How the pandemic affects the real estate market in Italy
After the quarantine, the real estate sector in Italy remains one of the most stable areas of the economy
The pandemic caused a crisis in the country’s economy: in 2020 there has been a record decline in GDP in the last 25 years. The flow of tourists and their income has stopped, domestic demand has decreased, exports and imports have decreased. In all this disaster, the Italian real estate market looks like a serene island: it remains one of the most stable in Europe.
- What has changed in the real estate market in Italy after the quarantine
- Impact of COVID-19 on properties for sale in Italy
- The future of the Italian real estate market
What has changed in the real estate market in Italy after the quarantine
Many residents have lost their jobs and other income, this could only affect the sector. Some families who wanted to buy real estate were forced to postpone it to a better time, while those interested in selling their property are more willing to make concessions to buyers.
The experts predicted a fall in prices of up to 20% due to the decline in the purchasing power of Italians. However, the price of real estate declined not so significantly and not in all regions. The cost of Italian houses and apartments varies greatly from region to region. Within the region, the price varies depending on the province and the municipality. It is influenced by the distance from the sea, the age of the building and the presence of developed infrastructure.
Properties in the regions of Tuscany and Liguria are in great demand and particularly appreciated by foreign buyers. The prices decrease during the pandemic did not have an impact on expensive and high-level buildings.
Impact of COVID-19 on properties for sale in Italy
To answer the question "How did coronavirus affect the choice of accommodation in Italy?" having regard to the price dynamics in the market.
The analysis of the real estate section shows that in March 2020, in full pandemic, the value was growing:
|
Property |
Change March 2020 |
Change beginning year 2020 |
|
Apartments |
+8.66 % |
+7.03 % |
|
Villas |
+31.48 % |
+28.2 % |
In April 2020 prices decreased slightly:
|
Property |
Change April 2020 |
Change beginning year 2020 |
|
Apartments |
+0.01 % |
+7.04 % |
|
Villas |
-6.15 % |
+20.32 % |
This situation continued until July 2020, then growth was gradual:
|
Property |
Change July 2020 |
Change beginning year 2020 |
|
Apartments |
+4.7 % |
+14.62 % |
|
Villas |
+11.91 % |
+32.38 % |
According to the latest figures, in August the price of the apartments fell, while the cost of the villas remained unchanged.
|
Property |
Change August 2020 |
Change beginning year 2020 |
|
Apartments |
-8.33 % |
+5.08 % |
|
Villas |
-0.07 % |
+32.28 % |
Prestigious properties, such as villas, penthouses and apartments, remain attractive to European, Russian and American foreigners. This means that high-level properties in Italy are still profitable investments. If the properties did not drop in price during such a global disaster, their value will continue to rise.
This prosperity of the Italian luxury real estate market is due to its uniqueness. There is not a second Tower of Pisa, neither a second coast comparable to Liguria. Nowhere in the world you can find villas built in 1600 with sea views. Climate, nature, culture, history, infrastructure: all this benefits the many Italian luxury properties.
Russian customers account from 40% up to 70% of all buyers in the Italian real estate market. Buyers from Russian gives priority to the wide structure and areas of the property, such as spacious rooms, a front entrance, a convenient parking and a large garden with swimming pool.
In conclusion, we can say that now is the right time to buy major luxury properties in Italy. Moreover, a large discount of 20-30% can only be obtained in case of urgent sale of expensive properties. At the same time, when you buy a property in Italy, you can rest assured about the security of the investment, as the property will not lose value over time.
The future of the Italian real estate market
With the pandemic going on, it’s hard to forecast the future. One thing is certain: there is no mention of a 40-50% price reduction; the exclusivity of the Italian market does not allow a price reduction of more than 10-15%, in very rare cases up to 20%.
It can also be assumed that those who reside in apartments, during quarantine have reflected to change their property to another larger and spacious, such as villas with large outdoor spaces. It will probably increase the demands for real estate units.
The italian real estate agents note that many clients choose a virtual tour within the properties to get a better idea of what it is. Therefore, the pandemic by COVID-19 did not prevent foreigners from buying properties in Italy.
Broker Immobiliare Exclusive Real Estate is a real estate agency in Italy which works with clients from all over Europe, Russia, America and many other international countries. We are ready to select properties that fully meet your request and needs, as well as to arrange support for the purchase transaction at all stages. Contact us by email, phone or social network and we will recommend the best property for you!
