The short term rentals market - Italy (2025)

1.2 The global market

Between **** and ****, the global short-term rental market will experience significant growth, rising from $***.* billion to $***.** billion, an increase of *** percent. This trend shows steady growth year after year, signaling an expanding demand, likely driven by changes in travel habits and the evolution of the real estate industry.

World short-term rental market value Italy,****-****,Billion dollars Globe Newswire

1.3 The European market

Between **** and ****, the European short-term rental market is set to grow significantly, from €** billion to €** billion, an overall increase of **.* percent. Growth will be steady over the period, confirming a strong regional expansion of the sector. Although in line with the global trend, the pace of growth in Europe is slightly lower.

European short-term rental market value Italy,****-****,Billions of euros Horizon

Annual number of nights spent in short-term accommodation booked through online platforms (***)

This table shows data on total overnight stays, split between domestic and international markets, for several European countries. France and Spain lead with the largest number of total nights stayed (***), is driven by the domestic market, which accounts for about ** percent of the total. Smaller countries such as Luxembourg and Liechtenstein register minimal values, highlighting their limited tourism capacity.

Country Total nights of stay Domestic market International market EU ***,***,*** ***,***,*** ***,***,*** Belgium **,***,*** *,***,*** *,***,*** Bulgaria *,***,*** *,***,*** *,***,*** Czechia *,***,*** *,***,*** *,***,*** Denmark *,***,*** *,***,*** *,***,*** Germany **,***,*** **,***,*** **,***,*** Estonia *,***,*** ***,*** ***,*** Ireland *,***,*** *,***,*** *,***,*** Greece **,***,*** *,***,*** **,***,*** Spain ***,***,*** **,***,*** **,***,*** France ***,***,*** **,***,*** **,***,*** Croatia **,***,*** *,***,*** **,***,*** Italy ***,***,*** **,***,*** **,***,*** Cyprus *,***,*** ***,*** *,***,*** Latvia *,***,*** ***,*** *,***,*** Lithuania *,***,*** *,***,*** *,***,*** Luxembourg ***,*** **,*** ***,*** Hungary *,***,*** *,***,*** *,***,*** Malta *,***,*** ***,*** *,***,*** Netherlands **,***,*** *,***,*** *,***,*** Austria **,***,*** *,***,*** **,***,*** Poland **,***,*** **,***,*** **,***,*** Portugal **,***,*** *,***,*** **,***,*** Romania *,***,*** *,***,*** *,***,*** Slovenia *,***,*** ***,*** *,***,*** Slovakia *,***,*** ***,*** *,***,*** Finland *,***,*** *,***,*** *,***,*** Sweden *,***,*** *,***,*** *,***,*** Iceland *,***,*** **,*** *,***,*** Liechtenstein **,*** *** **,*** Norway *,***,*** *,***,*** *,***,*** Switzerland *,***,*** *,***,*** *,***,*** Eurostat

Annual number of stays in short-term accommodation booked through online platforms (***)

In this table, the total number of stays is **.* million, divided between the domestic ...

1.4 The Italian market

Between **** and ****, the Italian short-term rental market will grow significantly from * billion to **.** billion, an overall increase of **.* percent.

Italian short-term rental market value Italy,****-****,billion euros Nomisma

Target Cities

In Rome, **.*% of houses are unoccupied, but only *.*% are dedicated to short term rentals and *.*% are present as dedicated listings. Florence has a higher rate of unoccupied houses (***), with *.*% allocated to short rentals and *.*% in ads, indicating a higher incidence of tourist use than Rome

City Unoccupied houses Short-term rentals Dedicated ads Rome **,*% *,*% *,*% Florence **,*% *,*% *,*% Venice **,*% *,*% *,*% Nomisma Historic centers In Rome's historic center, **.*% of houses are unoccupied, **% are for short rentals and *.*% appear as dedicated listings. In Florence, **.*% of houses are unoccupied, with **.*% destined for short rentals and *.*% in ads, showing a greater use for tourist rentals. In Venice, **.*% of homes are unoccupied, but only **.*% are dedicated to short rentals and *.*% appear in ads, showing potential underutilization compared to other cities. City Unoccupied housing Short-term rentals Dedicated listings Rome **,*% **% *,*% Florence **,*% **,*% *,*% Venice **,*% **,*% *,*% Nomisma

2.1 Demand in Italy

TRIPS AND NIGHTS BY TRIP TYPE (***)

Analysis of the duration of vacations in Italy between **** and **** shows a gradual growth in the share of stays of * or more nights compared to shorter stays (***).

