From historic homes to world class cultural institutions and landmarks, to national and international organisations, there is a panoply of drivers for buyers to come to Rome. Demographics are in Rome’s favour with a growing youthful population: 33% are under the age of 34, forecast to increase a further 7.9% by 2033, drawn by the two universities in the global top 500 and the economic growth of the city.

Prices have been steadily increasing in a market which is characterised by strong levels of demand and very limited supply. While transactions fell by -20.3% over 2023 as prospective buyers adapted to a more challenging economic and borrowing environment, prime properties remained in high demand, especially for larger residences with outdoor areas.

Prime prices in Rome grew by 2.2% over the course of 2023. Prices will likely continue to grow throughout 2024 at a similar pace of between 2.0% to 3.9% as challenging economic conditions continue.

Rents, meanwhile, are rising as supply has been unable to match the levels of demand. Prime rents grew 2.2% in 2023 and 7.0% on 2019. Rental growth is expected to rise at a slower pace through 2024. With prime rents at €8 per square metre per week (€37 per square metre per month), Rome remains affordable among the major Italian cities in which to rent prime residential property, but a lack of product will continue to drive increases.

SHORTING OUT THE SHORT TERM LETS

The lack of supply in the rental market in Rome and across the country has resulted in a proposed new law to clamp down on short-term tourist rentals for residential properties in the historic city centres in order to free up more housing stock for local people. Florence has gone one step further than the proposed national legislation working its way through the Italian parliament. The city is also attempting to balance tourism, which is its main economic driver, and the lives of its local population which have been disrupted by increasing numbers of short-term rentals which have themselves become a large portion of the housing stock in Florence. As such from June 2023, the city has imposed an immediate ban on new short-term rental listings, including those on platforms such as Airbnb for apartments located in the city’s historic centre, in the UNESCO-listed area.