In the past few years, the Italian real estate market has been attracting millions of potential buyers and investors who are fascinated by Italy’s culture, landscapes and cuisine, among many other factors. One of the first questions that investors ask when they approach the Italian real estate market is: how much does it cost to purchase or rent a house in Italy today? This article will answer this question and it will also list a few additional costs that you should expect when you purchase a property in Italy.
Average house prices across Italy
Websites such as Immobiliare.com and Idealista.it are very reliable sources that offer precise data regarding prices for properties for sale and rentals. As of April 2023, the average price of a property for sale in Italy is €1,855/m2 – this has increased by 1.9% since April 2022. On the other hand, the average price for a rental property is €12.5/m2 – the figure has risen by 10% since April 2022. Let’s imagine that you are interested in purchasing a 90 m2 property, which is the average size for a house for sale in Italy; in this case, you can hypothesize that the listed price will be around €167,000. On the other hand, if you rent a property for 60 m2 (which is the average size for rental properties) the price will be around €750 per month.
It is worth pointing out that the property’s listed price varies depending on where the property is located. In fact, the retail prices for both properties for sale and for rent change from region to region. This is due to a variety of factors, such as the local economy, the population density, the job market and whether or not the area where the property is located is a popular tourist destination.
The data show that Trentino, and the South Tyrol region in particular, present the highest asking price in Italy, which corresponds to €3,000 circa per square meter. Trentino is followed by Valle d’Aosta, which features a retail price of €2,650/m2 approximately, while Liguria gains the third place with an asking price of €2,500/m2 circa. On the opposite side of the spectrum, Molise and Calabria present the lowest asking prices (€900/m2 approximately). Among the most affordable regions to buy a property in Italy, it is also worth mentioning Sicily, which features an asking price of €1,000/m2 approximately.
On the other hand, the asking prices for property rentals as of April 2023 vary slightly. In order from the most expensive region: Valle d’Aosta, Lombardy, and Tuscany feature the highest prices for rental houses in Italy, with costs ranging from a minimum of €15/m2 to a maximum of €17/m2. On the contrary, Molise is the most affordable region with an average asking price of €6/m2, while both Umbria and Basilicata present asking prices of €7/m2. Therefore, a 90 m2 property would cost €1,530/month in Valle d’Aosta and only €540/month in Molise.
These results demonstrate that, as a general trend, prices for both property rentals and houses for sale vary from the north to the south of Italy. In fact, on average, the data show that houses tend to be more expensive if they are located near the Alps or along the shores overlooking the Tyrrhenian Sea, in the Tuscan countryside, or in Sardinia. Conversely, prices appear to decrease on the coast overlooking the Adriatic Sea, down to Italy’s “heel”, as well as in rural areas in the south of Italy, and in Sicily.
The most expensive properties in Italy
It is worth mentioning that the results outlined above exclude densely populated cities like Milan and Rome where prices are exceptionally high. In fact, as of April 2023, a property for sale in Milan costs €3,000/m2 approximately, while in Rome the asking price is about €2,500/m2. However, the further you are from the city center, the cheaper the property. Additionally, it is important to mention that this analysis does not include luxury destinations, which we analyzed in great detail in one of our previous articles. Forte dei Marmi and Pietrasanta in the enchanting region of Tuscany, Alassio on the splendid Ligurian coast, and Venice were on the top of Idealista’s list rating the most expensive properties to purchase a property in Italy in 2022. Therefore, it comes as no surprise that these highly desirable destinations have been attracting many buyers and renters from all over the world, thereby increasing the demand for properties in these locations.
Finally, when analyzing house prices, it is essential to note that purchasing a property comes with additional costs that you will need to consider when determining your budget. As explained in one of our previous articles, you will need to keep in mind the notary’s fees and the real estate agent’s commission fee, if applicable. The real estate agent’s fee is usually 3% of the purchase price and you should also bear in mind that both the notary’s fees and the real estate agent’s commission fees are subject to VAT – the standard VAT rate is 22%. Finally, you will also have to take into account registration and cadastral taxes.
In conclusion, this article has sought to provide you with an overview of the expenses you should expect to incur if you decide to purchase a property in Italy. If you would like to learn more about the topic, do not hesitate to contact our team of real estate experts at firstname.lastname@example.org.