After a significant decline in ****, likely due to the pandemic, the total number of vacations returned to growth, reaching **,*** in **** (***)

Year *-* nights * or more nights Total vacations Number Comp.% Number Comp.% Number Comp.% **** **.*** **,* **.*** **,* **.*** **,* **** **.*** **,* **.*** **,* **.*** **,* **** **.*** **,* **.*** **,* **.*** **,* **** **.*** **,* **.*** **,* **.*** **,* **** **.*** **,* **.*** **,* **.*** **,* **** **.*** **,* **.*** **,* **.*** **,* From **** to ****, arrivals at accommodation establishments in Italy increased by *.* percent, from ***.** million to ***.** million, while presences grew by *.* percent, from ***.** million to ***.** million. After a sharp decline in ****, with arrivals down **.* percent from **** and presences down **.* percent, the sector showed a gradual recovery, returning to values above pre-pandemic levels in ****. Tendency also maintained in **** for presences but not for arrivals with values of ***,*** and ***,*** respectively. Customer arrivals and presences at accommodation establishments Italy, ****-****, in millions Istat The distribution of arrivals at Italian accommodation establishments showed an initial balance between Italians and foreigners (***), but the pandemic in **** caused a sharp increase in the share of Italians to **.* percent. With the recovery of international tourism, the share of foreigners gradually rebounded to **.* percent in ****, while Italians still accounted for the majority with **.* percent, percentages ...

2.2 Demand drivers

The main drivers driving demand for private accommodation facilities include:

Diversity and uniqueness of accommodations: Airbnb offers a wide range of unique options, from cozy apartments to luxurious villas, allowing for different experiences than standard hotels. Affordability: accommodations on Airbnb are often more affordable, especially for groups or extended stays, due to the ability to split costs. Ease of local integration: Airbnb allows you to live like a local resident, offering a more authentic and personal experience. Home comforts: many Airbnb accommodations offer the comforts of home, such as fully equipped kitchens and living spaces. Flexibility: Airbnb accommodations can offer more flexibility for check-in and check-out and do not have the same restrictions as hotels. Privacy and space: Airbnb often offers more space and privacy than a hotel room. Unique locations: Airbnb allows people to stay in less touristy neighborhoods or in locations where there are no hotels.

Considering the global context, it is possible to identify a strong correlation between the use of the Airbnb platform and the age of the individual. In ****, young people (***). Baby-boomers and over-**s account for ** percent of total bookings while the **-** age group contributes ** percent.

Guests at properties available on Airbnb, breakdown by ...

2.3 Online interest in "Short-term rentals"

The map represents online interest for all queries related to the topic "Holiday Homes" in Italy in ****, according to the Google Trends index. Campania records the highest value (***), which has the lowest value. The color shades reflect these differences, with darker shades in the areas of greatest interest.

table { width: **%; border-collapse: collapse; margin: **px auto; font-family: Arial, sans-serif; } th, td { border: *px solid #ddd; text-align: left; padding: *px; } th { background-color: #f*f*f*; } tr:nth-child(***) { background-color: #f*f*f*; }

Peaks occur in the summer months, reaching a maximum in June **** (***), while in the winter months interest drops dramatically, with lows such as **.* in December ****. The trend shows an annual repetition, with gradual increases in the spring and decreases starting in the fall. Online interest trend for "Vacation Home" italy,****-****,Google Trends index Google Trends

The map shows the online interest for "Airbnb" in Italy in ****, showing significant regional differences. Valle d'Aosta records the highest value (***).

table { width: **%; border-collapse: collapse; margin: **px auto; font-family: Arial, sans-serif; } th, td { border: *px solid #ddd; text-align: left; padding: *px; } th { background-color: #f*f*f*; } tr:nth-child(***) { background-color: #f*f*f*; }

In **** interest peaked in July (***), followed by a fall decline. The trend confirms a ...

3.1 The market structure

In order to analyze the structure of the market for short-term rentals made through the Airbnb platform, the total number of facilities in the top * tourist destinations in Italy, the types of facilities available, and the number of facilities managed by hosts are considered.

