News / Insights

The Italian Revenue Agency has published the late-2024 edition of its “Quaderni dell’Osservatorio,” which compiles contributions and insights from experts and scholars at the Agency’s Central Directorate for the Real Estate Market Observatory and Valuation Services.

This edition presents analyses on the updated market values of less dynamic real estate markets, the results of the project monitoring and analyzing real estate development operations, and a focus on the phenomenon of short-term rentals.

Regarding the latter, the model used compares data from InsideAirbnb.com with the housing stock managed by the OMI in major cities, evaluating the returns on short-term rentals compared to long-term ones and analyzing correlations with economic and social variables. The results show that approximately 5% of the housing stock not used by residents is allocated to short-term rentals, with significantly higher percentages in Florence (13%) and Venice (11%). In historic centers, the concentration reaches even higher levels: over 20% of non-primary residences in Milan and Venice and over 40% in Florence. From an economic perspective, short-term rental yields are more profitable than long-term ones in cities such as Florence and Venice, especially in historic centers. Milan is an exception, with traditional rentals remaining more profitable. There is no evidence of a direct impact on primary residences or sales in areas with a high incidence of short-term rentals.

Regarding the results of the research project “Monitoring and Analysis of Real Estate Development Operations,” variables such as financing, timelines, and sales were examined in 13 different regions and the city of Rome to explore the relationship between area incidence and urban rent differentials. The primary objective of the project is to gather data reflecting the actual trends in real estate development across the territory, in order to build a rating model that allows for the determination of a real estate development’s risk by assigning the corresponding significant characteristics.

The document also includes a case study that applies mathematical formulas to select comparable properties—in the OMI zone of Piazza Mazzini (Rome)—proposing a new approach to improve comparative valuation procedures. This edition is further enriched by a section featuring interviews with real estate experts, who offer insights into market trends and new valuation methodologies. In particular, the discussion delves into topics related to technological innovation, such as the use of artificial intelligence and big data in valuation processes, as well as the challenges associated with the sustainability of real estate investments.