Falling mortgages and real estate investment opportunities: what to know

Article published on 23 July 2025 on homacoop.it; the data refer to that date.

The new interest rate scenario: the brick returns to the spotlight of savers and investors

2025, already in this first half of the year, marked a significant change of pace for the credit market and, consequently, for the real estate market. After two years of strong pressure on interest rates, due to the ECB's restrictive monetary policies, there are clear signs of a trend reversal. Falling mortgages and the real estate investment opportunity are returning to the center of interest of families and investors.

As for mortgages related to the purchase of second homes, according to Facile.it and other comparators, the average TANfor long-term fixed mortgages (e.g. 30 years) is between2.19% and 3.94%, down from the levels of more than 4.5% in 2023. In summary, this is the situation detected in June 2025:

• fixed rates on second home loans:vary between2.5% and 3.5%, with first green offers under 3%;
• the installment for a loan of about 110,000—150,000 € over 20—30 yearscan fluctuate between€ 580 and €620 per month, up to the€ 570—590 range for green solutions;
• The mortgage market benefits from the fall in ECB rates, making it now favorable to plan an income-generating real estate investment.

Even variable ratesare starting to show greater convenience, signaling a phase of stabilization that could be a prelude to further declines in the following months. This is not just a slight decline:the impact on a monthly mortgage payment can be significant. As highlighted by an analysis published by We Wealth, a 25-year loan of 180,000 euros can now benefit from a reduced installment of more than 50 euros per month compared to 2024, with a total savings that, over the entire term of the mortgage, can exceed 12,000 euros.

Why invest in real estate to make an income in 2025

In an economic environment that is still uncertain and with the volatility of the financial markets, real estate investment represents a concrete and historically stable form of capital use. The current phase of declining mortgages and real estate investment opportunities makes it even more convenient to buy a property for income purposes.

Here are the top reasons to invest today:

1. Falling rates: more affordable financing

The fall in interest rates, especially on fixed-rate mortgages, allows investors to access credit with better terms than in the last two years. This translates into lighter monthly installments, greater investment sustainability and a faster return in terms of cash flow. It should not be underestimated that several banks reward energy efficient homes with reduced rates, reduced appraisal and preliminary costs.

2. Stable and growing housing demand

Especially in university cities, the demand for rental housing remains constant, fueled by off-site students, young workers and mobile families. This is a constantly evolving target, but with well-defined needs: well-connected, furnished, efficient and sustainable properties. This makes the investment more liquid and easily manageable, even in the case of frequent turnover.

3. Inflation protection

Investing in bricks allows you to preserve the value of capital over time. The rents can be revalued, at least partially, based on the trend in the cost of living, offering a natural cover from inflation that fixed return instruments often do not guarantee.

4. Possibility to value the property

Targeted renovations, energy efficiency and functional furniture increase the market value and the profitability of the asset. In 2025, various incentives remain active for the energy upgrading of buildings, which can reduce the initial investment and increase the value of the property in the medium term.

5. Passive income and constant rent

A property put into income can generate constant monthly revenues, with attractive margins, especially in areas with high demand and professional management. By relying on operators like HOMA, it is possible to maximize performance without dealing directly with daily management.

A recovering but selective market: it is better to rely on a professional

The reduction in rates has an immediate effect on the purchasing power of investors, expanding the audience of potential buyers and increasing competition on quality properties, especially in urban and university areas. However, the actual profitability of the transaction increasingly depends on property management and on the ability to intercept stable demand, such as that represented by off-site students and young workers, an area in which HOMA has now matured more than 10 years of activity.

In this scenario, therefore, declining mortgages and real estate investment opportunities become a winning combination only if accompanied by a professional management strategy, capable of maximizing economic return and minimizing operational risks.

The real key is to make the property profitable in an efficient and secure way. And this is where theHOMA model comes into play, today among the top 5 leading companies in the student housing sector in Italy.

Student housing: a highly profitable niche

Italy has more than 2 million university students, including more than 700,000 out of site. The demand for medium-long term housing is stable and growing, especially in the main university cities.student housing is thus confirmed as a dynamic and resilient segment of the real estate market, with high occupancy rates and constant rotation of tenants.

Investing in a house to rent to students means:

• generate continuous income
• Access constant demand
• benefit from the revaluation of the asset over time.

️ With HOMA, you transform a property into a 360° managed investment

Relying on HOMA means not only finding reliable and selected tenants, but also completely outsourcing property management: contracts, payments, utilities, maintenance, all entrusted to our team.

For those who do not have time to dedicate to management or want an annuity, we also offer direct rent to our company formulas, with sublease to verified students and full support.

Do you want to invest in a property to make an income?

If you're considering buying a home to rent, this may be an ideal time to take action. The market offers favorable conditions and HOMA is the right partner to transform your purchase into an rent.

Contact us for free advice on how to value your investment: info@homacoop.it

This text is an automatic translation from Italian, produced with artificial intelligence (Amazon Translate).