontese average (€1,465/m²) and 21% above the provincial average (€1,420/m²). This confirms that the city center of Novara is at the top end of the local range but remains very affordable on a national scale.
To get a finer sense of the dynamics, we can look at more recent trends: over twelve months, house prices are estimated to have fallen very slightly (‑0.1%), while apartment prices increased by about (5.6%). The market is therefore clearly shifting toward multi-unit housing, which is more accessible and more liquid.
Prices Far Below Milan, but Catching Up
Compared with major Italian cities, Novara remains a cheap alternative. In the category of cities between 100,000 and 500,000 inhabitants, the average level is, for example, 62% lower than Florence, one of the most expensive markets, while being 92% higher than Reggio Calabria, one of the cheapest in the country. So it is an intermediate market, neither speculative nor depressed.
The price per square meter in the center of Novara is about 71.5% lower than in Milan.
Rental Real Estate in Novara: Rent Levels and Profitability
For an investor, rent levels and returns are key factors. The Novara rental market is characterized by moderate rents, but which, as a proportion of purchase prices, yield attractive gross returns.
In June 2025, the average asking rent for residential properties was €9.82/m² per month, very slightly up from the previous year (€9.77/m²). Again, we see an increase, but no boom. Over two years, rents have fluctuated between a low of €9.12/m² (September 2023) and a high of €9.92/m² (March 2025).
Average Profitability and Price-to-Rent Ratios
Aggregated data allows us to quantify rental profitability. At the municipal level, the price-to-rent ratios are as follows:
| Indicator | City center | Outside center |
|---|---|---|
| Price-to-Rent Ratio | 20.69 | 20.00 |
| Gross Rental Yield | 4.83% | 5.00% |
In concrete terms, an investor buying an average apartment in the city center would theoretically recoup their purchase price in just over 20 years of gross rents, slightly less in the suburbs. In practice, the net profitability will obviously depend on taxation, expenses, vacancy periods, and management fees.
This is the average gross return on a real estate investment in the province, calculated based on an average price of €120,000 and a median monthly rent of €730.
Typical Rent Levels in Novara
Typical monthly rents confirm this affordable city positioning:
| Type of Housing | Location | Typical Monthly Rent |
|---|---|---|
| 1-bedroom apartment | City center | €575 (range €500–650) |
| 1-bedroom apartment | Outside center | €390 (range €300–480) |
| 3-bedroom apartment | City center | €950 |
| 3-bedroom apartment | Outside center | €700 |
With an average net salary of about €1,700 per month, the burden of rent remains reasonable for a large number of households, which limits the risk of defaults and supports rental demand, particularly for small units.
Compared to Milan, renting a property in Novara costs between 58% and 67% less, depending on the type of property and its location. This cost difference enhances the city’s appeal for teleworkers, commuters, and students, who are willing to move away from the big metropolis in exchange for a lower cost of living.
Where to Invest in Novara: Overview of Neighborhoods and Prices
The Novara market varies greatly by area. The differences in price per square meter, both for purchase and rent, offer varied opportunities depending on the investor’s profile, budget, and strategy (yield vs. capital gains).
Major Residential Areas: Selling Prices and Rents
Data from June 2025 provides a clear map of the main sectors of the municipality:
| Zone/Neighborhood | Average Selling Price (€/m²) | Average Rent (€/m²/month) |
|---|---|---|
| Centro | 1,997 | 10.87 |
| Porta Mortara, Sacro Cuore, San Martino, San Paolo | 1,800 | 9.54 |
| Bicocca, Cittadella, Villaggio Dalmazia, Torrion Quartara, Olengo | 1,542 | 8.98 |
| Santa Rita, Sant’Antonio, Sant’Andrea, San Rocco | 1,459 | 9.33 |
| Veveri, Vignale | 1,348 | 8.27 |
| Sant’Agabio, Pernate | 1,115 | 8.02 |
| Lumellogno, Pagliate, Casalgiate, Gionzana | 796 | 9.29 |
The Centro and Centro Storico command the highest prices, logically linked to centrality, the presence of shops, services, and the heritage value of the buildings. Conversely, the more outlying hamlets, such as Lumellogno or Gionzana, have very low selling prices, sometimes below €800/m², while maintaining relatively high rents. This differential opens up prospects for significant returns, at the cost of a rental and liquidity risk that must be analyzed more closely.
