Property Market in Italy
Foreign Demand for Italian Property Strenghtening
The article topic Property Market in Italy
15 May 201
Although Italy has not made the headlines about property crisis, massive price declines and homes being sold for half the price few years ago as we got used to read about Spain, the house market situation is far from bright. The tough economic situation paired with the low morgage availability as domestic banks are struggling with creadit spread widening resulted in a sharp decline of number of transactions and subequently property price reductions accross the country.
Italians who tend to pesimist about their country's economic prospects practically stopped buying homes.Both first home and second homes are affected. Italy has a long tradition of second home ownership dating back to the 19th century when the wealthier city inhabitants started building holiday villas by the sea and lakes. It is quite usual for a middle or upper class Italian family from the North or bigger cities in the south to own one or more sea-side villas, ski-apartments or village rusticos. The increased property tax on second homes and maintance cost as well as the fact that the young generation is often moving away or even abroad as jobs are hard to come by resulted in many of these properties coming to the market recently to face the weak demand. The offer is great and seller, often tired by having their home advertised for 2 or more years, agree to higher discounts.
The foreign buyers také advantage of this situation. New studies show that the number of transactions with foreign buyers increased by 14% totalling 2.1bn EUR last year. By far the biggest group of foreigners (40%) are Germans. For them, Italy is the third most popularcountry to buy a property abroad after Spain and Austria. Great accessibility from Germany definitely helps. The Germans are followed by Brits and Russians. most of these foreign clients consider Italy a safe country to buy a property.
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