The short term rentals market - Italy

The short-term rental market, commonly defined as temporary rentals for periods of less than 30 days, is one of the main solutions adopted by travelers and tourists to meet flexible and personalized accommodation needs. This form of rental has been defined by the Italian Revenue Agency as a rental mode for which contract registration is not mandatory, thus simplifying administrative procedures for landlords. Globally, the short term rental market is expected to grow strongly, from $131.4 billion in 2024 to $341.62 billion in 2033, with a compound annual growth rate (CAGR) of 11.2 percent. In Europe, between 2024 and 2030, the value of short term rentals will increase from €42 billion to €81 billion, an overall increase of 92.9 percent. In Italy, the market will grow by 70.8% between 2023 and 2028, reaching a value of 13.66 billion euros. Major Italian cities such as Milan, Rome, Florence, Venice, and Naples constitute the nerve centers for the supply of short leases, with Milan standing out in terms of the number of dedicated dwellings. In Venice, the average annual rent for short leases is the highest at 26,250 euros, followed by Florence (23,067 euros) and Rome (19,530 euros). This highlights the strong tourist interest and specific demand for such housing. The indicators used in the analysis, such as the IML (rental market indicator) and the IMLB (short rental indicator), provide insight into the positioning and dynamics of these markets. While the IML analyzes the proportion of rented dwellings to total non-principal dwellings, the IMLB focuses specifically on short leases. Florence, for example, records the highest values for both indices, with an IML of 16.4 percent and an IMLB of 12.7 percent, highlighting a strong concentration of short leases in the city. Short leases differ from long-term leases not only in duration, but also in the benefits offered to landlords, including higher income and greater flexibility in property management.