Focus on the Centro Storico: Heritage Heart and Safe Bet
The Centro Storico, with its pedestrian alleys, lively squares, churches, and historic buildings, is the most prestigious area of Novara. Recent data confirms this. In February 2026, the average asking price reached €2,414/m², up nearly 5% year-on-year. Over two years, the low was around €2,173/m² while the high was close to €2,417/m², evidence of a tight but relatively stable market.
Average rent in euros per square meter in the Centro Storico in February 2026, slightly down from the previous year.
For an investor, the Centro Storico is first and foremost a long-term safe haven: strong demand for primary residences, tourist appeal, scarcity of supply, and very good value retention. Gross profitability is a little lower than in peripheral neighborhoods, but liquidity on resale and resilience in a crisis partly compensate for this trade-off.
Intermediate Residential Neighborhoods: Compromise Between Price and Demand
Areas like San Martino, Sacro Cuore, Santa Rita, or San Rocco form the “belt” residential area sought after by families and executives. Prices start around €1,450–1,800/m², with rents between €9 and €9.5/m². Here you’ll find spacious apartments, semi-detached houses, and villas, often with green spaces, schools, and local services.
In these neighborhoods, demand is high for homes in energy classes A and B. A shortage of modern housing is noted, especially for skilled professionals and students. New upscale developments are therefore concentrated in these areas, offering new-build, high-energy-performance products. Their prices, albeit above the local average, remain competitive compared to major metropolises.
Peripheries and Hamlets: High Potential Returns, But More Risk
Hamlets such as Lumellogno, Pagliate, or Gionzana are distinguished by extremely low purchase prices, sometimes at the level of a single parking space in a large Italian city. Yet the rents recorded do not collapse proportionally, hence high theoretical gross returns.
However, these areas carry more risks: more frequent rental vacancies, distance from universities or employment centers, car dependency, often poor property quality. According to local professionals, low-quality properties in the periphery have already lost 30% to 40% of their value since the start of the Italian property crisis, and this trend was not completely finished. These are therefore niche markets, reserved for very selective investors willing to undertake major renovation work or repositioning strategies.
Property Types, New Projects, and Specific Opportunities
Investing in Novara real estate is not limited to old apartments. The city is experiencing sustained activity in new construction, rehabilitation of former sites, and development of residential or mixed-use neighborhoods.
New Residences: Energy, Comfort, and Customization
Several new developments illustrate the upgrading of certain areas.
In the Bicocca district, the “Residenza di Via Sapri” plans the construction of two six-story buildings, each comprising ten apartments, with cellars and 24 parking spaces. Unit sizes range from 65 to over 200 m², including one-bedroom, two-bedroom, large family apartments, and penthouses with terraces and a solarium pool. All in energy class A/3, with prices starting at €2,500/m² and total budgets between €161,000 and €603,000. The possibility of customizing layouts appeals to resident clients, but also to investors targeting high-end, low-energy products well positioned for new European regulations (“Green Homes Directive”).
Projects like “Silone 12” or “Residenza di Maggio” offer new homes at prices from around €210,000 to €518,000 for surfaces of 67 to 190 m². These residences offer modern comfort, good energy performance, and benefit from a strategic location close to the historic center, schools, and transport.
At the same time, there are high-end villa projects, such as “Residenza Crimea,” with prices ranging from €370,000 to €770,000 for generous surfaces (up to 270 m²). These properties clearly target a high-income clientele and are more of a wealth-building or prestige primary residence product than a purely rental investment.
Studios, Small Units, and High-Yield Products
On the small-unit side, the Novara market is particularly strong. Local agencies report continuous demand for studios, studio+ (1-bed), and small 2-bedroom apartments, especially from students, young professionals, or investors targeting short-term rentals. Concrete examples mention studios sold for around €34,000 in the province, with rents of around €600 per month, i.e., theoretical gross yields above 20%.
