The rental market situation in 2023

In 2023, against the backdrop of rising interest rates and a decrease in real estate transaction volumes, there is a noticeable increase in demand for rentals. According to the 3rd Market Overview Report 2023 from Nomisma, the difficulties families face when purchasing homes are contributing to the growing interest in the rental sector. In particular, over the past year7.3%demand has shifted from purchasing to renting, which further intensifies pressure on an already saturated market. In the second half of 2023, the Real Estate Market Review noted that the shift in interest towards renting has led to a noticeable increase in rental rates, which have risen by2.1%If we look at individual cities, rental prices have increased inMilan, Florence, and Turin.3-4%, and in Bologna - on5%.

Nevertheless, an analysis conducted by the Research Office of idealista, the leading real estate portal in Italy, showed that rental rates across the country decreased in November 2023 by2.1%, averaging12.4 eurosper square meter per month. Despite this temporary decline, there has been impressive growth over the past year.12.1%.

Canon of coordination

When it comes to renting, it's important to mention the so-called "agreement canon." This type of contract allows for the rental of residential property for a minimum term of three years, with the possibility of extending it for an additional two years. To explore this topic in more detail, idealista/news reached out to Eugenio Romeu, president of Confabitare Roma, the local branch of the national confederation of property owners' associations. Romeu noted that the "agreement canon" is of interest for two reasons: the first is the possibility of shortening the minimum rental term, and the second is the availability of tax benefits. He emphasized several aspects related to this specific form of rental.

Cities and areas with high and low rental prices

When researching the rental market, it is also important to pay attention to cities and areas with high and low rental prices. In this regard, in June, idealista/news prepared a table highlighting zones with rental rates below the national average. The table revealed that the lowest rental prices in Italy are concentrated exclusively in the southern regions:

• Spazilli-Oasi Sacred Heartin the municipality of Giuliano in Campania -5.17 eurosper square meter.
• Casacelle-Campopannonealso located in the same municipality -6.62 eurosper square meter.
• Libertyin Palermo -6.85 eurosper square meter.

Rental rates in major cities

As for rental rates in major cities in Italy, according to data from idealista/news, the lowest rental prices are in Palermo.

• Oreto-Falsomiele-Villagrazia -6.45 eurosper square meter.
• Altarrello-Calatafimi-Montegrappa -6.92 eurosper square meter.
• Uditore-Nose-Ziza -7.06 eurosper square meter.

Rental rates are lower.8 eurosPer square meter is also registered in the areas of Cruillas-Resuttana-San Lorenzo (in Palermo) and Barriera di Milano-Reggio Park-Rebaudengo (Turin).

In Naples, the lowest rental rates have been recorded in the Chiaiano-Ospedaliere-Scampia area.8.75 eurosper square meter), while inRome the rent starts from10 eurosfor a square meter in the area of Roma Est-Autostrada. In Bari, those looking to save on rent should pay attention to the Picone-Poggio Franco areas.10.69 eurosper square meter). In Florence, the most affordable area is Rifredi, with a price14.95 eurosper square meter.

The most expensive places for rent

As for the most expensive and sought-after rental locations in Italy based on the results of the third quarter of 2023, idealista/data analyzed listings on the platform and found that the most expensive place to rent housing isForte dei Marmiwhere the average monthly rental cost is5.899 eurosThis confirms the exclusivity of this resort location on the Ligurian coast. In second place isPietrasantawith the rental rate3.402 eurosper month (a decrease compared to previous data), and in third place -Riccionewith2.795 eurosper month.

The situation with high rental prices inRome andMilan

Now let's take a look at the situation with high rental rates inRome andMilan. The capital of Lombardy has the highest rental prices in the country, and research shows that to find more affordable options, it is worth moving to the suburbs. Eight cities aroundMilan offer housing at lower prices.15.4 eurosper square meter. The most affordable housing in this region is located inAbbategrasso (9.7 eurosper square meter), then followLegnano (10 eurosper square meter) andRo (12.7 eurosper square meter). There are also options available at lower prices than the average inMilan.22.4 eurosper square meter) in areas such as Basilio, San Donato Milanese, and Sesto San Giovanni.

Affordable options in the city can be found in Baggio (average rate13.4 eurosper square meter), as well as in the areas of Sà Granda (16.2 eurosper square meter) and Chiesa Rossa (16.7 eurosper square meter). In general,32 districtsMilano has rental prices below the average level in the city. Even in less central areas, such as Gorla-Turro-Precotto and Cermenate-Misaglia, the rates reach20 eurosper square meter.

The situation is similar inRome.The lowest rental ratesalso located on the borders of the city. In the province, areas such asVelletri (7.8 eurosper square meter),Gidonia Montecelio (8.2 eurosper square meter) andCivitavecchia (8.4 eurosper square meter). Moreover, you can find rentals for less.12 eurosfor a square meter in suburbs like Tivoli, Albano Laziale, Monterotondo, Marino, Pomezia, Frascati, Grottaferrata, and Ciampino.

Having studied the neighborhoods, the results of the research show that the most affordable places for rent in the suburbs ofRome are:

• Borgeziana-Finocho-10 eurosper square meter.
• Justinian-La Storta-Olgiate-11 eurosper square meter.
• Castle Palazzo-InfernettoandKasolino-Chentochelle- both for11.9 eurosper square meter.