Are you planning to sell your property in Italy this year? How do things look like in Italy? Is this a good time to make a major decision regarding your Italian property? Let’s investigate!
Italy didn’t suffer as much as other countries in Europe during the economic recession of 2008. Even so, average household incomes in Italy declined by 4% from 2008 to 2014. But since then the country has shown definite signs of revival.
The international real estate consultancy Knight Frank predicts that real estate prices in Italy are headed for a massive improvement as more buyers head in to buy properties here, especially from the U.K., U.S.A. and Germany.
Prices in Italy are still 30 percent below the peak last seen before 2009. The euro has declined in comparison to the USD and the British pound. This and the fact that the Italian economy is picking up and recovering much of the lost ground, makes it a great time to invest in a property in Italy. Italian real estate is inexpensive right now, but things are definitely looking up.
According to Rupert Fawcett, of Knight Frank, London, “We seem to be on a slight upward trend currently for Italy as an average across all the areas we cover. Stock market volatility often focuses investors’ minds on real estate as a more solid long term asset, and there is excellent value to be had in Italy currently, with prices down on average 30 percent since the crash in 2009, further improved by strong dollar exchange rates at the moment.”
“Italy is very much lifestyle driven. Buyers choose Italy not for investment reasons, but for all the various lifestyle factors it offers from food and wine to architecture, history and culture to relaxed living – coastal destinations and rolling hills filled with vines and cypress trees; shopping and entertainment,” Mr. Fawcett added.
So, who is buying in Italy? Brits are the most prominent buyers of Italian property, closely followed by Americans. Americans share a very romantic view of Italy, since the time of Ernest Hemingway. Most Americans associate Italy with beauty and passion.
A lot of Britons are looking to settle abroad, preferably in a first world country which has a lower cost of living than Britain. So Italy fits the bill perfectly. Many Brits claim to be in love with Italy and believe that this is the best time to buy property there.
So where do Americans and Britons buy property in Italy? Most buy in the Tuscany region. Tuscany is renowned for its Renaissance architecture and art. It has some of the most beautiful landscapes, unspoiled beaches and amazing mountain views, which makes it a perfect choice for property investors.
Also very popular are Puglia and Abruzzo. They are today two of the most sought-after overseas property destinations in Europe because of the affordable house prices and pristine natural landscapes.
Germans have shown a huge interest in Italian property as well. Most Germans prefer to stay at Liguria, which is a mountainous region close to the sea. Next to Liguria is Sardinia because of its stunning coastlines and azure waters. Germans also like Tuscany, and it is their third favourite destination in Italy. Germans tend to spend more than other nationalities on their Italian property – the Italian villas bought by them cost an average of €398,000.
Italy has a lower rate of taxation than other countries in Europe. There is no inheritance tax or wealth tax in Italy. There is no capital gains tax either, if the property has been held for more than 5 years.