All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Rome's property market is included in our pack
Thinking about investing in real estate in Rome? You're not alone!
Many people are fascinated by Rome's ancient history and dream of owning a historic townhouse or a modern apartment in this city.
Is it financially viable, though? Are property prices increasing in Rome? What is the current trend? Should I buy property in the city center or Trastevere? What are the property taxes? What rental yields should I expect?
We know the answers.
The Investropa team has done their homework on this market. Actually, we've gathered all our findings in a pack. Get it now.
In this article, we're happy to share useful information with you.
How is the property market in Rome?
Is the property market going up or down? Opinions vary. As for us, we don’t listen to rumors. We use up-to-date data and statistics, to ensure our conclusions are well-founded.
Property types
In Rome, there are various types of properties available for sale to cater to different preferences and needs.
These include apartments, which are the most common and come in various sizes, from cozy studios to spacious penthouses, often located in charming historic buildings. Additionally, townhouses offer a blend of traditional and modern living with multiple floors and outdoor spaces.
For those seeking more space and privacy, villas and country houses are available on the outskirts of Rome, offering serene surroundings and larger plots of land.
Finally, commercial properties like shops and offices are also on the market for those interested in business ventures.
Whether you're looking for a cozy city apartment or a tranquil countryside retreat, Rome has a diverse range of properties to suit various lifestyles and preferences.
Buying vs Renting
(In case you want it for yourself, not for rental purposes)
If Rome is your home or a place you're planning to relocate to, you may be contemplating the buy vs. rent decision in this historical city of Italy.
Obviously, it's better to buy if you plan to stay in Rome for an extended period of time, as it will be more cost-effective in the long run.
Actually, the property price-to-rent ratio is a good metric to look at for this kind of decision. Use this metric to see how rental income can help you pay off the property over time.
According to Numbeo, the property price-to-rent ratio in Rome is around 30.34, which is significantly above the world average.
It indicates that buying a property is more expensive in the short term compared to renting. However, buying can still be a viable option if you plan to live in Rome for an extended period or if you think property values will increase.
Property prices in Rome
On average, according to the last reported data from National Institute of Statistics (ISTAT), purchasing a property in Rome would cost you around $7,900 per square meter.
Obviously, there are some big differences. The value of a square meter for an apartment in the historic center of Rome might differ from a suburban villa. We actually offer a more in-depth analysis in our pack for buying property in Rome and in Italy.
To put things in perspective, it is similar to the prices you can find in a city like Turin.
Also, housing prices in Rome are 20% cheaper than inhttps://investropa.com/blogs/news/rome-propertyMilan.
The most expensive neighbourhoods in Rome are probably EUR, Parioli, and Salario, while the cheapest are Tor Bella Monaca, Centocelle, and San Basilio.
Trends
First and foremost, we have to acknowledge that Italy remains, today, a very stable country. The last Fragile State Index that has been reported for this place is 43.4.
Keep this in view when pondering the viability of buying a property in in Rome.
Also, according to the International Monetary Fund, Italy's economy is expected to soar by 4.8% in the coming 5 years, resulting in an average GDP growth rate of 1% (it's not much).
If you intend to invest in real estate in Rome it's a positive signal because when the economy grows, people often experience an increase in wealth, it typically translates to a surge in housing costs.
Also, in Italy, the average GDP per capita has changed by 4.1% over the last 5 years. The growth, although minimal, is still present.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Italy right now.
Buying property in Rome
It can be difficult to buy property in Rome due to the lack of reliable and updated information available in the buying process. That's why we have created the pack to buy property in Rome and in Italy.
Buying process
Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.
Here, we're presenting you with a more straightforward version.
This is the step-by-step process to purchase a property in Rome:
- Determine your budget and property preferences in Rome.
- Find a licensed real estate agent familiar with the Roman property market.
- Search for suitable properties in Rome's specific neighborhoods.
- Conduct property inspections and verify cadastral documents (Visura Catastale).
- Hire a notary public (Notaio) to handle legal matters and perform title searches (Visura Ipotecaria).
- Negotiate the purchase price with the seller or through the agent.
- Sign a preliminary sales agreement (Compromesso) and pay a deposit, usually 10%.
- Obtain the "Nulla Osta" from the local authorities for non-residents to purchase property.
- Complete the final sales contract (Atto di Vendita) with the notary.
- Pay the remaining balance, notary fees, and property transfer taxes (Imposta di Registro).
- Register the property at the Land Registry (Ufficio del Catasto).
- Obtain the "Certificato di Agibilità" for residential properties to certify its habitability in Rome.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Italy.
Make a profitable investment in Rome
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Where to find a property
Discover these websites to find properties in Rome:
- Immobiliare - Italy's top real estate portal, providing an innovative platform for property listings and searches.
- Green-Acres - Europe's leading platform for second homes, offering a wide array of properties for sale in Italy and other countries.
