Ivana Magistrelli and Gabriele Paladini explore the topic in their latest piece on BeBeez.
The Government’s Housing Plan has reignited the debate around an issue the real estate sector knows all too well: Italy faces a chronic undersupply of residential properties, particularly new, energy-efficient and affordable ones.
Across Europe, the residential sector ranks among the top asset classes for institutional investors.
In Italy, however, a number of obstacles continue to hold it back:
- Overly rigid lease structures – The 4+4 framework introduced in 1998 is out of step with today’s market needs. Greater flexibility is essential to attract build-to-rent investment and support affordable housing.
- An incomplete rent-to-buy model – More than a decade after its introduction, the instrument has gained little traction. A thorough overhaul is needed, addressing both its contractual and tax dimensions.
- A punishing tax regime – The current system creates disincentives on both the demand and supply sides. Targeted interventions on VAT could provide a meaningful boost to the sector.
Find the full article here.