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Apartments blocks-hotel, businesses from Città Studi to the city centre

02 November, Il Sole 24 Ore

Via Santa Cecilia, in the heart of Quadrilatero. 7 Via Biondelli, Bocconi area. 101 Via Candiani, near the Institute of Technology. And more, 17 Via Vela, 22 Piazza Massari, 9 Via Camperio. Many families used to live in these buildings, now they have been turned into short-term rentals. A booming real estate business especially in the centre, with operations currently going on in Cordusio and Porta Nuova, but not only. “They mostly consist in foreign investors buying the whole building, or several apartments in the same building, they buy them as they become vacant” explains Vincenzo Cella, Halldis Ceo, which manages 400 apartments in Milan. Buildings lose their nature due to the many renovations works and they’re becoming increasingly like hotels, even if the properties, mostly two-rooms apartments, are classified as holiday houses. Another brokerage company, Italway, has managed in 2017 a stream of about 60 thousand tourists. “They’ve rented a hundred apartments, over the next two years they’ll become one thousand – the Ceo Davide Scarantino does the math -. The offer for accommodations other than hotels is growing, but the average employment rate is still around 83%. With an average tariff of 10 percent higher than last year”.

Hotels are also doing well, after all: “In October, we’ve registered an increase of 5% in terms of number of guests as well as in terms of prices”, confirms Maurizio Naro, heading the hotelier association of Confcommercio. According to the association Property Manager, which gathers the managers of short-term rentals, a slight increase in the tourist tax shouldn’t have any negative impact. “On the contrary, it might be a good tactic, if the Municipality re-invests these assets to improve the infrastructures and organises events in the city –  they reckon. It would be a good idea to keep the limit of 15 days (for stays over 15 days, there is no tax)”. The business doesn’t stop. Eight guests every ten are aged less than 44, most of them are women, many Americans and French. The returns on rentals are around 4-5% right now, the double of the traditional long-term rentals.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi