While more than 400,000 out-of-town students are preparing for the new academic year in big Italian cities (according to data from Miur from 2016/2017), the impact of this onslaught on property prices is becoming clear, especially in neighbourhoods near universities.
This big rise comes mainly from those who buy an apartment for their child studying in the city and those who want to invest, cashing in on the influx of student as potential tenants and a good future income. Let's take a closer look at the issue with the analysis conducted by Abitare Co.
"Neighbourhoods affected by the presence of universities have always attracted a large part of their demand from buyers of real estate, either for direct use or as an investment," explains Alessandro Ghisolfi, Head of Research at Abitare Co. "Sales and rentals in these places, therefore, have remained better than other areas in what is particularly difficult time for much of the real estate the market. Currently good news for the residential market in general is that there are particularly positive trends in these districts both in terms of demand and price.”
According to Abitare Co's analysis, in general terms during the first half of 2018, the demand for buying a home close to university districts increased more substantially (+5.2% compared with 2017) in comparison with that recorded in other areas (+4.6%).
At the same time, comparing September 2018 with the same period last year, the average sale price of a used house in good condition has grown by 2.2% (2,400 euro per square metre or 223 euro per square foot). This contrasts with +1.3% in non-student areas, with a wide range of variable prices from 1,400 euro/m2 or 130 euro/sq ft in Ferrara to a maximum value of 5,100 euro/m2 or 474 euro/sq ft in Rome in the district of Nomentano near Sapienza. The demand housing in the rental market near university areas has also increased: +4.3%, compared to +3.7% in other areas.
How much does it cost to buy a used house (in good condition) near the main universities?
Considering only the university district of metropolitan cities, in September 2018 the most expensive place is Rome, with an average price of 4,100 euro/m2 or 380 euro/sq ft (+1.8% compared with 2017).
Tor Vergata is the cheapest Roman district (2,800 euro/m2 or 260 euro/sq ft), while prices increase sharply in the areas of Nomentano (5,100 euro/m2 or 474 euro/sq ft), Flaminio (4,800 euro/m2 or 446 euro/sq ft), San Lorenzo (4,200 euro/m2 or 390 euro/sq ft) and Garbatella (3,800 euro/m2 or 353 euro/sq ft).
Just behind Rome comes Milan, where the average price in these areas is 3,700 euro per square metre or 344 euro per square foot (+2.2%), with prices ranging from 2,200 euro/m2 or 204 euro/sq ft in Bovisa to 6,700 euro/m2 or 622 euro/sq ft in the center of Sant'Ambrogio. You’d need 3,300 euro/m2 or 306 euro/sq ft to buy in the district of Bocconi, while in Bicocca the average price is around 2,300 euro/m2 or 214 euro/sq ft.
In third place is Florence, with an average value of 2,650 euro/m2 or 246 euro/sq ft (+ 2.2%). For those who decide to buy in the Gavinana neighbourhood, the price of 2,300 euro/m2 or 214 euro/sq ft is significantly cheaper than in Rifredi (2,700 euro/m2 or 250 euro/sq ft) and Campo di Marte (2,900 euro/m2 or 270 euro/sq ft).
How much does it cost to invest in student rental apartments instead?
"The gross annual returns, before expenses and taxes, that can be obtained from investing in an apartment and renting it out to students today are included in a range of between 4.8% and 5.8%," says Ghisolfi, "at least one percentage point more than houses rented in other areas of the city.
“Only a massive input of new housing dedicated to student rentals could significantly reduce these numbers in the future. At present, we are beginning to see greater interest from large investors in this segment of the residential market, but we are far from European volumes (in Germany, in 2017, investments in student houses exceeded one billion euro, for example).”
Milan student accommodation: finding cheaper apartments for rent in the suburbs
If you're planning on studying abroad in Italy, finding somewhere to live will be top of your list. However, the rising cost of rent for students continues to be one of the main housing issues in Italian cities and a frequently debated topic in the media. Locare's Research Office has analysed potential alternative housing solutions, particularly for those studying in Milan and looking for more affordable accommodation than what’s available in the city centre. So, how much does it cost to move
Discover Italy's oldest university
Italy is a country rich in ancient and prestigious schools and universities, but there is one with the longest history and the oldest academic tradition: the University of Bologna. Here are some historical, cultural, and academic details that make the oldest university in Italy unique, the crucial role Bologna has played in European culture, and the legacy it continues to pass on today
Erasmus in Milan: Information and tips for students
Planning for an Erasmus in Milan? This guide offers essential information and tips for students preparing to embark on this exciting journey. Milan, a global capital of fashion and design, is also renowned for its high-quality education institutions. It's no wonder that it's a top choice for Erasmus students from around the world.
Erasmus in Rome: Information and Tips for Students
Erasmus in Rome offers a unique opportunity for students to immerse themselves in the rich history and culture of the Eternal City. This article provides essential information and tips for students planning to embark on this life-changing experience. From navigating the application process to finding accommodation and making the most of your time in Rome, we have got you covered.
Looking for a room to rent in Italy? Supply and price trends in 2022
The supply of rooms for rent in shared flats in Italy has fallen by 43% over the past year, in line with the sharp decline in the stock of rental accommodation, according to the regular room-to-rent report by idealista, Italy's leading real estate portal. If you're looking for a room to rent in Italy, we have the details on rooms for rent in each Italian city.
Best student cities in Italy 2022: how Italian cities rank among the best student cities in the world
Summer is here, which also means that the new university term is just around the corner. When it comes to the best student cities across the world, we're looking to the "Best Student Cities" ranking, published by QS Quacquarelli Symonds, a British company that specialises in the analysis of higher education institutions across the world. Several factors were taken into account to compile the ranking of the world's best student cities, including affordability, opportunity and students' opini
Student rental contracts in Italy
There are many different types of rental contract in Italy, including contracts that are aimed specifically at students. Student leases are popular rental formulas for university students away from home, both Italian and foreign students, and this type of contract is characterised by the temporary duration of the lease. We have all the details about student rental contracts in Italy.