To increase gross yields beyond the 5% to 9% of the standard residential market, target properties suitable for furnished or short-term rental. For example, a mini open-space apartment near a university and an industrial area, or a studio in a sector like Mortara. These segments, which can announce yields close to 8%, require more active management: tenant rotation, furnishing, and specific marketing.
Land, Properties to Renovate, and Logistics
Beyond strictly residential, investing in Novara real estate can also involve land or development deals.
In the Vignale district, you can find residential building plots (Via delle Rosette), agricultural land (e.g., 14,100 m² near Bicocca), and listed rural complexes in Olengo. These assets, subject to strict planning regulations (PRGC, zoning), may appreciate in value if future urban development occurs.
A particularly interesting case for specialized investors is the new “macro-logistics hub” of Novara. The city council has adopted a strategic plan to create a vast logistics hub between the Novara Est motorway exit and the locality of Pernate, in continuity with the existing intermodal center. Over one million square meters are planned, with four warehouses covering approximately 247,000 m². This type of project, combined with Novara’s exceptional geographical position (intersection of TEN-T corridors, proximity to Malpensa, high-speed rail, and the Genoa–Rotterdam link), strengthens the city’s appeal for logistics, industrial activities, and investors interested in commercial real estate or “last mile logistics.”
Macro Context and Appreciation Prospects
To assess the opportunity of investing in real estate in Novara, the city must be placed in its economic and demographic context, as well as within the general dynamics of the Italian market.
Local Demographics and Economy: Solid Fundamentals
The municipality of Novara has just over 102,000 inhabitants and the whole province about 362,000. After a long period of near population stagnation since the 1980s, the city is experiencing slight growth again, driven by a positive net migration balance. In 2023, for example, the number of registrations in the municipal registers clearly exceeded departures, offsetting a negative natural balance (more deaths than births).
The city’s population is estimated at 130,000 inhabitants by 2060.
On the economic front, the province has a GDP per capita close to the European average, with a diversified fabric: agriculture (especially rice and corn), food, metallurgical, chemical, pharmaceutical, logistics, banking, and insurance industries. More than 28,000 businesses are registered. The significant share of exports in GDP (over 40%) testifies to an open and connected economy. For a real estate investor, this means a fairly solid employment base and a more limited risk of structural decline of the territory.
Major Urban Projects and Ripple Effect
Novara is not just capitalizing on its location. Several structuring projects are underway or planned, likely to have a positive impact on real estate demand and the appreciation of certain areas.
The ‘Città della Salute e della Scienza di Novara’ project, costing over €525 million, includes a 711-bed hospital, a 24,000 m² university building, and a 325,000 m² campus. Its opening is expected to boost the local real estate market through the arrival of healthcare workers, researchers, students, the development of services, and an increase in rental demand nearby.
Other projects contribute to this momentum: creation of a new neighborhood on the former TAV site, with 92 homes, local shops, a gym, a 66-bed dormitory, and urban gardens; transformation of the former “Cavalli” military complex into a modern administrative hub; strengthening the network of bike paths and pedestrian axes in a “soft mobility” logic. Overall, this fits into an urban plan conceived since the early 2000s to reduce through traffic, redevelop brownfield sites, densify reasonably, and create a green belt.
Development operations that improve quality of life, connectivity, and a city’s image support residential demand. In the long run, they contribute to an appreciation of real estate values, particularly in areas close to new service, health, or training hubs.
National Environment: A Cycle of Moderate Growth
On a national scale, the Italian real estate market has entered a phase of maturity. Major benchmark analyses (Immobiliare.it, Nomisma) point to controlled price increases (around 1.5% to 3% per year depending on the segment), stabilization of transaction volumes, and a sharper rise in rents in attractive urban centers.
European policies favoring “green” buildings strongly influence the market. Homes with high energy performance (classes A and B) hold their value better and benefit from more favorable financing conditions, while energy-intensive properties face downward pressure, as buyers factor in the future cost of renovations. In a context of interest rates that have stabilized but are higher than in the past decade, investors are becoming more selective, favoring cities with a good price-to-quality-of-life ratio, well-connected, and with rental growth potential. Novara ticks many of these boxes.
Purchase Conditions and Financing for Investors, Including Foreigners
Investing in Novara real estate, for a non-resident buyer, requires understanding the specifics of the Italian framework, both in terms of eligibility and bank financing.
