The real estate market in Rome is witnessing a significant upswing, with a notable increase in demand from young families and singles. Recent data indicates that over 60% of potential buyers in the capital are families aged between 18 and 34, with a strong preference for three-bedroom apartments.
This trend is part of a broader national pattern, where major Italian cities are seeing a rise in property transactions. In Rome, 77% of buyers are seeking their first home while singles make up nearly 40% of the market. However, the high costs associated with purchasing property are prompting many to consider renting as a viable alternative.
Prime Locations and Property Prices in Rome
The most coveted areas for property purchases in Rome include Porta Metronia and Salario where prices can vary significantly. For instance, a three-bedroom apartment in Porta Metronia can cost up to 400,000 euros, while a 80-square-meter property in Salario is listed at 445,000 euros.
The average price per square meter for second-hand properties in Rome stands at 3,309 euros. This means that a 70-square-meter three-bedroom apartment can start at approximately 230,000 euros, with prices potentially rising to 300,000 euros for larger units. These costs make homeownership challenging, particularly for young couples.
The Rise of Renting in Rome
Faced with the high costs of buying property, many residents are turning to renting. In Rome, 90% of the rental market consists of regulated tenancies (almost 60%) and temporary contracts (30%), with only 9.9% remaining at the free market rate.
Rentals are primarily sought by students (18.5%) and workers (30%). However, the phenomenon of short-term rentals persists, especially in the historic center and adjacent neighborhoods. The average rental price in Rome is 949 euros per month, which is 60 euros less than in Milan and 70 euros more than in Florence.
New EU Regulations on Short-Term Rentals
The market for short-term rentals could undergo significant changes due to new European Union regulations. Brussels is preparing a regulatory framework that will grant local authorities greater powers in cities where finding housing has become particularly challenging.
The aim is to limit the conversion of apartments into tourist accommodations and the purchase of second homes for investment purposes. The proposal introduces the definition of areas under housing stress where authorities could implement more stringent measures.
Potential measures include limiting the number of nights per year for short-term rentals, mandatory licenses, and territorial restrictions. These regulations could have a substantial impact on cities like Rome, Milan, and Florence, where the real estate market is particularly dynamic.
