The capital of Italy is one of the three most visited cities in Europe, 8-10 million tourists come to it every year. Accordingly, prices for real estate in Rome are among the highest not only in Italy, but throughout Europe. Only investors with impressive resources of several hundred thousand euros can afford to buy real estate in Rome. However, such an investment is highly attractive, since real estate prices are constantly rising, and the annual influx of tourists provides a stable income from rental housing.
Benefits of buying real estate in Rome
Regardless of how much an apartment in Rome costs, such a purchase is a profitable investment and gives the buyer many advantages. In addition to the fact of having housing in the capital of Italy, the pluses include:
- rental income - the average cost of renting an apartment in the central part of the capital is 25-30 euros / m2 per month. The average rental price in Rome as a whole is 13.9 euros / m2;
- the presence of real estate is the basis for obtaining a multiple but short-term Schengen visa, which gives the right to stay in Italy and other European countries for 90 days within six months;
- own real estate is an advantage when applying for a residence permit for the purpose of further immigration;
- a positive trend for home purchases observed in 2021 - the average asking prices for real estate in Rome have been falling over the past 24 months. But in the near future, the decline is likely to develop into an appreciation, so now is the best time to buy;
- the ability to purchase real estate of any type, including undeveloped land plots;
- a large number of offers, including at a relatively low price outside the central part of the capital.
Types of Roman real estate
As already mentioned, foreigners have access to absolutely all types of both residential and commercial real estate, both secondary housing and apartments in new buildings. Among residential properties, there are many different types of real estate, which we have listed in ascending order of their average value for January 2021:
- townhouses (Villetta a schiera) - a type of low-rise block buildings, in which residential buildings are blocked by one wall to each other;
- residential building in the suburbs (Rustico / Casale) and villas (Villa);
- penthouses and mansards (Attico / Mansarda) - a type of housing, usually located on the last floors of multi-storey buildings;
- apartments and apartments (Appartamento);
- ancient buildings and palaces (Palazzo / Stabile);
- private houses within the city (Casa indipendente);
- lofts - non-residential industrial premises reconstructed for housing or living space stylized for them.
Commercial real estate in Rome is represented by a wide variety of objects that can also be found in the CIS countries. It should be borne in mind that secondary housing is significantly cheaper than primary. Apartments in new buildings without reference to the area and area are usually 15-20% more expensive than similar, but already inhabited housing.
Areas of Rome
Which area is better to live in is a very subjective question, especially in the context of Roman real estate. Rome is a huge city, and the choice of the area for buying a home will depend on many factors, ranging from the amount that the buyer has at his disposal, and ending with his personal preferences.
Of course, everyone who is looking for cheap accommodation in Rome will hardly be able to find suitable options for themselves within the city limits. It would be much more correct for them to look for housing, for example, in the municipalities of Arcinazzo Romano, Allumiere or Cervara di Roma - these are suburbs, the cost of housing in which is 3-5 times lower than prices in Rome itself. Learn more about provincial pricing and available offers here.
For buyers with sufficient funds, the best areas of Rome are of interest. These include:
- Trastevere is a bohemian and picturesque area that is part of the historic center;
- Termini - central station area, recommended only for renting;
- Prati - an area on the banks of the Tiber northeast of the Vatican, within walking distance of the historic center;
- Aventine is a family-run and quiet area in the historic center;
- Monti is a central area with a huge number of attractions.
Anyone looking to buy an inexpensive apartment in the center of Rome will be disappointed. We will recommend them to pay attention to other, less popular areas with more affordable housing prices, including:
- microdistrict Villa Ada-Monte Sacro;
- microdistrict Policlinico-Pietralata;
- microdistrict San Giovanni-Roma Est;
- microdistrict Roma Sud;
- microdistrict Monteverde-Aurelio.
They offer relatively inexpensive apartments in Rome, at a price 2-4 times lower than in the historic center, regardless of the number of rooms and floor and location.
Property search
There are two obvious and proven channels for finding real estate in Rome and in Italy in particular: online classified ads and real estate agencies. At the same time, if you see an ad on the site, this does not mean at all that the owner is engaged in the sale - with a high degree of probability, we can assume that this is also a realtor.
Among the most popular sites for the sale of real estate:
- idealista.it - over 30 thousand properties in Rome;
- casa.it - more than 14 thousand objects;
- immobiliare.it - more than 40 thousand objects;
- tecnocasa.it - over 6.5 thousand objects;
- wikicasa.it - about 30 thousand objects;
- trovacasa.net - about 28 thousand objects;
- subito.it - about 29 thousand objects.
As for real estate agencies, their number exceeds 2.2 thousand units. Many of them operate through real estate websites and offer clients exclusive options. On the plus side, you can find real reviews of the agencies from their former clients, and there are even Russian-speaking employees in the companies.
Among the most reputable Italian agencies:
- Ziantoni;
- Agenzia Immobiliare Laurentina;
- Grimaldi;
- Gabetti;
- Immobiliare Angiolini Christian;
- Toscano;
- 4Mura
- Casaelite Roma.
Review of real estate prices in Rome
According to the information posted on immobiliare.it, the average cost of 1 m2 of Roman property in January 2021 was 3,101 euros, which is 1.84% less than in January 2021 (3160 euros / m2). The peak of the average price was recorded in February 2021 and then it was 3,235 euros / m2; since then there has been a slight negative trend.