Access to Property for Non-Residents
Italy allows foreigners to buy real estate, subject to a reciprocity principle for non-EU nationals: the country of origin must grant the same right to Italians. Most Western countries fit easily within this framework. However, owning property in Italy confers no automatic right of residence: standard visa rules apply.
Buyers without tax residency in Italy are generally considered to be purchasing a second home or an investment property. They do not benefit from the same tax advantages as a resident buying a primary residence, and banks generally impose stricter conditions (higher down payment, slightly higher rates).
Bank Financing: Down Payments, Terms, and Rates
For a resident buyer, it is common to obtain a mortgage covering 70% to 80% of the property value, with terms up to 25 or 30 years. Special schemes exist for first-time buyers under 36, with state guarantees sometimes allowing financing of 95% to 100% of the price. For a non-resident foreign investor, the situation is different: banks typically finance 50% to 60% of the price (with exceptional cases up to 70%), for loans of 20 to 25 years, and with a rate premium of about 0.3 to 0.5 percentage points compared to a resident.
Average rate for a 20-year fixed-rate mortgage in Novara.
The institutions most accustomed to working with international clients are the major national banks (UniCredit, Intesa Sanpaolo, Banco BPM, Crédit Agricole Italia, BNL – BNP Paribas) and, in some cases, private banking services for high-net-worth profiles.
Administrative Steps and Timelines
Any acquisition in Italy requires a “codice fiscale”, the equivalent of a tax identification number, issued free of charge by the Italian tax authorities or through a consulate. Opening a local bank account is almost systematically required for setting up the loan and paying taxes.
The application requires standard documentation (identity, income, bank statements, preliminary contract). Foreign documents often need to be translated and legalized. Processing times vary from 3 to 6 months. It is essential to include a loan contingency clause in the preliminary contract to secure the deposit.
Real Estate Taxation in Novara: Taxes, Rents, and Capital Gains
Italian taxation is a crucial component of the investment strategy. It is applied at three levels: upon purchase, during ownership, and upon resale or receipt of rents.
At Purchase: Registration Tax, VAT, and Ancillary Taxes
When purchasing an existing property from a private individual, the main tax is the “imposta di registro” (registration tax). Its rate is 2% when it is a primary residence benefiting from the “prima casa” regime (for a resident meeting strict conditions), and 9% for a second home or rental investment. This percentage generally applies to the cadastral value, often lower than the actual price, which somewhat reduces the tax base.
For a new building or one substantially renovated within the last 5 years, VAT (IVA) replaces the registration tax. Its rate depends on the use: 4% for primary residence (prima casa), 10% for other residential properties, and 22% for luxury or commercial properties. Added to this are two taxes: the cadastral tax (€50 for a prima casa) and the mortgage tax (€50 for a prima casa, otherwise 1% to 2% of the property value).
In addition, there are notary fees (generally between 1% and 2.5% of the price) and agency commissions.
During Ownership: IMU, TARI, and Rental Income Regimes
Once a property owner, every investor must pay local property tax, “IMU” (Imposta Municipale Unica), due on second homes, rental properties, luxury properties, and land. It is calculated on the cadastral value, revalued by coefficients, to which the municipality applies a rate generally between 0.4% and 1.06%. Ordinary primary residences (non-luxury categories) of residents may be exempt, but a non-resident investor will almost always have to pay IMU on properties in Novara.
The waste tax (TARI) is paid by the occupant (owner-occupant or tenant) and depends on both the floor area of the dwelling and the number of occupants.
For rental income in Italy, individual property owners have two main tax regimes to choose from. The first is to include rental income in the overall income tax, subject to progressive rates (23% to 43%). The second, very common regime is the “cedolare secca” system. This is a flat tax of 21% on gross rent (or 10% for certain regulated rent contracts). This flat tax replaces the progressive income tax, the lease registration tax, and stamp duties. This regime is often advantageous for investors who do not need to deduct significant expenses and who seek simplified taxation.
At Resale: Real Estate Capital Gains
In Italy, capital gains realized by an individual upon resale of a property are generally taxable at 26% if the resale occurs within five years of purchase, unless the property was the owner’s primary residence for most of that period. After five years of ownership, the capital gain is generally exempt for individuals.