- Immobiliare Italiano - Providing an extensive range of Italian real estate and luxury properties for sale, catering to various preferences and budgets.
- Houses of Italy - A licensed real estate agency offering a diverse selection of properties for sale across different regions of Italy.
- Italian Houses for Sale - A property website offering a broad assortment of properties for sale across various Italian regions, connecting clients with professional agents.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Italy.
Properties & Budget
As mentioned before, the average price per sqm in Rome is $7,900. A 1-bedroom property (60 sqm) would cost approximately $474,000, and a 2-bedroom (85 sqm) would cost approximately $672,000.
Obviously, property prices will change based on both the property itself and its location.
Prices tend to be higher in the top areas of Rome. An apartment in Parioli might cost you approximately $910,000, and a property in Trastevere would be priced similarly at $840,000.
Certain places come obviously with a lower price tag. You could locate a house in Prenestino-Centocelle for $610,000 or a house in Torre Angela for only $500,000.
We give a more detailed pricing list in our full pack for buying property in Italy.
Risks and pitfalls
Here are the main pitfalls when buying property in Rome, Italy:
- Historic Building Regulations: Strict preservation rules can limit renovations and increase costs.
- Monumental Zone Restrictions: Properties within historic or artistic zones may have restrictions on modifications.
- Land Registry Delays: Lengthy bureaucratic processes can slow down property transactions.
- Urban Planning Changes: Future zoning modifications may affect property value or usage.
- Local Taxation: Various property taxes, including IMU and TASI, can significantly impact ownership costs.
- Condominium Rules: Understanding complex building management rules and costs is crucial in shared properties.
- Seismic Risks: Parts of Rome lie in earthquake-prone areas, demanding adequate structural assessments.
- Cultural Heritage Impact: Some properties require compliance with heritage regulations, influencing design and remodeling options.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Italy Property Pack
Living in Rome
Living in Rome is an amazing experience, with its vibrant culture, delicious food, and stunning architecture, it's an ideal place to buy property.
Cost of living
The cost of living in Rome is generally considered to be higher than average, due to its large population and the high demand for housing. However, the city offers a high quality of life and a wide range of entertainment options, making it an attractive option for those looking to live in a vibrant and exciting city.
Here are some examples to better understand the cost of living in Rome:
- Monthly rent for a cozy apartment in the historic Trastevere neighborhood: €900-€1,800.
- A glass of local Roman wine (e.g., Frascati or Castelli Romani) at a traditional enoteca: €3-€6.
- Monthly transportation pass for buses, trams, and metro within Rome: €35-€50.
- A plate of traditional Roman pasta carbonara at a local trattoria: €10-€15.
- Admission to the Vatican Museums, including the Sistine Chapel: €17-€25.
- Monthly membership at a Rome-based fitness studio or yoga studio: €40-€80.
- Fresh produce from the Campo de' Fiori Market for a week: €20-€40.
- A bottle of local limoncello liqueur from a liquor store: €10-€20.
Neighbourhoods and spots
Since our aim is to provide information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Rome. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Aventino | Aventino is a tranquil and picturesque neighborhood known for its leafy parks and stunning views of the city. It has a rich history and is home to ancient churches and historical landmarks. | Peaceful atmosphere, beautiful vistas, historic landmarks. | Limited public transportation, fewer nightlife options. |
Trastevere | Trastevere is a vibrant and lively neighborhood famous for its narrow cobbled streets, charming squares, and buzzing nightlife. It offers a diverse range of restaurants, bars, and artisan shops. | Exciting nightlife, authentic Italian atmosphere, diverse dining options. | Can get crowded, limited parking availability. |
Monti | Monti is a trendy and hip neighborhood with a bohemian vibe. It is dotted with boutiques, art galleries, and trendy bars. The area also boasts historical sites like the Roman Forum. | Artistic ambiance, excellent shopping, close to historical attractions. | Higher cost of living, can be noisy at times. |
Trevi | Trevi is a central neighborhood famous for the iconic Trevi Fountain, attracting numerous tourists. It offers a mix of upscale shopping, historic architecture, and traditional Italian restaurants. | Proximity to landmarks, high-end shopping, lively atmosphere. | Heavy tourist crowds, higher prices. |
Esquilino | Esquilino is a diverse and multicultural neighborhood with a wide array of international restaurants, shops, and markets. It is home to the impressive Basilica di Santa Maria Maggiore. | Multiethnic vibe, diverse food options, historical landmarks. | Crowded, some areas may be less safe at night. |
Testaccio | Testaccio is a lively and food-centric neighborhood known for its excellent trattorias, food markets, and nightlife. It offers a mix of modern amenities and traditional Roman culture. | Gastronomic delights, vibrant nightlife, authentic Roman experience. | Can be noisy, limited green spaces. |
Prati | Prati is an elegant and upscale neighborhood characterized by its wide avenues, high-end shopping, and proximity to Vatican City. It attracts both locals and tourists seeking a refined ambiance. | Classy atmosphere, great shopping, close to Vatican. | Expensive, less lively at night. |
San Giovanni | San Giovanni is a residential neighborhood with a more laid-back vibe, offering a mix of local markets, green spaces, and historical attractions like the Basilica di San Giovanni in Laterano. | Quiet living, local markets, historical landmarks. | Limited nightlife, fewer trendy restaurants. |
Life in Rome
Rome is the capital city of Italy and a major economic center in Europe. It has a strong economy driven by tourism, finance, manufacturing, and technology, as well as a vibrant start-up scene.
