How much is rent in Italy? The good news if you're thinking of renting property in Italy, the good news is that 12 months after the beginning of the pandemic, rental prices in Italy are finally showing a first real decline after a long series of increases, with a decrease of 0.9% in the first quarter of 2021. This is according to a recent price report published by idealista.
According to Vincenzo De Tommaso, Head of the Idealista Studies Office: "the pandemic has triggered the end of the expansionary cycle of rental prices in Italy, prices which seem to have already reached their maximum level. The most dynamic markets, such as Milan, Venice, Florence, are the most affected by the blockage of economic activities, from tourism to business travel and anticipate a downward trend that we will probably see in the coming months reflected in other markets, meanwhile we are also seeing that the supply of rental properties has increased by 44.7% in the last 12 months".
Rental prices in Italian regions
Despite price reductions at national level, the quarterly trend of rental prices in Italy's regions still sees a clear prevalence of price rises in 14 out of 20 areas analysed, led by Basilicata (5.2%), Veneto (3.8%) and Calabria (2.5%). On the other hand, rental price drops were seen in Lombardy (-2.4%), Molise (-2.1%) and Umbria (-1.9%). Declines of less than 1% were also recorded in Piedmont (-0.7%), Lazio and Liguria (both -0.2%).
Despite the quarterly decrease, Lombardy (14.8 euro/m2) is still the most expensive region, ahead of Lazio (12.4 euro/m2), Tuscany (12.2 euro/m2), Trentino-Alto Adige (11.7euro/m2), Valle d'Aosta (11.2 euro/m2) and Emilia-Romagna (10.9 euro/m2). All other regions are below the national average, ranging from 9.2 euros in Veneto to 5.3 euros in Molise, the cheapest region for rentals in Italy ahead of Calabria at 5.4 euros/m2.
Rental prices in Italian provinces
60% of provincial markets in Italy still show positive trends when it comes to rental prices, with values that are sometimes inflated by the strong presence of product with the higher unit prices, which, before the health crisis, was destined for short-term rentals. This explains the anomalous price increases in the provinces of Grosseto (44.8%), Massa Carrara (29.4%) and Rimini (19%), which are counterbalanced by the sharp falls in Pordenone (-10.8%), Sondrio (-6.6%) and Forlì (-6.3%).
With an average rental value of 17.4 euros per month, Grosseto became the province with the highest rental prices in Italy, ahead of Milan (17 euros/m2) and Ravenna (15.9 euros/m2). On the other hand, the cheapest provinces to rent in Italy are Avellino (4.7 euros/m2), Caltanissetta (4.6 euros/m2) and Enna, at the bottom of the list at 4.3 euros/m2.
Rental prices in Italian cities
Monza and Bergamo are the only markets that have not undergone any changes over the last three months; Ascoli Piceno (9.8%) marks the biggest jump in rental prices in the period followed by Catanzaro and Verbania (both 8.1%), Treviso (6.7%) Teramo (6.1%) and Parma (6%). At the opposite end of the spectrum, Udine (-9.1%), Vercelli (-9%) and Sassari (-8.9%) saw the biggest falls.
Venice (-3.9%) and Milan (-3%) show the strongest contractions at the level of large markets, followed by Turin (-1.9%) and Bologna (-1.6). Smaller rental price adjustments are seen in Naples, Florence (both -1.3%) and Rome (-0.5%).
Milan is the queen of rental prices as Italy's most expensive city to rent in 2021 with average prices of 17.8 euros/m2, ahead of Florence, Bolzano (both 14.5 euros/m2) and Venice (14.5 euros/m2). At the bottom, Caltanissetta (4.1 euros/m2) closes the ranking preceding Agrigento (4.3 euros/m2), Vibo Valentia and Cosenza (4.5 euros/m2).