Buying or renting real estate in Italy in2024? Pros and cons.

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The international real estate market is facing a tough year ahead.

According to experts' forecasts, demand for housing in Italy fell by double-digit percentages in 2023, prompting reflections on what is more advantageous – buying or renting a home. In the U.S., some specialists say the priority is shifting towards renting, while buying is becoming less attractive. So, what will the real estate market in Italy look like in 2024?

The situation in the real estate market across the ocean has not followed logic for four years now.

The pandemic did not lead to a collapse in prices; on the contrary, they have risen sharply. Last year, mortgage rates reached their highest point in 23 years, and sales volume dropped significantly. However, housing prices continue to rise steadily, creating the least affordable real estate market in the U.S. in decades, as noted.New York TimesBut in 2024, everything could change: currently, more apartments are being built in the U.S.

than in the last fifty years, with a significant portion of them intended for rent. Thus, while buying a home remains a painful experience, renting an apartment is becoming increasingly easier.

At the same time, in Italy, it cannot be said with certainty that 2024 will be the year of renters.

But, most likely, this will not be a year for those looking to buy real estate. "Inflation is falling and economic uncertainty is decreasing, but there are still some dark spots because demand for mortgages may decline due to reduced incomes," said Mario Brelia, president of Scenari Immobiliari, to the Corriere della Sera newspaper. "In this situation, the simplest solution for families will be to postpone their purchase for better times," he added. The expert also emphasized that the number of new constructions is decreasing, and the quality of offerings is deteriorating, so expectations for improvement are being "pushed to 2025."

Despite the fact that rent is becoming increasingly expensive, the demand for it continues to grow.

“The decline of the logic of a permanent workplace is leading to increased mobility and demand for housing outside major cities, primarily for rental. This requires the adoption of legislative measures to make renting safer for owners,” says Francesco La Commare from Fiaip in an interview with Corriere. According to forecasts from Tecnocasa, the demand for rentals will continue to grow due to strong demand, although rental rates will still rise due to a lack of supply and the return of short-term rentals.