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Rome, prices are dropping

09 January, Il Romanista

House prices are going down in the capital. Over 2017, prices of old houses in Italy decreased by 4% for an average value of 1,819 euro per Sq m, according to Idealista.

Property values registered a contraction of 4.3% in Rome last year, setting around 3,170 euro/Sq m after having stabilized in the past three years.

Neighbourhoods

On a yearly basis, only Aurelio (3,399 euro/Sq m) reported a positive trend of 0.3%. The other neighbourhoods of Rome registered all negative trends, with reductions of over 5% in 16 areas, while the result was a little bit better for other 17 neighbourhoods, from Appio Latino (-4.1%) to Parioli (-1%).

The most depreciated areas in 2017 were Malagrotta-Casal Lumbroso-Ponte Galeria (-12.4%), followed by Trionfale-Monte Mario (-9.7%) and Prenestino (-9.1%).

Even properties in the city centre saw the prices falling (-6.6%), even though the demand recovered in last months thanks to the low prices. Following the same trend, also the most sought-after areas just outside the city centre dropped, like Prati (-5.6%).

In the Province of Rome, the average decrease was 3.6%, setting around 2,643 euro/Sq m. Many cities registered two-digits drops such as Rocca di Papa (-16.8%), Guidonia Montecello (-15.6%), and Velletri (-15.1%), while Grottaferrata (1.3%) and Trevigno Romano (0.7%) reported positive results.

The provinces

While at a regional level houses lost 3.9% of their value in 2017, recovering only 0.6% in the last part of the year, the other provinces of Lazio registered an even worse result, with great price reductions in Frosinone (-9.2%), Rieti (-8.8%), and Viterbo (-7.0%).

The most expensive properties are in Rome, followed by Latina (2,009 euro/Sq m) and Viterbo (1,113 euro/Sq m). Rieti is the cheapest with 929 euro/Sq m.

The province capitals

A negative trend also for the main cities, with significant reductions in Frosinone (-10.5%), Rieti (-5.5%), and Viterbo (0.4%). Only Latina registered a positive result with 0.8%.

Rome is at the top of the price chart, followed by Latina (1,807 euro/Sq m) and Viterbo (1,338 euro/Sq m). Rieti is at the bottom with 1,233 euro/Sq m.

According to Vincenzo De Tommaso, responsible for the research centre of Idealista, “the negative trend of property prices started in 2007 continued also in 2017: the market is suffering from the offer surplus with characteristics, prices and locations not in demand. Despite this, the private demand, favoured by mortgages, is growing, concerning especially bigger cities and those with a good life quality. We expect for 2018 a more homogeneous recovery with a moderate increase of prices in the medium and large cities, together with a general tendency towards stabilisation of prices”.

Rents

The survey on rentals in 2017 by Solo Affitti, the real estate agency specialised in rentals with over 300 agencies, created in collaboration with Nomisma, shows that rents in the main Italian cities increased, even though with some exceptions. Rents in Italy grew on average by 2.6% for not furnished properties, and by 4.1% for furnished ones.

Rents for one-, three- and four-room apartments grew by 2.8%, while in Rome rents dropped by 4.1%. Rents decreased especially in Catanzaro (-10%), Palermo (-7.2%), Palermo (-7.2%), and Perugia (-5.3%), as well as in Florence (-1.4%). In Milan, rents grew by 0.8%, with peaks up to 8% for furnished apartments.

The average cost for a furnished property is 586 euro monthly, rising by 11 euro if there is a garage. The survey by Solo Affiti shows how the gap between the rents in Rome (789 euro) and Milan (938 euro) is widening, reaching in 2017 a difference of 149 euro (it was 108 euro in 2016).

Source: Il Romanista

Translator: Cristina Ambrosi