The Italian real estate market
“After 10 years of significant run-up in prices in major markets and sought-after country properties, prices now have leveled,” according to Carroll. Properties in both rural and urban areas can prove profitable, though Property-Abroad.com states that properties in rural regions of Italy have been especially popular in recent years.
Apartments are a popular choice when purchasing property in one of the larger cities, such as Rome or Milan. Apartments in areas such as Sardinia, Venice, Sicily, Milan and Florence are all popular among foreign investors, according to Property-Abroad.com. For those looking to cash in on the tourist industry, Carroll said that areas such as Sicily, Puglia and Campania are particularly attractive for investment.
Cost varies by location. Prices in Milan range anywhere from €8,000 per square meter for a city apartment to €24,000 per square meter for a penthouse with luxuries such as a terrace and swimming pool, according to a report from real estate agents Immobiliare Terelli & Partners. In Sicily “[p]rices, which have been rising as much as 20 percent a year, still seem reasonable, especially to north Europeans but even to Italians from Milan and Turin,” according to The International Herald Tribune. “Country and town properties are available for as little as €60,000, though for a building of particular architectural interest the starting price is nearer €250,000.”
In upcoming years, “[f]ocus will be on adding value—refurbishing, renegotiation of lease contracts, etc.—to existing portfolios rather than on new investments as these will make more economic sense,” according to Carroll. Pessi, on the other hand, believes that the future of the property market is still too hard to predict in the wake of the subprime crisis. Investors would be wise to proceed with caution, keeping an eye on the market, and perhaps put more energy into upgrading and renting a few properties rather than purchasing an abundance of homes.
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