Real Estate in Italy ranks 29th globally in terms of property value, 13% above the world average. The average price per square meter reaches €3500, with major cities and the capital showing stable rates of €7000-8000/m² regardless of global trends.
When purchasing property in Italy, one cannot automatically qualify for a residence permit. However, owning real estate significantly simplifies obtaining residency through other means.
The Italian real estate market is characterized by its conservatism and low volatility. The purchasing process has remained largely unchanged over the years, contrasting with more innovative markets like the UAE, where cryptocurrency payments are accepted.
Among the advantages are the widespread acceptance of check payments and the possibility of making deposits to reserve property before signing an official contract. All actions can be conducted remotely, from property selection to contract signing.
A brief overview of the current market and analysis of prospects for 2023
Locations leading in transaction volume over the past decade remain consistent – Milan, Rome, and Bologna. By the end of 2023, a 1.5%-4.5% increase in property prices is expected not only in these cities but also in Turin, Verona, and Genoa. Palermo and Naples are expected to see price declines of 1%-1.5%. Three-bedroom apartments remain the most sought-after property type in Italy.
The appeal of real estate in Italy to foreign buyers is attributed to:
- Having property for living or temporary stays in a country with a mild climate, developed economy, and stable political environment.
- Investing funds in a liquid asset; despite a slight decline at the beginning of the year, the Italian real estate market shows slow but steady growth.
- The opportunity to generate stable passive income from renting out property.
Renting out residential and commercial properties long-term is a primary income source in Italy, with average annual returns of 4-6% in euros. For resort properties or luxury assets in major cities, rates can increase to 8-10% annually. Short-term rental and property flipping yield higher returns but come with significant risks and require expertise or reliable legal representation.
Most liquid real estate in Italy over the past three months:
- Unprecedented demand and price increases for office spaces, warehouses, and shops. Retail space in Milan can yield up to 15.5%, while in Venice and Genoa, it reaches 15%. Conversely, Massa and L'Aquila show the lowest rates at 9.8% and 8.6%, respectively.
- Offices in Verona and Monza are the most lucrative, with yields of around 10.2% and 10.1%, respectively. Ancona offers approximately 9.8%, while Rome provides 8.8%. Naples stands at 7.6%, and Milan at 6.4%. Bergamo, Mantua, and Pescara hover around 6.4%.
- Parking spaces present another income opportunity. Bari leads with 7.6%, followed by Rome and Milan at 6.8% each. Naples exhibits no more than 4.8%, given higher garage and car prices.
For those interested in purchasing property in Italy, GARANT.IN agency provides comprehensive assistance in selecting verified properties within budget and handling related matters such as legal issues, visa applications, residency cards, taxation, driver's license acquisition, and more.
Investing in Italian real estate not only preserves capital but also significantly enhances it in the long run.
