Since the relaxation of COVID restrictions, foreign residents in March-April 2022 began massively buying villas and houses by the sea, significantly revitalizing the Italian real estate market. The recovery of tourist flow and demand for housing contributed to increased interest among investors and an increase in the value of premium-segment properties!
The first quarter of 2023 brought a gloomy forecast - a downturn in the real estate market is noted for the current period. Already in January, analysts recorded a decrease in the average cost in the secondary housing segment - by 0.3%. According to the National Institute of Statistics (Istat), the first decline was recorded in the third quarter of 2022. At that time, the number of notarial deeds of sale amounted to 221 thousand, which is 2.6% less compared to the second quarter of 2022. Of the total number of transactions, about 95% concerned the sale of residential properties and only 5% - commercial ones. Only 0.3% fell on objects of special purpose. Statistics indicate that a decline in the residential real estate sector has been recorded in almost all regions of Italy. The most significant figures are shown by the South (-7.1%), the Islands (-3.7%), the Central part (-3.0%), and the Northeast (-2.6%). Demand for commercial properties has significantly decreased on the Islands (-5.8%) and in the Southern region (-5.3%). However, some areas showed positive dynamics: Northwest (+2.1%), Central part (+1.8%), and Northeast (+1.5%).
Available real estate market offerings
Analysts have not yet made a forecast for how long stagnation will last in the Italian real estate market. Some regions: Lake Como, Lugano, Maggiore, Tremezzo, Argegno enjoy stable demand at any time! A small decline in the market has formed a pool of available options in the Calabria region and on the island of Sicily - now it is quite real to buy real estate there for around € 70,000 - € 200,000.
In Italy, there is a separate category of real estate - "houses for 1 euro". These are ancient abandoned objects that require an investment of at least € 150,000. It is prohibited to demolish the structure and build a new one in its place - only restore or repair it.
For connoisseurs of historical buildings located in picturesque corners of Italy, this is an excellent opportunity to get housing for free and bring it into a normal condition according to their taste. In addition, this is an opportunity not to immediately pay the full amount for the object, but to repair and invest money gradually - the investor has 3 years to implement the project. The aim of such a program is to preserve historically valuable real estate objects and help the local economy. To apply, you need to register with the local municipality.
Conclusions
The real estate market in Italy has always been characterized by stability and low volatility. Even during the 2008 crisis and the 2022 pandemic, prices fell minimally compared to other European countries. Despite the wave of decline at the end of 2022, Italian properties had previously steadily increased in value by 1% per quarter.
The liquidity of objects (depending on their purpose and region) fluctuated within 5-7%. Purchasing real estate in Italy does not automatically grant the right to obtain a residence permit as an investor, but it will be a significant factor in considering the application, as well as allow you to obtain a multi-visa and travel freely throughout the Schengen area, as well as to a number of countries where this visa is valid.
If you want to know more about the real estate market in Italy, are interested in a specific region, or need to buy a liquid asset, sign up for a consultation with specialists from the licensed agency GARANT.IN. Impressive experience, cooperation with trusted developers and realtors, knowledge of the nuances of Italian legislation - all this will allow us to implement any client's request in a short time!
