Rent or buy a home: what is more profitable in Italy?
The recent cut in interest rates by the European Central Bank from 2.75% to 2.5% has made variable mortgage payments more affordable for those looking to buy a home. According to a study by Maiora Solutions, buying a property in Italy’s largest cities has become more profitable than renting.
AI-powered market intelligence company Maiora Solutions analyzed over 5,000 listings for sale and rent using EPONA, its AI real estate investment platform. The study looked at a 25-year variable rate mortgage with an interest rate of 2.85% (currently the lowest possible) covering 90% of the home’s value.
Research results: in most cities it is more profitable to buy
The analysis focused on the average purchase and rental prices of one-, two- and three-room apartments in Milan, Rome and Naples in March 2025.
Milan: Save up to 7% on your purchase
In the capital of Lombardy, buying a home turned out to be more profitable than renting for all types of real estate considered:
- One-room apartments : average mortgage payment - 940 euros, rent - 980 euros (+4% in favor of the mortgage).
- Two-room apartments : mortgage payment €1,400 versus €1,500 for rent (-7%).
- Three-room apartments : average payment - 2065 euros, rent - 2225 euros (-7%).
Rome: Buying a one-room apartment allows you to save almost 50%
In the capital of Italy, the benefits of a mortgage are even more noticeable:
- One-room apartments : mortgage payment - 550 euros, rent - 1040 euros (-47%).
- Two-room apartments : mortgage - 1090 euros, rent - 1400 euros (-22%).
- Three-room apartments : mortgage payment - 1530 euros, rent - 1870 euros (-18%).
Naples: Mortgages are good for one- and two-room apartments, but not for three-room apartments
In Naples the situation is similar, but with one peculiarity: for three-room apartments, rent is slightly more profitable than a mortgage.
- One-room apartments : mortgage - 400 euros, rent - 660 euros (-39%).
- Two-room apartments : mortgage - 650 euros, rent - 890 euros (-34%).
- Three-room apartments : mortgage payment - 1210 euros, rent - 1200 euros (rent is slightly more profitable).
Prospects: risks and opportunities
Despite the current buying trend, experts warn of possible interest rate fluctuations in the coming years. If they rise, variable-rate mortgage payments could rise, making renting more attractive again. In addition, home maintenance costs and taxes could create additional financial burdens for homeowners.
Analysts advise potential buyers:
✔️ Carefully compare mortgage offers , considering fixed rates as an alternative.
✔️ Study the economic prospects of the city to avoid loss of property value.
✔️ Consider the length of your stay : If you plan to move within a few years, renting will remain a more flexible option.
Mortgages are becoming profitable again
Research from Maiora Solutions shows that with interest rates falling, buying property is becoming a more attractive alternative to renting in most major cities. This trend could encourage more people to buy their own homes, taking advantage of improved financing conditions and the ongoing development of the property market.