Rome is the city with the largest share of Airbnb facilities in Italy in ****, with **.**% of the total, followed by Milan with **.**%. Florence stands at **.**%, while Naples and Venice have a lower presence, with *.**% and *.**%, respectively. Thus, a clear prevalence of the two main Italian metropolises can be observed, which together cover more than half of the market.

Number of properties on Airbnb, breakdown by city Italy, ****, in thousands Insideairbnb

in all cities analyzed, apartments make up the majority of facilities on Airbnb, peaking in Rome (***), while shared rooms and hotel rooms are numerically insignificant compared to the other types.

Types of accommodations available on Airbnb, breakdown by city Italy, ****, % Insideairbnb Most hosts in Florence operate a single property (***), indicating the presence of professional operators in the short-term rental market.

Number of facilities per host on Airbnb, breakdown by city Italy, ****, % Insideairbnb

Rome has the highest number of hosts with only one accommodation (***), signaling a strong component ...

3.2 Rental of housing

The number of homes rented in Italy between **** and **** shows a variable trend, with a significant decline in the last year. After peaking at ***.* thousand units in ****, the number of leases decreased to ***.* thousand in ****, probably due to the impact of the pandemic. Thereafter, between **** and ****, the market stabilized with values between ***.* thousand and ***.* thousand rented homes. However, in **** there is a sharp decline to *** thousand units. it is important to note that this value was obtained by summing the total leases for the first three quarters of the year, without including the data for the fourth quarter, which justifies the lower figure compared to previous years.

Dwellings rented Italy, ****-****, in thousands Agenziadelleentrate In ****, **.* percent of rented housing in Italy was rented under ordinary long-term contracts, followed by **.* percent under subsidized agreed contracts. Transitional contracts accounted for **.* percent, while subsidized contracts for students stood at *.* percent. Rented housing, breakdown by contract type Italy, ****, % Agenziadelleentrate Regarding the accommodations available on the Airbnb platform in the * Italian cities analyzed, in **** long-term rentals represent, on average, *.*% of total bookings. Short-term rentals turn out to be the main proposed solution searched on the platform.

Type of rental offered on Airbnb, breakdown by city Italy, ...

3.3 The main actors

The following is a list of Airbnb hosts with the highest number of managed facilities in each city analyzed:

Rome

IFlat: The company specializes in managing short- and medium-term rentals, mainly for vacation rentals in Rome. They offer comprehensive services to property owners, including reception, housekeeping, **/* assistance, reservations, decorating and home staging, photo shoots, and sales channel management.

Welcome to Our Holiday Homes: is a collection of boutique hotels, B&Bs, villas, beach houses, and luxury vacation homes, carefully chosen for their unique design and interesting architecture. The company highlights properties in different destinations around the world, offering a variety of options ranging from modern vacation homes and boutique accommodations to villas and private islands. Each property is selected for its distinctive design and quality, with the goal of providing memorable and authentic experiences for travelers.

Halldis: is a company specializing in property management, offering rental services for vacation homes and short- and medium-term housing solutions. Since ****, the company has been providing complete property management, from registration with local authorities to hosting guests.

WonderWhere to Stay: is a portal dedicated to short- and medium-term housing rentals, mainly in Rome. They offer a variety of properties, such as apartments and villas, in ...

4.1 The offer

Short-term rentals

Short-term renting or temporary renting is defined as a mode of house management opposed to traditional rentals, which have rather strict time constraints on landlords. This mode of management allows people to give use of the house (***) for limited periods, shorter than the four-year minimum of the rent-free lease, by selling individual nights instead of entire months. The Internal Revenue Service states that "a short lease is defined as a lease of no more than ** days' duration, of property for residential use, which is entered into by individuals. "Given the Internal Revenue Service's definition of short leases, we can then divide short leases into two categories:

Short rentals ofa tourist nature:of a duration of less than ** days. For these contracts there is no obligation to register with the Internal Revenue Service, there are no obligations regarding the payment of stamps for registration, but it is sufficient to follow the rules dictated by the Agency. Short-term rentals of a transitory nature: for leases longer than ** days up to ** months. In these cases, there is an obligation to register with the Internal Revenue Service, the payment of a stamp duty (***).

(***)

Short-term rentals are much more affordable than traditional rentals. ...

4.2 The prices

Average annual rent (***) in **** by market segment and for short leases

In ****, the highest average annual rent for short leases (***), Milan stands out with **,*** euros, followed by Florence with **,*** euros and Rome with **,*** euros.

