05 December, La Stampa
Rent prices are rising again and investing in real estate has become more attractive. The trend of rents is opposed to that of property transactions, which continue to decrease in Italy. Nomisma has recently reported an additional reduction of property prices equal to 0.9% per annum. On the other hand, transactions have increased (+5.6% for 572,752 sales). In this scenario, the recovery of rents was equal to +3.1%, bringing the values close to the levels before the crisis.
A long way
It has been a long way. Ten years ago, the average rent was 641 euro, now it’s 604 euro, according to the 2018 report on rentals by Solo Affitti, the real estate network specialised in apartment rentals, in collaboration with Nomisma. According to the survey, the worst year was 2014, when monthly rents fell to 545 euro, -15% from 2009.
Today, Bologna and Milan are the fastest-growing cities with double-digit growth rates, having increased respectively by 10.9% and 10.2%. The other main cities in the country have also registered above average performances: Rome (+7.7%), Venice (+6.1%), Florence (+5.1%) and Turin (+4%).
Suburbs now provide the best profits. “Rents offer attractive returns, looking at the big cities – says Andrea Saporetti from the Solo Affitti research centre. The expert explains that who buys a property of medium dimensions and rent it out already furnished can obtain returns around 6% (6.3%). Properties in the suburbs can grant higher profits, as rents have resumed growing with not much difference between the city centre and the outskirts. On the contrary, selling prices are still decreasing, dropping sharply in the suburban areas compared to the central ones. As a result, the rental of a house in the suburbs can provide 7.2% returns compared to the 5.4% of the city centre. “The areas providing the highest gross returns are Venezia-Mestre (8.0%), Trieste (7.4%), Cagliari (6.1%), Palermo (5.8%), Milano and Bologna (5.3%). Concerning the suburbs, the best results are reported in Venezia-Mestre (9.1%), Naples (8.9%), Palermo (8.2%), Milan (8.0%) and Trieste (7.6%)”, explains Saporetti. Finally, thanks to the flat tax on rentals, the gross returns can be converted into competitive net returns in comparison with other investments, like financial ones.
Source: La Stampa
Translator: Cristina Ambrosi