For an investor with a medium- or long-term horizon in Novara (more than five years of ownership), this framework can be very favorable: the expected price increase over 3 to 5 years (between 15% and 20% according to some estimates) can translate into a net capital gain that is relatively lightly taxed if the resale occurs later.
Risks, Strategies, and Best Practices for Investing in Novara
Like any real estate investment, buying a property in Novara involves specific risks that need to be identified and managed.
Market and Location Risks
The Novara market, while promising, is still marked by the brutal price drop that occurred at the beginning of the Italian real estate crisis, with declines of 30% to 40% on low-quality properties in the suburbs. In these areas, the correction is not always fully complete. Investing in this type of product requires great caution, a precise analysis of potential resale value, and the costs of bringing properties up to standard, especially energy standards.
Central neighborhoods and the “intermediate” residential areas (San Martino, Sacro Cuore, Bicocca, etc.) offer better resilience, sustained demand, and positive exposure to major urban projects. The trade-off is a somewhat more modest gross yield, but the risks of vacancy and depreciation are significantly lower.
Rental and Management Risks
Rental demand for small units is strong, particularly from students and young professionals. Shared housing strategies (renting rooms in large apartments) are developing around universities, making it possible to maximize rent per square meter. However, these arrangements require more nuanced management, well-structured leases, and careful tenant selection.
Faced with a traditional rental market (families, couples) that is sometimes less dynamic, especially due to the easing of credit conditions that makes homeownership easier, it is advisable for investors to carefully calibrate the size of their properties and prioritize flexibility. This may involve offering divisible units or the possibility of renting by the room.
The presence of several property management operators, including those specialized in short-term rentals and “tech-driven” management, can help investors optimize occupancy and income, subject to a proper assessment of the costs of these services.
Regulatory and Environmental Risks
Italy, like other European countries, is gradually tightening its energy performance requirements for buildings. Homes classified in categories F or G are under pressure: they sell less well and require renovation work that can weigh on profitability. Conversely, new or renovated properties in class A or B perform well and sometimes benefit from improved financing conditions (“green mortgages”).
Logistics and infrastructure projects around Novara, while beneficial for the economy, may cause nuisances or changes in land use. The investor should consult urban plans, zoning regulations, and ongoing projects to anticipate any risk, such as a change in the designation of a plot or increased traffic in a residential area.
Risk Management Strategies
To limit risks and maximize return potential, several best practices apply for those wishing to invest in Novara real estate:
– Prioritize locations with good access to transport, universities, hospitals, and employment areas, particularly around the Città della Salute, the train stations, and the historic center;
– Target properties with good energy performance or with profitable renovation potential, to avoid being left with an obsolete asset in the medium term;
– Set aside sufficient financial margins to cover renovations, vacancy periods, possible tax increases, and management fees;
Summary: Why Take a Close Look at Novara Real Estate
Investing in Novara real estate means entering a market that combines several rarely found advantages:
Analysis of the main strengths of the Brescia real estate market for investors, based on key economic and demographic data.
Purchase prices significantly lower than Milan and other large northern cities, but above regional and provincial averages, indicating a solid intermediate positioning.
Potentially high gross returns, sometimes exceeding 8%, especially in the province and on small units.
City well located at the crossroads of major European routes, benefiting from a diversified economic fabric and international openness.
Momentum driven by major projects: hospital-university hub, macro-logistics hub, new neighborhoods, and brownfield redevelopment.
Sustained demand for small units and high-energy-performance housing, driven by students, professionals, and new populations.
Risks exist: possible overvaluation of some old, poorly energy-rated properties, long-term regulatory uncertainties, fragility of certain peripheral neighborhoods. But for an investor willing to learn or get expert advice, able to contribute a minimum of equity and to plan for a medium- or long-term horizon, Novara offers an investment field less saturated than major metropolises, with real potential for appreciation.
For a solid investment, it is essential to consider Novara as a city distinct from Milan, with its own specific market, micro-neighborhoods, demographic flows, and economic logic. The analysis must be carried out neighborhood by neighborhood and project by project to transform theoretical yields into a sustainable strategy.
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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.