However, statistics reflect only the average cost of an apartment in Rome.
Prices may vary significantly depending on the area and type of housing. For example, the average cost for penthouses and lofts is 3.5 thousand euros / m2, while for townhouses - 2.1 thousand euros / m2.
However, location is much more important. For example, residential apartments in the historical center can cost up to 15 thousand euros / m2. The average price for a center is 7-8 thousand euros / m2.
Considering the price level, it is practically unrealistic to buy an apartment in Rome in the central part of it for less than 350-400 thousand, and sometimes even 500 thousand euros.
In other districts, remote from the central part of the capital, it is possible to buy a 2-room apartment with an area of about 50 m2 for 250 thousand euros. An apartment under construction on a mortgage can be bought even for 150-170 thousand euros.
Buyers wishing to buy a villa should expect at least € 300,000-400,000.
According to experts, in 2021, the capital's real estate market has stabilized, fluctuations in price are very modest. In the future, slight growth is forecasted in the range of 1-2% per year. In the more distant future, growth may accelerate due to positive changes in the Italian economy.
Home buying procedure
The procedure for buying a home in Italy is as follows:
- The buyer receives an identification code (codice fiscale) from the tax office.
- The buyer opens an account with one of the banks, from which he can subsequently pay for utilities.
- The seller of the selected object is sent a written purchase offer with a price offer (Proposta di acquisto).
- If the parties agree on the terms, a deposit is made, which is 5-10% of the declared value.
- When the deal is prepared and all the formalities have been taken into account, a sales contract (Contratto notarile di compravendita) is concluded. It is subject to mandatory notarization. Due to the nature of Italian law, either a translator or a buyer's representative who knows Italian must be present at the transaction.
- Payment for the transaction is made. The money is transferred either to the notary's trust account, or in the form of a covered check, transferred to the seller directly.
- The state registration of the transaction is being carried out. It can take a long time: all documents to the authorities in charge of the register are transferred directly by a notary.
Package of documents
All that the buyer will need to complete the purchase and sale is a foreign passport (apostilled), an identification code and a power of attorney, if a representative is also involved in the transaction.
Tax
In addition to the actual cost of housing, the buyer will have to incur other costs for completing the transaction:
- registration fee (mposta di Registro) –2% of the transaction when buying a secondary real estate, 200 euros - when buying a primary one for residents or 9% when buying a non-resident;
- cadastral and mortgage taxes (Imposta Ipotecaria e Catastale) - 50 euros each when buying a secondary property and 200 euros each when buying a primary property;
- VAT (IVA) - 4% when buying a primary property from a private seller and 10% when buying from an organization.
For non-residents, there are high taxes in Italy. To shorten them:
- real estate should be the first and not be considered elite;
- it is necessary to undertake the obligation to register at the address of the purchased apartment within 18 months after the purchase, which is possible only on condition of obtaining a residence permit.
In addition, you will have to pay the agency's fee of 3-5% of the transaction value and notary services (1-3%), as well as translation services.
Maintenance costs
Considering the cost of living in Rome, utility bills will account for a large part of the cost. Their total amount will depend on the consumption of utilities based on the calculation for electricity (0.2–0.3 euros per kWh), water (15–20 euros per month) and gas (30–50 euros per month). All services are calculated by counters. Rates vary depending on the region and even the time of day.
On average, an apartment of 85 m2 with permanent residence in it will cost 1.5-3 thousand euros per year. If the property is purchased in a condominium, the maintenance of the adjacent territory, pool maintenance and other similar services are additionally paid.
It should be noted that the purchase of insurance is also mandatory, the cost of which is usually 1-2% of the registered cost of housing.
In addition, a single communal property tax (imposta unica comunale, IUC) will have to be paid annually. It includes three taxes: municipal property tax, waste collection and handling fees, and road maintenance tax. For an average apartment of 85 m2, the tax will be € 850 per year.
Taking into account all of the above, the real cost of housing maintenance is 1-3% of its market value per year.
Tips for Buyers
We draw the attention of potential buyers to the following points:
- the participation of a realtor in the transaction is not necessary, however, with his help, the search, selection of real estate, negotiations and the final registration of the purchase and sale will be much easier;
- when looking for a realtor, keep in mind that this activity is subject to licensing - choose only licensed agents;
- when monitoring prices for an objective assessment, use not only the data of agencies and sellers, but also the information of the tax service;
- read reviews about agencies and realtors, check sellers' phones and engage market experts to avoid fraudsters;
- preliminary estimate the amount that the purchase will cost: the cost declared by the seller and the amount of real costs will differ significantly;
- attract agencies specializing in the Russian-speaking audience to your search, including through prian.ru.
Conclusion
Roman real estate is one of the most expensive in the world. In 2021, it has a high investment attractiveness due to a huge flow of tourists and favorable forecasts for growth in value - today, the average price has probably reached minimum values.
Despite the high price, real estate in the capital of Italy is in great demand, and Russian-speaking foreigners are among the top ten buyers. However, when buying such real estate, it should be remembered that the costs of its maintenance are very impressive and can be 1-3% of the market value per year and even higher when it comes to luxury housing.