Estimated annual gross yields in **** for registered and short leases in major cities

In ****, estimated annual gross yields for short leases (***) offer the highest return again in Florence with * percent, while Bologna records a value of *.* percent.

Short-term rentals

The average daily price per facility on Airbnb in **** varies significantly among the Italian cities analyzed. Florence records the highest value, with *** euros per day, followed by Venice with *** euros and Milan with *** euros. Rome stands at *** euros, while Naples has the lowest price of *** euros.

These data suggest that cities with strong tourist appeal, such as Florence and Venice, have higher rates than Rome and Naples, where prices are lower. Milan, although a major economic center, shows an intermediate value, probably reflecting a more diversified demand between tourism and business travel.

Average daily price per facility, breakdown by city Italy, ****, in euros Airdna

Long-term rent

The average rental price in Italy between **** and **** shows steady growth, rising from *.* euros/m² in January **** to **.** euros/m² in November ...

4.3 New supply trends: entering the long-term rental market

Starting in ****, Airbnb, a company specializing in short-term rentals, plans to expand the experiences and services it offers. In particular, through the words of CEO Brian Chesky, the company's intention to expand its presence in the long-term rental market becomes clear. Although in the second half of **** only ** percent of bookings on Airbnb were for stays of thirty days or more, Chesky sees long-term rentals as a significant growth opportunity for the company. [***]

The platform's top executives believe monthly rentals have become more relevant as a result of changes in the world of work induced by the Covid-** pandemic. Remote work, which was initiated on a large scale during periods of confinement imposed by authorities to contain the spread of the virus, is now an established practice in many companies. According to Chesky, this development prompts many people to relocate temporarily, spending a month or more in locations other than their usual residence, while still maintaining their remote employment. [***]

In addition, Airbnb is introducing a co-hosting service, in which experienced hosts assist new hosts in managing their properties. This service aims to increase the number of homes available on the platform, facilitating the entry of new hosts and improving the overall ...

5.1 The legislation

Short-term rentals

Decree Law of **/**/****, No. **: Article * of the Decree Law regulates the tax regime of short leases. Law of Dec. **, ****, No. ***: filled a legislative loophole by providing that the tax regime of short leases, effective from the tax period relating to the year ****, is recognized only in the case of allocation to this type of rental of no more than * apartments in each tax period. In other cases, the rental activity is presumed to be carried out as an entrepreneurial activity pursuant to Article **** of the Civil Code. Directive (***) ****/***: stipulates that as of January *, ****, intermediary platforms through which short-term rental contracts are concluded must, in fact, report to the tax authorities:the data of landlords on a quarterly basis to the Internal Revenue Service, the fees received and the number of transactions carried out.

In cases where a region does not have specific legislation, regulations on vacation rentals refer to the Civil Code, Articles **** et seq.

Long-term rentals

Law of December *, ****, No. ***: Regulation of leases and release of properties used for residential purposes. Law of July **, ****, No. ***: regulation of leases of urban real estate.

National Identification Code (***). This code must be prominently displayed outside the property and included in every ...

5.2 Conclusion

The short-term rental market continues to experience sustained growth globally, with an estimated ***% increase between **** and ****, driven by changes in travel habits and real estate. In Europe, the market is expected to expand by **.* percent by ****, withItaly confirmed as a key player with *** million tourist nights recorded in ****, ** percent of which are attributed to international tourists. Nationwide, the short-stay rental market will grow by **.* percent between **** and ****, reaching a value of **.** billion euros. Italy's main cities - Rome, Milan, Florence and Venice - serve as tourist hubs, with a high number of Airbnb facilities. However, the sector is highly fragmented, with ** percent of hosts managing only one property.

The strategies of the major operators vary between:

Managing unique and luxury properties Offering customized services, such as full rental management

Large players such as Italianway and Cleanbnb dominate the market with significant business volumes. On the regulatory front, the sector is regulated by short and transient rental laws, with tax incentives for certain types of contracts. Currently, the market remains fragmented, but there is increasing concentration in the hands of large management companies, which now account for about ** percent of hosts. Pricing dynamics are affected byinflation and post-pandemic recovery, but growing demand ...

6.1 Market segmentation

• IFlat
• Cleanbnb House
• Halldis
• Italianway
• Wonderful Italy Campania
• Mybnb (Italianway)
• Mamo Florence
• Istay
• Views on Venice
• Veniceapartament-Com