Price per square metre: how to compare different homes
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What the price per square metre is and what it is forWhich surface to use: the first mistake to avoidHow to compare different homes, step by stepThe OMI value: a reference point, not a priceWhy the price per square metre can be misleadingHow to use the land registry extractAnd if the home comes from an auction?What to check during the viewingThe price per square metre and the mortgageIn practiceFrequently asked questionsSourcesThe price per square metre (prezzo al metro quadro) is obtained by dividing the sale price by the property's surface area in square metres. It helps you compare homes of different sizes, but it only works if the surfaces are measured in the same way.
Example: house A costs €160,000 and measures 80 m², so €2,000 per square metre. House B costs €150,000 and measures 60 m², so €2,500 per square metre. House B is cheaper in total, but more expensive for every square metre.
What the price per square metre is and what it is for
It is a number that makes large and small properties comparable. The total price tells you how much you spend; the price per square metre tells you how much you are paying for every metre of surface.
You will easily find it in listings, but it is not always written down. If it is missing, you can calculate it yourself: asking price divided by stated surface. Use the same surface for all the homes you compare.
Which surface to use: the first mistake to avoid
Not all surfaces are the same. The three most common are:
- the commercial surface (superficie commerciale), which usually includes the perimeter walls and a share of balconies, cellars and garages;
- the cadastral surface (superficie catastale), which is the one registered with the land registry and shown in the land registry extract (visura catastale) and the floor plan;
- the usable surface (superficie calpestabile), that is the useful space without walls and thicknesses.
Estate agents and sellers often use the commercial surface, but not always in the same way. Ask which surface was used for each listing and how balconies and cellars were counted. If you do not know, the comparison is not reliable.
How to compare different homes, step by step
- Choose the same reference surface for all the homes.
- Calculate the price per square metre for each one, with two decimal places if needed.
- Compare homes in the same area: two addresses a short distance apart can have very different prices.
- Check the condition of the property: a home needing renovation at €2,000 per metre is not the same as one already ready at the same price.
- Look at floor, lift, orientation and noise: these affect the real value.
- Ask how much the monthly condominium charges (spese condominiali) are and whether extraordinary works have been approved.
- Check the energy class in the APE, the certificate that is mandatory when selling.
Once you have done the calculation, do not stop at the number. The price per square metre is a starting point to understand whether a home is in line with the area, then you need to understand why.
The OMI value: a reference point, not a price
The Italian Revenue Agency (Agenzia delle Entrate) publishes the property values of the Real Estate Market Observatory (Osservatorio del Mercato Immobiliare), that is the OMI property values (quotazioni OMI). These are minimum and maximum values per square metre, by zone and by property type, updated every six months. You can find them on the Agenzia delle Entrate website, in the section dedicated to property values.
Be careful: these are indicative values. They are not market prices, nor an average to use as a discount. Using them correctly is simple: see which value band the home you are interested in falls into and compare the asking price with that band. If the price is well above the maximum, ask why. If it is below the minimum, check the condition of the property and the documentation.
Why the price per square metre can be misleading
A low price per square metre can hide costs that come later. A home that needs rebuilding costs money that does not appear in the price. The same applies to a condominium with works coming up or to a property with unauthorised building works (abuso edilizio).
Example: two homes at €2,000 per square metre, both of 80 m². One is ready, the other needs a new bathroom and new systems, estimated at €20,000. The real cost of the second rises to €180,000 with the works (€160,000 + €20,000), and the comparison changes. To understand how to do the sums, read how to calculate a home that needs renovation.
The comparison must also be made on the documents. A home with the same measurements but without a compliant floor plan or with unauthorised works does not have the same value as a home that is in order.
How to use the land registry extract
The land registry extract (visura catastale) shows the category, class, size and cadastral income (rendita catastale) of the property. The owner can check it online at no cost. A buyer can ask the seller or the agency for it, but check that the data match the actual property.
Compare the cadastral surface shown in the extract with the surface in the listing. If the differences are large, ask for an explanation before making an offer. The floor plan also helps you understand how the rooms are laid out. If you want a list of documents to ask for, read the documents needed to buy a home.
And if the home comes from an auction?
In court auctions the starting point is the base price (prezzo base), set on the appraisal report (perizia di stima). The price per square metre in the appraisal report is compared with that of homes for sale in the same area. If the base price is well above the market value of the area, ask why: the appraisal report should explain it. For the difference between base price and minimum offer, read base price and minimum offer explained with an example.
What to check during the viewing
The viewing is there to confirm the numbers. Measure the rooms, check for damp, finishes and systems. Ask what has been done in recent years and whether there are condominium works planned. A practical guide is the home viewing: what to really look for.
If you are weighing up a new home against a used one, the comparison per square metre is not enough. For this there is another dedicated guide: new or used home: costs and risks compared.
The price per square metre and the mortgage
The bank values the home with its own appraisal and, as a rule, lends up to 80% of the value. If the bank's appraisal is lower than the price you have paid, you cover the difference yourself. For this reason it is worth having an idea of the real value before making an offer. The Bank of Italy (Banca d'Italia) publishes a guide on mortgages that explains how the valuation works.
In practice
- Calculate the price per square metre using the same surface for all the homes you compare.
- Ask how the surface was measured: commercial, cadastral or usable.
- Compare the result with the OMI band for the area, as a reference and not as a price.
- Factor in works, condominium charges and the condition of the property before deciding.
Frequently asked questions
Is the lowest price per square metre the best choice?
Not always. A low price may depend on defects, works to be done, high condominium charges or incomplete documents. Before choosing, check the reason for the difference.
Can I ask the seller how they calculated the surface?
Yes, and you should. Ask for the surface used in the listing and whether it includes balconies, cellars and garages. A clear answer helps you compare homes correctly.
Is the OMI value enough to decide the price of an offer?
No. The OMI value is a reference by zone and property type. To decide, you need to assess the specific home, its defects and its documents.
Sources
In the same chapter
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- Who chooses the notary, who pays for themAs a rule, the buyer chooses and pays the notary, that is, the fee and the taxes: how to read the quote.
- Buying a home: every step from search to the notarial deed (rogito)From the viewing to signing at the notary: the six steps to buy a home, with documents, sums to pay and checks before you sign.
- Preliminary contract (compromesso): what it is and what it must containThe preliminary contract (compromesso) is the agreement through which you commit to buying a home. I explain what it is, what it must contain and how much you risk if the sale falls through.
- Right of habitation (diritto di abitazione): what it isThe right of habitation lets you live in someone else's home only with your family: it cannot be sold or rented out. Here is how it works.
- Pre-emption right: when it exists and how it worksPre-emption (prelazione) is the priority that gives you the right to buy first, at the same price and conditions: when it exists and how it works.
General information, not legal or tax advice: the law and the notice of sale prevail.
