Rents are growing in Italy: +3.5% in one year
The rental market has recorded a 3.5% increase in rents in the last year, settling at one average of 11.4 euros per square meter per monthi, according to the latest report published by idealista, the leading real estate portal for technological development in Italy. While both the change in the fourth and last quarter of the year is negative (-5%), and that relating to the month of December (-0.5%).
According to Vincenzo De Tommaso, head of idealista’s research office: “In 2022, the imbalance between supply and demand in the residential rental sector worsened. Lack of available housing stock and inflation have pushed prices through the roofwith double-digit increases in many major markets such as Milan, Bologna, Florence, Genoa and Turin”.
“Fewer homes and more customers – explains – have as a consequence the strong tensions on prices, even if, in the last part of the year, there was a slowdown perhaps due to the fact that, at the current price level, together with inflation which reduces the possibility of paying of the tenants, the maximum level may already have been reached. This trend which, if confirmed, could freeze rental prices in some areas in 2023, a year that promises to be difficult for renting, also thanks to the increasingly high interest rates which lead many young people to hesitate with the purchase of a house by opting for a lease”.
In most of the Italian capitals – 71 centers out of 87 monitored – growth is progressing, with double-digit increases in as many as 27 cities, from small centers such as Potenza (22.4%), Catanzaro (19.1%) and Verbania (18 .5%), which are driving the increases recorded in the last 12 months, to the leading residential rental markets such as Venice (17.4%), Bologna (12.5%), Turin (12.4%), Genoa (12.3%), Milan (11.2%) and Florence (11%). In any case, increases higher than the average for the period also for Rome (6.8%), Naples (6.1%) and Palermo (4.1%). At the opposite end of the ranking, the greatest contractions affect Ravenna (-7.2%), Cuneo (-6.4%) and Biella (-2.9%).
Milan is also confirmed in 2022 as the queen of rental prices with its 21 euros per square metre, reaching an all-time high since the idealist index was introduced (2012). This is followed by Venice (17.6 euro/m2), Florence (16.3%) and Bologna (15.8 euro/m2).
Rome (14 euro/m2) and Naples (12 euro/m2) are at the fifth and eighth step of the ranking. On the opposite side, the cheapest capitals where to rent a house in Italy are Caltanissetta (4.3 euro/m2), Vibo Valentia (4.4 euro/m2) and Biella (5.7 euros/m2).
The positive trend in real estate prices affects almost all Italian regions, with the exception of Lazio, where rental prices have fallen by 1.1% over the past year. The largest increases concern Emilia-Romagna (31.2%), Trentino-Alto Adige (25.2%) and Molise (21.2%). The other regions report variations contained between 9% of the Valle d’Aosta and 0.8% of Umbria.
Lombardy (15.2 euro/m²) is the region where the cost of rent is higher, followed by Trentino-Alto Adige (15.1 euro/m²) and Valle d’Aosta (14.8 euro/m²). Values higher than the national average also for Emilia-Romagna (14 euro/m2), Tuscany (13.9 euro/m2) and Lazio (12 euro/m2). All the other regions settle on prices lower than the national average of 11.4 euros per month, from 10.9 in Liguria, down to 6.5 euros in Molise and Umbria, the most convenient regions for renting a motionless.
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