Investment Property in Naples

Invest in Real Estate in Naples

Naples property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Naples .

Search Map of Naples Investment Real Estate

Naples (; Italian: Napoli [ˈnaːpoli] (listen); Neapolitan: Napule [ˈnɑːpələ, ˈnɑːpulə]) is the regional capital of Campania and the third-largest city of Italy, after Rome and Milan, with a population of 909,048 within the city’s administrative limits as of 2022. Its province-level municipality is the third-most populous metropolitan city in Italy with a population of 3,115,320 residents, and its metropolitan area stretches beyond the boundaries of the city wall for approximately 20 miles.

Founded by Greeks in the first millennium BC, Naples is one of the oldest continuously inhabited urban areas in the world. In the eighth century BC, a colony known as Parthenope (Ancient Greek: Παρθενόπη) was established on the Pizzofalcone hill. In the sixth century BC, it was refounded as Neápolis. The city was an important part of Magna Graecia, played a major role in the merging of Greek and Roman society, and was a significant cultural centre under the Romans.

Naples served as the capital of the Duchy of Naples (661–1139), subsequently as the capital of the Kingdom of Naples (1282–1816), and finally as the capital of the Kingdom of the Two Sicilies — until the unification of Italy in 1861. Naples is also considered a capital of the Baroque, beginning with the artist Caravaggio’s career in the 17th century and the artistic revolution he inspired. It was also an important centre of humanism and Enlightenment. The city has long been a global point of reference for classical music and opera through the Neapolitan School. Between 1925 and 1936, Naples was expanded and upgraded by Benito Mussolini’s government. During the later years of World War II, it sustained severe damage from Allied bombing as they invaded the peninsula. The city received extensive post-1945 reconstruction work.

Since the late 20th century, Naples has had significant economic growth, helped by the construction of the Centro Direzionale business district and an advanced transportation network, which includes the Alta Velocità high-speed rail link to Rome and Salerno and an expanded subway network. Naples is the third-largest urban economy in Italy by GDP, after Milan and Rome. The Port of Naples is one of the most important in Europe. In addition to commercial activities, it is home to the Allied Joint Force Command Naples, the NATO body that oversees North Africa, the Sahel, and the Middle East.

Naples’ historic city centre is the largest in Europe and has been designated as a UNESCO World Heritage Site. A wide range of culturally and historically significant sites are nearby, including the Palace of Caserta and the Roman ruins of Pompeii and Herculaneum. Naples is also known for its natural beauties, such as Posillipo, Phlegraean Fields, Nisida and Vesuvius. Neapolitan cuisine is noted for its association with pizza, which originated in the city, as well as numerous other local dishes. Restaurants in the Naples’ area have earned the most stars from the Michelin Guide of any Italian province. Naples’ Centro Direzionale was built in 1994 as the first grouping of skyscrapers in Italy, remaining the only such grouping in Italy until 2009. The most widely-known sports team in Naples is the Serie A football club S.S.C. Napoli, two-time Italian champions who play at the Stadio Diego Armando Maradona in the southwest of the city, in the Fuorigrotta quarter.

The financial stability of Naples has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Naples

Renting out your Naples buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Naples are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Naples and be prepared to change your initial outlook.
Thoroughly research the Naples location with a special emphasis on fringe areas outside the main Naples metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Naples.
Ensure that your target investment property in Naples appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

With our expert guidance, investing in Naples provides the secure knowledge that your money is working harder than it would in a local Naples bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Naples, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Naples property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Naples

Flipping property in Naples

Flipping property is when we advise clients to buy a Naples property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Naples market has a time to react to the renovation.

The Flipping Strategy in Naples

Investment property flipping in Naples is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Naples real estate investments are sometimes referred to by professionals as ‘distressed’ Naples real estate.

What is distressed Naples property:

Naples property in need of renovation
Naples real estate with a change of purpose and use
Oversold Naples property
Bank repossessions in Naples

Put simply, long term investors in Naples purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Naples investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Naples property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Naples use a minimum profit value of 22% when looking at potential Naples projects.

The reason for this is because there are lots that can go wrong in Naples property flipping and working on a potential margin of 22% should still leave a good margin of error.

Invest through a Fund in Naples

Property Secured Investments is a Private Equity fund that invests in Naples and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Naples

For luxury property investors hoping to add a superb property in Naples to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Naples, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Naples should be entrusted to only the highest-quality agency.