Despite a slight drop in prices in most of the well-known areas (on average -5 to -10% according to various sources) and a sharp drop in property transactions in the first half of 2012 (with peaks of over 30%, mostly in the second home market) Italy remains one of the main European markets for the purchase of luxury real estate mainly thanks to its beautiful locations, great lifestyle, important cultural and artistic heritage and excellent climate.
Photo Credit: Bertl123 / Shutterstock
However, taken as a whole, the property market in Italy has not fully evolved the way it has in other developed countries and therefore it is not easy to find professionals who are qualified in all of the stages of buying (or selling) a property . In fact, while there has been a proliferation in the number of agents directly involved in the property market, some it should be noted are less qualified and less professional, other industry professionals, predominantly surveyors and buying agents, are still very difficult to find.
In addition the market is also not very transparent which brings about uncertainty when determining the prices of luxury properties (for many reasons the most difficult ones to value). Up until a few years ago the reported prices were unreliable due to a significant amount of tax evasion and, although this situation is now changing, it is still difficult to obtain exact sale prices of properties and it is practically impossible to correlate these with the main qualitative and quantitative parameters on which prices are determined (position, luminosity, architectural characteristics etc…).
Te Atrium has decided to create this guide to collect together the best advice for anyone who has decided to buy a luxury property in Italy. The guide is divided into several sections and follows the entire buying process with some suggestions specifically tailored to foreign buyers, from whom we receive a high number of enquiries.
Choosing the location
Before beginning to look for properties, it is a good idea to define the characteristics of the location where you want to buy, especially as Italy offers a huge selection of locations which are all very different from one another. The property type can also vary greatly over the distance of just a few kilometers. For example compare the narrow spaces and the terraced, multilevel houses of Portofino and the Ligurian Riviera with the spacious villas near the sandy beaches of Forte dei Marmi and Versilia, or, also in Tuscany, the difference between the countryside locations of Chianti and the Val d’Orcia and the coastal areas of Castiglione della Pescaia or Argentario. There are numerous similar examples throughout the country.
The foreigners who buy property in Italy are generally in the market for a second home or are looking for a particular type of ‘Italian lifestyle’. However there is also the possibility of buying property for purely investment purposes, especially over the coming years following the market correction, and with a potentially strong rental market it will be possible to obtain yields which are higher than past averages (rather low and about 3-3.5% for Italian luxury properties). In this case the main areas to consider are the central areas of Milan and Rome (in that order) which offer a more dynamic and liquid market (with more sales) as well as a low-risk investment profile.
Here is a list of the areas that are most popular with foreign buyers who are looking to buy a second home in Italy:
- Renowned seaside locations such as Capri, Positano and the Amalfi Coast, the Aeolians and other Sicilian islands, Argentario, Forte dei Marmi, Portofino, Santa Margherita and Cinqueterre, Gargano, Salento, Porto Cervo, Porto Rotondo and the Costa Smeralda.
- The historic centres of the main art cities such as Rome, Florence and Venice as well as smaller towns, particularly in Tuscany and Umbria such as Siena, Arezzo, Pisa, Lucca, San Gimignano, Pienza, Cortona, Perugia, Spoleto, Assisi, Gubbio, Todi and Orvieto.
- Countryside locations, mainly in Tuscany (Maremma and Chianti) and Umbria but also in Le Marche, the Veneto and to a lesser extent Abruzzo and Piedmont, especially in the wine-growing areas.
- The lakes, in particular Lake Como and Lake Garda followed by Lake Maggiore and the lakes in central Italy such as Lake Trasimeno.
One of the main qualities of Italy is that there is a high concentration of luxury locations and each town or city is just a short drive from many other renowned areas.
Wherever you decide to buy, before beginning the buying process it is recommended that you visit the area at least a couple of times to establish the pros and cons, look at the types of properties available and make note of the lifestyle and traditions of each place. In Italy there are many hidden treasures and discovering them plays a part in lifestyle of the Italians.
Other than considering the intrinsic geographical characteristics of the place, you should also ask yourself the following questions:
- Would you prefer to buy in a place where there are other foreigners?
- Do you feel comfortable in this locations? Who else lives there?
- How easy is it to reach the main airports?
- Would you prefer a particularly private location?
- How much outside space (garden, swimming pool, parking etc) do you need?
- What type of amenities (restaurants, shops, bars) are in the area?
- If you have children, which recreational facilities or activities are available?
Remember that if you decide to live in a remote area you will have to learn Italian as in Italy the knowledge of foreign languages is still rather limited.
Photo Credit: Lucarelli Temistocle / Shutterstock
Beginning the search
Once you have identified the area where you want to buy, it becomes much easier to search for your ideal property. Here are some suggestions that you should take into consideration at the beginning of your search:
Start your search online: The majority of luxury properties on the market can be found on the internet and are sold through estate agents. Compared to other markets the commission required by the agencies is rather high so quite a high percentage of properties are sold by private individuals without the help of estate agents.
Take a look at the properties currently sold by our trusted Partners on www.teatrium.net
Contact more than one agency: A certain percentage of properties are exclusive to one agency so it makes sense to contact more than one agent in order to see more available properties in the area you have selected.
Off-market transactions: For reasons of privacy or security some properties are not visible online. Some of these off-market transactions are managed by agencies while others are looked after by different types of professionals or private individuals. On average about 30-40% of transactions take place off-market although this figure depends on the area and the cost of the property.
In the second half of 2012 Te Atrium will introduce a platform which is completely dedicated to private transactions. Register on our site to find out when it is launched.
Choosing properties: Aside from showcasing the most exclusive properties on the market, Te Atrium can also access an unparalleled network of contacts in all of the areas where the portal is active. For this reason our Property Scouting Service can select all the best properties for you and provide you with invaluable information for your search.
Consider hiring a buying agent: if you are based abroad or have little spare time it may be difficult for you to visit the properties and remain in regular contact with agents. It might make sense to hire a buying agent who, aside from saving you time, can also aid you in the process of assessing the property and negotiating the sale. If you decide to follow this path we advise you to choose an agent who has a good knowledge of the local market and one with whom you have a good, trusting relationship. Unfortunately this is not always easy as there are very few buying agents in Italy and some of them are not properly qualified.
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