Renting vs. buying a house: which is more beneficial in Italy?
The recent decrease in interest rates by the European Central Bank from 2.75% to 2.5% has made adjustable mortgage payments more accessible for those interested in purchasing a property. According to a research conducted by Maiora Solutions, acquiring real estate in Italy's major urban areas has become more advantageous than renting.
The AI-driven market intelligence firm Maiora Solutions examined over 5,000 properties listed for sale and rent through EPONA, its artificial intelligence real estate investment tool. The analysis focused on a 25-year adjustable rate mortgage with an interest rate of 2.85% (currently the lowest available) covering 90% of the property's value.
Research findings: buying is more profitable in most cities
The study concentrated on the average prices for buying and renting one-, two-, and three-bedroom apartments in Milan, Rome, and Naples in March 2025.
Milan: Savings of up to 7% on property purchases
In the capital of Lombardy, purchasing a house was found to be more financially advantageous than renting across all property types considered:
- One-bedroom apartments : average mortgage payment - 940 euros, rent - 980 euros (+4% in favor of the mortgage).
- Two-bedroom apartments : mortgage payment €1,400 versus €1,500 for rent (-7%).
- Three-bedroom apartments : average payment - 2065 euros, rent - 2225 euros (-7%).
Rome: Acquiring a one-bedroom apartment leads to nearly 50% savings
In Italy's capital, the advantages of a mortgage are even more pronounced:
- One-bedroom apartments : mortgage payment - 550 euros, rent - 1040 euros (-47%).
- Two-bedroom apartments : mortgage - 1090 euros, rent - 1400 euros (-22%).
- Three-bedroom apartments : mortgage payment - 1530 euros, rent - 1870 euros (-18%).
Naples: Mortgages are advantageous for one- and two-bedroom apartments, but not for three-bedroom apartments
In Naples, the scenario is similar, but with one peculiarity: for three-bedroom apartments, renting is marginally more profitable than a mortgage.
- One-bedroom apartments : mortgage - 400 euros, rent - 660 euros (-39%).
- Two-bedroom apartments : mortgage - 650 euros, rent - 890 euros (-34%).
- Three-bedroom apartments : mortgage payment - 1210 euros, rent - 1200 euros (rent is slightly more profitable).
Outlook: potential risks and opportunities
Despite the current trend favoring purchases, experts caution about potential fluctuations in interest rates in the upcoming years. If rates increase, payments on variable-rate mortgages may go up, making renting more appealing once again. Moreover, maintenance costs and taxes for homeowners could pose additional financial challenges.
Analysts recommend potential buyers:
✔️ Thoroughly compare mortgage offers , considering fixed rates as an alternative.
✔️ Assess the economic outlook of the city to prevent property value depreciation.
✔️ Factor in the duration of your residency : If planning to relocate within a few years, renting remains a more flexible choice.
Mortgages are becoming a lucrative option once again
Research by Maiora Solutions indicates that with declining interest rates, purchasing property is emerging as a more appealing option compared to renting in most major urban centers. This shift could prompt more individuals to invest in their own residences, leveraging improved financing terms and the continuous growth of the real estate market.
