Investing in real estate in Italy: What opportunities?

Investing in real estate in Italy

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Investing in real estate in Italy: What opportunities?

The idea of investing in real estate in Italy has interested local and foreign players for so many years.

If you plan to invest in Italy, you will find some useful information below.

  • Why invest in Italian real estate?
  • How to choose a property in Italy?
  • In which city to invest in Italy?
  • The actual purchase of real estate in Italy
  • Why invest in Italian real estate?

As one of the 27 countries of the European Union and enjoying several geographical, economic and cultural assets, Italy offers many opportunities for real estate investment. Specifically, the country is located in the southwest of the Old Continent, it is home to several prestigious cities such as Rome and Milan. Its Mediterranean coasts, its vast plains and its mountains with high peaks make Italy a tourist and industrial country of great importance. A geographical contrast that rhymes with a wide variety of climates.

In terms of statistics, the Italian real estate market posted prices oscillating between 1,870 and 1,898 € per m² in 2018. In the city center, this price can reach 3,550 euros/m². But the more the city has tourist and/or economic interest, the higher the price displayed. This is particularly the example of Milan, which experienced a 20% increase in the same year. For the city of Florence, prices are around 4000 euros per m². This value can reach 10,000 euros in Venice as in the city of Doges.

How to choose a property in Italy?

It is not wise to base your intention to invest in real estate in Italy on aesthetics. A house or an apartment can indeed hide unpleasant surprises for its new buyer. This explains why it is necessary to check the Italian law governing real estate transactions before paying the euro cent. Also in this checklist, it is your responsibility to ensure the regularity of construction or ownership.

The purchase option through a company also requires an economic valuation of the property. Indeed, the foreign investor could inherit a house in bankruptcy and will be registered in the register of creditors of the bankruptcy at the same time. You should also not underestimate the presence of a mortgage before the purchase process is initiated. The same applies to debts to the building which would generate a possible recourse against the buyer in the future.

In which city to invest in Italy?

We know that each Italian region has its own share of attractive natural surroundings, cultural heritage, historical sites and delicious food and wine. Here are the Top 4 Investing in real estate in Italy:

1. Rome

Rome, the capital, logically lends itself to a rental investment in Italy. Rich in history, vestiges and luxury neighborhoods, this city has great potential when it comes to real estate. Its city center, for example, is full of Baroque and Renaissance buildings housing several luxurious apartments and penthouses. The city of Milan is also not to be outdone given its status as the economic capital of Italy. As fashion and design are associated with it, the “new Rome” displays a very particular boom in terms of real estate.

Collage Rome
Photos: Roma view from the air, Castel Sant’Angelo, Piazza della repubblica Roma, The dome of St. Peter’s Basilica in Rome (Italy), Trevi fountain in Rome and The Monument to Vittorio Emanuele II. Oliver-Bonjoch, Andreas Tille, Pasgabriele, NormanB, Ra Boe, Roberto Larcher, collection by DaniDF1995, CC BY-SA 3.0, via Wikimedia Commons

2. Milano

Investing in property in Italy is a very lucrative business provided you find the right market. The city of Milan stands out from other cities by its status and by the significant growth of its real estate market. Indeed, the locality also known as “the new Rome” is the economic capital of Italy.

For some years now, the real estate market in Milan has been experiencing a favorable trend again after the housing crisis that has shaken many cities in the country. Prices are still falling and offer many favorable opportunities for rental investments. The most prominent areas include the city center and dynamic neighborhoods such as universities and other amenities.

3. Florence

Florence, renowned for its art and architecture, would not go unnoticed by lovers of beautiful homes. As the footprints of great artists such as Leonardo da Vinci and Michelangelo are visible there, you will quickly fall under its spell. In addition, the city of Lucca and its ruins of a Roman amphitheater could charm investors wanting to escape the din of big cities or those interested in the idea of buying a holiday home in Italy.

4. Naples

The Neapolitan capital is a city with great economic potential throughout Italy. It is therefore not surprising to see a high concentration of investors in this locality of the country. Naples is known to everyone as a city with a thriving real estate market.

This area is indeed not lacking in real estate to buy. Investing in the real estate sector in this city is therefore a very attractive investment. The rental component of this city still holds enormous opportunities for investors.

To invest in real estate in Italy, it is best to choose cities such as Rome, Milan, Florence and Naples. Other cities such as Verona or Palermo are also very promising markets.

Read also: Property Buying Procedures In France

A recovering market

Good news for buyers, after a sharp decline, it seems that for the past few months, the general trend has been rather stabilizing. A good window of opportunity therefore opens to materialize an acquisition project. According to the Italian site, Idealista: “Forecasts for the Italian real estate market 2023
We are currently observing positive forecasts for the Italian real estate market, although declining for 2023, with +6.5 per cent to 148 billion euros (2nd place among the top 5 European real estate markets)“.

Read also: Property Buying Procedures In Spain

The actual purchase of real estate in Italy

Your decision to invest in real estate in Italy requires, first of all, a collection of information. To start, you can either do research on the internet or contact an Italian or Franco-Italian real estate agency. This will certainly pave the way for data such as the types of real estate, the market price or even the tax advantages linked to real estate investment in the Boot.

Then come the legal and administrative procedures to conclude the purchase itself. They consist in particular of an offer to block the price, a verification of the existence of mortgages and also the signing of the contract. Payment of a deposit is usually required at this stage. It will be followed by the signing of the deed of sale and the registration of the latter at the Uffico dell’agenzia del terrotorio.

Why invest in Italian real estate?

Italy has significant tourism potential. Italy is the 5th most visited country? 65 million tourists per year (2019) according to ISTAT

In recent years, real estate investments have once again become attractive to investors who are looking for lower prices and ever higher annual returns.

Photo credit: user32212 via Pixabay

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Discover our best opportunities internationally. Which property to invest or to rent?

Investing abroad, a long-term strategy in an increasingly international market. You can use our online property portal around the world. We come back to this sentence: “But you have to visit the property to buy! It all depends on whether it is a rental investment, a main, secondary, student residence, etc. Buyers do not need the same information depending on their type of purchase.

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