The impact of inflation on annual lease payments in 2024: data by city.

The Italian National Institute of Statistics (Istat) has published data on inflation growth in February 2024, which amounted to +0.8% compared to the same period last year. The consumer price index (FOI) increased almost at the same rate, reaching 0.7%. This will lead to a moderate, but existing, increase in monthly rent for tenants who have signed a yearly lease. On average, tenants in Italy will have to pay about 6 euros more per month (or 72 euros per year). Let's see to what extent rental rates are rising in different Italian cities.

The rise in inflation and its impact on the financial situation of tenants

The rise in inflation is having a noticeable impact on the financial situation of Italian families who have signed annual rental agreements with yearly indexing. The most significant increase in rates is expected for Milanese tenants, who will have to pay 13 euros more per month compared to last year. InRome, the average increase will be 8 euros per month.

Data analysis and conclusions

Such data was obtained through the analysis of the Idealista portal, a leader in technological development in Italy, which calculated how rising inflation will affect the indexing of one-bedroom apartments and updated the Consumer Price Index published by Istat.

In Italy, the rent for a three-room apartment in February 2023 was 700 euros per month. Tenants whose rent adjustments are linked to the FOI index for February 2024 will have to pay an average of 6 euros more per month, with some significant variations depending on the geographical area.

The impact of rising inflation on rental prices in different cities in Italy

The situation changes significantly depending on the city (the study focused exclusively on capitals and not on provinces due to a more extensive database) and the average rental rate in the city.

The most noticeable increase in rental rates for capital city tenants will be experienced by residents ofMilan (+13 euros per month or 156 euros per year). This situation is not surprising, considering that Milan is the most expensive city for renting in Italy.

For rent, tenants who have signed a yearly lease and live in Venice will have to pay 9 euros more per month (108 euros per year). At the same time, in Bologna, Bolzano, Florence, Rome, and Como, rent will increase by about 8 euros per month (or 96 euros per year).

Among the capitals of the southern regions, Naples and Cagliari stand out with an increase in rental rates of 6 euros per month. Overall, there are slight increases (no more than 3 euros per month) in various Italian capitals.