According to the recent “Market Report for Residential Property in Rome second half year 2021” published by Engel & Völkers, the real estate market in Italy’s capital is consolidating the recovery that began in the summer of 2020. “The premium market in Rome has been very reactive and characterized by sustained demand,” says Helio Cordeiro Teixeira, Managing Director of the Engel & Völkers Market Center in Rome. “The ability to revive the economy after the pandemic, aided by substantial funds from the National Recovery and Resilience Plan, was a prerequisite for reactivating the desire to buy real estate. At the same time this was also driven by the need of improving housing conditions. Strong demand is expected to further fuel price growth in the residential sector in 2022,” he concludes.
Rising number of property transactions both for apartments and houses
In the second half of 2021, the real estate market in the Italian capital was characterized by sustained demand. The most sought-after properties in the central districts of Trastevere, Ponte, Campo Marzio and the Monteverde area are high-quality renovated three- and four-bedroom apartments. Prices here range from 5,000 euros up to a maximum of 9,000 euros per square meter. International request is growing in these prestigious urban areas and accounts for 10 percent of buyers mainly searching for investment purposes, mostly from the United States, the United Kingdom and France. In the historic center near Piazza Navona, one of Rome’s most famous squares, is a house on sale for 11 million euros.
The preference for larger indoor and outdoor spaces, the presence of green areas and the ability to move easily without having to deal with urban traffic are still predominant aspects for buyers, regardless of the pandemic restrictions having been uplifted. In Prati-Vatican, Parioli and Trieste-Salario, all along the banks of the Tiber River, square meter prices for new or renovated apartments reach a maximum of 7,100 euros, whilst flats that need refurbishment start off at 4,200 euros per square meter.
In addition to the renewed interest in central and prestigious areas, there is also a growing demand for properties in the semi-central residential districts with green areas and easy access to the city: San Giovanni, Monte Sacro-Talenti, Balduina, Ostiense, Colli Portuensi-Gianicolense, EUR (Esposizione Universale Roma) and Palocco. In these districts asking prices for houses go up to 5.9 million euros.
Outlook: Stable growth in demand and prices in the upcoming months
According to Engel & Völkers, demand in the first half of 2022 will remain strong and in line with the country’s economic growth. “The upward trend in purchases will continue in Rome in the upcoming months, especially in well-connected central and semi-central areas, with a slight increase in prices,” concludes Helio Cordeiro Teixeira. Added to this is the long-awaited recovery of the tourism and hospitality sector, which is seeing the activity of private investment and the growing interest of funds and institutional investors from all over the world. It is also evident to note that Rome is an extremely attractive city in the international scenario, given that average prices in central areas are not as high as those of European capitals such as Paris or London.
