Buy or rent a home in Italy? Housing Selection Guide Based on the Case of Milan, Rome and Naples

Let's find out in which Italian districts of these capitals it is convenient to rent or buy real estate.

After the pandemic, life in the real estate market in Italy is slowly improving, interest rates are recovering slightly, mortgages are still interesting for many Italians. Rentals have failed due to the pandemic, but recovery is possible in the coming months as demand is there.

I am often asked which is more profitable: paying a mortgage or rent, especially when you are unable to cover 20% of the upfront value of the property.

Using the example of an average three-room apartment located in the following districts: the center, near the center and the suburbs of the main cities of Italy: Milan, Rome and Naples, we will consider the options for purchasing housing.

Nowadays, more than ever, the most profitable is the purchase of Italian real estate in the peripheral areas, where prices are lower. In central and central areas, renting can be cheaper than buying.

For example, in Milan in the second half of 2020, rents fell and became much lower than in other cities. For this reason, in many cases, buying a home with a mortgage involves a higher down payment than the rent. On the example of a three-room apartment, buying is more convenient, especially in peripheral areas, where prices are still low, and installments are more affordable.

In Rome, where rents have been reduced, but not as much as in Milan (if you consider the central areas, compared to the cost of a mortgage, rents are still convenient). For a three-room apartment in the central and peripheral zones, the choice between buying and renting Italians are more inclined towards mortgages than to rent.

It is always convenient to buy a three-room apartment in the capital of Naples. The only exception is an apartment in the Fuorigrotta area, where the rent is lower than the installment plan.