Italy: Are Rents Going Down?
As many of the stories written about Italy often focus on doom and gloom, such as rising public debt, high unemployment, and an economy that is essentially struggling, I am often asked if this has affected rents in Italy. As I carry out many home searches in Italy and based on my own personal experience with my clients, this is my take on the situation.
Short-term Accommodation: During the last few years, many landlords took their long-term properties off the market as they felt they could make much more money renting out their properties through platforms such as Airbnb as well as through temporary accommodation agencies. This strategy worked, even if it vacuumed the market in first-tier cities like Milan and Rome of properties that would normally have been rented long-term, especially by multinationals sending assignees to Italy.
Short-Term Accommodation: Always make sure that you rent from reputable agencies and platforms, and please take the time to read the fine print. Inform yourself about cancellation fees, maintenance charges, and their dilapidation policy.
Long-Term Accommodation: In comparison to short-term accommodation, this is a whole other kettle of fish. In first-tier cities such as Milan and Rome, the needle has not moved that much when it comes to rent, especially for sought-after properties. Modern and well-furnished properties in central and in-demand areas are always in demand, so unless we see a complete drop in requests, I believe these properties will only have a slight drop in rent.
Another thing to remember about Italy is that many landlords own several properties, so they are not rent-dependent, as they do not have any mortgages or loans on these properties. Therefore, again, in the first-tier cities, many are adopting a ‘wait-and-see’ approach’. Last week I had lunch with a property owner in Rome who owns nine properties, and he told me he has no intention whatsoever of lowering the rent. This is a sentiment echoed by many owners who do not depend on the monthly rent to live.
In second- and third-tier cities, I have seen somewhat of a drop in the rents regarding long-term accommodation, but, again, it is important to note that the personal economic situation of the landlord will heavily influence their decision to accept less rent. That said, the landlord, instead of a reduction in rent, may be willing to install a washing machine, A/C, or add some new furniture.
Please note that this is a general overview based on my personal observations, and there will be exceptions to this, especially if you are looking to rent in a remote location or dealing with a landlord who depends much more on the rent in comparison to other owners.
Damien O’Farrell Mobility Services provides bespoke immigration services nationwide in Italy and relocation services in the first-tier cities of Rome, Milan, and Florence. For more information, please contact email@example.com.
Easy Milano is the online publication for the international community of Milan. We offer practical tips, key information and essential insights about living and working in Italy. Easy Milano has been assisting English speaking expats in Milan since 1999.
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