Latest trends in the Italian rental market

Renting apartments and houses in Italy continues to be the only option for many of its residents, who do not have the opportunity to acquire their own housing, even with mortgage lending. However, due to the introduction of an immigration program for “digital nomads” in the Apennines, the circle of people interested in renting housing in Italy is significantly increasing.

Rental rates have also been rising for quite a long period of time, which is not least due to inflation, which shows no signs of slowing down. As the financial and economic crisis worsens and the cost of living increases, inflation continues to affect rental costs in Italy.

Idealista forecasts that by the end of 2022, rents in Italy will increase by an average of 55 euros per month (660 per year) for a three-bedroom apartment, but the situation varies quite a bit depending on the city. Thus, tenants in Milan will have to pay 80 euros per month more compared to last year, in Bolzano the rent will increase by 70 euros, and for Rome the increase will be 63 euros per month. This type of residential property was chosen as a reference because it is the most popular among those wishing to rent a home in Italy.

In turn, the site notes an increase in prices for rental apartments and villas in Italy by 9% year on year. In September 2022, the largest increase was recorded in the islands (11.3%), in the northeast (10.1%) and northwest (8.2%) of the country. Among the large cities, rent increased most noticeably in Verona (10.8%), Bologna (7%) and Naples (+5%). An increasing trend in rental prices was observed in 15 of the 20 regions, with only Lazio showing no change. On average in Italy, the rental rate reached 12 euros per square meter per month by October 2022, and it was higher only in Val d’Aosta (17.3), Lombardy (15.8), Trentino-Alto Adige ( 14.4), Tuscany (14.3), Lazio (12.8) and Emilia-Romagna (12.7).

The average rental income in Italy is about 5% per annum, based on a two-bedroom city apartment with an area of ​​65 sq.m. The highest rates occurred in Genoa (6.2%), Verona (6%), Palermo (5.9%), Naples (5.8%) and Rome (5.4%). At the same time, the profitability of commercial real estate, including office premises, is noticeably higher than residential – approximately one and a half times.

At the same time, there is an increase in demand for residential real estate intended for rent to students. This trend is most clearly visible in such large “university” cities as Bologna (29%), Florence (16%), Milan and Pisa (10% each). For a single room in student residences, university students pay an average of 325 euros per month versus 210 euros for a bed in a double room. In addition to price, proximity to transport (71.4%) and directly to an educational institution (69.4%) is of decisive importance for them, but all this is provided by high-quality and cheap access to Wi-Fi.

In connection with all of the above, the demand for joint rental of residential real estate, when several people live in the same apartment, is increasing. However, during 2022 the number of such offers decreased by 43%, and their largest drops were recorded in Lecce (-64%), Cagliari (-64%), Bari and Milan (both -61%), and Bologna (- 53%), Florence (-52%), Rome and Naples (-48% each).

Rent a separate room in an Italian apartment will cost an average of 365 euros per month: the most expensive are in Milan (500), Bologna (430), Rome (425) and Turin (400). This is approximately 3% more than last year. However, in localities with a high concentration of students this figure is much higher – for example, in Padua it is 25%, in Ferrara 24%, in Bologna 22.9%, and in Palermo 19.7%.

However, rooms in Italy are rented not only by students, but also by citizens of other countries working here. The average age of tenants is 32 years old, they prefer areas a short distance from the center, with good transport links, do not smoke, do not have pets and want their neighbors to adhere to the same rules.

Source link