In the month of July, prices and rental rates remain stable in the two major Italian cities, although the year-on-year growth for rents remains significant. The affordability of the market in the two cities under examination also follows the trends of the previous months, with an average resident able to access only 3.6% of the available options in the city of Milan and 6.3% in the Capital. This is the outcome of the monthly Real Estate Market Observatory for Rome and the main city of Milan, compiled by Immobiliare.it Insights, a company within the Immobiliare.it group, as reported by Sole24Ore.
Regarding prices, specifically in Milan, the selling prices have reached an average of €5,270 per square meter, showing a rise of 0.3% compared to the previous month (+5.4% year-on-year). Meanwhile, in Rome, they have settled around €3,336 per sqm (-0.1% in the last month, and also compared to twelve months ago). At the same time, Milan’s rental rates stand at an average of €22.1 per sqm, while those in Rome stop at €15 per sqm. In both cases, there is an increase of approximately half a percentage point compared to the previous month, though the year-on-year growth is more pronounced: +10% in Milan and +5.4% in Rome. The demand for apartments for sale continues to contract in Milan, registering a decline of 7% in July. This is coupled with a reduction in the stock of properties on offer, down by 2.1% during the same period, a clear contradiction to the annual figure. A similar situation can be seen in the capital: stock contracts by 0.7% in July, while demand decreases by 5.9% during the same period. In the rental sector in Milan, there is an accumulation of offered properties in the last month, amounting to +7.9%, and an increase in demand during the same period by +4.5%. In both cases, the positive trend is maintained on an annual basis, with monthly demand even growing at a triple pace compared to the rate observed over the last 12 months. In contrast, the Roman market behaves differently from its Milan counterpart.
Primarily, in the last month, a net reduction of almost 5 percentage points in rental properties on offer was observed. However, demand is moving at double the pace of Milan, with a +9.4% increase in the last month. The most expensive neighborhoods in the two main Italian cities are their respective historic centers: the Lombard capital’s historical center exceeds €10,100 per sqm, while the Roman historical center surpasses €7,100 per sqm. Beyond this largely expected data, the Observatory also reveals the neighborhoods that have appreciated the most over the past year. In the capital, the accolade goes to Termini, Repubblica, which has appreciated by 11.8% in a year (remaining stable on a monthly basis) and reaching an average of €4,459 per sqm. It is followed by Battistini, Torrevecchia, and Appio Claudio, Capannelle, which are close in the range between €3,200 and €3,300 per sqm on average: the first sees sales prices increase by 6.8% in the last year, the second by 6.6%. As for Aventino, San Saba, and Caracalla, apart from being the second most expensive neighborhood in Rome with its €6,278 per sqm on average, it is also the one that has seen prices grow the most in the last month: +1.7%, despite remaining stable compared to a year ago. Turning to Milan, as in the case of Rome, a neighborhood near a train station is once again seeing the main appreciation: Corvetto, Rogoredo appreciated by 10.7% in a year (+1.5% in the month) and reached an average of €3,980 per sqm. Garibaldi, Moscova, Porta Nuova, apart from being the second most expensive neighborhood in the city (and in Italy) at €9,958 per sqm, also holds the same city position for sales price growth: +9.7% compared to July 2022. The third most revalued neighborhood compared to a year ago is once again close to a station, in this case, the Lambrate station: Udine, Lambrate reached €4,187 per sqm after a yearly growth of 9.6%. No surprises for the most expensive neighborhoods in the rental sector: the two historic centers are the priciest areas in this case as well, with nearly €30.2 per sqm for the Center of Milan and €24.2 per sqm for the Roman Historical Center.
In Rome, the neighborhood with the highest rental growth in the year is Aventino, San Saba, Caracalla: its +19.4% (despite stability in the month) brings it to €23.3 per sqm on average, confirming it as the second most expensive neighborhood in the city for rentals. Behind it, we find Trionfale, Monte Mario, and Ottavia (+15% annually), and Pigneto, San Lorenzo, and Casal Bertone at +11.6%. Parioli, Flaminio, on the other hand, is the one that grows the most in the month, reaching €19.7 per sqm (+2.7% in July). Returning to Milan’s real estate market, the area of Bisceglie, Baggio, and Olmi is the most economical, at €15.9 per sqm, but it is also the one that has grown the most compared to a year ago: +21.3%. Also on the podium are Cimiano, Crescenzago, and Adriano (+21.1%), followed by Famagosta and Barona (+15.6%), just ahead of Affori and Bovisa (+15.4%). In the month of July, however, there is an appreciation for rental properties in the Pasteur, Rovereto area: +3.3% (still +13.4% on an annual basis).