(Finance) – The cost of rent has recorded a record surge of 13.8% in the current year. The average monthly rent for a rented property is now 12.5 euros per square meter. This is what theprice index published by the real estate portal “idealista”. “With fewer properties available for rent in many areas – this year the reduction in stock will be around 20% –, the imbalance between supply and demand has made rents increasingly expensive, reaching the highest levels since the “index was created. An increase only partially mitigated by the 3.5% drop recorded in the last quarter – he explains Vincenzo De Tommaso, head of the Idealista Research Office –. It is difficult to imagine that rents will rise again as dramatically as they have over the last 12 months, but they will continue to rise due to persistently low supply and strong demand, especially in major centers where we expect a rental market to remain challenging for tenants in the short term”.
Capital cities – The growing pressure of demand has increased rental costs in most of the Italian capitals monitored with double-digit increases in 28 cities. The leading markets for residential rentals are driving the sector as always, as evidenced by the increases in Bari (14.3%), Naples (14.2%), Turin (12.5%), Milan (10.8%) and Palermo (10.2%). Significant increases were also recorded in Genoa (7.8%), Bologna (6.8%), Rome (6.3%) and Venice (5.7%). However, Modena (28.2%) leads the list of increases in the last 12 months, followed by Pesaro (25.2%), Avellino (23%) and Vibo Valentia (20%). On the contrary, Campobasso (-18%) and Macerata (-10.5%) recorded the most marked contractions. Milan confirms itself, also in 2023, as the city with the highest rental prices, reaching i 22.9 euros per square meter and reaching an all-time high since the introduction of the idealist index in 2012. Venice (18.1 euro/m2) and Bologna (16.6 euro/m2) follow in the ranking. Rome (14.8 euros/m2) and Naples (13.7 euros/m2) occupy the fifth and sixth steps in the ranking respectively. On the opposite side, the cheapest capitals for rent in Italy are Reggio Calabria (5.4 euros/m2), Vibo Valentia (5 euros/m2) and Caltanissetta (4.8 euros/m2).
Regions – The extremely positive trend in real estate prices involves practically all Italian regions, with the exception of Molise and Trentino-Alto Adige, where rental prices have decreased by 5.2% and 2.9% respectively in the last year. The biggest increases are interesting Valle d’Aosta (23.8%), Lombardy (21.3%) and Tuscany (20.9%). Sardinia (14%) also recorded growth above the average for the period. Thanks to a significant increase this year, Valle d’Aosta (19.1 euro/m²) becomes the region where the cost of rent is highest, displacing Lombardy (21.3 euro/m²) from the first position. Following, with prices higher than the national average values, we find Tuscany (16.2 euros/m²), Trentino-Alto Adige (14 euros/m²) and Emilia-Romagna (13.3 euros/m2). All the other regions stand at prices lower than the national average of 12.5 euros per month, from 12.1 in Lazio, to 6.1 euros from Molise, the most convenient region for renting a property.
Provinces – Even with regards to the provincial trend, one prevails clearly upward trend in 92 of the 108 areas monitored, with a strong volatility of values, especially in areas with a strong propensity for short-term rentals for tourism or business purposes. This explains the significant upward variations in Sondrio (31.7%), Lucca (28.9%) and Florence (27.7%), where the scarcity of supply amplifies the owners’ requests. Double-digit increases for 36 other provinces, of which 19 exceed the national trend. On the contrary, 16 provinces recorded decreases, with particularly significant declines for Rieti (-15.9%) and Bolzano (-13.8%). According to the report, Lucca (27 euros/m²) is the province with the most expensive rents in Italy, ahead of Belluno (26.3 euros/m²) and Rimini (23.2 euros/m²). Fourteen provinces have prices higher than the national average, with values ranging between 21.6 euros per square meter in Milan and 12.7 euros in Trento. On the contrary, the cheapest provincial areas for rent are Enna (4.9 euros/m²) and Caltanissetta (4.8 euros/m²), preceded by Alessandria with 5.3 euros per month.