Property Market in Italy
Property Prices in Italy Declining
The article topic Property Market in Italy
14 Apr 2013
Real Estate Prices in Italy Declining
The property index idealista which follows the evolution of property prices shows continuing reduction in average price in the first quarter of 2013 in 35 of 51 towns. The decrease has been more pronounced in the southern municipalities. On the other hand, prices in some industrial cities of the north-east such as Turin grew.
Property in Rome, Florence, Milan and Venice
From the major cities, the worst deterioration saw property price in Florence with a decline of 4,4% in Q1 and 8,1% annualised. Not even romantic city of Venice escaped the price fall (-4% in Q1 and -7,8% per annum), nor southern Naples (-2,2% in Q1 and -4,4% annually) and Rome, the capital (-1,1% in Q1 and -7,4% annually). Milan was the only major city showing weak growth of 0,5% in Q1, but still an annual reduction of 2,2%. In all major cities the periphery was affected more than the city centres.
Property in Upmarket Areas Remains Relatively Strong
Less affected are regions popular by foreigner who are taking advantage of price decline. Lake area in the North still sees a strong demand from Germany and Holland and although Tuscany as a whole show price declines, the attractive properties remain well abova national average. New demand here comes mainly from Russia with rumour of Vladimir Putin also eyeing the Tuscan property market. The Dolomite property shows very little sales, but prices in ski resort are stable.
What Should we Expect for the Future?
The expectation differ and there is not clear message on the Italian property market as a whole. On the back of Euro crisis the domestic demand is almost inexistent and internal political turmoil will not help in its recovery. However, Italy, unlike Spain did not go down the route of massie construction and except for a few sea side resorts in the Adriatic and Calabria the coast remains relatively unspoiled which attracts foreigners with cash. We expect the recovery to start in the next years and the attractive locations and properties to lead it.
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