The multifamily sector as an emerging trend in the Italian Residential Market

Italy can be identified as a homeownership society, meaning that ownership has traditionally been considered as a “natural” tenure choice in Italy. This paper focuses on the period of emergence (early 2020s) of a new asset class in the Italian residential real estate market: the multifamily typology. In fact, this is a model based on renting rather than selling housing units, featuring specific amenities and services made available to tenants (build-to-rent). The study is based on survey directed to a sample of 61 representants from some of the most relevant companies of the Italian real estate market. The findings show the main demand and investment drivers, the most important aspects to be considered in the development of a multifamily complex and the limits that affect the built-to-rent model in Italy. The paper concludes that multifamily as an asset class could be an opportunity to invest in the renovation process of the Italian residential stock and regeneration of peripheries characterized by a good connection. The main limitations and challenges that multifamily will have to overcome are high properties fragmentation, socio-economic and cultural factors and an investment appeal limited to the Milan real estate market.