What expats usually like the most in Rome is the city's rich cultural history and its vibrant atmosphere. They often enjoy exploring its ancient ruins, visiting its art galleries and sampling its delicious Italian cuisine.
Unfortunately, there is a bit of crime in Rome (the crime rate index is around 53, which is not so low. Examples of crimes in Rome include pickpocketing, theft, drug dealing, and other forms of petty crime, which are mainly targeted at the local population and do not typically affect the expat population.
A good point for a property investor - Rome has an extensive and efficient mass rapid transit system, the Roma Metro, which consists of multiple lines.
Access to healthcare in Rome is very good, with a Healthcare Index of 61. Good healthcare facilities is great for real estate.
Finally, it is worth noting that Rome has two top-tier universities: the Sapienza University and the University of Rome II.
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Renting out in Rome
If you're interested in buying property not to live in, but to rent out and generate income, this section is for you.
Long-term
Tenant Profiles in Rome
According to the data reported by Wikipedia, the home ownership rate in Italy is 74%, which is average.
It means that, if you decide to buy and rent out in Rome, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target students, young professionals, families, and expats. Rome is also a popular tourist destination, so you may want to consider short-term rental options as well.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Studio in Trastevere | Tourists, students | Historic charm, nightlife | $800 - $1,500 |
1-Bedroom Apartment in Centro Storico | Professionals, couples | City center, cultural attractions | $1,000 - $2,000 |
2-Bedroom Flat in Prati | Families, expats | Safe neighborhood, shopping | $1,200 - $2,500 |
Apartment in Monti | Artists, young professionals | Trendy area, local shops | $900 - $1,800 |
3-Bedroom House in Aventino | Families, professionals | Quiet, green spaces | $1,500 - $3,000 |
Apartment in Pigneto | Students, artists | Bohemian vibe, cafes | $800 - $1,500 |
1-Bedroom Flat in Testaccio | Professionals, young couples | Local markets, authentic | $1,000 - $2,000 |
Rental yields
As of today, rental yields in Rome are within the 3-4% range. It's low. A good rental yield is typically considered to be around 7% or higher (you might know it already).
Rental yields in Rome are typically highest for apartments located in the city centre, as they tend to be in demand due to their close proximity to amenities and attractions. Properties further away from the city centre, such as villas, also offer good rental yields, as they are more affordable for tenants and still remain a desirable option.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Rome are taxed at 21%, which is not bad.
Short-term
You could also decide to rent short-term to business travelers, tourists, or students studying abroad in Rome. Additionally, you could rent to those who are in Rome for a special event, such as a wedding or a conference.
If you decide to go with that option, look for properties in the central neighborhoods of Trastevere, Monti, and Campo de Fiori. These areas are popular with tourists and offer a wide range of rental options.
You will have some competition though - there are around 22,000 Airbnb listings in Rome. The average daily rate stands around $152, which is quite high.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Rome can make around $3200 per month. Also, the average occupancy rate is estimated at 93%.
Is it worth buying real estate in Rome then?
Buying a property in Rome can be a fantastic idea for some, but it's essential to consider your circumstances and goals carefully. Rome, with its rich history and diverse property options, appeals to many. If you plan to make Rome your long-term home or are looking to invest in a culturally significant city, it can be a smart move. The property price-to-rent ratio suggests that buying becomes more cost-effective over time, and Rome's stable economy with projected GDP growth may lead to property value appreciation.
However, if you're a short-term resident or averse to risks, buying property in Rome may not be the right choice. Renting can be more financially sensible for shorter stays, given Rome's relatively high property prices. Rome's property market has its challenges, including strict regulations for historic buildings, delays in land registry processes, and seismic risks in certain areas. If you're not prepared for these potential hurdles or have a limited budget, it's better to explore rental options.
Furthermore, if you're seeking high rental yields, Rome may not be the most lucrative market. Rental income tends to be relatively low compared to other cities. In summary, buying property in Rome can be a wise decision for those seeking a long-term home or investment in a culturally rich city, but it may not be the best choice for short-term residents, risk-averse buyers, those with limited budgets, or investors focused on high rental yields.
Careful consideration of your goals and circumstances is key to making an informed decision in Rome's real estate market. Ultimately, whether it's worth buying a property in Rome depends on your individual situation and preferences.
Make sure you understand the real estate market in Rome
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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.