In the Lombard real estate scene, the focus is on rents in Milan, a topic that has dominated discussions over the past year.
The central issue concerns the high cost of rents in Milan, which is becoming increasingly unaffordable for a growing number of citizens.
Various factors have contributed to this situation, including the significant role of short-term rentals, whose importance needs to be scaled back.
Rent in Milan: an Overview
According to data provided by Inside Airbnb, about 3 percent of real estate in Milan is for short rentals.
Over time, several institutional proposals have been made to address this issue, such as the idea of reserving 40 percent of new large-scale construction projects for social housing.
Recent restrictions on short term rentals and changes to the “cedolare secca” tax regime have raised concerns about a possible increase in undeclared transactions and a decrease in the attractiveness of this type of contract.
Also important to note is the problem of empty housing due to the fear of running into defaulting tenants.
However, solutions such as Spacest.com’s guaranteed rent formula offer a monthly rent payment guarantee, even in the event of delinquency.
Rental trends and comparison with the real estate market
An analysis of rent trends in Milan, focusing on the residential sector, reveals an average cost of 22.90 euros per square meter per month.
For a 70-square-meter apartment, ideal for a couple, the monthly rent is around 1,600 euros. This figure would allow to cover the repayment of a 30-year mortgage for a property worth 350 thousand euros.
Comparing the increase in rents in Milan with the increase in real estate sales prices in Milan offers food for thought.
Rents increased by 10.7 percent annually, while sales prices grew by 1.7 percent. These figures highlight the difficulty of negotiating rents.
The most expensive neighborhoods to rent in Milan
Milan’s historic center stands out for the highest rents, exceeding 34 euros per square meter per month, an increase of 16.9 percent over the previous year.
Areas such as Brera and Via Montenapoleone saw a 12.8 percent increase, with rents exceeding 38 euros per square meter per month.
The Città Studi area also saw a significant annual increase of 26.7 percent, with rents exceeding 35 euros per square meter per month.
Rent in Milan: the most affordable neighborhoods
Despite the increase in rental prices in Milan, there are nevertheless more affordable solutions in suburban areas that, thanks to Milan’s widespread public transport distribution, are easily accessible from the city center.
Some of the least expensive areas to live in Milan and its hinterland are:
- Abbiategrasso;
- Rho;
- Legnano;
- Gallarate;
- Lodi.
Comparison with Rome
Interesting is the comparison with Rome, where rents attract more people than in Milan.
According to Immobiliare.it, 14% of home seekers are oriented toward the capital, preferring areas such as Talenti, Nuovo Salario and Monte Sacro.
Proximity to the subway remains a decisive criterion in both Rome and Milan, with Loreto emerging as the most popular area in the Milanese city.
In conclusion then, the survey also explored the maximum budget available for those looking for a house to rent, establishing that the figure is around 1,000 euros per month for both Milan and Rome.
The rental situation in Milan requires special attention, considering the increase in costs and the impact on citizens’ housing choices.
The proposed solutions and market analysis offer insights for future strategies to make the rental market in the Lombard metropolis more affordable.