Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Italy

Italy

The projected revenue of the Residential Real Estate Leases market market in Italy is expected to reach US$65.99bn in 2024.
Apartment Leases, in particular, dominates this market segment with a projected market volume of US$41.82bn in the same year.
Taking into account the annual growth rate (CAGR 2024-2029) of 1.87%, it is anticipated that the revenue will continue to grow steadily, resulting in a market volume of US$72.40bn by 2029.
In Italy, the residential real estate leasing market is experiencing a surge in demand due to the growing popularity of remote work and the desire for spacious and comfortable living spaces.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Italy is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Italy, there is a growing trend among individuals and families to opt for residential real estate leases instead of purchasing properties. This shift in customer preferences can be attributed to several factors. Firstly, leasing offers greater flexibility, allowing individuals to easily relocate or upgrade their living arrangements without the burden of selling a property. Additionally, leasing provides an opportunity to live in desirable locations that may be financially out of reach for property purchase. Furthermore, leasing eliminates the need for a large upfront investment, making it a more attractive option for individuals with limited financial resources.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Italy is the increasing demand for rental properties in urban areas. This can be attributed to the growing population in cities, as well as the appeal of living in close proximity to amenities, employment opportunities, and cultural attractions. As a result, there has been a rise in the construction of residential buildings specifically designed for leasing purposes, catering to the needs of urban dwellers. Another trend in the market is the emergence of co-living spaces. Co-living offers individuals the opportunity to live in shared accommodations, often with communal spaces and amenities. This trend is particularly popular among young professionals and students, who value the social aspect and cost-saving benefits of co-living arrangements.

Local special circumstances: Italy has a unique cultural and historical heritage, with many cities and towns boasting architectural gems and picturesque landscapes. This has led to a high demand for residential properties in sought-after locations, such as Florence, Rome, and Venice. The scarcity of available properties in these areas has driven up prices, making leasing a more viable option for individuals who wish to experience the charm of these cities without the commitment of property ownership.

Underlying macroeconomic factors: The economic landscape in Italy has also influenced the development of the Residential Real Estate Leases market. The country has experienced periods of economic uncertainty and slow growth, leading to cautious consumer behavior and a preference for more flexible housing options. Additionally, the high cost of property ownership, including taxes and maintenance expenses, has made leasing a more financially viable choice for many individuals. In conclusion, the Residential Real Estate Leases market in Italy is witnessing significant growth due to shifting customer preferences towards more flexible housing options, the emergence of urban living trends, the appeal of co-living arrangements, the demand for properties in desirable locations, and the influence of underlying macroeconomic factors. These factors have contributed to the development of a thriving and dynamic leasing market in Italy.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.