The yield of short rents is growing in the main Italian cities
The growth of the short-term rental business continues in the main Italian cities. According to the third half-yearly Observatory of Halldis, in fact, in the first half of 2018 the profitability of this business increased to 20% in Milan and up to 12% in Rome, thanks to the increase in prices and the employment rate. It holds in Bologna balancing a 3% decline in employment with a 4% price increase. While Florence closes the ranking of returns with a decrease of 2.97% due to the fall in prices due to high competition in the Tuscan capital.
In Milan the first 6 months of this year close with a occupancy average of 85.68%, up more than 10% compared to the same period of 2017. Instead, the revenue generated for rent (measured through RevPAR – Revenue Per Available Rental) is higher in the Quadrilatero della Moda area (€ 197.62 / day), which exceeds Duomo-Centro (€ 134.38) and Conciliazione-Cadorna (€ 118.24).
In the same period, Rome reported a occupancy rate of 69.25%, higher by almost 5% compared to the first half of 2017. The highest RevPAR is recorded in Trevi (€ 97.08), followed by Campo de’ Fiori (€ 79.62) and Piazza di Spagna (€ 75.38).
In Bologna, occupancy decreased by 3%, but average prices increased by 3.99%, for a result of the RevPAR positive by 0.88%. The Bologna district with the highest yield remains the city center (€ 79.35), very detached all the others, considering that the second most profitable is Saffi-Ospedale Maggiore with a RevPAR of € 47.50.
Florence shows an increase of 2.32% on the employment rate, but with a more consistent decline in average prices, due to the high availability of properties. The RevPAR is therefore down by 1.89%. Unlike all other cities, users of Florence do not reward the Historic Center which has a RevPAR of € 64, surpassed by Oltrarno € 67.67 and homes in unclassified areas that, usually large in size, come to € 79.