Real estate market in Trentino Alto Adige: current situation

The semi-annual Immobiliare.it Insights report showed that both sale and rental prices of real estate in the autonomous region of Trentino Alto Adige have increased over the past six months. For example, the cost of buying a house has increased by 3.4% compared to the beginning of the year to an average of 3,349 euros per square meter, while renting a home now costs 12.5 euros per square meter with an increase of 3.3%.

Sales and mortgages

The main indicators show an increase in supply on the real estate market in the last half of the year by about 3.2%, with a stable rate in the previous half of the year as well. However, despite the increase in supply, demand is down 4.5% in the last half of the year. There is also a negative trend in the percentage of apartments available for purchase with a mortgage for people with average income. Trentino recorded a 10% decrease for singles, a 2.4% decrease over the last six months. The most unaffordable area is the city of Bolzano, where only 0.7% of housing is affordable for middle income. For couples, the affordability percentage is 27%, but even then it fell by 4.5% in the last half of the year.

Trends in buying and selling by city

The silver medal as the most expensive city in Italy to buy real estate is Bolzano, second only to Milan. The average price is 4737 euros per square meter.

The rental market

The supply of rental properties fell by 10.4% in the first half of the year, despite a 3.7% increase in demand in the last quarter. At the same time, demand is up about 12.2% for the half-year.

Trends in the rental sector by city.

The province of Bolzano is the most expensive area to rent among the cities with an average price of 15.2 euros per square meter, despite a decrease of 3% over the half year. Rents are also rising in Bolzano (+5.7%) and in the province of Trento, where they almost reached 10% for the half-year. At the same time, Trento is the most affordable city for rental housing at 11.1 euros per square meter, and here rents decreased most significantly over the half-year (-4.2%).

The demand trend divides the region: the city and province of Trento are in a growth phase, while South Tyrol is experiencing a 10% decrease in demand in both the city and the province of Bolzano. On the supply side, Trento and the province are shrinking, following the regional trend, while Bolzano and the province are accumulating rental supply.