The perfect scenario for your business
Rental contract norms in Italy are a standard 4 years and automatically renewed for another 4 years, making rental income very stable and in some cases, tenants tend to stay in the property for over 15 years.
Rent control is virtually non-existent and is now neither controlled nor capped. Rental rates are dictated by market demand.
The current situation creates a perfect scenario for our business model: properties at a historically low purchase price with little capital available locally for property investment and rental properties in high demand.
Rents are moving in an upwards direction (i.e. increasing) and the current property market is gradually moving up and follows the apparent trends of neighbouring Mediterranean countries (viz: Spain and Portugal).
The current scenario locally is yielding an annual return on investment of 4/7%, with an average capital increase of 4%.