Rentals: a market filled with opportunities

In January 2023, the average price asked for real estate on sale was recorded in Trentino Alto Adige, for € 3.081 per square meter. Instead, in Calabria, only € 920 are asked per square meter, the lowest price across all Italy.

In the same month, the average highest price requested for properties up for rent is in Lombardy, for € 15,46 per square meter. While the lowest stays in Calabria, € 6,76 per square meter per month. In general, in 2023 a nominal 6% price increase is expected, due to inflation and scarcity of offer.

This is about a long term investment able to generate, in Italy’s bigger cities, annual income around 5,1%.

The Italian real estate market is continuously growing, especially after the pandemic, in line with new needs and priorities for people.

As a matter of fact, a market that is consistently ascending and with significant future prospects, is exactly that of real estate destined to short term rentals, around 1,2 millions.

AN ITALIAN PLAYER

Locare, an Italian company, born with the goal to simplify and make rental procedures safer, are navigating the local property market with its service called Salvaffitto.

This is about an innovative tool able to ensure support and efficacy for:

  • internal processes for real estate firms
  • landlord’s protection thanks to advanced tenants’ selection
  • legal assistance
  • repair of damages and unpaid duties
  • elimination of elements such as cautionary deposit for tenants

Such an idea with great impact on the sector, has allowed Locare to arrive among the Bold Awards finalists, in the PropTech category, an international award organized by HFarm in collaboration with Crowdsourcing Week.

Locare’s service is innovative thanks to specific elements which can determine an entrance selection:

  • expertise within the property market and the related protection topic, both for landlords and tenants
  • wide commercial web, built along the years thanks to constant communication, education and updating through real estate agents
  • significant and consolidated market positioning of real estate firms able to develop location business.

In January, Locare’s founder, Andrea Napoli, was also the organizer for ReFuture, an event that took place at Camera dei Deputati, where the future of the real estate sector was discussed. To this event, some of the main exponents of the market have taken part, one of them being Idealista’s co-ceo Antonio Giordano, and Immobiliare.it’s board member, Carlo Giordano. The event was a success and has highlighted, thanks to the speakers’ words, how innovation is fundamental within real estate as well.

REAL ESTATE PERSPECTIVES IN ITALY

Today, the rental market in Italy is in full growth and Locare is following the trend in the best way possible, as a matter of fact their service Salvaffitto sees its subscribers grow constantly. Moreover, starting from 2021, the entry increase praises several months over 50%.

Currently Locare is proceeding with the third capital fund increase, opening up to a significant investment opportunity. This seems to be the last chance for anyone to participate and will end in the coming months. In the future this will only be open to institutional investors and who knows, sooner or later to the stocklist.

The mission for this last round is simple: growing. The goal is to amplify the ray of action, both digital and physical on the national territory.

Historically, the italian company had concluded successfully 2 capital round increases bringing to the investors a solid result, triplicating the pre-money value in the first instance and doubling it in the second one.

The meaning tied up has to do with the management’s vision, meaning simplifying in a world full of complexities and heaviness, signing agreements with structured business such as AirBnB to make transitory locations easier.

Should you want to receive more information about opportunities within Locare’s capital collection round, please get in touch via info@runcapital.partners.

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